He said as the bill got through its second reading "by a handsome margin" it was obvious it was going to become law.
Mr McClay had approached him when he was drafting his private member's bill and that meant the bill was based almost entirely on the legislation the Wanganui District Council had formulated.
"This is very, very satisfying," Mr Laws said.
The district council decided last year to park up its planned legislation until it the outcome of the McClay bill was resolved.
Mr McClay said his bill originally made it an offence to wear a gang patch in all government departments and council offices but following the recommendations of the select committee it will now also include all schools, kindergartens and police stations.
"This bill is important to protect people from intimidation in their communities. It is about putting the interests of victims of crime and law-abiding citizens first," the Rotorua MP said.
"Young people don't need to be exposed to gangs and their patches in the school playground. When our children are at school they have a right to feel safe and free from intimidation," he said.
Mr Laws said it was "rare for backbench MPs to have a national impact, but this piece of legislation certainly will".
"This law actually works - it removes the self-marketing and intimidation of these antisocial wannabes and allows police an effective tool in controlling their activities.
"The view of Wanganui police was that it led to a remarkable 15 per cent decrease in gang-related crime, and it also has a chilling effect on gang prospects if they can't parade their colours.
"As an aside, it is dramatic how different gang members and gang prospects act if they're not wearing their insignia/colours."