GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 3
HOUSE BILL 38
Committee Substitute Favorable 4/15/25
Third Edition Engrossed 4/29/25
Short Title: Second Amendment Financial Privacy Act. (Public)
Sponsors:
Referred to:
February 5, 2025
*H38-v-3*
A BILL TO BE ENTITLED 1
AN ACT TO ENACT THE SECOND AMENDMENT FIN ANCIAL PRIVACY ACT. 2
The General Assembly of North Carolina enacts: 3
SECTION 1. Chapter 66 of the General Statutes is amended by adding a new Article 4
to read: 5
"Article 52. 6
"Second Amendment Financial Privacy Act. 7
"§ 66-511. Legislative findings. 8
The General Assembly finds all of the following: 9
(1) The right of individuals to keep and bear arms is guaranteed under both the 10
Second Amendment to the United States Constitution and Section 30 of 11
Article I of the North Carolina Constitution. 12
(2) In September 2022, the International Organization for Standardization, based 13
in Switzerland, approved a new merchant category code for firearms 14
merchants. 15
(3) The new merchant category code would allow payment card networks and 16
others involved in payment card processing to identify and separately track 17
lawful payment card purchases at firearms merchants in North Carolina. This 18
surveillance would cause a significant chilling effect on individuals in North 19
Carolina wishing to exercise their federal and State constitutional rights to 20
keep and bear arms. 21
(4) In order to protect consumers in this State and promote lawful commerce in 22
this State, the Second Amendment Financial Privacy Act prohibits payment 23
card networks from using a firearms code or maintaining a firearms registry. 24
"§ 66-512. Definitions. 25
The following definitions apply in this Article: 26
(1) Firearms code. – Any code or other indicator that identifies to a payment card 27
network any of the following: 28
a. Whether a person is a firearms merchant. 29
b. Whether a payment involves the purchase of a firearm or firearm 30
ammunition. 31
(2) Firearms merchant. – A person physically located in the State engaged in the 32
lawful business of selling or trading firearms or firearm ammunition. 33
(3) Payment card network. – An entity that: (i) directly or through licensed 34
members, processors, or agents, provides the proprietary services, 35 General Assembly Of North Carolina Session 2025
Page 2 House Bill 38-Third Edition
infrastructure, and software to route information and data for the purpose of 1
conducting electronic payment transaction authorization, clearance, and 2
settlement; and (ii) a merchant uses to accept as a form of payment a brand of 3
debit card, credit card, or other device that may be used to carry out electronic 4
payment transactions. This term does not include the following: 5
a. A bank holding federally insured deposits from individuals. 6
b. A credit union holding federally insured deposits from individuals. 7
"§ 66-513. Prohibitions. 8
(a) No payment card network shall use or permit a firearms code in connection with a 9
payment card transaction involving a firearms merchant located in this State. 10
(b) No payment card network shall knowingly maintain a record of individuals residing 11
in this State who own firearms. 12
(c) No payment card network shall discriminate against a firearms merchant based solely 13
on the assignment or nonassignment of a firearms code, including by refusing to serve on similar 14
terms or declining a lawful payment card transaction. 15
"§ 66-514. Enforcement; civil penalty. 16
(a) The Attorney General may investigate an alleged violation of this Article. After notice 17
and an opportunity for hearing, if the Attorney General determines that a payment card network 18
violated this Article, the Attorney General may assess a civil penalty of not more than five 19
thousand dollars ($5,000) for each violation. The clear proceeds of any penalty assessed pursuant 20
to this section shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with 21
G.S. 115C-457.2. 22
(b) The powers vested in the Attorney General by this Article are in addition to and do 23
not limit the ability of the Attorney General to take other enforcement action. 24
"§ 66-515. Civil liability for violation. 25
(a) Cause of Action. – A civil action may be brought against a payment card network for 26
violation of this Article by any of the following: 27
(1) A firearms merchant located in this State whose payment card transactions are 28
designated with a firearms code. 29
(2) A person that makes a payment card transaction with a firearms merchant 30
located in this State and whose payment card record includes a firearms code 31
for that transaction. 32
(3) An individual for whom a payment card network maintains a record of firearm 33
ownership. 34
(b) Relief and Damages. – A person authorized to institute a civil action by subsection 35
(a) of this section may seek and the court may award any or all of the following types of relief: 36
(1) An injunction to enjoin continued violation of this Article. 37
(2) Statutory damages in the amount of ten thousand dollars ($10,000) for each 38
instance of violation of this Article connected to the person filing the civil 39
action. 40
(3) Costs and attorneys' fees. 41
(c) Statute of Limitations. – No action shall be maintained under subsection (a) of this 42
section unless it is commenced no later than three years after the discovery of the violation of 43
this Article." 44
SECTION 2. This act becomes effective October 1, 2025. 45