87R22359 MWC-F
By: Schwertner, et al. S.B. No. 19
(Capriglione)
Substitute the following for S.B. No. 19: No.
A BILL TO BE ENTITLED
AN ACT
relating to prohibited contracts with companies that discriminate
against the firearm or ammunition industries.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle F, Title 10, Government Code, is
amended by adding Chapter 2274 to read as follows:
CHAPTER 2274. PROHIBITION ON CONTRACTS WITH COMPANIES THAT
DISCRIMINATE AGAINST FIREARM AND AMMUNITION INDUSTRIES
Sec. 2274.001. DEFINITIONS. In this chapter:
(1) "Ammunition" means a loaded cartridge case,
primer, bullet, or propellant powder with or without a projectile.
(2) "Company" means a for-profit organization,
association, corporation, partnership, joint venture, limited
partnership, limited liability partnership, or limited liability
company, including a wholly owned subsidiary, majority-owned
subsidiary, parent company, or affiliate of those entities or
associations that exists to make a profit.
(3) "Discriminate against a firearm entity or firearm
trade association":
(A) means, with respect to the entity or
association, to:
(i) refuse to engage in the trade of any
goods or services;
(ii) refrain from continuing an existing
business relationship;
(iii) terminate an existing business
relationship; or
(iv) otherwise express a prejudice against
the entity or association; and
(B) does not include the established policies of
a merchant, retail seller, or platform that restrict or prohibit
the listing or selling of ammunition, firearms, or firearm
accessories.
(4) "Firearm" means a weapon that expels a projectile
by the action of explosive or expanding gases.
(5) "Firearm accessory" means a device specifically
designed or adapted to enable an individual to wear, carry, store,
or mount a 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.
(6) "Firearm entity" means:
(A) a firearm, firearm accessory, or ammunition
manufacturer, distributor, wholesaler, supplier, or retailer; and
(B) a sport shooting range as defined by Section
250.001, Local Government Code.
(7) "Firearm trade association" means any person,
corporation, unincorporated association, federation, business
league, or business organization that:
(A) is not organized or operated for profit and
for which none of its net earnings inures to the 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
Section 501(a), Internal Revenue Code of 1986, as an organization
described by Section 501(c) of that code.
(8) "Governmental entity" has the meaning assigned by
Section 2251.001.
Sec. 2274.002. PROVISION REQUIRED IN CONTRACT. (a) This
section applies only to a contract to be paid partly or wholly from
public funds between a governmental entity and a company with at
least 10 full-time employees that has a value of at least $100,000.
(b) Except as provided by Section 2274.003, 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 based solely on its status as 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
based solely on its status as a firearm entity or firearm trade
association.
Sec. 2274.003. CERTAIN CONTRACTS EXEMPTED. (a) A contract
entered into in connection with or relating to the issuance, sale,
or delivery of notes under Subchapter H, Chapter 404, or the
administration of matters related to the notes, including the
investment of note proceeds, is exempt from this chapter if, in the
comptroller's sole discretion, the comptroller determines that
compliance with Section 2274.002 is likely to prevent:
(1) an issuance, sale, or delivery that is sufficient
to address the general revenue cash flow shortfall forecast; or
(2) the administration of matters related to the
notes.
(b) Before making a determination under Subsection (a), the
comptroller must:
(1) survey potential respondents or bidders to a
solicitation for a contract described by Subsection (a) to
determine the number of qualified potential respondents or bidders
that are able to provide the written verification required by
Section 2274.002; and
(2) evaluate the historical bidding performance of
qualified potential bidders.
SECTION 2. The change in law made by this Act applies only
to a contract entered into on or after the effective date of this
Act. A contract entered into before the effective date of this Act
is governed by the law as it existed immediately before the
effective date of this Act, and that law is continued in effect for
that purpose.
SECTION 3. This Act takes effect September 1, 2021.