Committee agrees to report firearms industry nondiscrimination bill after proponents cite economic gains

The Senate Banking and Insurance Committee agreed, by voice vote, to report Senate Bill 776, the Firearms Industry Nondiscrimination Act, to the full Senate with a recommendation that it pass; under the bill's original double-reference the measure will first be referred to the Committee on the Judiciary.

Counsel described the bill as creating a new article in Chapter 5A of the Department of Administration code that would bar the executive branch and political subdivisions from contracting with financial institutions that discriminate against "firearm entity" or "firearm trade association," subject to narrow exceptions. Counsel said the definition of "financial institution" references federal law and is very broad, potentially covering banks, credit unions, brokers, insurers, payment processors and other businesses listed in federal definitions.

Jason Webb of the National Shooting Sports Foundation testified that the bill does not force financial institutions to make loans that fail normal underwriting standards, saying, "that's a legitimate business purpose. You could deny anyone that doesn't meet the collateral capital financial all those things absolutely." Webb and Taylor McKee of the National Rifle Association argued the measure protects firearm-related businesses from being cut off from banking, payment processing and other central services and cited economic-development examples from other states.

Webb referenced Georgia's experience, telling the committee that in the last five years "13 companies have located, or expanded in the state of Georgia, investing $213,000,000 and created 2,175 jobs," and said states including Alabama, Georgia, Florida, Montana, Texas, Utah and Wyoming have passed similar nondiscrimination laws.

Counsel noted the bill provides private remedies, including actions for actual and compensatory damages, punitive damages, injunctive relief and attorney's fees for prevailing plaintiffs; it also authorizes the attorney general to pursue civil actions and to recommend termination of state business relationships with violating financial institutions. Counsel said there is a secondary reference to the Committee on the Judiciary and that a statute-of-limitations provision is included.

After hearing testimony from industry witnesses, the committee adopted the motion to report the bill to the full Senate with the recommendation that it pass; that motion also directed the bill to the Committee on the Judiciary as originally ordered. The committee took no amendments during its consideration.