Stricken language would be deleted from and underlined language would be added to present law.
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State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 HOUSE BILL 1443 3
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By: Representative Pilkington 5
By: Senator C. Penzo 6
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For An Act To Be Entitled 8
AN ACT TO CREATE THE SECOND AMENDMENT FINANCIAL 9
PRIVACY ACT; TO PROHIBIT FINANCIAL INSTITUTIONS AND 10
PAYMENT NETWORKS FROM USING CERTAIN DISCRIMINATORY 11
PRACTICES; TO PROVIDE FOR ENFORCEMENT OF VIOLATIONS; 12
AND FOR OTHER PURPOSES. 13
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15
Subtitle 16
TO CREATE THE SECOND AMENDMENT FINANCIAL 17
PRIVACY ACT; TO PROHIBIT FINANCIAL 18
INSTITUTIONS AND PAYMENT NETWORKS FROM 19
USING CERTAIN DISCRIMINATORY PRACTICES; 20
AND TO PROVIDE FOR ENFORCEMENT OF 21
VIOLATIONS. 22
23
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24
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SECTION 1. Arkansas Code Title 23, Chapter 32, is amended to add an 26
additional subchapter to read as follows: 27
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Subchapter 6 — Second Amendment Financial Privacy Act 29
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23-32-601. Title. 31
This subchapter shall be known and may be cited as the "Second 32
Amendment Financial Privacy Act". 33
34
23-32-602. Definitions. 35
As used in this subchapter: 36 HB1443
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(1) "Ammunition" means ammunition or cartridge cases, primers, 1
bullets, or propellant powder designed for use in a firearm; 2
(2) "Antique firearm" means the same as defined in 18 U.S.C. 3
921, as it existed on January 1, 2025; 4
(3) "Assign" or "assignment" means a financial institution's or 5
payment network's policy, process, or practice that labels, links, or 6
otherwise associates a firearms code with a merchant or payment card 7
transaction in a manner that allows the financial institution, payment 8
network, or any other entity facilitating or processing the payment card 9
transaction to identify whether a merchant is a firearms retailer or whether 10
a transaction involves the sale of firearms or ammunition; 11
(4)(A) "Customer" means a person engaged in a payment card 12
transaction that a financial institution facilitates or processes. 13
(B) "Customer" includes a person or the person's 14
authorized representative who has transacted business with or has used the 15
services of a financial institution or for whom a financial institution has 16
acted as a fiduciary in relation to an account maintained in the person's 17
name; 18
(5) "Depository institution" means: 19
(A) A depository institution as defined in 12 U.S.C. § 20
1813(c)(1), as it existed on January 1, 2025; or 21
(B) An insured credit union as defined in 12 U.S.C. § 22
1752(7), as it existed on January 1, 2025; 23
(6) "Disclosure" means the transfer, publication, or 24
distribution of protected financial information to another person or entity 25
for any purpose other than to process or facilitate a payment card 26
transaction; 27
(7)(A) "Financial institution" means an entity involved in 28
facilitating or processing a payment card transaction. 29
(B) "Financial institution" includes: 30
(i) An acquirer; 31
(ii) A payment network; 32
(iii) A payment card issuer; 33
(iv) A depository institution; 34
(v) A trust company; 35
(vi) A savings bank; 36 HB1443
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(vii) A person subject to the jurisdiction of the: 1
(a) United States Securities and Exchange 2
Commission; 3
(b) Bank Commissioner under the Arkansas 4
Banking Code of 1997, chapters 45 -50 of this title; 5
(c) Securities Commissioner under the Arkansas 6
Securities Act, § 23 -42-101 et seq.; 7
(d) Insurance Commissioner under the Arkansas 8
Insurance Code; or 9
(e) Federal Deposit Insurance Corporation; and 10
(viii) Any other institution that: 11
(a) Holds and receives deposits, savings, or 12
share accounts; 13
(b) Issues certificates of deposit; 14
(c) Provides to its customers any deposit 15
accounts subject to withdrawal by check, instrument, order, or electronic 16
means to effect third -party payments; 17
(d) Provides insurance services; or 18
(e) Provides investment services; 19
(8) "Financial record" means: 20
(A) The original or a copy of a record or document held by 21
a payment network pertaining to a customer of a financial institution 22
utilizing a payment network, including a record of a transaction conducted by 23
means of a customer bank communication terminal or other electronic device; 24
(B) A financial record held by a payment network related 25
to a payment card transaction that the financial institution has processed or 26
facilitated; and 27
