HLS 19RS-56 ENGROSSED
2019 Regular Session
HOUSE BILL NO. 413
BY REPRESENTATIVE MIGUEZ
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
BANKS/BANKING: Provides that it shall be unlawful discrimination for a financial
institution to refuse to provide services to any party because of the party's lawful
engagement in commerce of firearms and ammunition
1 AN ACT
2To enact R.S. 6:424, relative to the refusal to provide financial services; to provide
3 definitions; to prohibit the refusal of financial services to a person based solely upon
4 that person's lawful engagement in the commerce of, manufacturing of, servicing of,
5 renting of, provision of training relative to, or provision of a facility designed for
6 qualifications, training, or practice relative to firearms or ammunition; to provide for
7 penalties; to provide for exceptions; and to provide for related matters.
8Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 6:424 is hereby enacted to read as follows:
10 ยง424. Refusal to provide financial services; penalties
11 A. As used in this Section:
12 (1) "Financial services" means any service or product offered to the
13 consumer or business market by a bank, credit union, financial institution, payment
14 processor, savings and loan association, or trust company.
15 (2) "Payment processor" means a company that facilitates communication
16 between the bank that issued a customer's debit or credit card and the seller's bank.
17 (3) "Trade association" means any corporation, unincorporated association,
18 federation, business league, or professional or business organization not organized
19 or operated for profit and no part of the net earnings of which inures to the benefit
20 of any private shareholder or individual; that is an organization described in Section
21 501(c)(6) of Title 26 of the United States Code and exempt from tax under Section
22 501(a) of such title; and two or more members of which are manufacturers or sellers
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HB NO. 413
1 of a qualified product as defined by Section 7903(4) of Title 15 of the United States
2 Code.
3 B.(1) A bank, credit union, financial institution, payment processor, savings
4 and loan association, or trust company shall not refuse to provide financial services
5 of any kind to, refrain from continuing to provide existing financial services to,
6 terminate existing financial services with, or otherwise discriminate in the provision
7 of financial services against a person or trade association solely because a person or
8 trade association is engaged in the lawful commerce, purchase, sale, or manufacture
9 of firearms or ammunition products and is licensed pursuant to Chapter 44 of Title
10 18 of the United States Code, or the servicing of, renting of, provision of training
11 relative to, or provision of a facility designed for qualifications, training, or practice
12 relative to firearms or ammunition products, or is a trade association.
13 (2) It shall not be a violation of this Section for a bank, credit union,
14 financial institution, payment processor, savings and loan association, or trust
15 company to refuse to provide, refrain from continuing to provide, or terminate
16 financial services with a customer for any business reason or due to a directive by
17 a regulator. A business reason shall not mean a policy of refusing to provide
18 financial services to entities described in Paragraph (1) of this Subsection.
19 (3) Nothing in this Section shall prohibit a bank, credit union, financial
20 institution, payment processor, savings and loan association, or trust company from
21 complying with any federal or state law or regulation that conflicts with the
22 provisions of this Section.
23 C.(1) Whenever the attorney general is presented with direct credible
24 evidence and has reason to believe that any person is engaging, has engaged, or is
25 about to engage in any act or practice declared unlawful by the Section, the attorney
26 general may, upon written request or by his own initiative, investigate and, upon
27 finding a violation of this Section, bring an action in the name of the state against
28 such person to:
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HB NO. 413
1 (a) Obtain a declaratory judgment that the act or practice violates the
2 provisions of this Section.
3 (b) Enjoin any act or practice that violates the provisions of this Section by
4 issuance of a temporary restraining order or preliminary or permanent injunction,
5 without bond, upon the giving of appropriate notice.
6 (c) Recover civil penalties of up to ten thousand dollars per violation of this
7 Section and reasonable expenses, investigative costs, and attorney fees.
8 (2) In order for the state to prevail in its action and to obtain the remedies set
9 forth in this Subsection, a court shall find clear and convincing evidence of a
10 violation of this Section.
