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