SB281ENROLLED
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SB281
CMCEQQW-3
By Senator Melson
RFD: Banking and Insurance
First Read: 04-Apr-24
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First Read: 04-Apr-24
Enrolled, An Act,
Relating to financial institutions; to provide
definitions; to prohibit a governmental agency from creating
or maintaining a list or registry of privately owned firearms
or owners of firearms; to prohibit the use of firearms codes
in certain circumstances; to prohibit a financial institution
from declining a payment card transaction relating to a
firearm retailer in certain circumstances; and to provide for
civil remedies.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. This act shall be known and may be cited as
the Second Amendment Financial Privacy Act.
Section 2. For the purposes of this act, the following
terms have the following meanings:
(1) AMMUNITION. Any cartridge, shell, or projectile, or
a component of any of the previous, designed for use in a
firearm.
(2) ASSIGN or ASSIGNMENT. A financial institution's
policy, process, or practice that labels, links, or otherwise
associates a firearms code with a merchant or a payment card
transaction in a manner that allows the financial institution
or any other entity facilitating or processing the payment
card transaction to identify whether a merchant is a firearm
retailer or whether a transaction involves the sale of a
firearm or ammunition.
(3) CUSTOMER. Any person or entity engaged in a payment
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(3) CUSTOMER. Any person or entity engaged in a payment
card transaction facilitated or processed by a financial
institution.
(4) FINANCIAL INSTITUTION. A person or entity other
than a merchant involved in facilitating or processing a
payment card transaction, including any bank, credit union as
defined in Section 5-17-1, Code of Alabama 1975, acquirer, or
payment card issuer.
(5) FIREARM. As defined in Section 13A-11-59, Code of
Alabama 1975. The term also includes any component or
accessory of a firearm.
(6) FIREARM RETAILER. Any person or entity that is
physically located in this state and is engaged in the lawful
selling or trading of firearms, antique firearms, or
ammunition.
(7) FIREARMS CODE. A merchant category code approved by
the international organization for standardization or an
equivalent successor organization and specifically assigned to
a firearm retailer.
(8) GOVERNMENTAL ENTITY. The state, or any political
subdivision thereof, or any agency or instrumentality of the
state.
(9) PAYMENT CARD. A credit card, charge card, debit
card, or any other card that is issued to an authorized card
user and allows the user to purchase goods or services from a
merchant.
(10) PAYMENT CARD NETWORK. An entity that provides
proprietary services, infrastructure, and software to conduct
payment card transaction authorizations, clearances, and
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payment card transaction authorizations, clearances, and
settlements, and software that an entity uses in order to
accept as a form of payment a brand of payment card or other
device that may be used to carry out payment card
transactions. The term does not include any financial
institution.
(11) PAYMENT CARD TRANSACTION. Any transaction in which
a payment card is accepted as payment.
Section 3. (a) Except for records kept during the
regular course of a criminal investigation or prosecution, or
as otherwise required by law, a governmental entity, or agent
or employee of a governmental entity, shall not knowingly keep
or cause to be kept any list, record, or registry of privately
owned firearms or the owners of firearms.
(b) Except as provided in subsections (d) and (e), a
payment card network, or agent of a payment card network,
shall not require the use of a firearms code in a way that
distinguishes a firearm retailer from other retailers.
(c) Except as provided in subsections (d) and (e), a
financial institution, or agent of a financial institution,
shall not decline a payment card transaction involving a
firearm retailer based solely on an assignment of a firearms
code.
(d) Nothing in this section shall prohibit a payment
card network or financial institution from declining or
otherwise refusing to process a payment card transaction for
any of the following reasons:
(1) To comply with applicable state or federal law.
(2) To comply with a request by a customer.
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(2) To comply with a request by a customer.
(3) To comply with fraud, credit, or compliance
controls.
(4) For the purpose of merchant category exclusions
offered by a financial institution for expenditure control or
corporate card control.
(5) To restrict the use or availability of a firearms
code in this state.
(e) Nothing in this section shall limit the authority
of a financial institution or payment card network to
negotiate with responsible parties or otherwise impair a
financial institution's actions related to any of the
following:
(1) Dispute processing.
(2) Fraud risk, compliance, credit management, or other
controls in the ordinary course of business operations.
(3) Protecting against illegal activities, breach, or
cyber risks.
(4) Restricting the use or availability of a firearms
code in this state.
Section 4. (a) The Attorney General shall investigate
reasonable allegations that a person or entity, including a
governmental entity, has violated this act and, upon finding a
violation, shall provide written notice to the person or
entity believed to have committed the violation. The person or
entity shall cease the violation within 60 business days after
receiving written notice from the Attorney General pursuant to
this section.
(b)(1) If a person or entity does not cease the
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(b)(1) If a person or entity does not cease the
violation within 60 business days after receiving written
notice from the Attorney General pursuant to this section, the
Attorney General shall file an action against the person or
entity seeking an injunction.
(2) If the court finds that the person or entity
violated this act and has not ceased the activity constituting
the violation, the court shall enjoin the person or entity
from continuing the activity and shall award court costs and
reasonable attorney fees.
(3) If a person or entity purposefully fails to comply
with an injunction issued pursuant to this section after 30
business days of being served with the injunction, the
Attorney General, upon petition to the court, shall seek to
impose on the person or entity a civil fine in an amount not
to exceed one thousand dollars ($1,000) per violation. In
assessing a civil fine, the court shall consider factors
including, but not limited to, the financial resources of the
violator and the harm or risk of harm to the rights under the
Second Amendment to the United States Constitution resulting
from the violation.
(4) Any order assessing a civil fine pursuant to this
section shall be stayed pending appeal of the order.
(c) The Attorney General shall have exclusive authority
to enforce this act. The remedies set forth in this section
are the exclusive remedies for any violation of this act.
(d) It shall be a defense to a proceeding initiated
pursuant to this section that a firearms code was required to
be disclosed or assigned by law.
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be disclosed or assigned by law.
Section 5. This act shall become effective on October
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1, 2024.
________________________________________________
President and Presiding Officer of the Senate
________________________________________________
Speaker of the House of Representatives
SB281
Senate 23-Apr-24
I hereby certify that the within Act originated in and passed
the Senate, as amended.
Patrick Harris,
Secretary.
House of Representatives
Passed: 30-Apr-24
By: Senator Melson
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