By Larry Keane
Texas Lawyer Normal Ken Paxton is bringing new that means to the phrase “Don’t Mess With Texas.” This time, it’s aimed toward huge banks and he’s bought Austin metropolis officers in his sights.
AG Paxton is warning Austin metropolis officers that they’re in violation of the state’s Firearm Trade Nondiscrimination (FIND Act). That’s SB 19, which Gov. Greg Abbott signed into legislation in 2021. The legislation prevents “woke” firms from taking advantage of Texas tax {dollars} and utilizing these income to fund efforts to disclaim those self same taxpayers their Second Modification rights. The state’s high legislation enforcement officer is warning the town that it ran afoul of the legislation when it entered into contracts with a financial institution referred to as WEX Financial institution that discriminates in opposition to members of the firearm trade.
AG Paxton despatched Austin officers a letter stating that WEX Financial institution discriminates in opposition to firearm companies, referring to a June 2, 2021, debanking of Protection Options Group (DSG), a army and legislation enforcement supplier specializing in high-end tools. AG Paxton mentioned WEX Financial institution terminated their providers with DSG, finally inflicting the enterprise to shutter, in line with media stories.
AG Paxton wrote that the violation may simply be an oversight, for the reason that NSSF-supported Texas FIND Act took impact shortly earlier than the contract was signed. Nonetheless, he’s urging metropolis officers to amend their contract with the financial institution to incorporate FIND Act provisions or terminate it altogether.
He mentioned if the town doesn’t observe via, authorized motion may observe.
Implement the Regulation
That is the first-known risk of litigation of the Texas FIND Act, and an extended overdue however welcome maneuver from the firearm trade’s perspective. Legal guidelines solely imply one thing when elected officers truly implement them. There are 11 states with related legal guidelines on the books and laws is pending in Congress to do the identical. Imposing this legislation exhibits that People’ Second Modification rights aren’t on the market to the very best bidder – or on this case – to the bottom bidder for government-funded bonds. There’s no higher place for that last stand than the Lone Star State.
In any case, that is the state the place Texas volunteers flew a “Come and Take It” flag on the battle at Gonzalez, Texas. These Texans later stood their floor in opposition to Normal Antonio López de Santa Anna and his overwhelming military at The Alamo in San Antonio earlier than he was lastly defeated on the Battle of San Jacinto. Texas takes gun possession severely.
NSSF has been doggedly persistent in getting FIND Act laws handed in states and launched in Congress. The Texas legislation, although, was the one which lastly made banks sit up and take discover that in the event that they have been going to discriminate in opposition to firearm companies, they’d forfeit taxpayer-funded state contracts. That interprets to billions in misplaced income.
What FIND Act Does
The Texas FIND Act requires firms, together with huge banks, to certify that they don’t maintain discriminatory insurance policies in opposition to firearm companies in the event that they need to compete for municipal contracts. In 2023, AG Paxton confirmed the company banks he meant enterprise.
AG Paxton’s workplace decided in 2023 that Citigroup did, in actual fact, maintain discriminatory insurance policies in opposition to firearm-related companies, regardless of their self-certification that they didn’t. That transfer barred from Citigroup from competing to underwrite $3.4 billion in state bonds. Citigroup had, in actual fact, adopted a coverage of refusing to do enterprise with entities that offered Trendy Sporting Rifles (MSRs) with out enacting a self-imposed age-based gun ban for adults beneath 21 and people companies that offered standard-capacity magazines. Citigroup just lately dropped their discriminatory insurance policies after it turned clear that “woke” enterprise insurance policies have been hurting companies throughout the board and President Donald Trump excoriated Financial institution of America CEO Brian Moynihan whereas talking on the World Financial Discussion board 2025 in Davos, Switzerland, earlier this 12 months. His remarks included J.P. Morgan Chase for his or her discriminatory insurance policies too.
“You and Jamie [J.P. Morgan Chase CEO Jamie Dimon] and everyone else, I hope you begin opening your banks to conservatives,” President Trump mentioned immediately to Moynihan. “What you’re doing is mistaken.”
Earlier this month, Citigroup introduced it was dropping its coverage of refusing to do enterprise with firearm trade members. NSSF is cautiously optimistic however remains to be ready to see proof of that reversal.
The firearm trade applauds AG Paxton’s enforcement of the FIND Act. Denying firearm-related companies important banking providers is breach of public belief. In any case, these massive company banks don’t simply prosper via taxpayer-funded contracts to construct roads, faculties and airports, in addition they get pleasure from taxpayer-funded protections via the Federal Deposit Insurance coverage Company (FDIC). These “too huge to fail” banks have been bailed out by American taxpayers to the tune of over $498 billion, solely to see those self same banks dry up the companies that enable those self same People to train their Second Modification rights.
Company banks shouldn’t be deciding public coverage from an nameless boardroom. And in the event that they proceed to disclaim enterprise primarily based on “woke” insurance policies, the legislation provides taxpayers, via their elected officers, a proper to decide on the place their tax {dollars} will go in terms of municipal contracts.
Larry Keane is Senior Vice President of Authorities and Public Affairs and Normal Counsel for the Nationwide Capturing Sports activities Basis, the firearms trade commerce affiliation.
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