CEO DATELINE - Association pushes state laws to shield gun companies from discrimination
CEO DATELINE - Association pushes state laws to shield gun companies from discrimination
- March 28, 2016 |
- Walt Williams
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At least four states have taken up model legislation pushed by the National Shooting Sports Foundation that would prevent companies from discriminating against firearms manufacturers and sellers.
The Firearms Industry Nondiscrimination Act would ban banks, insurance companies and other institutions from denying service to gunmakers and gun store owners simply because of the nature of their business. NSSF is urging states to adopt the law, and so far lawmakers in Kansas, Georgia, Missouri and Alabama have introduced bills to put it into effect.
The proposed law is in large part a response to Operation Choke Point, a U.S. Department of Justice program that investigated financial institutions that did business with companies believed to be at higher risk of fraud. Critics alleged the program was being used by the Obama administration to intimidate industries it didn't like—such as the gun industry.
The Justice Department and Federal Deposit Insurance Corporation have since launched investigations into whether Operation Choke Point was being using improperly.
NSSF and other firearms industry supporters contend gun businesses have faced discrimination in the past and need the protection the proposed law would provide. However, financial institutions generally oppose the bills. On its website, the Credit Union National Association said the bills place "the burden on credit unions and other financial institutions to prove that they were not discriminating against firearm and ammunition businesses, even if the reason for refusal to serve is due to field of membership or member business lending constraints."
So far no states have adopted the law.
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