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.
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.
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.