Senate Bill No. 500 establishes new regulations regarding contracts between governmental entities and companies in relation to firearms. The bill defines key terms such as "ammunition," "firearm," "firearm entity," and "governmental entity," and prohibits governmental entities from entering into contracts with companies unless those contracts include written verification that the company does not discriminate against firearm entities or firearm trade associations. Exceptions are provided for contracts with sole-source providers or when no bids are received from compliant companies. The bill also specifies that these requirements apply only to contracts valued at $100,000 or more and involving companies with at least ten full-time employees.

Additionally, the bill assigns oversight responsibilities to the Purchasing Division of the Office of Management and Enterprise Services to ensure compliance with the new contract requirements. The act is set to take effect on November 1, 2025.