Found it. This seems to be much broader than I had envisioned. I think this should be reworded to cover raw material procurement, or the courts may not rule in the state's favor.
It sounds like the intent is for any firearm "manufactured" in the state. The state AG will also defend any Texas citizen against any federal attempts to prosecute.
LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
April 25, 2009 FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB1863 by Berman (Relating to exempting the intrastate manufacture of a firearm, a firearm accessory, or ammunition from federal regulation.), As Introduced
TO: Honorable Tommy Merritt, Chair, House Committee on Public Safety
No significant fiscal implication to the State is anticipated.
The bill would amend statute and exempt the intrastate manufacture of a firearm, a firearm accessory, or ammunition from federal regulation. In particular, a firearm, firearm accessory or ammunition manufactured in Texas that remains within the borders of Texas and has not traveled in interstate commerce would not be subject to federal law or federal regulation, including registration. The bill also provides that the Office of the Attorney General (OAG) shall defend a Texas citizen whom the federal government attempts to prosecute for violation of federal law. The OAG anticipates any legal work resulting from the passage of this bill could be reasonably absorbed with current resources.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:302 Office of the Attorney General LBB Staff: JOB, ESi, JM