Michigan House Bill HB4831

Michigan 2023-2024 Regular Session

• Introduced: 6/20/23
• Refer: 6/20/23

Caption

Financial institutions: credit cards; use of merchant codes to identify gun sales; prohibit. Creates new act.

Impact

The potential effects of HB 4831 on state law include a shift in how financial institutions handle transactions related to firearms. By ensuring that firearms transactions are treated uniformly with other retail transactions, the bill intends to eliminate any perceived discrimination against firearms-related purchases. Furthermore, it empowers consumers who wish to maintain confidentiality in their purchases, asserting that financial institutions should not categorize these transactions in a manner that could impact individuals' rights to bear arms.

Summary

House Bill 4831, known as the 'Second Amendment Financial Privacy Act,' seeks to restrict financial institutions from using specific merchant category codes for transactions involving firearms retailers. This legislation aims to protect the financial privacy of individuals engaged in legal firearms-related transactions by prohibiting the unique categorization of such purchases. By standardizing the codes applied to transactions conducted by firearms retailers to be the same as general transaction codes, the bill aligns with the core principles of the Second Amendment, as perceived by its proponents.

Contention

Noteworthy points of contention surrounding the bill involve concerns about the implications for financial institutions' ability to monitor transactions that could potentially relate to gun violence or illegal activities. Critics of the bill may argue that the specialized merchant codes serve a valuable purpose in tracking and mitigating risks associated with firearms purchases. Additionally, the bill lays out civil penalties for non-compliance, which may provoke debate on its enforcement and the implications for financial institutions operating within the defined parameters.