AG Paxton threatens suit against Austin over 'anti-gun' bank contract
WASHINGTON, DC - ARPIL 26: Texas Attorney General Ken Paxton speaks to reporters after the Supreme Court oral arguments in the Biden v. Texas case at the Supreme Court on Capitol Hill on Tuesday, April 26, 2022 in Washington, DC. (Photo by Sarah Silb
AUSTIN - Texas Attorney General Ken Paxton is threatening legal action against the City of Austin for a contract they hold with a bank he refers to as "anti-gun."
According to the state official, the city is violating the law by engaging with a company that discriminates against the firearms industry.
Paxton Says Austin Violates State Law
Paxton filed a letter on Monday threatening legal action against the city for their contract with WEX Bank. The contract, which the city entered into on Sept. 11, 2021, violates Senate Bill 19, which went into effect on Sept. 1, 2021.
The bill prohibits contracts over $100,000 between government agencies and companies that discriminate against the firearm or ammunition industries.
Paxton’s letter says that WEX Bank is a company that does just that, referring to a June 2, 2021, debanking of Defense Solutions Group (DSG), a military and law enforcement provider specializing in high-end equipment. Paxton said WEX Bank terminated their services with DSG, ultimately causing the group to close their doors.
Paxton notes that the violation may have been a mere oversight, considering the short time frame between the law’s effectiveness and the contract’s undertaking, but urges that the city amend their contract with the bank to include the SB 19 provision or terminate it altogether.
If the city fails to do either, Paxton threatens legal action.
What they're saying:
In a Wednesday press release relating to the letter, Paxton said the following:
"In flagrant violation of its legal obligations, the City of Austin is sending millions of taxpayer dollars to companies that openly discriminate against the constitutionally protected firearms industry. The City of Austin does not get to pick and choose which laws it will follow, and I will take every measure to enforce Texas law."
What's next:
Paxton’s letter says the city has until July 16 to either amend or terminate the contract before legal action is taken.
The Source: Information in this report comes from the Texas Attorney General's Office.