Stricken language would be deleted from and underlined language would be added to present law.
Act 452 of the Regular Session
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State of Arkansas As Engrossed: H3/5/25 H3/10/25 1
95th General Assembly A Bill 2
Regular Session, 2025 HOUSE BILL 1509 3
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By: Representative Beaty Jr. 5
By: Senator Hill 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 FROM 10
USING CERTAIN DISCRIMINATORY PRACTICES; AND FOR OTHER 11
PURPOSES. 12
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Subtitle 15
TO CREATE THE SECOND AMENDMENT FINANCIAL 16
PRIVACY ACT; AND TO PROHIBIT FINANCIAL 17
INSTITUTIONS FROM USING CERTAIN 18
DISCRIMINATORY PRACTICES. 19
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 21
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SECTION 1. Arkansas Code Title 23, Chapter 32, is amended to add an 23
additional subchapter to read as follows: 24
Subchapter 6 — Arkansas Second Amendment Financial Privacy Act 25
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23-32-601. Title. 27
This subchapter shall be known and may be cited as the "Arkansas Second 28
Amendment Financial Privacy Act". 29
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23-32-602. Definitions. 31
As used in this subchapter: 32
(1)(A) "Acquirer bank" means a member of a payment card network 33
that contracts with a merchant for the settlement of an electronic payment 34
transaction. 35
(B) "Acquirer bank" includes a bank that contracts 36 As Engrossed: H3/5/25 H3/10/25 HB1509
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directly with a merchant or indirectly through a processor to process an 1
electronic payment transaction; 2
(2) "Ammunition" means the same as defined in 18 U.S.C. § 921, 3
as it existed on January 1, 2025; 4
(3) "Antique firearm" means the same as defined in 18 U.S.C. § 5
921, as it existed on January 1, 2025; 6
(4) "Authorization" means the process by which a merchant 7
requests approval for an electronic payment transaction from the issuer of a 8
credit card or debit card; 9
(5) "Covered entity" means an entity that establishes a 10
relationship with a retailer for the purposes of processing credit, debit, or 11
prepaid transactions; 12
(6) "Credit card" means a card, plate, coupon book, or other 13
credit device existing for the purposes of obtaining money, property, labor, 14
or services on credit; 15
(7) "Customer" means a person engaged in a payment card 16
transaction that a financial institution facilitates or processes; 17
(8) "Debit card" means a card issued by a financial institution 18
to a consumer for use in initiating an electronic fund transfer from the 19
account of the consumer at the financial institution for the purpose of 20
transferring money between accounts or obtaining money, property, labor, or 21
services; 22
(9) "Depository institution" means: 23
(A) A depository institution as defined in 12 U.S.C. § 24
1813(c)(1), as it existed on January 1, 2025; or 25
(B) An insured credit union as defined in 12 U.S.C. § 26
1752(7), as it existed on January 1, 2025; 27
(10) "Electronic payment transaction" means a transaction in 28
which a person uses a debit card, a credit card, or other payment code or 29
device issued or approved through a payment card network to debit a deposit 30
account or use a line of credit, whether or not authorization is based on a 31
signature, personal identification number, or other means; 32
(11)(A) "Financial institution" means an entity involved in 33
facilitating or processing a payment card transaction. 34
(B) "Financial institution" includes: 35
(i) An acquirer bank; 36 As Engrossed: H3/5/25 H3/10/25 HB1509
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(ii) A payment card network; 1
(iii) A payment card issuer; 2
(iv) A depository institution; 3
(v) A trust company; 4
(vi) A savings bank; 5
(vii) A person subject to the jurisdiction of the: 6
(a) United States Securities and Exchange 7
Commission; 8
(b) Bank Commissioner under the Arkansas 9
Banking Code of 1997, chapters 45-50 of this title; 10
(c) Securities Commissioner under the Arkansas 11
Securities Act, § 23 -42-101 et seq.; or 12
(d) Insurance Commissioner under the Arkansas 13
Insurance Code; or 14
(viii) Any other institution that: 15
(a) Holds and receives deposits, savings, or 16
share accounts; 17
(b) Issues certificates of deposit; 18
(c) Provides to its customers any deposit 19
