A #California Bill Would Pull State Business From Banks That Work With Gun Manufacturers

California lawmakers have proposed a bill that would prohibit state business from banks that work with gun manufacturers, the latest attempt by antigun activists to exert pressure on the financial sector.

State senator Dave Min, who has previously written numerous anti-gun bills, crafted this law. It is part of a nationwide effort by groups such as Guns Down America to target consumer banks that provide financing to the firearm industry.

Background

California lawmakers are considering a bill that would restrict state business from banks that partner with firearm manufacturers in the most extreme manner, reflecting an increasing concern among states about this sector of manufacturing. A study from the University of Pennsylvania and Federal Reserve Bank of New York finds that Texas laws restricting public contracts to companies who don't discriminate against firearms may have cost taxpayers over $532 million due to these restrictions.

California lawmakers could do the same thing with less fuss and red tape if they passed a more modest-sized bill. Its creator, retired Marine Colonel Craig Tucker, who has been active in Orange County's court system for years, spearheaded the initiative. Notable supporters include former Democratic governor Bill Lockyer - an outspoken opponent of assault weapons bans - as well as Orange County Chief of Staff Jim Mora who has attended many state legislature sessions over decades.

Issues

California senators are considering legislation that would prohibit banks that work with gun makers from issuing state bonds or underwriting municipal projects. If passed, this legislation, introduced by a Democrat, could have significant repercussions for the $4 trillion municipal bond market.

California lawmakers are taking the fight to Wall Street in a similar way Texas did when it passed its Firearm Industry Nondiscrimination Act in 2021, prohibiting banks such as Citigroup and Goldman Sachs Group from underwriting any government contracts in Texas since that law went into effect.

According to the Orange County Breeze, a bill introduced Thursday by California senator Dave Min would do just that - impacting every aspect of state finances including municipal bonds, capital projects and the state debt portfolio. SB 637 was introduced by Democratic Senator Dave Min from Costa Mesa and requires any bank or lender in California that doesn't abide by California's mandate that those companies refrain from doing business with law abiding firearm manufacturers.

Operation Choke Point, the illegal coercion by the Department of Justice and Federal Deposit Insurance Corporation to discriminate against law-abiding, creditworthy firearm manufacturers and businesses--which comprise a Constitutionally protected industry--would become law if passed into law in California. This radical effort could easily be replicated elsewhere as other states look to take on banking institutions and beyond. Moreover, this bill offers liberals an opportunity to use California's economic might as leverage in higher office.

Impact

California legislation could soon prohibit banks from doing business with gun makers.

It's no surprise that guns have been a hot topic for some time now. With two mass shootings in California and an uptick of school shootings across America, politicians and lobbyists alike have taken notice. The state legislative branch is working hard to find ways to curb gun violence without jeopardizing public safety or job creation - and a new law was proposed this week in the state senate that could go a long way towards doing just that.

Conclusions

Gavin Newsom, California's new Democratic governor, championed several high-profile measures to position California as a leader on abortion access and climate change. But not every bill passed muster through the crowded legislative process as campaigns intensified and sessions ended.

Last week, a bill introduced in the state Senate would prohibit banks that do business with firearms from working on state-funded projects such as municipal bonds and capital projects. If passed, this move could have major repercussions for one of the largest segments of the $4 trillion municipal bond market - gun makers.