On Tuesday, the Arizona Senate Appropriations Committee passed HB2473, a bill which prohibits a public entity from doing business with a business that discriminates against a firearm business. The bill’s sponsor, Rep. Frank Carroll, assured his fellow lawmakers that the bill was necessary.
All session long, lawmakers who want to oppose bills have fallen back on the argument that the legislation is not needed. This is especially the case on bills related to election integrity.
Carroll got out ahead of those claims and offered witnesses to testify that, in fact, the owners of firearm businesses are experiencing discrimination by banks.
Tim Lowney, Vice President of Operations for Ruger, a popular gun manufacturer, testified that his company has experienced discrimination by banks and anticipates problems with discrimination in the future.
“We have over 400 employees that are citizens of Arizona, they make a living working at our factory, they support their families, and they support the local economies. We have an example of discrimination from the banking industry. We had a relationship with Bank of America for decades and their predecessor banks. A couple years ago they told us they would no longer do business with us because we were in the firearms industry. We were able to find another bank, but now that bank is starting to say the same thing,” began Lowney.
“It was not based on any banking risks,” explained Lowney referring to the bank’s decision to cut ties. “We have a very strong balance sheet. We have virtually zero debt. People – our suppliers – want to do business with us because we pay our bills on time. We pay our taxes. So, we are for this bill.”
Lowney was asked if he knew of any other companies in the firearm industry in Arizona that are experiencing the same discrimination.
“I don’t know specifically, but our salespeople tell us that dealers are suffering the same fate and it’s much more critical to a dealer because you know, unlike us with a sound balance sheet, they need that capital to run their business,” answered Lowney.
The effort to shutdown gun sales began during the Obama Administration with an initiative called Operation Chokepoint. In that case, the Federal Deposit Insurance Corporation (FDIC) and Department of Justice (DOJ) stopped financial institutions from offering services to some regulated industries in an attempt to choke off banking services, according NSSF, the firearm industry trade association.
The NSSF says that the FDIC categorized federally licensed firearm retailers and other companies in the firearm and ammunition industry – “some of the most heavily regulated businesses in the country – as risky businesses without any evidence or justification. Due to this deliberate action on the part of the Obama administration, some banks have ended relationships with legal and legitimate companies solely based on social and political views.”
Operation Chokepoint ended, but according to NSSF and testimony heard in Committee, the banks continue to discriminate against the firearms industry.
Carroll’s legislation is similar to legislation signed by Texas Governor Greg Abbott in 2021 and similar legislation is being considered in other state capitols.
The concept behind the bill is that government should not tell companies with whom they must do business, but can decide who it does business with when it spends taxpayer money. The bill’s supporters say the legislation “ensures corporations cannot benefit from contracts and subcontracts funded by taxpayers only to use their financial strength to unfairly discriminate against the firearm industry.’
Supporters of the bill like NSSF argue that “corporations have engaged in “boardroom gun control” to force firearm businesses to adopt measures that would restrict Americans’ Second Amendment rights.” They say that corporations are “free to hold anti-Second Amendment policies if they choose but would forfeit access to compete for Arizona contracts.”
Texas Republican Governor Greg Abbott signed a similar law in Texas in 2021 and similar legislation is being considered in other state capitols. Congressman Bergman’s legislation would bring those same fair business protections to the federal government to ensure corporate entities are not forcing policies that deny American civil liberties through the benefit of taxpayer-funded federal contracts.
The bill passed along party lines.