accounts subject to withdrawal by check, instrument, order, or electronic 20
means to effect third -party payments; 21
(d) Provides insurance services; or 22
(e) Provides investment services; 23
(12)(A) "Firearm" means the same as defined in 18 U.S.C. § 921, 24
as it existed on January 1, 2025. 25
(B) "Firearm" includes: 26
(i) An antique firearm; 27
(ii) A rifle; 28
(iii) A shotgun; and 29
(iv) A handgun; 30
(13) "Firearms retailer" means a person that is: 31
(A) Physically located in Arkansas; and 32
(B) Engaged in the lawful business of selling or trading 33
firearms, firearm accessories or firearm components, or ammunition; 34
(14)(A) "Issuer" means a person issuing a credit card or a debit 35
card. 36 As Engrossed: H3/5/25 H3/10/25 HB1509
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(B) "Issuer" includes an issuer's agent; 1
(15)(A) "Merchant" means a person that accepts credit cards or 2
debit cards from a customer for the purchase of goods or services. 3
(B) "Merchant" includes a firearms retailer that accepts a 4
credit card or a debit card for lawful purchase of a firearm, firearm 5
accessories or firearm components, or ammunition; 6
(16) "Merchant category code" means a code assigned to a 7
retailer based on the types of goods and services offered to a retailer's 8
customers; 9
(17)(A) "Payment card network" means an entity that directly or 10
through a member, processor, or agent provides proprietary services, 11
infrastructure, software, or hardware that routes information used to 12
authorize, clear, and settle credit, debit, or prepaid transactions. 13
(B) "Payment card network" does not include a financial 14
institution that settles a credit, debit, or prepaid transaction directly 15
with a retailer on behalf of a customer; 16
(18) "Person" means an individual, a corporation, an 17
organization, or other legal entity; 18
(19) "Rifle" means the same as defined in 18 U.S.C. § 921, as it 19
existed on January 1, 2025; 20
(20) "Savings bank" means a savings association or federal 21
savings association as defined in 12 U.S.C. § 1462, as it existed on January 22
1, 2025; 23
(21) "Shotgun" means the same as defined in 18 U.S.C. § 921, as 24
it existed on January 1, 2025; and 25
(22) "Trust company" means: 26
(A) A national bank engaged in activities in a fiduciary 27
capacity under 12 U.S.C. § 92a and 12 C.F.R. Part 9; 28
(B) A trust company as defined in § 23 -51-102; or 29
(C) An interstate bank that is authorized under the 30
Arkansas Banking Code of 1997, chapters 45 -50 of this title, to exercise the 31
powers of a trust company in this state. 32
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23-32-603. Prohibited conduct. 34
(a)(1) A payment card network shall not require the use of a merchant 35
category code that distinguishes a firearms retailer from other retailers. 36 As Engrossed: H3/5/25 H3/10/25 HB1509
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(2) Subdivision (a)(1) of this section does not apply to an 1
electronic payment transaction at a retailer outside of this state. 2
(b) A covered entity or its agent shall not assign a firearms retailer 3
a merchant category code that distinguishes the firearms retailer from other 4
retailers, including without limitation merchant category code 5723, which 5
was approved in September 2022 by the International Organization for 6
Standardization to firearms retailers. 7
(c) A merchant shall not assign merchant category code 5723, which was 8
approved in September 2022 by the International Organization for 9
Standardization, to a purchase of firearms, firearm accessories or firearm 10
components, or ammunition. 11
(d) This section does not limit the ability of a financial institution 12
or payment card network to negotiate with a responsible party or otherwise 13
impair the financial institution's or payment card network's actions related 14
to: 15
(1) Dispute processing; 16
(2) Fraud management; 17
(3) Protecting transaction integrity from concerns related to 18
illegal activities, a data breach, or cyberattack risks; 19
(4) Management of a loyalty or rewards program related to an 20
electronic payment transaction; or 21
(5) As required by law. 22
(e) A person, unit of government, or governmental organization shall 23
not knowingly keep or cause to be kept a list, record, or registry of: 24
(1) A privately owned firearm; or 25
(2) An owner of a privately owned firearm. 26
(f) This section does not: 27
