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Arkansas House Bill HB1443

Arkansas 2025 Regular Session

Arkansas House Bill HB1443 Compare Versions

Only one version of the bill is available at this time.
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11 Stricken language would be deleted from and underlined language would be added to present law.
22 *ANS220* 02/06/2025 4:18:04 PM ANS220
33 State of Arkansas 1
44 95th General Assembly A Bill 2
55 Regular Session, 2025 HOUSE BILL 1443 3
66 4
77 By: Representative Pilkington 5
88 By: Senator C. Penzo 6
99 7
1010 For An Act To Be Entitled 8
1111 AN ACT TO CREATE THE SECOND AMENDMENT FINANCIAL 9
1212 PRIVACY ACT; TO PROHIBIT FINANCIAL INSTITUTIONS AND 10
1313 PAYMENT NETWORKS FROM USING CERTAIN DISCRIMINATORY 11
1414 PRACTICES; TO PROVIDE FOR ENFORCEMENT OF VIOLATIONS; 12
1515 AND FOR OTHER PURPOSES. 13
1616 14
1717 15
1818 Subtitle 16
1919 TO CREATE THE SECOND AMENDMENT FINANCIAL 17
2020 PRIVACY ACT; TO PROHIBIT FINANCIAL 18
2121 INSTITUTIONS AND PAYMENT NETWORKS FROM 19
2222 USING CERTAIN DISCRIMINATORY PRACTICES; 20
2323 AND TO PROVIDE FOR ENFORCEMENT OF 21
2424 VIOLATIONS. 22
2525 23
2626 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24
2727 25
2828 SECTION 1. Arkansas Code Title 23, Chapter 32, is amended to add an 26
2929 additional subchapter to read as follows: 27
3030 28
3131 Subchapter 6 — Second Amendment Financial Privacy Act 29
3232 30
3333 23-32-601. Title. 31
3434 This subchapter shall be known and may be cited as the "Second 32
3535 Amendment Financial Privacy Act". 33
3636 34
3737 23-32-602. Definitions. 35
3838 As used in this subchapter: 36 HB1443
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4141 (1) "Ammunition" means ammunition or cartridge cases, primers, 1
4242 bullets, or propellant powder designed for use in a firearm; 2
4343 (2) "Antique firearm" means the same as defined in 18 U.S.C. 3
4444 921, as it existed on January 1, 2025; 4
4545 (3) "Assign" or "assignment" means a financial institution's or 5
4646 payment network's policy, process, or practice that labels, links, or 6
4747 otherwise associates a firearms code with a merchant or payment card 7
4848 transaction in a manner that allows the financial institution, payment 8
4949 network, or any other entity facilitating or processing the payment card 9
5050 transaction to identify whether a merchant is a firearms retailer or whether 10
5151 a transaction involves the sale of firearms or ammunition; 11
5252 (4)(A) "Customer" means a person engaged in a payment card 12
5353 transaction that a financial institution facilitates or processes. 13
5454 (B) "Customer" includes a person or the person's 14
5555 authorized representative who has transacted business with or has used the 15
5656 services of a financial institution or for whom a financial institution has 16
5757 acted as a fiduciary in relation to an account maintained in the person's 17
5858 name; 18
5959 (5) "Depository institution" means: 19
6060 (A) A depository institution as defined in 12 U.S.C. § 20
6161 1813(c)(1), as it existed on January 1, 2025; or 21
6262 (B) An insured credit union as defined in 12 U.S.C. § 22
6363 1752(7), as it existed on January 1, 2025; 23
6464 (6) "Disclosure" means the transfer, publication, or 24
6565 distribution of protected financial information to another person or entity 25
6666 for any purpose other than to process or facilitate a payment card 26
6767 transaction; 27
6868 (7)(A) "Financial institution" means an entity involved in 28
6969 facilitating or processing a payment card transaction. 29
7070 (B) "Financial institution" includes: 30
7171 (i) An acquirer; 31
7272 (ii) A payment network; 32
7373 (iii) A payment card issuer; 33
7474 (iv) A depository institution; 34
7575 (v) A trust company; 35
7676 (vi) A savings bank; 36 HB1443
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7979 (vii) A person subject to the jurisdiction of the: 1
8080 (a) United States Securities and Exchange 2
8181 Commission; 3
8282 (b) Bank Commissioner under the Arkansas 4
8383 Banking Code of 1997, chapters 45 -50 of this title; 5
8484 (c) Securities Commissioner under the Arkansas 6
8585 Securities Act, § 23 -42-101 et seq.; 7
8686 (d) Insurance Commissioner under the Arkansas 8
8787 Insurance Code; or 9
8888 (e) Federal Deposit Insurance Corporation; and 10
8989 (viii) Any other institution that: 11
9090 (a) Holds and receives deposits, savings, or 12
9191 share accounts; 13
9292 (b) Issues certificates of deposit; 14
9393 (c) Provides to its customers any deposit 15
9494 accounts subject to withdrawal by check, instrument, order, or electronic 16
9595 means to effect third -party payments; 17
9696 (d) Provides insurance services; or 18
9797 (e) Provides investment services; 19
9898 (8) "Financial record" means: 20
9999 (A) The original or a copy of a record or document held by 21
100100 a payment network pertaining to a customer of a financial institution 22
101101 utilizing a payment network, including a record of a transaction conducted by 23
102102 means of a customer bank communication terminal or other electronic device; 24
103103 (B) A financial record held by a payment network related 25
104104 to a payment card transaction that the financial institution has processed or 26
105105 facilitated; and 27
106106 (C) Any information derived from the records or documents 28
