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AN ACT relating to firearms. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 237 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) As used in this section: 5
(a) "Customer" means any person engaged in a payment card transaction that 6
a financial institution facilitates or processes; 7
(b) "Disclose" means the transfer, publication, or distribution of protected 8
financial information to another person for any purpose other than: 9
1. Processing or facilitating a payment card transaction; 10
2. Taking any action related to: 11
a. Dispute processing; or 12
b. Fraud management; or 13
3. Protecting payment card transaction integrity from any one (1) or 14
more of the following: 15
a. Illegal activities; 16
b. Data breach; or 17
c. Cybersecurity risks; 18
(c) "Financial institution" means any person, other than a retailer, involved in 19
facilitating or processing a payment card transaction, including but not 20
limited to: 21
1. A bank; 22
2. A credit union; 23
3. An acquirer; 24
4. A payment card network; and 25
5. A payment card issuer; 26
(d) "Firearms code": 27 UNOFFICIAL COPY 24 RS BR 56
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1. Means a code used to categorize or track sales, purchases, returns, or 1
refunds: 2
a. From firearms retailers separately from other retailers; or 3
b. Of firearms separately from other purchases; and 4
2. Includes but is not limited to merchant category code 5723 approved 5
in September 2022 by the International Organization for 6
Standardization for firearms retailers; 7
(e) "Firearms retailer" means any person engaged in the lawful business of 8
selling or trading: 9
1. Firearms; or 10
2. Ammunition to be used in firearms; and 11
(f) "Protected financial information" means any record of a sale by, purchase 12
from, return to, or refund from a firearms retailer involving a payment card 13
that is retrieved, characterized, generated, labeled, sorted, or grouped as a 14
result of the assignment of a firearms code. 15
(2) Except as provided in subsection (5) of Section 3 of this Act, a financial 16
institution or its agent shall not do any of the following with respect to sales, 17
purchases, returns, and refunds made in Kentucky: 18
(a) Require or incentivize the use of a firearms code; 19
(b) Discriminate against a firearms retailer by declining or otherwise refusing 20
to process a lawful payment card transaction based solely on the assignment 21
or nonassignment of a firearms code unless the declination or refusal is: 22
1. Necessary to comply with this section; 23
2. Requested by the customer; or 24
3. Due to fraud controls or merchant category exclusions offered by a 25
financial institution for the purpose of expenditure control or 26
corporate card control; or 27 UNOFFICIAL COPY 24 RS BR 56
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(c) Disclose protected financial information, including a firearms code that was 1
collected in violation of this section. 2
(3) Nothing in this section shall be construed to limit the ability of a financial 3
institution to negotiate with responsible parties or otherwise impair the financial 4
institution's actions related to: 5
(a) Dispute processing; 6
(b) Fraud management; or 7
(c) Protecting payment card transaction integrity from one (1) or more of the 8
following: 9
1. Illegal activities; 10
2. Data breach; or 11
3. Cybersecurity risks. 12
SECTION 2. A NEW SECTION OF KRS CHAPTER 237 IS CREATED TO 13
READ AS FOLLOWS: 14
(1) No person, unit of government, or governmental organization shall, during a 15
period of disaster or emergency as specified in KRS Chapter 39A or at any other 16
time, knowingly and willfully keep or cause to be kept any list, record, or registry 17
of privately owned firearms or any list, record, or registry of the owners of the 18
firearms, except for those records kept during the regular course of a criminal 19
investigation and prosecution or as otherwise required by law. 20
(2) Nothing in this section shall prevent an owner or an owner's representative from 21
maintaining a list of the owner's firearms. 22
SECTION 3. A NEW SECTION OF KRS CHAPTER 237 IS CREATED TO 23
READ AS FOLLOWS: 24
(1) As used in this section, "firearms retailer" has the same meaning as in Section 1 25
of this Act. 26
(2) (a) The Attorney General shall investigate any alleged violation of Section 1 or 27 UNOFFICIAL COPY 24 RS BR 56
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2 of this Act. 1
(b) The following may petition the Attorney General to investigate an alleged 2
violation under paragraph (a) of this subsection: 3
1. A firearms retailer, or a customer who made a transaction at a 4
firearms retailer, whose business is the subject of any alleged violation 5
of Section 1 of this Act; and 6
2. A person whose firearms ownership is the subject of any alleged 7
violation of Section 2 of this Act. 8
(3) (a) 1. Upon finding a violation of Section 1 or 2 of this Act, the Attorney 9
General shall provide written notice of the finding to the violating 10
person, public or private. 11
2. Written notice to a commercial entity under subparagraph 1. of this 12
paragraph shall be made to the entity's registered agent. 13
(b) Within thirty (30) days of receiving a written notice under paragraph (a) of 14
this subsection, the person shall cease any violation of Section 1 or 2 of this 15
Act. 16
(4) (a) The Attorney General shall pursue, in a court of competent jurisdiction, an 17
injunction against any person, public or private, that fails to comply with 18
subsection (3)(b) of this section. 19
(b) If the court finds that a person continues to be in violation of Section 1 or 2 20
of this Act, the court shall issue an injunction enjoining the person from 21
continuing the violation. 22
(c) Within thirty (30) days of being served with an injunction issued under 23
paragraph (b) of this subsection, the person shall cease any violation of 24
Section 1 or 2 of this Act. 25
(d) 1. If a person knowingly and willfully fails to comply with paragraph (c) 26
of this subsection, the Attorney General shall petition the court to 27 UNOFFICIAL COPY 24 RS BR 56
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recover on behalf of the state: 1
a. A civil penalty not to exceed ten thousand dollars ($10,000) per 2
violation of paragraph (c) of this subsection; and 3
b. The reasonable costs of investigation and litigation. 4
2. In assessing a civil penalty under subparagraph 1.a. of this paragraph, 5
the court shall consider, but not be limited to, the following factors: 6
a. The financial resources of the violator; and 7
b. The harm or risk of harm to rights to keep and bear arms under: 8
i. The Second Amendment of the United States Constitution; 9
and 10
ii. Section 1 of the Constitution of Kentucky. 11
3. Any order assessing one (1) or more penalties under subparagraph 1. 12
of this paragraph shall be stayed pending appeal of the order. 13
(5) It shall be a defense to any alleged violation of Section 1 or 2 of this Act that the 14
person made a good-faith determination that the person's disclosure or action 15
was required by law. 16
(6) The remedies set forth in this section shall be the exclusive remedies for any 17
violation of Section 1 or 2 of this Act. 18
Section 4. This Act may be cited as the Second Amendment Privacy Act. 19
Section 5. This Act takes effect January 1, 2025. 20