By: Troxclair H.B. No. 3539
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the establishment and administration of a state
  ammunition manufacturing facility; granting rulemaking authority.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle F, Title 4, Government Code, is amended
  by adding Chapter 490J to read as follows:
  CHAPTER 490J.  TEXAS AMMUNITION MANUFACTURING FACILITY
  SUBCHAPTER A.  ESTABLISHMENT AND ADMINISTRATION OF TEXAS AMMUNITION
  MANUFACTURING FACILITY
         Sec. 490J.001.  DEFINITIONS. In this chapter:
               (1)  "Ammunition" means a combination of projectiles,
  cartridges, primers and propellants fired from a handgun or rifle.
               (2)  "Facility operator" means a person selected under
  Section 490J.002(d) to operate the facility.
         Sec. 490J.002.  TEXAS AMMUNITION MAUFACTURING FACILITY. (a)
  The Texas Ammunition Manufacturing Facility is established as an
  agency of this state within the Department of Public Safety.
         (b)  The facility is established to manufacture quality
  ammunition for use by law enforcement for training and to ensure
  public safety and the general public for recreational shooting,
  hunting, self-defense and all other legal purposes as protected by
  the Second Amendment to the United States Constitution.
         (c)  The department shall have broad authority under this
  chapter and shall exercise close supervision over the facility to
  promote and ensure integrity, security, honesty, and fairness in
  the operation of the facility.
         (d)  The department may contract with or employ a person to
  perform a function, activity, or service in connection with the
  facility as necessary to implement this chapter, including but not
  limited to the construction and operation of the facility.
         Sec. 490J.003.  POWERS AND DUTIES. (a)  The facility
  operator has the powers necessary to carry out the duties of this
  chapter including the power to enter into contracts and other
  necessary instruments.
         (b)  The facility operator shall manufacture quality
  ammunition to be sold to law enforcement agencies at a reasonable
  price.
         (c)  The facility operator shall sell ammunition to
  ammunition wholesalers and retailers at a reasonable price.
         (d)  The facility operator may sell component parts of
  ammunition to other ammunition manufacturers domiciled in Texas,
  including projectiles, cartridges, primers and propellants.
         (e)  The facility operator may print the state seal, state
  arms, or the state flag on packaging for ammunition manufactured by
  the facility.
         (f)  All ammunition manufactured by the facility must
  contain the words "Made in Texas" on the packaging.
         Sec. 490J.004.  CERTAIN ACTIONS PROHIBITED. The facility
  may not take any of the following actions:
               (1)  sell ammunition manufactured by the facility or
  any component parts directly to consumers;
               (2)  sell ammunition or any component parts to foreign
  countries.
         Sec. 490J.005.  RULEMAKING. The department may adopt rules
  as necessary to implement this chapter.
         Sec. 490J.006.  TAXES. Ammunition sold by the facility to
  law enforcement agencies in Texas is not subject to state or local
  sales and use tax.
         Sec. 490J.007.  ANNUAL REPORT. The department shall submit
  to the governor and the legislature a report on the status,
  condition, operations, and prospects for the facility each year not
  later than December 1st.
         SECTION 2.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2023.