HB 1110 — Second Amendment Financial Privacy Act; create.

1110 (As PassedSent theto House)Governor) AN ACT TO CREATE THE "SECOND AMENDMENT FINANCIAL PRIVACY ACT";

This act shall be known and may be cited as the "Second Amendment Financial Privacy Act".Act." SECTION 2.

SECTION 2.

(b) Article III, Section 12, of the Mississippi Constitution of 1890, provides that "The right of every citizen to keep and bear arms in defense of his home, person, or property, or in aid of the civil power when thereto legally summoned, shall not be H.

1110 *HR43/R1512PH**HR43/R1512SG* ~ OFFICIAL ~ G1/2 23/HR43/R1512PH23/HR43/R1512SG PAGE 1 (MCL\EW) called in question, but the Legislature may regulate or forbid carrying concealed weapons";

(c) In September 2022, the International StandardsOrganization Organization,for Standardization (ISO), based in Switzerland, approved a new merchant category code for firearm and ammunition merchants;

(e) TheThis newpotential Merchantfor Categorycooperative Codesurveillance will allow the banks, payment card networks, acquirers, and othertracking entitiesof involvedlawful infirearms payment card processing to identify and separatelyammunition track lawful payment card purchases atwill firearmshave retailersa insignificant thechilling Stateeffect ofon Mississippi,citizens pavingwishing theto wayexercise fortheir bothfederal unprecedentedand surveillancestate ofconstitutional Secondrights Amendmentto activitykeep and unprecedentedbear informationarms sharingin betweenMississippi; financial institutions and the government;

(f) ThisWhile potentialfederal forlaw cooperativerequires surveillancesome andfinancial trackinginstitutions to report transactions that are highly indicative of lawfulmoney firearmslaundering andor ammunitionother purchasesunlawful willactivities, havethere ais significantno chillingfederal effector onstate citizenslaw wishingauthorizing financial institutions to exercisesurveil theirand H.track lawful activities by customers in cooperation with law enforcement;

H.

1110 *HR43/R1512PH**HR43/R1512SG* ~ OFFICIAL ~ 23/HR43/R1512PH23/HR43/R1512SG PAGE 2(MCL\EW) federal(g) The creation or maintenance of records of purchases of firearms or ammunition or the tracking of sales made by a retailer of firearms or ammunition by a nongovernmental entity, including a financial institution, without a substantial and statehistorical constitutionalbusiness rightsneed or a requirement imposed by law, may frustrate the right to keep and bear arms inand Mississippi;violate the reasonable privacy rights of lawful purchasers of firearms or ammunition;

(g)and While(h) federalBased lawon requiresthe someabove financialstated institutionsfindings, toit reportis transactionsthe thatintent areof highlythe indicativeLegislature ofto moneyprohibit launderingthe ormisuse otherof unlawfulpayment activities,card thereprocessing issystems noto federalsurveil, report, or stateotherwise lawdiscourage authorizingconstitutionally financialprotected institutionsfirearm to surveil and trackammunition lawfulpurchases activitieswithin bythe customersState inof cooperationMississippi. with law enforcement;

(h) The creation or maintenance of records of purchases of firearms or ammunition or the tracking of sales made by a retailer of firearms or ammunition by a nongovernmental entity, including a financial institution, without a substantial and historical business need or a requirement imposed by law, may frustrate the right to keep and bear arms and violate the reasonable privacy rights of lawful purchasers of firearms or ammunition;

and (i) Based on the above stated findings, it is the intent of the Legislature to prohibit the misuse of payment card processing systems to surveil, report, or otherwise discourage constitutionally protected firearm and ammunition purchases within the State of Mississippi.

H.(a) "Customer" means any resident of Mississippi engaged in a payment card transaction that a financial institution facilitates or processes.

(b) "Disclosure" or "disclose" means the transfer, publication, or distribution of protected financial information to another person or entity for any purpose other than:

(i) to process or facilitate a payment card transaction;

or (ii) to take any actions related to dispute processing, fraud management, or H.

1110 *HR43/R1512PH**HR43/R1512SG* ~ OFFICIAL ~ 23/HR43/R1512PH23/HR43/R1512SG PAGE 3(MCL\EW) (a)protecting "Assign" or "assignment" means a financial institution policy, process, or practice that labels, links, or otherwise associates a firearms code with a merchant or payment card transaction inintegrity afrom mannerconcerns thatrelated allows the financial institution or any other entity facilitating or processing the payment card transaction to identifyillegal whetheractivities, abreach merchant is a firearms retailer or whethercyber arisks. transaction involves the sale of firearms or ammunition.

(b)(c) "Customer""Financial institution" means anyan personentity engagedinvolved in facilitating or processing a payment card transactiontransaction, thatincluding, but not limited to, a financialbank, institutionan facilitatesacquirer, payment card network, or processes.payment card issuer.

(c)(d) "Disclosure""Financial record" means thea transfer,record publication,held orby distributiona of protected financial informationinstitution related to anothera personpayment orcard entitytransaction forthat anythe purposefinancial otherinstitution thanhas toprocessed process or facilitatefacilitated. a payment card transaction.

(d)(e) "Financial"Firearms institution"retailer" means anany person or entity involvedphysically located in facilitatingthe orState processingof aMississippi paymentengaged cardin transaction,the including,lawful butbusiness notof limitedselling to,or atrading bank,firearms acquirer,or paymentammunition cardto network,be orused paymentin cardfirearms. issuer.

