SB 281 — Financial Institutions; to prohibit financial institutions from using a merchant category code to identify firearms transactions; to prohibit disclosure of financial information regarding firearms transactions

SB281 ENGROSSEDENROLLED SB281 CMCEQQW-2CMCEQQW-3 By Senator Melson RFD:

04-Apr-24 Page 0 SB281 EngrossedEnrolled 2Enrolled, 4An AAct, BILL3 TO BE ENTITLED AN ACT 9 Relating to financial institutions;

A financial institution's policy, process, or practice that labels, links, or otherwise associates a firearms code with a merchant or a payment card transaction in a manner that allows the financial institution Page 1 SB281 Engrossed or any other entity facilitating or processing the payment card transaction to identify whether a merchant is a firearm retailer or whether a transaction involves the sale of a firearm or ammunition.

Any person or entity engaged in a payment Page 1 SB281 Enrolled card transaction facilitated or processed by a financial institution.

A credit card, charge card, debit card, or any other card that is issued to an authorized card Page 2 SB281 Engrossed user and allows the user to purchase goods or services from a merchant.

An entity that provides proprietary services, infrastructure, and software to conduct payment card transaction authorizations, clearances, and Page 2 SB281 Enrolled settlements, and software that an entity uses in order to accept as a form of payment a brand of payment card or other device that may be used to carry out payment card transactions.

(d) Nothing in this section shall prohibit a payment Page 3 SB281 Engrossed card network or financial institution from declining or otherwise refusing to process a payment card transaction for any of the following reasons:

Page 3 SB281 Enrolled (3) To comply with fraud, credit, or compliance controls.

95 (5) To restrict the use or availability of a firearms code in this state.

(e) Nothing in this section shall limit the authority of a financial institution or payment card network to negotiate with responsible parties or otherwise impair a 95 financial institution's actions related to any of the following:

(a) The Attorney General shall investigate reasonable allegations that a person or entity, including a governmental entity, has violated this act and, upon finding a violation, shall provide written notice to the person or Page 4 SB281 Engrossed entity believed to have committed the violation.

(b)(1) If a person or entity does not cease the Page 4 SB281 Enrolled violation within 60 business days after receiving written notice from the Attorney General pursuant to this section, the Attorney General shall file an action against the person or entity seeking an injunction.

(c) The Attorney General shall have exclusive authority Page 5 SB281 Engrossed to enforce this act.

Page 5 SB281 Enrolled Section 5.

Page 6 SB281 EngrossedEnrolled Senate________________________________________________ ReadPresident forand thePresiding firstOfficer timeof andthe referredSenate ................04-Apr-24________________________________________________ toSpeaker of the SenateHouse committeeof onRepresentatives BankingSB281 andSenate Insurance23-Apr-24 ReadI forhereby certify that the secondwithin timeAct andoriginated placedin ................11-Apr-24and onpassed the calendar:Senate, as amended.

0 amendments Read for the third time and passed ................23-Apr-24 as amended Yeas 32 Nays 0 Abstains 0 Patrick Harris, Secretary.

PageHouse 7of Representatives Passed:

30-Apr-24 By:

Senator Melson Page 7