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Laws empowering Karens are a bad idea. Period.

Public schools are government institutions, and the teachers are therefore government employees, so, technically, wouldn't it be the government banning the books?

No, the bill isn't about teachers banning books. The bill opens up the opportunity for literally anyone to ban books. If anyone in the public has a problem with a specific title in a school library then the librarian, under the new proposed law, would have to remove the book until the matter is resolved.