107107 described in subdivision (8)(A) and subdivision (8)(B) of this section; 29
108108 (9) "Firearm" means a weapon that will, is designed to, or may 30
109109 readily be converted to expel a projectile by the action of an explosive; 31
110110 (10) "Firearm accessory or component" means: 32
111111 (A) An attachment or device specifically adapted to: 33
112112 (i) Enable the: 34
113113 (a) Wearing or carrying of a firearm about 35
114114 one's person; or 36 HB1443
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117117 (b) Storage of a firearm in, or the mounting 1
118118 of a firearm in or upon, a conveyance; or 2
119119 (ii) Be inserted into or affixed onto a firearm to 3
120120 enable, alter, or improve the functioning or capabilities of a firearm; 4
121121 (B) An item that is used in conjunction with or mounted 5
122122 upon a firearm, including without limitation: 6
123123 (i) Telescopic or laser sight; 7
124124 (ii) Magazine; 8
125125 (iii) Flash or sound suppressor; 9
126126 (iv) Folding or aftermarket stock and grip; 10
127127 (v) Speedloader; 11
128128 (vi) Brace; 12
129129 (vii) Ammunition carrier; and 13
130130 (viii) Light for target illumination; and 14
131131 (C) A component for making ammunition, reloading materials 15
132132 and equipment, machinery, and tools for manufacturing ammunition; 16
133133 (11)(A) "Firearms code" means a code or other indicator that a 17
134134 payment network assigns to a merchant or to a payment card transaction that 18
135135 identifies whether or not: 19
136136 (i) A merchant is a firearms retailer; or 20
137137 (ii) The payment card transaction involves the 21
138138 purchase of a firearm, a firearm accessory or component, or ammunition. 22
139139 (B) "Firearms code" includes without limitation a merchant 23
140140 category code assigned to a firearms retailer by a payment network or other 24
141141 financial institution; 25
142142 (12) "Firearms retailer" means a person or entity physically 26
143143 located in this state and engaged in the lawful business of selling or 27
144144 trading firearms, antique firearms, firearm accessories or components, or 28
145145 ammunition; 29
146146 (13)(A) "Government entity" means a state or local government. 30
147147 (B) "Government entity" includes an official, agent, or 31
148148 employee of state or local government; 32
149149 (14)(A) "Merchant" means a person or entity that accepts payment 33
150150 cards from customers for the purchase of goods or services. 34
151151 (B) "Merchant" includes a firearms retailer that accepts 35
152152 payment cards for the lawful purchase of firearms, firearm accessories or 36 HB1443
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155155 components, or ammunition; 1
156156 (15) "Payment card" means a credit card, charge card, debit 2
157157 card, or any other card that is issued to an authorized card user and that 3
158158 allows the user to purchase goods or services from a merchant; 4
159159 (16) "Payment network" means a debit or credit network through 5
160160 which funds may be transferred, including credit card associations, 6
161161 electronic funds transfer networks, or other organizations or associations, 7
162162 that issue or sponsor a financial transaction device; 8
163163 (17)(A) "Protected financial information" means the record of a 9
164164 sale, purchase, return, or refund involving a payment card that is retrieved, 10
165165 characterized, generated, labeled, sorted, or grouped based on the assignment 11
166166 of a firearms code. 12
167167 (B) "Protected financial information" includes the 13
168168 financial records of a customer; 14
169169 (18) "Savings bank" means a savings association or federal 15
170170 savings association as defined in 12 U.S.C. § 1462, as it existed on January 16
171171 1, 2025; and 17
172172 (19) "Trust company" means: 18
173173 (A) A national bank engaged in activities in a fiduciary 19
174174 capacity under 12 U.S.C. § 92a and 12 C.F.R. Part 9; 20
175175 (B) A trust company as defined in § 23 -51-102; or 21
176176 (C) An interstate bank that is authorized under the 22
177177 Arkansas Banking Code of 1997, chapters 45 -50 of this title, to exercise the 23
178178 powers of a trust company in this state. 24
179179 25
180180 23-32-603. Financial privacy — Firearm owner rights. 26
181181 (a) Except for records kept during the regular course of a criminal 27
182182 investigation and prosecution, a government entity or any other person, other 28
183183 than an owner of a firearm or his or her representative, shall not knowingly 29
184184 keep or cause to be kept a list, record, or registry of: 30
185185 (1) Privately owned firearms; or 31
186186 (2) Owners of privately owned firearms. 32
187187 (b) A financial institution, a payment network, or agents of a payment 33
188188 network shall not require the usage of a firearms code in a way that 34
189189 distinguishes a firearms retailer from general merchandise retailers or 35
190190 sporting goods retailers located in this state. 36 HB1443
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193193 (c) A financial institution or payment network shall not discriminate 1
194194 against a firearms retailer by: 2
195195 (1) Declining a lawful payment card transaction based solely on 3
196196 the assignment or nonassignment of a firearms code to the firearms retailer 4
197197 or transaction; 5
