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January 29, 2024 SB 24-066
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-0076
Sen. Sullivan
Rep. Froelich
Date:
Bill Status:
Fiscal Analyst:
January 29, 2024
Senate Business, Labor, & Tech.
Clayton Mayfield | 303-866-5851
clayton.mayfield@coleg.gov
Bill Topic: FIREARMS MERCHANT CATEGORY CODE
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill establishes a policy for the payment processing of retail firearms sales, and
provides for enforcement by the Attorney General. Starting in FY 2024-25, the bill
minimally increases state workload.
Appropriation
Summary:
No appropriation is required.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Summary of Legislation
Starting September 1, 2024, the bill requires payment card networks to make a merchant
category code for firearms available for merchant acquirers that provide services for firearms
merchants. Merchant acquirers are entities that process debit, credit, or prepaid transactions.
Starting May 1, 2025, the bill requires merchant acquirers to assign the merchant category code
for firearms to each firearms merchant to which they provide services. A contract containing a
waiver of these requirements is void.
Enforcement. The bill gives the Attorney General the exclusive authority to enforce the policy.
The Attorney General must notify any party in violation of the policy 45 days before bringing an
enforcement action, and must list the specific violations in the notice. Parties have 30 days from
receiving the notice to cure any violations, and must provide a written statement and supporting
documentation that they have cured any violations.
Additionally, the Attorney General may file a civil action seeking a penalty of up to $10,000 for
each violation that is uncured, and an injunction or equitable relief that prevents further
violations. If the Attorney General prevails in an action, courts may require violators to pay
reasonable attorney fees and costs.
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January 29, 2024 SB 24-066
Background
Payment card networks are entities that provide services to route debit, credit, or prepaid
transactions between bank participants, including credit card companies such as Visa and
MasterCard.
State Revenue
Under the bill, a party violating the policy for retail sales of firearms may be subject to a civil
penalty of up to $10,000 for each violation. This revenue is classified as a damage award and not
subject to TABOR. Given the uncertainty about the number of cases that may be pursued by the
Attorney General, as well as the wide range in potential penalty amounts, the fiscal note cannot
estimate the potential impact of these civil penalties.
State Expenditures
The Department of Law may experience an increase in workload to the extent violations and
enforcement actions occur. The department will prioritize investigations as necessary within the
available resources. Trial courts in the Judicial Department may experience an increase in
workload to the extent the Attorney General files additional civil cases under the bill. It is
assumed that most payment networks, merchant acquirers, and firearms merchants will follow
the law. No change in appropriations is required.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed.
State and Local Government Contacts
Judicial Law Regulatory Agencies
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit the General Assembly website.