The state will also apply pressure to banks that continue to do business with them.
Governor Phil Murphy signed an executive order mandating the measures, some of the strictest in the country, at an 11 a.m. news conference in Morristown.
"New Jersey has committed to a whole-of-government approach to tackle gun violence," Murphy said. "I have signed comprehensive, commonsense gun safety and gun-violence intervention legislation, and now, under this executive order, my administration is committed to making our communities safer by aiming to do business with gun dealers that have adopted best practices to reduce gun violence. We want those who do business with New Jersey to share our values and be committed to ending the scourge of gun violence in our communities."
Watch: Gov. Murphy's press conference:
The administration will cut off business with manufacturers and retailers who do not conduct background checks, look into histories of mental illness or convictions involving domestic abuse, or other red flags.
Beside background checks, the state will also not do business with retailers that do not have policies prohibiting firearm sales to people with a history of mental illness or convictions involving domestic abuse, among other thigns.
Among the directives, the executive order states:
--The Division of Purchase and Property is to issue a request, within 30 days, to all retail dealers or manufacturers of firearms that currently sell ammunition and/or firearms to the State to ascertain whether vendor practices, where applicable, adhere to the applicable public safety principles related to firearms listed in the order.
--Upon receipt of information from such retailers and manufacturers, the Division of Purchase and Property shall determine whether and how to ensure that any prospective bid solicitation for ammunition and firearms include a requirement that each vendor, prior to award, certify adherence to public safety principles relating to firearms as defined in this order.
--The Treasurer is instructed to issue a request, within 30 days, to financial institutions providing services to the Department of Treasury, or any of its divisions, offices or agencies, to disclose whether such institutions have adopted any code of conduct or principles related to gun safety or responsible sales of firearms.
--The Commissioner of Banking and Insurance, within 30 days, is instructed to take all appropriate action within her authority to prohibit and/or limit the sale, procurement, marketing, or distribution of insurance products that may serve to encourage the improper use of firearms.
The order will take effect immediately.
The state estimates it spends more than $70 million a year on guns, ammunition and supplies. The executive order would cover all law enforcement agencies in the state. The state estimates it pays more than $1 billion in bank fees.
The governor hopes the measures quickly take hold and prompt other states to do the same, in the face of mass shootings across the country.
New Jersey already has some of the strictest gun laws in the country.
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