Oklahoma Legislature takes aim at big banks in pro-gun bill | The Journal Record

OKLAHOMA CITY – Bond points for municipalities all through Oklahoma may turn out to be costlier because of new laws that may prohibit banks which have “anti-gun” insurance policies from contracting with the state.

That’s all proper with the invoice’s Senate creator, who considers these elevated prices as the worth of defending Second Modification rights.

Home 3144, by state Rep. Kevin West, R-Moore, and state Sen. Casey Murdock, R-Felt, is patterned after a invoice handed in Texas final yr. It handed the Senate with a vote of 37 to eight and is headed to Gov. Kevin Stitt’s desk to be signed into regulation.

The record of banks to which HB 3144 would apply contains the most important banks within the nation: JPMorgan Chase, Financial institution of America, Citigroup, PNC and Goldman Sachs, in addition to PayPal and Basic Electrical Credit score Union.

“In the present day the firearm trade is being attacked and discriminated towards,” Murdock mentioned as he introduced the measure earlier than the state Senate on Wednesday. “These mainly New York Metropolis woke banks have insurance policies that state if a gun producer manufactures high-capacity magazines they won’t mortgage them cash, if a enterprise sells lengthy rifles to anybody beneath 21 they won’t mortgage them cash. This invoice merely states that if in case you have these insurance policies the state of Oklahoma won’t do enterprise along with your firm.”

State Sen. Julia Kirt, D-Oklahoma Metropolis, famous that the invoice doesn’t simply apply to the state’s capacity to contract, however to all political subdivisions throughout the state, together with cities, counties and native water boards.

“There’s additionally concern in regards to the municipal bond market,” Kirt mentioned. “Our municipalities rely upon bonds, our faculty boards rely upon bonds. If we exclude a few of the largest issuers of bonds we’re going to extend prices.”

Murdock couldn’t supply an estimate as to how a lot it might price Oklahomans to enact this coverage, however he did current an instance from Louisiana, which handed related laws. A $42.5 million bond challenge wound up costing Louisianans an extra $63,999 as a result of that they had to make use of a neighborhood financial institution as an alternative of the massive banks included on the record.

“However is our freedoms on the market?” Murdock mentioned.

“I’m not keen to submit my district to that type of loss,” mentioned state Sen. Kay Floyd, D-Oklahoma Metropolis.

State Sen. Rob Standridge, R-Norman, claimed the invoice would spur financial growth by encouraging the usage of native Oklahoma banks. Murdock mentioned he hoped the measure would entice a gun producer to the state, noting that a number of gun producers lately have moved from the Northeast a part of the nation to Southern states.

HB 3144 applies not solely to banking establishments, but additionally prohibits the state from contracting with any firm that gives items or companies until the contract comprises a written verification from the corporate that it doesn’t discriminate towards the firearm trade.

Floyd questioned if the worldwide producer (considered Panasonic) that lawmakers final week approved large tax incentives to draw has been vetted to make sure it has no insurance policies that may prohibit the corporate from contracting with the state. Murdock mentioned he was not aware of the main points of that deal and didn’t know.

Murdock claimed Texas has skilled no opposed results from passing the regulation, and truly noticed a rise in bond exercise after the invoice was handed.

Kirt challenged that assertion, claiming Texas’ lawyer common and treasury officers are having a tough time figuring out compliance.

Contemplating that Oklahoma lawmakers lately handed a measure to ban contracts with corporations that discriminate towards the oil and gasoline trade, Kirt mentioned the state is making compliance so tough some corporations will merely select to not work with the state.

“It undermines free market and it’s going to exclude us from getting the capital we want on this state moreover sending the mistaken message to the remainder of the nation,” Kirt mentioned.

The measure additionally creates uncertainty for the banking trade, mentioned state Sen. Michael Brooks, D-Oklahoma Metropolis. Banks would possibly flip down a gun producer for a mortgage as a result of they assess the danger of loaning to a gun producer as too excessive, or the corporate’s financials don’t meet the financial institution’s requirements to qualify for a mortgage.

The invoice permits a financial institution to show down a mortgage for “any conventional enterprise cause” supplied that cause is just not solely primarily based on the truth that the enterprise is a part of the firearms trade, Murdock mentioned.

State Sen. Mary Boren, D-Norman, mentioned the invoice begins the state on “this unending slippery slope” of “utilizing the state authorities to select and select winners within the market relating to our temperament our tradition and our local weather.”

Following a collection of mass shootings in 2018 and 2019, JPMorgan Chase, Financial institution of America and different banks introduced insurance policies limiting their dealings with the firearms trade.

Texas-based debtors offered greater than $58 billion in bonds throughout 2020 – essentially the most of any state after California – in response to knowledge compiled by Bloomberg.

Citigroup was the most important underwriter of Texas municipal gross sales in 2020, underwriting an estimated $6.3 billion in long-term gross sales. In November 2021, Citigroup introduced it was ready to restart its public-finance enterprise in Texas after halting the operations after the Texas invoice handed, having sorted out compliance points with the state.