By: Flores	S.B. No. 1851

	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.
	Sec. 490J.008.  USE OF SALES AND USE TAX FUNDS. All sales
	and use tax revenue generated by this chapter shall be dedicated to
	programs for law enforcement training, school safety and border
	security.
	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.