Shown verbatim: the complete text as captured from the official PDF posted by the Arkansas General Assembly, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas As Engrossed: H3/12/25
2 95th General Assembly
A Bill
3 Regular Session, 2025 HOUSE BILL 1443
4
5 By: Representative Pilkington
6 By: Senator C. Penzo
7
8 For An Act To Be Entitled
9 AN ACT TO CREATE THE SECOND AMENDMENT FINANCIAL
10 PRIVACY ACT; TO PROHIBIT FINANCIAL INSTITUTIONS AND
11 PAYMENT NETWORKS FROM USING CERTAIN DISCRIMINATORY
12 PRACTICES; TO PROVIDE FOR ENFORCEMENT OF VIOLATIONS;
13 AND FOR OTHER PURPOSES.
14
15
16 Subtitle
17 TO CREATE THE SECOND AMENDMENT FINANCIAL
18 PRIVACY ACT; TO PROHIBIT FINANCIAL
19 INSTITUTIONS AND PAYMENT NETWORKS FROM
20 USING CERTAIN DISCRIMINATORY PRACTICES;
21 AND TO PROVIDE FOR ENFORCEMENT OF
22 VIOLATIONS.
23
24 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
25
26 SECTION 1. Arkansas Code Title 23, Chapter 32, is amended to add an
27 additional subchapter to read as follows:
28
29 Subchapter 6 -- Second Amendment Financial Privacy Act
30
31 23-32-601. Title.
32 This subchapter shall be known and may be cited as the "Second
33 Amendment Financial Privacy Act".
34
35 23-32-602. Definitions.
36 As used in this subchapter:
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1 (1) "Ammunition" means ammunition or cartridge cases, primers,
2 bullets, or propellant powder designed for use in a firearm;
3 (2) "Antique firearm" means the same as defined in 18 U.S.C.
4 921, as it existed on January 1, 2025;
5 (3) "Assign" or "assignment" means a financial institution's
6 policy, process, or practice that labels, links, or otherwise associates a
7 firearms code with a merchant or payment card transaction in a manner that
8 allows the financial institution, payment network, or any other entity
9 facilitating or processing the payment card transaction to identify whether a
10 merchant is a firearms retailer or whether a transaction involves the sale of
11 firearms, firearm accessories or components, or ammunition;
12 (4)(A) "Customer" means a person physically located in this
13 state who is engaged in a payment card transaction that a financial
14 institution facilitates or processes.
15 (B) "Customer" includes a person or the person's
16 authorized representative who has transacted business with or has used the
17 services of a financial institution or for whom a financial institution has
18 acted as a fiduciary in relation to an account maintained in the person's
19 name;
20 (5) "Depository institution" means:
21 (A) A depository institution as defined in 12 U.S.C. �
22 1813(c)(1), as it existed on January 1, 2025; or
23 (B) An insured credit union as defined in 12 U.S.C. �
24 1752(7), as it existed on January 1, 2025;
25 (6) "Disclosure" means the transfer, publication, or
26 distribution of protected financial information to another person or entity
27 for any purpose other than to process or facilitate a payment card
28 transaction;
29 (7)(A) "Financial institution" means an entity involved in
30 facilitating or processing a payment card transaction.
31 (B) "Financial institution" includes:
32 (i) An acquirer;
33 (ii) A payment card issuer;
34 (iii) A depository institution;
35 (iv) A trust company;
36 (v) A savings bank;
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1 (vi) A person subject to the jurisdiction of the:
2 (a) United States Securities and Exchange
3 Commission;
4 (b) Bank Commissioner under the Arkansas
5 Banking Code of 1997, chapters 45-50 of this title;
6 (c) Securities Commissioner under the Arkansas
7 Securities Act, � 23-42-101 et seq.;
8 (d) Insurance Commissioner under the Arkansas
9 Insurance Code; or
10 (e) Federal Deposit Insurance Corporation; and
11 (vii) Any other institution that:
12 (a) Holds and receives deposits, savings, or
13 share accounts;
14 (b) Issues certificates of deposit;
15 (c) Provides to its customers any deposit
16 accounts subject to withdrawal by check, instrument, order, or electronic
17 means to effect third-party payments;
18 (d) Provides insurance services; or
19 (e) Provides investment services;
20 (8) "Financial record" means:
21 (A) The original or a copy of a record or document held by
22 a payment network pertaining to a customer of a financial institution
23 utilizing a payment network, including a record of a transaction conducted by
24 means of a customer bank communication terminal or other electronic device;
25 (B) A financial record held by a payment network related
26 to a payment card transaction that the financial institution has processed or
27 facilitated; and
28 (C) Any information derived from the records or documents
29 described in subdivisions (8)(A) and (B) of this section;
30 (9) "Firearm" means a weapon that will, is designed to, or may
31 readily be converted to expel a projectile by the action of an explosive;
32 (10) "Firearm accessory or component" means:
33 (A) An attachment or device specifically adapted to:
34 (i) Enable the:
35 (a) Wearing or carrying of a firearm about
36 one's person; or
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1 (b) Storage of a firearm in, or the mounting
2 of a firearm in or upon, a conveyance; or
3 (ii) Be inserted into or affixed onto a firearm to
4 enable, alter, or improve the functioning or capabilities of a firearm;
5 (B) An item that is used in conjunction with or mounted
6 upon a firearm, including without limitation:
7 (i) A telescopic or laser sight;
8 (ii) A magazine;
9 (iii) A flash or sound suppressor;
10 (iv) A folding or aftermarket stock and grip;
11 (v) A speedloader;
12 (vi) A brace;
13 (vii) An ammunition carrier; and
14 (viii) A light for target illumination; and
15 (C) A component for making ammunition, reloading materials
16 and equipment, machinery, and tools for manufacturing ammunition;
17 (11)(A) "Firearms code" means a code or other indicator that a
18 payment network or financial institution assigns to a merchant or to a
19 payment card transaction that identifies whether or not:
20 (i) A merchant is a firearms retailer; or
21 (ii) The payment card transaction involves the
22 purchase of a firearm, a firearm accessory or component, or ammunition.
