Government Relations Update from KBA
02/26/2021Some questions have been raised as to why we don't think that the “business reason” carve out in HB175 protects the financial institutions.
The bill says that you are committing a “discriminatory act” unless it is because of a business reason. That is a formula for a lawsuit. That subjects your decisions to the oversight of a court that may not understand or agree with your interpretation of the rules and regulations that you are subjected to. This then puts you in the position of arguing compliance with a regulator because of a court case. In some cases, you may cease doing business with a person or company because of SARs. You cannot even disclose this to the customer as your business reason.
This bill is an attempt to make a Second Amendment message, but it throws financial institutions under the bus while doing so—what’s next, telling farmers that they are required to farm marijuana if medical marijuana is passed, even if they have their fields already planned.
At the end of the day it is unfair, inequitable and against all principals of a free market economy to MANDATE who we do business with.
Your KBA Legislative Team