Texas 2023 - 88th Regular

Texas House Bill HB2837

Filed
2/24/23  
Out of House Committee
4/21/23  
Voted on by House
5/3/23  
Out of Senate Committee
5/16/23  
Voted on by Senate
5/19/23  
Governor Action
6/10/23  

Caption

Relating to prohibiting a person or entity from surveilling, reporting, or tracking the purchase of firearms, ammunition, and accessories through the use of certain merchant category codes; imposing a civil penalty.

Impact

If enacted, HB 2837 will significantly alter regulations concerning financial transactions related to firearms in Texas. By forbidding the assignment and use of specific merchant category codes associated with firearm purchases, the bill aims to eliminate any financial mechanisms that could monitor or report these purchases. This legislative change is expected to enhance privacy for gun owners and may deter attempts by financial institutions to implement undue surveillance regarding their customers' exercise of Second Amendment rights. Additionally, it imposes civil penalties on entities that fail to comply with these new stipulations.

Summary

House Bill 2837, known as the Second Amendment Financial Privacy Act, aims to protect the privacy of individuals purchasing firearms, ammunition, and related accessories by prohibiting the tracking of such transactions through the assignment of unique merchant category codes. The bill specifically targets the potential use of these codes by payment card networks and financial institutions to surveil lawful purchases, which supporters argue could lead to a de facto registry of gun owners. The intent is to uphold constitutional rights and remove barriers that could discourage lawful firearm purchases.

Sentiment

The sentiment surrounding HB 2837 is notably polarized, with strong backing from gun rights advocates and opposition from those who view the bill as a potential obstacle to financial institutions' roles in preventing illegal activities. Proponents argue that the bill strengthens privacy and protects Second Amendment rights against governmental overreach and financial surveillance. Criticism comes primarily from those concerned that banning such financial categorization could limit the ability of authorities to monitor unlawful sales and activities related to firearms.

Contention

A notable point of contention is the balance between protecting individual rights and allowing sufficient oversight to prevent illegal activities involving firearms. Advocates for HB 2837 emphasize the protection of personal privacy and highlight the potential risks of establishing surveillance capabilities, while opponents express concerns that restricting merchant categorization might hinder legitimate safety efforts. The debate illustrates a broader national conversation about gun rights, individual privacy, and the power of financial institutions in monitoring transactions.

Texas Constitutional Statutes Affected

Finance Code

  • Chapter 271. Financial Transaction Reporting Requirements
    • Section: New Section

Companion Bills

No companion bills found.

Previously Filed As

TX HB3712

Relating to authorizing a holder of a distributor's license to provide samples of malt beverages to retailers.

Similar Bills

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.

TX HB4007

Relating to payment card skimmers and the creation of a payment card fraud center; imposing a civil penalty; creating criminal offenses.

TX SB2032

Relating to payment card skimmers and the creation of a payment card fraud center; imposing a civil penalty; creating criminal offenses.

KS HB2089

Enacting the consumer inflation reduction and tax fairness act and exempting the portion of a credit card transaction constituting a tax or gratuity from assessment of the fee charged by the card issuer.

AZ SB1143

Firearms transactions; merchant codes; prohibition

TX HB3002

Relating to a merchant allowing a person suspected of committing or attempting to commit theft to complete a theft education program.

TX SB1648

Relating to payment card skimmers on motor fuel dispensers; imposing a civil penalty; creating criminal offenses.