S.B. No. 19
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. The term does not
include a sole proprietorship.
(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 with the entity or association based solely on its
status as a firearm entity or firearm trade association;
(ii) 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; or
(iii) terminate an existing business
relationship with the entity or association based solely on its
status as a firearm entity or firearm trade association; and
(B) does not include:
(i) the established policies of a merchant,
retail seller, or platform that restrict or prohibit the listing or
selling of ammunition, firearms, or firearm accessories; and
(ii) a company's refusal to engage in the
trade of any goods or services, decision to refrain from continuing
an existing business relationship, or decision to terminate an
existing business relationship:
(aa) to comply with federal, state, or
local law, policy, or regulations or a directive by a regulatory
agency; or
(bb) for any traditional business
reason that is specific to the customer or potential customer and
not based solely on an entity's or association's status as a firearm
entity or firearm trade association.
(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 that:
(1) is between a governmental entity and a company
with at least 10 full-time employees; and
(2) has a value of at least $100,000 that is paid
wholly or partly from public funds of the governmental entity.
(b) Except as provided by Subsection (c) and 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; and
(2) will not discriminate during the term of the
contract against a firearm entity or firearm trade association.
(c) Subsection (b) does not apply to a governmental entity
that:
(1) contracts with a sole-source provider; or
(2) does not receive any bids from a company that is
able to provide the written verification required by that
subsection.
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.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 19 passed the Senate on
April 15, 2021, by the following vote: Yeas 18, Nays 12; and that
the Senate concurred in House amendments on May 28, 2021, by the
following vote: Yeas 19, Nays 12.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 19 passed the House, with
amendments, on May 13, 2021, by the following vote: Yeas 86,
Nays 60, one present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor