North Carolina 2025-2026 Regular Session

North Carolina House Bill H38

Introduced
2/3/25  
Refer
2/5/25  
Report Pass
2/25/25  
Refer
2/25/25  
Report Pass
4/15/25  
Refer
4/15/25  

Caption

Second Amendment Financial Privacy Act

Impact

If enacted, the bill will significantly affect state laws related to consumer protections and financial transactions involving firearms. The legislation seeks to prevent discrimination against firearms merchants based on their classification and prevents payment processors from recording detailed transaction information that could implicate lawful gun ownership. Additionally, the bill establishes civil penalties for payment card networks that violate these provisions and creates legal avenues for firearms merchants and individuals to seek redress for infractions.

Summary

House Bill 38, known as the Second Amendment Financial Privacy Act, aims to safeguard the financial privacy of individuals engaging in lawful firearm purchases in North Carolina. The bill arises from concerns regarding a new merchant category code for firearms merchants approved by the International Organization for Standardization in September 2022. It seeks to prohibit payment card networks from utilizing this firearms code, thus preventing the tracking and surveillance of purchases made at firearms businesses and protecting citizens' rights to exercise their Second Amendment freedoms. The bill proposes that no payment card network may maintain a registry of gun owners, thereby ensuring that the purchasing data remains private.

Sentiment

The sentiment surrounding HB 38 reflects a strong advocacy for individual rights, primarily among gun owners, lawmakers, and organizations driven by Second Amendment principles. Supporters argue that the bill is essential for protecting constitutional rights against intrusive tracking practices. Critics, however, may express concerns over the implications of reduced regulatory oversight of financial transactions related to firearms, potentially complicating law enforcement efforts regarding illegal gun trafficking or misuse.

Contention

As the bill progresses through the legislative process, key points of contention may center on balancing individual privacy rights with public safety considerations. Some lawmakers might voice concerns regarding the potential for fraud or misuse of firearms transactions without a tracking mechanism. Moreover, discussions could arise over the responsibilities of financial institutions in transactions involving products that carry regulatory scrutiny, positioning HB 38 within a broader legal and ethical debate about privacy, gun ownership, and societal safety.

Companion Bills

No companion bills found.

Similar Bills

NV SB438

Provides for the licensure and regulation of merchant acquirer limited purpose banks. (BDR 55-974)

NJ S3706

Requires use of merchant category codes for purchases of firearms and ammunition.

NJ A5345

Requires use of merchant category codes for purchases of firearms and ammunition.

DE HB45

An Act To Amend Title 6 Of The Delaware Code Relating To Sales Of Firearms, Firearm Accessories, And Ammunition.

AZ HB2629

Merchant; fees; calculation; transactions; penalty

WY HB0108

Firearm purchase protections.

VT S0135

An act relating to credit card fees and requiring the acceptance of cash

CA AB1065

Credit card transaction fees: tax payments: Consumer Inflation Reduction and Tax Fairness Act.