23 (B) "Firearms code" includes without limitation a merchant
24 category code assigned to a firearms retailer by a payment network or other
25 financial institution;
26 (12) "Firearms retailer" means a person or entity physically
27 located in this state and engaged in the lawful business of selling or
28 trading firearms, antique firearms, firearm accessories or components, or
29 ammunition;
30 (13)(A) "Government entity" means a state, local government, or
31 instrumentality of a state or local government.
32 (B) "Government entity" includes an official, agent, or
33 employee of a state or local government;
34 (14)(A) "Merchant" means a person or entity physically located
35 in this state that accepts payment cards from customers for the purchase of
36 goods or services.
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1 (B) "Merchant" includes a firearms retailer that accepts
2 payment cards for the lawful purchase of firearms, firearm accessories or
3 components, or ammunition;
4 (15) "Payment card" means a credit card, charge card, debit
5 card, or any other card that is issued to an authorized card user and that
6 allows the user to purchase goods or services from a merchant;
7 (16) "Payment network" means a debit or credit network through
8 which funds may be transferred, including credit card associations,
9 electronic funds transfer networks, or other organizations or associations,
10 that issue or sponsor a financial transaction device;
11 (17)(A) "Protected financial information" means the record of a
12 sale, purchase, return, or refund involving a payment card that is retrieved,
13 characterized, generated, labeled, sorted, or grouped based on the assignment
14 of a firearms code.
15 (B) "Protected financial information" includes the
16 financial records of a customer;
17 (18) "Savings bank" means a savings association or federal
18 savings association as defined in 12 U.S.C. � 1462, as it existed on January
19 1, 2025; and
20 (19) "Trust company" means:
21 (A) A national bank engaged in activities in a fiduciary
22 capacity under 12 U.S.C. � 92a and 12 C.F.R. Part 9;
23 (B) A trust company as defined in � 23-51-102; or
24 (C) An interstate bank that is authorized under the
25 Arkansas Banking Code of 1997, chapters 45-50 of this title, to exercise the
26 powers of a trust company in this state.
27
28 23-32-603. Financial privacy -- Firearm-owner rights.
29 (a)(1) A government entity, a payment network or an entity or agent
30 acting on behalf of a payment network, or a financial institution or an
31 entity or agent acting on behalf of a financial institution shall not
32 knowingly keep or cause to be kept a list, record, or registry of:
33 (A) Privately owned firearms; or
34 (B) Owners of privately owned firearms.
35 (2) Subdivision (a)(1) of this section does not apply to:
36 (A) Records kept during the regular course of a criminal
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1 investigation or prosecution;
2 (B) Records kept in the regular course of business by a
3 firearms retailer;
4 (C) Information submitted to a law enforcement agency in
5 connection with an application for a license to carry a concealed handgun and
6 maintained under � 5-73-307 subject to the restrictions under � 5-73-307 and
7 under � 25-19-105(b); or
8 (D) Records kept as otherwise required by law.
9 (b) A financial institution, a payment network, or agents of a payment
10 network shall not require or incentivize the usage of a firearms code in a
11 way that distinguishes a firearms retailer from general merchandise retailers
12 or sporting goods retailers located in this state.
13 (c) Except as provided in subsections (e) and (f) of this section, a
14 financial institution or payment network shall not discriminate against a
15 firearms retailer by:
16 (1) Declining a lawful payment card transaction based solely on
17 the assignment or nonassignment of a firearms code to the firearms retailer
18 or transaction;
19 (2) Limiting or declining to do business with a customer,
20 potential customer, or merchant based on the assignment or nonassignment of a
21 firearms code to any previous lawful transaction involving the customer,
22 potential customer, or merchant;
23 (3) Charging a higher transaction or interchange fee to a
24 merchant or for a lawful transaction based on the assignment or nonassignment
25 of a firearms code; or
26 (4) Otherwise taking any action against a customer or merchant
27 that is intended to suppress lawful commerce involving firearms, firearm
28 accessories or components, or ammunition when that action is based solely or
29 in part on the customer's or merchant's business involving firearms, firearm
30 accessories or components, or ammunition.
