Bill Text: TX SB19 | 2021-2022 | 87th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to prohibited contracts with companies that discriminate against the firearm or ammunition industries.

Spectrum: Partisan Bill (Republican 25-0)

Status: (Passed) 2021-06-14 - Effective on 9/1/21 [SB19 Detail]

Download: Texas-2021-SB19-Comm_Sub.html
  87R22359 MWC-F
  By: Schwertner, et al. S.B. No. 19
  Substitute the following for S.B. No. 19:  No.
  relating to prohibited contracts with companies that discriminate
  against the firearm or ammunition industries.
         SECTION 1.  Subtitle F, Title 10, Government Code, is
  amended by adding Chapter 2274 to read as follows:
         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
               (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;
                     (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
         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
         (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.