House File 2464 - Reprinted HOUSE FILE 2464 BY COMMITTEE ON COMMERCE (SUCCESSOR TO HSB 671) (As Amended and Passed by the House February 20, 2024 ) A BILL FOR An Act relating to government records of firearms, and payment 1 card transactions involving firearms and ammunition, and 2 providing civil penalties. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 HF 2464 (4) 90 nls/ko/md
H.F. 2464 Section 1. NEW SECTION . 554H.1 Definitions. 1 1. Ammunition means the same as defined in section 683.1. 2 2. Assign or assignment means a financial institutions 3 policy, process, or practice that labels, links, or otherwise 4 associates a firearms code with a merchant or a payment card 5 transaction in a manner that allows the financial institution, 6 or other entity facilitating or processing the payment card 7 transaction, to identify whether a merchant is a firearms 8 retailer or whether a transaction involves the sale of firearms 9 or ammunition. 10 3. Customer means a person engaged in a payment 11 card transaction facilitated or processed by a financial 12 institution. 13 4. Financial institution means a person other than a 14 merchant involved in facilitating or processing a payment card 15 transaction, including but not limited to any bank incorporated 16 under the provisions of any state or federal law, an acquirer, 17 a payment card issuer, a payment card network, a payment 18 gateway, or a payment card processor. 19 5. Firearm means any weapon that is capable of expelling, 20 designed to expel, or that may readily be converted to expel 21 ammunition, and includes a firearm component or accessory. 22 6. Firearms code means a merchant category code approved 23 by the international organization for standardization 24 specifically for firearms retailers. 25 7. Firearms retailer means a person physically located 26 within the state who engages in the lawful selling or trading 27 of firearms or ammunition. 28 8. Government entity means the state, any political 29 subdivision of the state, or any court, agency, or 30 instrumentality of the state. Government entity includes a 31 government official or an agent or employee of a government 32 entity. 33 9. a. Payment card means any card that is issued pursuant 34 to an agreement or arrangement that provides for all of the 35 -1- HF 2464 (4) 90 nls/ko/md 1/ 4
H.F. 2464 following: 1 (1) One or more issuers of the payment card. 2 (2) A network of persons unrelated to each other and to the 3 issuer who agree to accept a payment card as payment. 4 (3) Standards and mechanisms for settling the transactions 5 between the merchandise-acquiring person and the merchant that 6 agrees to accept the payment card as payment. 7 b. Payment card includes credit cards, debit cards, 8 stored-value cards including gift cards, and payment through 9 any distinctive marks of a payment card including a credit card 10 number. The acceptance as payment of any account number or 11 other indicia associated with a payment card shall be treated 12 in the same manner as accepting the payment card as payment. 13 10. Payment card transaction means any transaction in 14 which a payment card is accepted as payment. 15 Sec. 2. NEW SECTION . 554H.2 Government entities firearm 16 registry or record. 17 Except for records kept during the regular course of a 18 criminal investigation, a criminal prosecution, any court case, 19 or as otherwise required by law, a government entity shall not 20 knowingly keep or cause to be kept a record or registry of 21 privately owned firearms or of the owners of privately owned 22 firearms. 23 Sec. 3. NEW SECTION . 554H.3 Financial institutions. 24 1. A financial institution or agent of a financial 25 institution shall not do any of the following: 26 a. Require the assignment of a firearms code in a manner 27 that distinguishes a firearms retailer from other retailers. 28 b. Subject to subsection 2, decline a payment card 29 transaction involving a firearms retailer based solely on 30 the acquirers assignment of a firearms code to the firearms 31 retailer. 32 2. This section shall not be construed to prohibit a 33 financial institution from declining or otherwise refusing to 34 process a payment card transaction for any of the following 35 -2- HF 2464 (4) 90 nls/ko/md 2/ 4
H.F. 2464 reasons: 1 a. If necessary to comply with applicable state or federal 2 laws. 3 b. If requested by a customer. 4 c. If necessary due to fraud controls. 5 d. For purposes of merchant category exclusions offered by 6 a financial institution for expenditure control or corporate 7 card control. 8 3. This section shall not be construed to limit the 9 authority of a financial institution to negotiate with 10 responsible parties, or to otherwise impair a financial 11 institutions actions related to dispute processing, fraud or 12 compliance management, protection from illegal or suspicious 13 activities, breach, cyber risks, or from taking any action that 14 restricts the use or availability of the firearms code in the 15 state. 16 Sec. 4. NEW SECTION . 554H.4 Enforcement penalties. 17 1. The attorney general shall investigate reasonable 18 alleged violations of this chapter. If the attorney general 19 has reasonable belief that a person is in violation of this 20 chapter, the attorney general shall provide written notice to 21 the person determined to have committed the violation. 22 2. Upon receipt of notice of a violation under subsection 23 1, the person shall have ninety calendar days to cease the 24 violation. 25 3. If the violation persists after the expiration of the 26 ninety-day period under subsection 2, the attorney general has 27 the sole authority to bring civil action in district court to 28 enjoin further violations by a person found to be in violation 29 of this chapter, in addition to other remedies permitted by 30 law. 31 4. If a person knowingly or willfully fails to comply 32 with an injunction issued under subsection 3, after thirty 33 calendar days of the date the person is served with the 34 injunction, the attorney general may petition the district 35 -3- HF 2464 (4) 90 nls/ko/md 3/ 4
H.F. 2464 court to impose civil penalties in an amount not to exceed one 1 thousand dollars per violation, taking into consideration the 2 financial resources of the violator and the harm or risk of 3 harm to the violators rights under the second amendment to the 4 Constitution of the United States and Article I, section 1A, 5 of the Constitution of the State of Iowa resulting from the 6 violation. 7 5. It shall be a defense to a proceeding initiated pursuant 8 to this section that a firearms code was required to be 9 disclosed or assigned by law. 10 -4- HF 2464 (4) 90 nls/ko/md 4/ 4