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ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
firearms; contracts; prohibited practices
Purpose
Subject to voter approval, statutorily prohibits a public entity from entering into a contract with a value of $100,000 or more with a company to acquire or dispose of services, supplies, information technology or construction unless the contract includes a written certification that the company does not currently, and will not, discriminate against a firearm entity or firearm trade association.
Background
Current statute prohibits a public entity from entering into a contract with a value of $100,000 or more with a company to acquire or dispose of services, supplies, information technology or construction unless the contract includes a written certification that the company is not currently engaged in, and agrees for the duration of the contract to not engage in, a boycott of goods or services from Israel. A public entity may not adopt a procurement, investment or other policy that induces or requires a person or company to boycott Israel (A.R.S. § 35-393.01).
Statute also prohibits public entities from entering into or renewing a contract with a company to acquire or dispose of services, supplies, information technology, goods or construction unless the contract includes a written certification that the company does not currently, and agrees for the duration of the contract that it will not, use: 1) the forced labor of ethnic Uyghurs in the People's Republic of China; 2) any goods or services produced by the forced labor of ethnic Uyghurs in the People's Republic of China; or 3) any contractors, subcontractors or suppliers that use the forced labor or any goods or services produced by the forced labor of ethnic Uyghurs in the People's Republic of China (A.R.S. § 35-394).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
2. Specifies that a public entity complies with the prescribed written certification requirement by including a written certification that was submitted by the company as a part of the procurement process.
3. Prohibits a public entity from adopting a procurement, an investment or any other policy that has the effect of inducing or requiring a person or company to discriminate against a firearm entity or firearm trade association.
4. Exempts a contract entered into by a public entity from the prescribed written certification requirement if either:
a) the contract is a sole source contract; or
b) the public entity does not receive a responsive bid from any company that is able to provide the written certification.
5. Specifies that the prescribed written certification requirement does not apply to a contract entered into before the effective date of this legislation.
6. Repeals, on January 1, 2033, the prohibition on a public entity entering into a contract with a value of $100,000 or more with a company unless the contract includes the prescribed written certification.
7. Defines ammunition as a loaded cartridge or shotshell, case, wad, primer, projectile or propellant powder.
8. Defines company as an organization, association, corporation, partnership, joint venture, limited partnership, limited liability partnership, limited liability company or other entity or business association, including a wholly owned subsidiary, majority-owned subsidiary, parent company or affiliate, that engages in for-profit activity and that has 10 or more full-time employees.
9. Defines discriminate as refusing to engage in trading goods or services with a firearm entity or firearm trade association, refraining from continuing an existing business relationship or terminating an existing business relationship with a firearm entity or firearm trade association based solely on its status as a firearm entity or firearm trade association.
10. Excludes from the definition of discriminate:
a) following the established policies of a merchant, retail seller or platform that restricts or prohibits the advertising, listing or selling of ammunition, firearms or firearms accessories; or
b) refusing to engage in trading goods or services, refraining from continuing an existing business relationship or terminating an existing business relationship in order to comply with a federal, state or local law, policy, rule or regulation or for any traditional business reason that is specific to the firearm entity or firearm trade association but is not based solely on its status as a firearm entity or firearm trade association.
11. Defines firearm as a weapon that expels a projectile by the action of an explosive or expanding gases.
12. Defines firearm accessory as:
a) a device that is specifically designed or adapted to enable a person to wear or carry a firearm on the person or to store or mount a firearm in or on a conveyance; or
b) an attachment or device, including a detachable magazine, that is specifically designed or adapted to be inserted into or affixed onto a firearm to enable, alter or improve the functioning or capabilities of the firearm.
13. Defines firearm entity as either:
a) a firearm, firearm accessory or ammunition manufacturer, retailer, wholesaler, supplier or distributor; or
b) an indoor or outdoor shooting range.
14. Defines firearm trade association as any person, corporation, unincorporated association, federation, business league or professional or business organization that:
a) is not organized or operated for profit and for which no part of its net earning inures to the benefit of any private shareholder or individual;
b) is a 501(c)(6) organization and is exempt from taxation under federal law; and
c) has two or more members who are firearm, firearm accessory or ammunition manufacturers or sellers.
15. Defines public entity as the State of Arizona, a political subdivision of Arizona or an agency, board, commission or department except a political subdivision that operates a federal reclamation project.
16. Requires the Secretary of State to submit the proposition to the voters at the next general election.
17. Becomes effective if approved by the voters and on proclamation of the Governor.
Prepared by Senate Research
January 22, 2024
ZD/SB/cs