Alabama House Bill HB181

Alabama 2023 Regular Session

• Introduced: 3/22/23
• Refer: 3/22/23

Caption

Relating to financial institutions; to amend Section 5-5A-43, Code of Alabama 1975, to prohibit financial institutions from disclosing certain customer financial records of firearms transactions with certain exceptions; to allow the Department of Finance to disqualify a financial institution from any selection process for state contracts for violation of this prohibition; and to provide civil penalties and criminal penalties for violation of the act.

Impact

If enacted, HB 181 would amend existing Alabama statutes regarding financial records and enhance the privacy rights of customers when acquiring firearms. The law would prohibit financial institutions from discriminating against customers based on their transactions involving firearms, including denying transactions or charging higher fees due to the association with firearms. It also establishes penalties for violations of these provisions, allowing affected customers to seek civil damages if their rights are compromised.

Summary

House Bill 181, known as the Second Amendment Financial Privacy Act, aims to protect the privacy of individuals purchasing firearms by preventing financial institutions from disclosing customers' payment card records related to such transactions. The bill arose in response to concerns over new merchant category codes introduced by major payment card networks that would allow tracking of purchases at firearms retailers. This change has raised fears of surveillance and potential infringements on the Second Amendment rights of Alabamians.

Contention

The primary contention surrounding HB 181 stems from the balance between preventing unlawful surveillance and ensuring that legal regulations can still be enforced against activities such as money laundering. Opponents may argue that broad protections could inadvertently hinder law enforcement's ability to track illegal firearm sales and other related criminal activities. Additionally, the potential ramifications of allowing extensive privacy rights may clash with existing federal requirements necessitating financial transparency for certain transactions.