(C) Any information derived from the records or documents 28
described in subdivision (8)(A) and subdivision (8)(B) of this section; 29
(9) "Firearm" means a weapon that will, is designed to, or may 30
readily be converted to expel a projectile by the action of an explosive; 31
(10) "Firearm accessory or component" means: 32
(A) An attachment or device specifically adapted to: 33
(i) Enable the: 34
(a) Wearing or carrying of a firearm about 35
one's person; or 36 HB1443
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(b) Storage of a firearm in, or the mounting 1
of a firearm in or upon, a conveyance; or 2
(ii) Be inserted into or affixed onto a firearm to 3
enable, alter, or improve the functioning or capabilities of a firearm; 4
(B) An item that is used in conjunction with or mounted 5
upon a firearm, including without limitation: 6
(i) Telescopic or laser sight; 7
(ii) Magazine; 8
(iii) Flash or sound suppressor; 9
(iv) Folding or aftermarket stock and grip; 10
(v) Speedloader; 11
(vi) Brace; 12
(vii) Ammunition carrier; and 13
(viii) Light for target illumination; and 14
(C) A component for making ammunition, reloading materials 15
and equipment, machinery, and tools for manufacturing ammunition; 16
(11)(A) "Firearms code" means a code or other indicator that a 17
payment network assigns to a merchant or to a payment card transaction that 18
identifies whether or not: 19
(i) A merchant is a firearms retailer; or 20
(ii) The payment card transaction involves the 21
purchase of a firearm, a firearm accessory or component, or ammunition. 22
(B) "Firearms code" includes without limitation a merchant 23
category code assigned to a firearms retailer by a payment network or other 24
financial institution; 25
(12) "Firearms retailer" means a person or entity physically 26
located in this state and engaged in the lawful business of selling or 27
trading firearms, antique firearms, firearm accessories or components, or 28
ammunition; 29
(13)(A) "Government entity" means a state or local government. 30
(B) "Government entity" includes an official, agent, or 31
employee of state or local government; 32
(14)(A) "Merchant" means a person or entity that accepts payment 33
cards from customers for the purchase of goods or services. 34
(B) "Merchant" includes a firearms retailer that accepts 35
payment cards for the lawful purchase of firearms, firearm accessories or 36 HB1443
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components, or ammunition; 1
(15) "Payment card" means a credit card, charge card, debit 2
card, or any other card that is issued to an authorized card user and that 3
allows the user to purchase goods or services from a merchant; 4
(16) "Payment network" means a debit or credit network through 5
which funds may be transferred, including credit card associations, 6
electronic funds transfer networks, or other organizations or associations, 7
that issue or sponsor a financial transaction device; 8
(17)(A) "Protected financial information" means the record of a 9
sale, purchase, return, or refund involving a payment card that is retrieved, 10
characterized, generated, labeled, sorted, or grouped based on the assignment 11
of a firearms code. 12
(B) "Protected financial information" includes the 13
financial records of a customer; 14
(18) "Savings bank" means a savings association or federal 15
savings association as defined in 12 U.S.C. § 1462, as it existed on January 16
1, 2025; and 17
(19) "Trust company" means: 18
(A) A national bank engaged in activities in a fiduciary 19
capacity under 12 U.S.C. § 92a and 12 C.F.R. Part 9; 20
(B) A trust company as defined in § 23 -51-102; or 21
(C) An interstate bank that is authorized under the 22
Arkansas Banking Code of 1997, chapters 45 -50 of this title, to exercise the 23
powers of a trust company in this state. 24
25
23-32-603. Financial privacy — Firearm owner rights. 26
(a) Except for records kept during the regular course of a criminal 27
investigation and prosecution, a government entity or any other person, other 28
than an owner of a firearm or his or her representative, shall not knowingly 29
keep or cause to be kept a list, record, or registry of: 30
(1) Privately owned firearms; or 31
(2) Owners of privately owned firearms. 32
(b) A financial institution, a payment network, or agents of a payment 33
network shall not require the usage of a firearms code in a way that 34
distinguishes a firearms retailer from general merchandise retailers or 35
sporting goods retailers located in this state. 36 HB1443
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(c) A financial institution or payment network shall not discriminate 1
against a firearms retailer by: 2
(1) Declining a lawful payment card transaction based solely on 3
the assignment or nonassignment of a firearms code to the firearms retailer 4
or transaction; 5
