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