11 D. The provisions of this Section shall not apply to any bank, credit union,
12 financial institution, payment processor, savings and loan association, or trust
13 company that is chartered under the laws of this state, or any other state, to the extent
14 that federal law precludes or preempts, or has been determined to preclude or
15 preempt, the application of the provisions of this Section to any federally chartered
16 bank, credit union, financial institution, payment processor, savings and loan
17 association, or trust company.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 413 Engrossed 2019 Regular Session Miguez
Abstract: Prohibits a bank, credit union, financial institution, payment processor, savings
and loan association, or trust company from refusing to provide financial services to
a person or trade association solely because the person or trade association is
involved in the lawful commerce of firearms or ammunition.
Proposed law defines "financial services", "payment processor", and "trade association" as
used in proposed law.
Proposed law prohibits a bank, credit union, financial institution, payment processor, savings
and loan association, or trust company from refusing to provide financial services to, refrain
from continuing to provide existing financial services, terminate existing financial services
with, or otherwise discriminate in the provision of financial services against a person or trade
association solely because the person or association is engaged in the lawful commerce,
buying, selling, or manufacturing of firearms or ammunition and is licensed pursuant to
present law.
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HB NO. 413
Proposed law prohibits a bank, credit union, financial institution, payment processor, savings
and loan association, or trust company from refusing to provide financial services to, refrain
from continuing to provide existing financial services, terminate existing financial services
with, or otherwise discriminate in the provision of financial services against a person solely
because that person is engaged in the lawful servicing of, renting of, provision of training
relative to, or provision of a facility designed for qualifications, training, or practice relative
to firearms or ammunition.
Proposed law provides that it shall not be a violation of proposed law for a bank, credit
union, financial institution, payment processor, savings and loan association, or trust
company to refuse to provide financial services to a customer for any business reason or due
to a directive by a regulator. Proposed law provides that a business reason shall not mean a
policy of refusing to provide financial services to entities described in proposed law.
Proposed law shall not prohibit a bank, credit union, financial institution, payment processor,
savings and loan association, or trust company from complying with present law.
Proposed law authorizes the attorney general, when presented with direct credible evidence
and having reason to believe there is a violation of proposed law, to investigate, and upon
finding a violation of proposed law to bring an action in the name of the state.
Proposed law allows the attorney general to seek a declaratory judgment, preliminary or
permanent injunction, and penalties of up to $10,000 per violation of proposed law as well
as expenses, investigative costs, and attorney fees.
Proposed law requires the state, in order to prevail in its action and to obtain the remedies
set forth in proposed law, to find clear and convincing evidence of a violation of proposed
law.
Proposed law provides that the provisions of proposed law shall not apply to any bank, credit
union, financial institution, payment processor, savings and loan association, or trust
company that is chartered under present law to the extent present law has been determined
to preclude or preempt, the application of proposed law to any federally chartered bank,
credit union, financial institution, payment processor, savings and loan association, or trust
company.
(Adds R.S. 6:424)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Commerce to the
original bill:
1. Expand the protection to persons who manufacture, service, rent, provide
training relative to, or provide a facility designed for qualification, training, or
practice relative to firearms or ammunition.
2. Add a provision mandating that the withholding of financial services for any
business reason or directive by a regulator not be considered a violation.
3. Allow a bank, credit union, financial institution, payment processor, savings and
loan association, or trust company to comply with any conflicting law or
regulation.
4. Require the attorney general to be presented with direct credible evidence of a
violation before initiating an investigation.
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HB NO. 413
5. Remove the requirement that the attorney general investigate a violation, and
instead, authorizes him to act if he chooses.
6. Remove the requirement that the violation be considered probable before an
investigation can be initiated.
7. Require a court to find clear and convincing evidence of a violation, in order for
the state to prevail in an action.
8. Create an exception for any bank, credit union, financial institution, payment
processor, savings and loan association, or trust company that is chartered under
present law, to the extent that federal law precludes or preempts, the application
of proposed law to any federally chartered bank, credit union, financial
institution, payment processor, savings and loan association, or trust company.
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