31 (d) A financial institution or payment network shall not disclose a
32 financial record or protected financial information, including a firearms
33 code, that was collected in violation of this subchapter unless the
34 disclosure of the financial record or protected financial information is
35 based on a good faith conclusion that the financial institution's action was
36 required by applicable law.
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1 (e) A payment network or financial institution may decline or
2 otherwise refuse to process a lawful payment card transaction involving a
3 firearms retailer on the basis of the assignment or nonassignment of a
4 firearms code:
5 (1) If necessary to comply with applicable state or federal law;
6 (2) At the request of the customer;
7 (3) According to fraud controls or merchant category exclusions
8 offered by a financial institution for the purpose of expenditure control or
9 corporate card control applicable to the payment card involved in the payment
10 card transaction; or
11 (4) For purposes of restricting the use or availability of a
12 firearms code in Arkansas.
13 (f) With respect to a payment card transaction, this subchapter does
14 not limit the ability of a payment network to negotiate with a responsible
15 party or otherwise impair the payment network's actions related to:
16 (1) Dispute processing;
17 (2) Fraud risk or credit management in the ordinary course of
18 business operations; or
19 (3) Protecting the integrity of the payment card transaction
20 with respect to illegal activity, security breaches, or risk of cyberattacks.
21
22 23-32-604. Enforcement.
23 (a)(1)(A) The Attorney General may investigate alleged violations of
24 this subchapter and, upon finding a violation, shall provide written notice
25 to an individual or entity that is violating this subchapter.
26 (B) The written notice required under subdivision
27 (a)(1)(A) of this section shall be made to the entity's registered agent or
28 the individual.
29 (2) Upon receipt of the written notice under subdivision (a)(1)
30 of this section, the individual or entity shall cease the violation of this
31 subchapter within thirty (30) days after receiving notice from the Attorney
32 General under this section.
33 (3) The Attorney General may grant an entity up to an additional
34 thirty (30) days to cease the violation of this subchapter.
35 (b)(1) A firearms retailer whose business was the subject of an
36 alleged violation of this subchapter or a customer who completed a
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1 transaction with a firearms retailer whose business was the subject of an
2 alleged violation of this subchapter may petition the Attorney General to
3 investigate an alleged violation of this subchapter.
4 (2) If the Attorney General does not commence an action within
5 ninety (90) days of receiving the petition under subdivision (b)(1) of this
6 section, the firearms retailer or customer may file an action in a court of
7 competent jurisdiction to enjoin the individual or entity from violations of
8 this subchapter.
9 (c)(1) If an individual or entity fails to cease the violation under
10 subdivision (a)(2) of this section, the Attorney General shall request an
11 injunction against the individual or entity alleged to be in violation of
12 this subchapter, which a court may order, in addition to any other available
13 relief, as the court may consider appropriate.
14 (2) If a court finds that the individual or entity continues to
15 be in violation of this subchapter after thirty (30) calendar days from
16 receiving written notice under subdivision (a)(1)(A) or subdivision (a)(3) of
17 this section, then the court shall enjoin the individual or entity from
18 continuing the activity found to be in violation of this subchapter.
19 (3)(A)(i) If the individual or entity knowingly fails to comply
20 with an injunction under subdivision (c)(2) of this section within thirty
21 (30) calendar days after being served with an injunction, then the Attorney
22 General shall petition the court to recover a civil penalty in a sum not to
23 exceed fifteen thousand dollars ($15,000) for each violation committed after
24 the expiration of the thirty-day period under this subdivision (c)(3)(A).
25 (ii) Each transaction in violation of this
26 subchapter constitutes a separate violation.
27 (B) In assessing a penalty, the court may consider the
28 financial resources of the individual or entity that violated this subchapter
29 and the harm or risk of harm to the rights afforded to the firearms retailer
30 or customer under Arkansas Constitution, Article 2, � 5 and the Second
31 Amendment to the United States Constitution resulting from the violation.
32 (C) In addition to the remedies provided under this
33 section, the Attorney General or a petitioner who prevails in an action under
34 this section shall recover costs, including investiative costs and expert
35 fees, reasonable attorney's fees, and any other remedy the court deems
36 appropriate.
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1 (D) An order assessing a penalty for a violation of this
2 subchapter shall be stayed pending appeal of the order and upon filing a
3 supersedeas bond with the court.
4 (d) It is not a defense to an action filed under this section that the
5 information was disclosed to a United States Government entity unless the
6 disclosure or action was made based on a good faith conclusion that the
7 disclosure or action was required by federal law or regulation.
8
9 23-32-605. Applicability.
10 This subchapter does not apply to a payment card transaction that is
11 initiated at a firearms retailer's physical location outside of Arkansas,
12 whether or not:
13 (1) The purchaser in the payment card transaction is a consumer
14 who resides in Arkansas; or
15 (2) The firearms retailer has at least one (1) physical location
16 in Arkansas.
17
18 SECTION 2. DO NOT CODIFY. Effective date.
19 This act is effective on and after September 1, 2025.
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21 /s/Pilkington
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9 03-12-2025 11:23:15 ANS220Every fact on this page links to its source, starting with the official bill record.