ENGR. H. B. NO. 2218 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ENGROSSED HOUSE BILL NO. 2218 By: West (Kevin) of the House and Bergstrom of the Senate An Act relating to firearms; defining terms; specifying types of entities that must compl y with certain contractual requirements; prohibiting governmental entities from contracting with companies under certain circumstances; stating specifics of written verification; providing an exception for specific governmental entities; requiring the Director of the Office of Management and Enter prise Services to provide oversight and advice to governmental entities; providing for codification; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. NEW LAW A new secti on of law to be codified in the Oklahoma Statutes as Section 1289.31 of Title 21, unless there is created a duplication in numbering, reads as follows: A. As used in this section: 1. "Ammunition" means a loaded cartridge or shot shell, case, primer, projectile, wadding, or propellant powder; 2. "Company" means a for-profit organization, association, corporation, partnership, joint venture, limited partnership, limited liability partnership , or limited liability com pany, ENGR. H. B. NO. 2218 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 including a wholly owned subsidiar y, majority-owned subsidiary, parent company, or an affiliate of those entities or associations that exists to make a profit. The term does not include a sole proprietorship; 3. "Contract" means a promise or set of promises constituting an agreement between the parties that gives each a legal duty to the other and also the right to see k a remedy for the breach of those duties, but does not include an agreement relat ed to investment services; 4. "Discriminate against a firearm entity or firearm trade association" means, with respect to the entity or association, to: a. refuse to engage in the trade of a ny goods or services with the entity or association based solely on its status as a firearm entity or fire arm trade association, which includes the lawful products and services and lawful practices provided by the firearm entity or firearm trade associatio n, b. refrain from continuing an existing business relationship with the entity or association based solely on its status as a firearm entity or firearm trade association, which includes the lawful products and services and lawful practices provided by the firearm entity or firearm trade association , or ENGR. H. B. NO. 2218 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 c. terminate an existing business relationship with the entity or association based solely on its status as a firearm entity or firearm trade association, which includes the lawful products and serv ices and lawful practices provided by the firearm entity or firearm trade association. The term does not include the policies of a vendor, merchant, retail seller, or platform that restrict or prohibit the listing or selling of ammunition, firea rms, or firearm accessories. The term also does not include a company 's refusal to engage in the trade of any goods or services, deci sion to refrain from continuing an existing business relationship, or decision to terminate an existing business relationship to comply with federal, state, or local laws, policies, or regulations or a directive by a regulatory agency, or for any traditional business reason that is specific to t he customer or potential customer and not based solely on the status of an entity or association as a firearm entity or firearm trade association, which includes the lawful products and serv ices and lawful practices provided by the firearm entity or firearm trade association; 5. "Firearm" means a weapon that expels a projectile by the action of explosive or expanding gases; 6. "Firearm accessory" means a device specifically designed or adapted to enable an indiv idual to wear, carry, store, or mount a ENGR. H. B. NO. 2218 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 firearm on the individual or on a conveyance and an item used in conjunction with or mounted on a firearm that is not essential to the basic function of the firearm. The term includes a detachable firearm magazine; 7. "Firearm entity" means: a. a firearm, firearm accessory or ammunition manufacturer, distributor, wholesaler, supplier, or retailer, and b. a gun range; 8. "Firearm trade association " means any person, corporation, unincorporated association, federatio n, business league, or business organization that: a. is not organized or operated for profit and for which none of its net earnings inures to th e benefit of any private shareholder or individual, b. has two or more firearm entities as members, and c. is exempt from federal income taxation under Sec tion 501(a), Internal Revenue Code of 1986, as an organization described by Section 501(c) of that co de; 9. "Governmental entity" means any branch, department, agency, or instrumentality of state government, or any official or other person acting under co lor of state law, or any political subdivision of this state; and ENGR. H. B. NO. 2218 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 10. "Sole-source provider" means a supplier who provides goods or services of a unique nature or goods or services that are solely available through the supplier and the supplier is the onl y practicable source to provide such goods or services. B. The provisions of this section shall appl y only to a contract that: 1. Is between a governmental entity and a company with at least ten (10) full-time employees; and 2. Has a value of at least O ne Hundred Thousand Dollars ($100,000.00) that is paid wholly or partly from public funds of the governmental entity. C. Except as provid ed by subsection D of this section, a governmental entity may not enter into a contract with a company for the purchase of goods or services unless the contract contains a written verification from the company that it: 1. Does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association; and 2. Will not discriminate during the term of the contract against a firearm entity or firearm trade association. D. The provisions of subsection C of thi s section shall not apply to a governmental entity that: 1. Contracts with a sole-source provider; or ENGR. H. B. NO. 2218 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. Does not receive a bid from a company that is able to provide the written verification required by subsection C of this section. E. The Central Purchasing Division of the Office of Management and Enterprise Services shall have the authority and responsibility of reviewing state governmental contracts to confirm that the required documents of subsection C of this section have been provided. F. A government entity shall utilize its current methods of processing and analyzing the provisions within a contractual agreement and shall con firm that the required written verification, provided for in subsection C of this section, has been included a nd made a part of the contractual agreement. G. The provisions of this section shall only apply to financial institutions that have Fifty Billion Dollars ($50,000,000,000.00) or more in assets. SECTION 2. This act shall become effective November 1, 2023. ENGR. H. B. NO. 2218 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Passed the House of Representatives the 22nd day of March, 2023. Presiding Officer of the House of Representatives Passed the Senate the ___ day of __________, 2023. Presiding Officer of the Senate