(1) Prevent an owner or an owner's representative from 28
maintaining a list of the owner's firearms; or 29
(2) Prohibit a law enforcement agency from maintaining a list, 30
registry, or record of firearms that have been stolen or reported stolen. 31
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23-32-604. Enforcement. 33
(a) The Attorney General may enforce and investigate alleged 34
violations of this subchapter and, upon finding a violation, shall provide 35
written notice to a person believed to be in violation of this subchapter. 36 As Engrossed: H3/5/25 H3/10/25 HB1509
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(b) The Attorney General may be petitioned to investigate an alleged 1
violation of this subchapter by: 2
(1) A firearms retailer whose business was the subject of an 3
alleged violation of this subchapter; 4
(2) A customer who transacted business at a firearms retailer 5
whose business was the subject of an alleged violation of this subchapter; or 6
(3) A person whose ownership of firearms is the subject of an 7
alleged violation of this subchapter. 8
(c)(1) Upon finding a violation of this subchapter, the Attorney 9
General shall provide written notice to a person believed to be in violation 10
of this subchapter. 11
(2) The written notice required under subdivision (c)(1) of this 12
section shall be made to the person believed to be in violation of this 13
subchapter or a registered agent of the person within forty -five (45) days of 14
the finding of the violation and contain the following: 15
(A) Identify the evidence to be relied upon in making a 16
determination of a violation of this subchapter; 17
(B) Notice that the person believed to be in violation of 18
this subchapter has thirty (30) calendar days following the receipt of the 19
written notice to demonstrate that the person is not in violation of this 20
subchapter; and 21
(C) Action to be taken by the Attorney General upon making 22
a determination of a violation of this subchapter. 23
(3) A covered entity shall not be compelled to produce or 24
disclose any data or information deemed confidential, privileged, or 25
otherwise protected from disclosure by state or federal law. 26
(d) Upon receipt of the written notice under subdivision (c)(1) of 27
this section, a person has sixty (60) calendar days to cease the violations 28
of this subchapter. 29
(e)(1) If a person under subsection (d) of this section fails to cease 30
the violations of this subchapter, the Attorney General may request an 31
injunction against the person alleged to be in violation of this subchapter, 32
which a court may order, in addition to any other available relief, as the 33
court may consider appropriate. 34
(2) If a person knowingly fails to comply with an injunction 35
under subdivision (e)(1) of this section, the Attorney General may petition 36 As Engrossed: H3/5/25 H3/10/25 HB1509
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the court to recover a civil penalty in a sum not to exceed ten thousand 1
dollars ($10,000) for each violation of the injunction. 2
(3) An order assessing a penalty for a violation of this 3
subchapter shall be stayed pending appeal of the order. 4
(4) The remedies under subdivisions (e)(1) and (2) of this 5
section are exclusive remedies for a violation of this subchapter. 6
(f)(1) If the Attorney General provides written notice under 7
subdivision (c)(1) of this section based on the petition of a firearms 8
retailer or a customer of a firearms retailer, then the petitioner shall 9
consent to the disclosure of any financial information held by a covered 10
entity to the Attorney General, whether or not the information is 11
confidential or proprietary to demonstrate that the covered entity is not in 12
violation of this subchapter. 13
(2) If the firearms retailer or customer of a firearms retailer 14
does not consent to the disclosure of financial information under subdivision 15
(f)(1) of this section, the Attorney General shall not pursue the petition to 16
investigate the violation of this subchapter. 17
(g) It is a defense to a civil proceeding initiated under this section 18
that a person made a good faith determination that the person's action was 19
required by applicable law. 20
(h) This section does not create a private right of action. 21
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/s/Beaty Jr. 23
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APPROVED: 4/3/25 26
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