|  | 
         
            |  | 
         
            |  | 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. |