Colorado ammo magazine maker Magpul threatens to leave state over gun bill

Colorado’s largest and most profitable manufacturer of high-capacity ammunition magazines has vowed to leave the state if lawmakers pass a measure banning the devices — a move officials with the company say could cost hundreds of jobs and upward of $85 million in potential spending this year.

Magpul’s threat has Democratic lawmakers scrambling to strike a balance that remains true to their goal of limiting the number of rounds a magazine can hold without frightening off businesses.

“If we’re able to stay in Colorado and manufacture a product, but law-abiding citizens of the state were unable to purchase the product, customers around the state and the nation would boycott us for remaining here,” said Doug Smith, Magpul’s chief operating officer. “Staying here would hurt our business.”

House Bill 1224 bans individuals from possessing high-capacity ammunition magazines of more than 15 rounds — an amendment earlier in the week raised this number from 10 rounds — but allows manufacturers to stay in Colorado and produce the devices.

Mandate “burdensome”

Under the legislation, manufacturers would be required to engrave each magazine with a serial number and date upon which it was produced — something Smith called “burdensome and unnecessary.”

“None of this helps protect people,” said Smith, who added that only if the Democrat-sponsored bill fails to pass the legislature would the company stay in Colorado.

State Rep. Daniel Kagan, D-Cherry Hills Village, said he plans to offer an amendment Friday that seeks to soften the bill’s impact on magazine makers in the state.

“It needs to be clear that manufacturers will be able to still sell and transfer these high-capacity magazines to individuals in other states, the U.S. military and law enforcement,” Kagan said. “We want them (Magpul) to stay here in Colorado. It would be sad to see them leave.”

State Rep. Joe Salazar, D-Thornton, agrees with Kagan and insists state lawmakers are still giving the Erie-based company an option to do business in Colorado.

“It’s imperative to keep jobs here,” Salazar said.

Still, neither Kagan or Salazar said they would be willing to vote against the bill banning high-capacity ammunition magazines in an effort to keep Magpul in Colorado.

“We will leave if it passes,” Smith said.

State Democrats hold a 37-28 majority in the House and a 20-15 majority in the Senate, but not all Democrats are on board with the bill — nor is the party unified on other gun-control proposals.

Meanwhile, Democratic Gov. John Hickenlooper, known to be pro-business, found himself meeting with Magpul officials to discuss the party’s bill Thursday.

The company this year enlisted RD Sewald, a former Hickenlooper top adviser, to lobby against bans on high-capacity magazines.

“They (lawmakers) might end up having to compromise” on the magazine bill, Hickenlooper said Thursday. He also expressed support for the effort to limit the magazines.

“Democrats are caught on the horns of a tough dilemma with this one,” said Bob Loevy, a professor emeritus of political science at Colorado College. “Clearly there’s going to be unintended consequences that have Democrats taking the blame for putting a small dent in the state’s economy if the company does in fact leave.”

Established in Colorado in 1999, Magpul says it employs more than 200 people at its manufacturing and shipping headquarters, while there are another 400 employees of subcontractors that work with the company throughout the state.

$85 million at stake

In addition to a wide array of gun-magazine products, the privately-held Magpul makes many other products, including cases for mobile phones and tactical sights for firearms. This year, the company says it expects to spend upward of $85 million in Colorado alone on employee payroll, manufacturing subcontractors, suppliers and service providers.

Smith said much of Magpul’s business comes from out-of-state sales, contracts with the U.S. military, and with local and national law enforcement.

In committee testimony earlier in the week, several opponents to the measure said Democrats are being hypocritical.

“On one end they’re saying we want the jobs and revenue from producing these magazines, but on the other end, they’re saying, if you live in Colorado, then you can’t possess one,” said Lee Reedy a resident of Brighton.

Andy Molchan, director of the National Association of Federally Licensed Firearms Dealers, said Magpul is right to leave Colorado.

“It’s almost like a symbolic move,” Molchan said. “Why would they stay and do business in a state that doesn’t allow people to have their products?”