Magpul Gets Millions In Incentives To Leave Colorado

[angka]

Source: Colorado Pols

Erie-based Magpul originally vowed to leave the state during debate over last year's House Bill 1224–legislation limiting the capacity of magazines sold in Colorado to 15 rounds. Their threat to leave was originally a negotiating chip for Republican opponents of the law, but became a retaliatory act once the bill was signed into law. Months dragged on, leading to news reports noting their lack of action to move out of Colorado as threatened. It's worth restating that nothing in House Bill 1224 prevents the manufacture of high capacity magazines in Colorado, only their retail sale to the general public. But Magpul, unlike their defenders in the legislature, was always honest about the fact that they were leaving the state to "defend principle"–not for any real economic reason created by the state's new gun safety laws.

Well, folks, as it turns out, there is an economic motive–but the Denver Post curiously omitted it.

"Randy Bruns, CEO of Cheyenne’s economic development organization, said it is working with Magpul on a financial package that could include up to $13 million in state grants and loans to help the company move to Cheyenne."

For Magpul, the passage of House Bill 1224 was an opportunity, not a crisis. Our understanding is that this company is no stranger to taxpayer-funded business incentives. And now, with the pretext of "defending principle" in hand, Magpul is leaving Colorado to custom build a new 100,000-square-foot manufacturing plant in Cheyenne with millions of dollars in Wyoming state grants and loans. Apparently they're going to get more taxpayer money from Texas Gov. Rick Perry to build a corporate headquarters in north Texas.

Read more: http://coloradopols.com/diary/52961/magpul-gets-millions-in-incentives-to-leave-colorado

[benld74]

1. Another corporation welfare queen is created

[Journeyman]

2. de Tocqueville wrote that democracy would last until the people realized . . .

they could vote themselves money.

Critics of the "welfare state" point to abuses by individuals as evidence for this happening today. I see Corporate whores with briefcases open for payouts, paybacks, and simple sordid bribes as a clearer indicator of the old Frenchman's prescience.

[Hassin Bin Sober]

10. I like Bernie Sanders' idea of removing federal funds from states...

... that pilfer other states' business with massive tax breaks.

Especially for the red state welfare teet suckers like Wyoming who receive more federal funds than they pay in.

[jsr]

32. That is an excellent idea.

[warrant46]

3. For sale to the highest Bidder

[DeSwiss]

4. So each Wyomingian......

...every man woman and child will end up paying $22.31 to this one company so they can come to their state and make supplies for serial killers.

- How nice.

$13,000,000 / 582,658 = $22.31

K&R

[hack89]

6. Colorado was more than happy for them to stay and continue to make supplies for serial killers

"High cap mags are a danger to public safety so you can only sell them in other states. And please don't forget to send your quarterly sales tax check to us."

[reACTIONary]

7. I suspect...

...that the state could not prohibit the manufacture for sale in other states under the commerce clause:

"A state may not prohibit the entry of a foreign corporation into its territory for the purpose of engaging in foreign or interstate commerce, nor can it impose conditions or restrictions on the conduct of foreign or interstate business by such corporations. When intrastate business is involved, it may do so."

http://legal-dictionary.thefreedictionary.com/Commerce+Clause

[hack89]

11. So the end result was pure politic theater

The citizens of CO can keep all pre-ban magazines and since magazines do not have a date of manufacture stamp, there is no way for the cops to identify an illegal post ban magazine purchased across state lines.

Care to explain how this makes anyone safer?

[reACTIONary]

12. No, the end result is increased public safety...

... because there will be fewer high capacity magazines in CO.

But, for the reason you state, it is true that such bans will become more effective as more and more states implement them. And most effective once the federal government starts to do so.

[hack89]

13. When anyone that wants one can easily get one

With a little effort explain to me how a potential mass shooter is stopped by this law? A characteristic of mass shooters is their obsessive planning - you really think they are not willing to drive a couple of hours to a neighboring

[reACTIONary]

14. I bet you are one of those folks that think...

... airport security is ineffective because it "all it does" is requires terrorists to go to greater lengths than they ordinarily would.

Since they are obsessive planners, heck, let's just make it easy for them.

[hack89]

15. If security theater makes you feel safe then so be it

if you think that forcing someone to drive a hour or two is an effective deterrent to mass shootings then there is not much left.to.be said.

[reACTIONary]

16. So be it! (nt)

[S_B_Jackson]

17. How will this law decrease the number of high capacity magazines?

I don't see many additional states or the federal government implementing similar bans. And how would this law prevent someone living in Rocky Ford from driving to a brick & mortar store or gunshow in Taos, NM, pick up as many high-capacity magazines as they wish and returning home? (or in Fort Collins, driving to Cheyenne, WY for the same purpose?)