(2) Limiting or declining to do business with a customer, 6
potential customer, or merchant based on the assignment or nonassignment of a 7
firearms code to any previous lawful transaction involving the customer, 8
potential customer, or merchant; 9
(3) Charging a higher transaction or interchange fee to a 10
merchant or for a lawful transaction based on the assignment or nonassignment 11
of a firearms code; or 12
(4) Otherwise taking any action against a customer or merchant 13
that is intended to suppress lawful commerce involving firearms, firearm 14
accessories or components, or ammunition, which action is based solely or in 15
part on the customer's or merchant's business involving firearms, firearm 16
accessories or components, or ammunition. 17
(d) A financial institution or payment network shall not disclose a 18
financial record or protected financial information, including a firearms 19
code, that was collected in violation of this subchapter unless the 20
disclosure of the financial record or protected financial information is 21
based on a good faith conclusion that the financial institution's action was 22
required by applicable law. 23
24
23-32-604. Enforcement. 25
(a)(1)(A) The Attorney General may investigate alleged violations of 26
this subchapter and, upon finding a violation, shall provide written notice 27
to an individual or entity that is violating this subchapter. 28
(B) The written notice required under subdivision 29
(a)(1)(A) of this section shall be made to the entity's registered agent or 30
the individual. 31
(2) Upon receipt of the written notice under subdivision (a)(1) 32
of this section, the individual or entity shall have thirty (30) calendar 33
days to cease the usage of a firearms code for a merchant located in 34
Arkansas. 35
(3) The Attorney General may grant an entity up to an additional 36 HB1443
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one hundred twenty (120) days to cease the requirement for usage of the 1
firearms code. 2
(b)(1) A firearms retailer whose business was the subject of an 3
alleged violation of this subchapter or a customer who transacted at a 4
firearms retailer whose business was the subject of an alleged violation of 5
this subchapter may petition the Attorney General to investigate an alleged 6
violation of this subchapter. 7
(2) If the Attorney General does not commence an action within 8
ninety (90) days of receiving the petition under subdivision (b)(1) of this 9
section, the firearms retailer or customer may file an action in a court of 10
competent jurisdiction to enjoin the individual or entity from requiring the 11
firearms code in violation of this subchapter. 12
(c)(1) If an individual or entity fails to cease the usage of a 13
firearms code for a merchant located in Arkansas under subdivision (a)(2) of 14
this section, the Attorney General may request an injunction against the 15
individual or entity alleged to be in violation of this subchapter, which a 16
court may order, in addition to any other available relief, as the court may 17
consider appropriate. 18
(2) If a court finds that the individual or entity continues to 19
be in violation of this subchapter after thirty (30) calendar days from 20
receiving written notice under subdivision (a)(1)(A) of this section, then 21
the court may enjoin the individual or entity from continuing the activity 22
found to be in violation of this subchapter. 23
(3)(A) If the individual or entity knowingly fails to comply 24
with an injunction under subdivision (c)(2) of this section within thirty 25
(30) calendar days after being served with an injunction, then the Attorney 26
General, upon petition to the court, may recover a civil penalty in a sum not 27
to exceed ten thousand dollars ($10,000) for each violation committed after 28
the expiration of the thirty -day period under this subdivision (c)(3)(A). 29
(B) In assessing a penalty, the court may consider the 30
financial resources of the individual or entity that violated this subchapter 31
and the harm or risk of harm to the rights afforded to the firearms retailer 32
or customer under the Second Amendment to the United States Constitution 33
resulting from the violation. 34
(C) In addition to the civil penalty under subdivision 35
(c)(3)(A) of this section, the Attorney General may recover investigative 36 HB1443
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costs and reasonable attorney's fees. 1
(D) An order assessing a penalty for a violation of this 2
subchapter shall be stayed pending appeal of the order and upon filing a 3
supersedeas bond with the court. 4
(d) It is a defense to a civil proceeding initiated under this section 5
that a firearms code was required to be used based on a good faith conclusion 6
that the entity's action was required by applicable law. 7
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