Texas Senate Bill 19 Government Procurement Implications: Navigating State Regulations on Business Firearms Policies – Government, Public Sector


United States: Texas Senate Bill 19 Government Procurement Implications: Navigating State Regulations on Company Firearms Policies

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As of September 1, 2021, Texas Senate Bill 19 prohibits government entities from entering into contracts with companies that have policies that restrict doing business with the firearms industry. The bill specifically targets banks and other financial institutions who have at least ten employees and are looking for government contracts of at least $ 100,000. Under the bill, these institutions are required to provide written evidence that they do not have any practices, policies, guidelines or guidelines that “discriminate” against any firearms entity or trade association. .

In 2018, several banks announced policies placing restrictions on the gun industry after a shooting at Marjory Stoneman Douglas High School in Parkland, Florida. For example, Citigroup announced that it would ban retailer customers of the bank from offering large caliber inventory or selling firearms to people who have not passed a background check or who have less. twenty-one years old. That same year, Bank of America announced that it would stop making new loans to companies that make military-style rifles for civilian use. These policies will likely trigger enforcement of the bill, and both institutions risk losing government procurement opportunities in Texas.

Given the scope of Texas Senate Bill 19, companies with environmental, social, and governance (“ESG”) policies should be especially mindful of the implications of the new government procurement legislation. ESG policies often limit participation in the firearms industry and would “discriminate” against specialized firearms entities, so the application of Texas Senate Bill 19 would be likely. Ultimately, the bill is one of many approaches to regulating ESG policies at the state level, and companies should expect similar measures in the future.

To remember : Companies with ESG policies should assess the impact of Texas Senate Bill 19 on their government procurement opportunities, and should expect and prepare for increased state regulation of company firearms policies. .

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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