Gov. Phil Murphy on Tuesday once again tightened New Jersey’s already tough gun-control policies, this time putting pressure on firearm makers and dealers, as well as banks who work with them, to embrace gun safety — or risk losing the state’s business.

The Democratic governor signed an executive order that requires gun manufacturers and retailers that do business with the state’s government — such as selling firearms and ammunition to law enforcement like the State Police — to adopt safety protocols to make sure the weapons don’t fall into dangerous hands.

Murphy’s administration said New Jersey is the first state in the U.S. to institute such a policy.

Murphy said the state will stop buying guns from companies that don’t conduct proper background checks or allow people who should not own firearms to obtain them, such as those with mental illness or a history of domestic violence.

The order also calls on banks and other financial institutions that do business with both the state and gun makers and dealers to adhere to similar principles.

In addition, the state will bar or limit insurance companies from offering policies that “encourage irresponsible gun use," Murphy said.

In essence, the state is using its purchasing power as leverage with those companies in an effort to crack down even more on guns.

Murphy said the goal is to make sure taxpayer dollars go to companies that “share our concerns and share our state’s values" on firearm safety.

He also said New Jersey and other states must continue to act because Congress has been lax to tackle gun reform.

“We know we cannot rest on our laurels,” the governor said before signing the order during a ceremony at Morristown’s town hall, surrounded by gun-control advocates. “We cannot stop.”

Murphy’s administration said the state government spends more than $70 million a year on guns, ammunition and supplies, including weapons for the State Police.

The order does not prohibit local governments from working with these businesses, but some municipalities do buy guns through the state.

The state also pays more than $1 billion a year to banks in fees, according to Murphy’s administration.

“We cannot let taxpayers unwittingly pad the pockets of anyone whose business practices may make the jobs of law enforcement even more dangerous or put our residents in harms way," Murphy said.

Plus, the order comes days after insurance company Lockton Affinity was fined $1 million by the state for administering an insurance program known as “Carry Guard” sponsored by the National Rifle Association, a violation of state insurance laws. The program was marketed for “self-defense.”

“Now we’ll make sure they don’t try to come back,” Murphy said.

Under the order:

The state will request all gun manufacturers and retailers that sell firearms or ammunition to the state to determine within 30 days whether they adhere to a list of “applicable public safety principles related to firearms.” After that, the state Division of Purchase and Property will determine whether to certify those businesses.

The state treasurer will request banks and financial institutions that work with the state to disclose within 30 days whether they have “adopted any code of conduct or principles related to gun safety or responsible sales of firearms.”

The state Commissioner of Banking and Insurance will “take all appropriate action” to ban or limit “the sale, procurement, marketing, or distribution of insurance products that may serve to encourage the improper use of firearms.”

Murphy has signed a number of laws and taken a string of other actions to strengthen New Jersey’s gun policies since he took office in January 2018. That’s even though the state’s firearm laws are already the second toughest in the nation, after only California, according to rankings by the Gifford Law Center.

Giffords, a gun-control group led by former U.S. Rep. Gabbi Giffords, praised Murphy for Tuesday’s order.

“Ensuring businesses have strong policies that respect gun safety keeps New Jersey communities safe,” said Nico Bocour, the organization’s state legislative director.

But Scott Bach, executive director of the Association of New Jersey Rifle & Pistol Clubs, condemned Murphy’s action.

“Trying to coerce gun manufacturers into limiting what they sell to the law-abiding public restricts Second Amendment rights but makes no one safer," Bach said. "What is needed instead is severe punishment of actual wrongdoers.”

Doug Steinhardt, chairman of the state Republican Party, said Murphy’s order is “big on bravado and short on substance."

”It creates the same false sense of security that the rest of his political pandering creates," Steinhardt added.

Col. Patrick Callahan, the superintendent of the State Police, brushed aside concern that the order could harm law enforcement officials by making it harder for them to receive quality weapons.

“I don’t think we’d be behind anything that puts law enforcement in jeopardy,” Callahan said.

Brent Johnson may be reached at bjohnson@njadvancemedia.com. Follow him on Twitter @johnsb01.

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