198198 (2) Limiting or declining to do business with a customer, 6
199199 potential customer, or merchant based on the assignment or nonassignment of a 7
200200 firearms code to any previous lawful transaction involving the customer, 8
201201 potential customer, or merchant; 9
202202 (3) Charging a higher transaction or interchange fee to a 10
203203 merchant or for a lawful transaction based on the assignment or nonassignment 11
204204 of a firearms code; or 12
205205 (4) Otherwise taking any action against a customer or merchant 13
206206 that is intended to suppress lawful commerce involving firearms, firearm 14
207207 accessories or components, or ammunition, which action is based solely or in 15
208208 part on the customer's or merchant's business involving firearms, firearm 16
209209 accessories or components, or ammunition. 17
210210 (d) A financial institution or payment network shall not disclose a 18
211211 financial record or protected financial information, including a firearms 19
212212 code, that was collected in violation of this subchapter unless the 20
213213 disclosure of the financial record or protected financial information is 21
214214 based on a good faith conclusion that the financial institution's action was 22
215215 required by applicable law. 23
216216 24
217217 23-32-604. Enforcement. 25
218218 (a)(1)(A) The Attorney General may investigate alleged violations of 26
219219 this subchapter and, upon finding a violation, shall provide written notice 27
220220 to an individual or entity that is violating this subchapter. 28
221221 (B) The written notice required under subdivision 29
222222 (a)(1)(A) of this section shall be made to the entity's registered agent or 30
223223 the individual. 31
224224 (2) Upon receipt of the written notice under subdivision (a)(1) 32
225225 of this section, the individual or entity shall have thirty (30) calendar 33
226226 days to cease the usage of a firearms code for a merchant located in 34
227227 Arkansas. 35
228228 (3) The Attorney General may grant an entity up to an additional 36 HB1443
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231231 one hundred twenty (120) days to cease the requirement for usage of the 1
232232 firearms code. 2
233233 (b)(1) A firearms retailer whose business was the subject of an 3
234234 alleged violation of this subchapter or a customer who transacted at a 4
235235 firearms retailer whose business was the subject of an alleged violation of 5
236236 this subchapter may petition the Attorney General to investigate an alleged 6
237237 violation of this subchapter. 7
238238 (2) If the Attorney General does not commence an action within 8
239239 ninety (90) days of receiving the petition under subdivision (b)(1) of this 9
240240 section, the firearms retailer or customer may file an action in a court of 10
241241 competent jurisdiction to enjoin the individual or entity from requiring the 11
242242 firearms code in violation of this subchapter. 12
243243 (c)(1) If an individual or entity fails to cease the usage of a 13
244244 firearms code for a merchant located in Arkansas under subdivision (a)(2) of 14
245245 this section, the Attorney General may request an injunction against the 15
246246 individual or entity alleged to be in violation of this subchapter, which a 16
247247 court may order, in addition to any other available relief, as the court may 17
248248 consider appropriate. 18
249249 (2) If a court finds that the individual or entity continues to 19
250250 be in violation of this subchapter after thirty (30) calendar days from 20
251251 receiving written notice under subdivision (a)(1)(A) of this section, then 21
252252 the court may enjoin the individual or entity from continuing the activity 22
253253 found to be in violation of this subchapter. 23
254254 (3)(A) If the individual or entity knowingly fails to comply 24
255255 with an injunction under subdivision (c)(2) of this section within thirty 25
256256 (30) calendar days after being served with an injunction, then the Attorney 26
257257 General, upon petition to the court, may recover a civil penalty in a sum not 27
258258 to exceed ten thousand dollars ($10,000) for each violation committed after 28
259259 the expiration of the thirty -day period under this subdivision (c)(3)(A). 29
260260 (B) In assessing a penalty, the court may consider the 30
261261 financial resources of the individual or entity that violated this subchapter 31
262262 and the harm or risk of harm to the rights afforded to the firearms retailer 32
263263 or customer under the Second Amendment to the United States Constitution 33
264264 resulting from the violation. 34
265265 (C) In addition to the civil penalty under subdivision 35
266266 (c)(3)(A) of this section, the Attorney General may recover investigative 36 HB1443
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269269 costs and reasonable attorney's fees. 1
270270 (D) An order assessing a penalty for a violation of this 2
271271 subchapter shall be stayed pending appeal of the order and upon filing a 3
272272 supersedeas bond with the court. 4
273273 (d) It is a defense to a civil proceeding initiated under this section 5
274274 that a firearms code was required to be used based on a good faith conclusion 6
275275 that the entity's action was required by applicable law. 7
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