[reACTIONary]

18. If you increase the cost of something...

...you diminish the demand and decrease the supply. Having to drive out of state to obtain a banned item increases its cost and thus will decrease the number in CO.

[hack89]

19. Would that matter to a crazy person planning a mass shooting?

I suspect not.

[reACTIONary]

20. I suspect...

http://www.democraticunderground.com/1014687752#post14

[hack89]

21. No in other words. Nt

[reACTIONary]

23. In one word, yes...

... hindrances and obstacles that affect and deter everyone hinder and obstruct the crazies as well.

And as these laws become more and more pervasive, they will become more and more effective.

[hack89]

24. But they will not become pervasive

There were several lessons learned in CO - the political ones were noticed by every Dem politician in America.

Similar legislation died a quiet death in my state of RI - there was no public support for it. And RI is a blue state.

[reACTIONary]

25. Sure. Good luck with that...

.... I looked into the bill's exact provisions and I'd say it is a good model for other states.

A large-capacity magazine that is manufactured in Colorado on or
after the effective date of the bill must include a serial number and the date upon which the large-capacity magazine was manufactured or assembled. The serial number and date must be legibly and conspicuously engraved or cast upon the outer surface of the large-capacity magazine. The Colorado bureau of investigation may promulgate rules that may require a large-capacity magazine that is manufactured on or after the effective date of the bill to bear identifying information in addition to the serial number and date of assembly.

Looks like they were "gunning" to make it hot for Magpul. Good!

http://www.leg.state.co.us/clics/clics2013a/csl.nsf/fsbillcont2/7E6713B015E62E6F87257B0100813CB5/$FILE/1224_rer.pdf

[hack89]

26. Except the states are not lining up to pass such laws

Do you think for a second that all those red states that have been relaxing their gun laws are going to do a 180 and start emulating CO? Let me remind you once again that not even a blue state like Rhode Island was willing to pass stricter gun laws post Sandy Hook.

Do you understand that CO is awash with high capacity mags and that law will not take a singke mag off the streets.

[Duckhunter935]

28. sometimes I think some here think

that all of the magazines already produced go "poof" just disappear or maybe they are consumed when used and do not last basically forever if maintained.

[reACTIONary]

31. Sure. So...

...who is buying all the new ones that are being manufactured and sold? With them lasting forever and there being tens and hundreds of bazillions of them, who would bother to manufacture and distribute them?

[Duckhunter935]

27. dont see that happening

and with tens of millions of 20 and 30 round magazines with no date of manufacture out there cost will not go up. I would be very surprised if more states impose more bans like this. At least the company followed through on there threat but I assume the stste will not feel to bad as the pot tax comes in.

[reACTIONary]

30. The cost will defiently go up...

...because buying, selling, transferring, and importing them will be illegal. The act of deliberately breaking the law is a cost, a very high cost, that few are willing to pay. Those that do have no self respect or honor. A very high price indeed.

[razorman]

5. Big deal. This has been a common practice since forever.

Whenever a state or locality wants to attract a company to establish a facility in their area, they may offer tax incentives, cheap land, right-of-way access, etc. As far as I know, none of this is illegal.

[Hassin Bin Sober]

9. Thanks, captain obvious. But you miss the point.

(apologies to DU's Captain Obvious)

[Duckhunter935]

29. what that

Colorado did not want there business and tax revenue and enacted laws that the company disagreed with. The company said they would move and they were offered tax incentive to move like any other company? Happens all the time. Big time recruiting of firearms companies to move from Connecticut going on now.

For Some Gun Makers, Moving Lock, Stock and Barrel

PTR is packing up its cutting machines and moving its work force of 50 to South Carolina, saying that tough new state gun laws enacted after the school shooting in nearby Newtown made it too risky to keep doing business in Connecticut.

Similar new laws in Maryland prompted Beretta to call off plans to add jobs locally, and the company is now completing plans to expand in a more gun-friendly state.

Kahr Firearms Group, a pistol and rifle maker based less than an hour’s drive north of Manhattan in Rockland County, N.Y., is moving across the border to Pennsylvania.

“We don’t feel welcome,” said Frank Harris, vice president for sales and marketing at Kahr. In Pennsylvania, he said: “All the people we were dealing with on the town level were hunters and comfortable with firearms. We were received with open arms.”

http://www.nytimes.com/2013/08/06/business/wooed-by-gun-friendly-states-some-manufacturers-pull-up-stakes.html?_r=0

[ileus]

8. My old company took advantage of this back in the early 90's

And established in a plant that my mom worked in back in the 70's. Production was soon moved to that plant (engineering remained in VA) and my mother retired in the same plant she started her career in.

Now they have three plants in the same town...jobs and careers that actually mean something.

[Mr.Bill]

22. I would imagine most Magpul employees

voted against the magazine ban. And now they have been rewarded by their company by having to move to another state or lose their jobs. What a nice company.