(e)(f) "Financial"Firearms record"code" means athe recordMerchant heldCategory byCode a5723 financialapproved institutionin relatedSeptember to2022 aby payment card transaction that the financialInternational institutionOrganization hasfor processedStandardization orfor facilitated.firearms retailers.

(f)(g) "Firearms"Government retailer"entity" means any personcounty or entitymunicipality, engagedor instate theboard, lawfulcommission, businessagency, ofbureau, sellingdepartment, or tradingany firearmsother orpolitical ammunitionsubdivision toof bethe usedstate. in firearms.

H.(h) "Protected financial information" means any record of a sale, purchase, return, or refund involving a payment card that is retrieved, characterized, generated, labeled, sorted, or grouped based on the assignment of a firearms code.

SECTION 4.

(1) Except for those records kept during the regular course of a criminal investigation and prosecution or as H.

1110 *HR43/R1512PH**HR43/R1512SG* ~ OFFICIAL ~ 23/HR43/R1512PH23/HR43/R1512SG PAGE 4(MCL\EW) (g)otherwise "Firearmsrequired code"by meanslaw, anya codestate governmental agency or local government, special district, or other indicatorpolitical thatsubdivision aor financialofficial, institutionagent, assignsor toemployee aof merchantthe state or toother agovernmental paymententity cardor transactionany thatother identifiesperson, whetherpublic aor merchantprivate, isother athan firearmsthe retailerowner or whetherowner's therepresentative, paymentmay cardnot transactionknowingly involvesand thewillfully purchasekeep or cause to be kept any list, record, or registry of aprivately firearmowned firearms or ammunition.any list, record, or registry of the owners of those firearms.

The(2) termA "firearmsfinancial code"institution includes,or butits isagent may not limitedrequire to,the ausage Merchantof Categorythe Codefirearms assignedcode toin a retailerway bythat distinguishes a paymentfirearms cardretailer networkphysically located in the State of Mississippi from general merchandise retailers or othersporting financialgoods institution.retailers.

(h)(3) "GovernmentA entity"financial meansinstitution anymay countynot ordiscriminate municipality,against ora statefirearms board,retailer commission,by agency,declining bureau,a department,lawful orpayment anycard othertransaction politicalbased subdivisionsolely ofon the state.assignment or nonassignment of a firearms code;

(i)provided "Protectedthat a financial information"entity meansmay anydecline recordor otherwise refuse to process the transaction on the basis of athe sale,firearms purchase,code return,only orif refundnecessary involvingto acomply paymentwith cardthis thatsection isor retrieved,if characterized,requested generated,by labeled,the sorted,customer or groupeddue basedto onfraud controls or merchant category exclusions offered by a financial entity for the assignmentpurpose of aexpenditure firearmscontrol code.or corporate card control.

SECTION(4) 4.Except as otherwise required by law or regulation, a financial institution may not disclose a financial record, including a firearms code that was collected in violation of this act, unless the disclosure of such financial record or firearms H.

(1) Except for those rewards kept during the regular course of a criminal investigation and prosecution, a state governmental agency or local government, special district, or other political subdivision or official, agent, or employee of the state or other governmental entity or any other person, public or private, may not knowingly and willfully keep or cause to be kept any list, record, or registry of privately owned firearms or any list, record, or registry of the owners of those firearms.

(2) A financial institution or its agent may not require the usage of or assign a firearms or ammunition merchant category code H.

1110 *HR43/R1512PH**HR43/R1512SG* ~ OFFICIAL ~ 23/HR43/R1512PH23/HR43/R1512SG PAGE 5(MCL\EW) tocode anywas merchantbased locatedon in Mississippi that is a sellergood-faith ofconclusion firearmsthat orthe ammunitionentity's separatelyaction fromwas generalrequired merchandiseby retailersapplicable law or sportingregulation. goods retailers.

(5) Nothing in this section shall limit the ability of a financial institution to negotiate with responsible parties or otherwise impair the financial institution's actions related to dispute processing, fraud management, protecting transaction integrity from concerns related to illegal activities, breach or cyber risks.

UponWritten receipt of such written notice fromto theany Attorneycommercial General, the entity shall havebe thirtymade (30) calendar days to cease the usageentity's ofregistered aagent firearmspursuant orto ammunitionSection merchant79-35-13. code for any Mississippi merchant.

(2)Upon If the entity fails to cease the usage of a firearms or ammunition merchant code for any merchant located in Mississippi after the expiration of thirty (30) calendar days from the receipt of such written notice byfrom the Attorney General'sGeneral, office, the Attorneyentity Generalshall mayhave pursuethirty an(30) injunctioncalendar againstdays any individual or entity, public or private, alleged to becease inany violation of this act,act. which a court may order, in addition to any such other relief, as the court may consider appropriate.

(3)(2) ItEither shalla notfirearms beretailer aphysically defenselocated toin aMississippi civilwhose actionbusiness filedwas underthe subject of an alleged violation of this act thator sucha informationcustomer waswho disclosedtransacted toat a federalfirearms governmentretailer entity,physically unlesslocated suchin disclosureMississippi orwhose actionbusiness iswas requiredthe bysubject federalof lawan oralleged regulation.violation of this act, may petition the Attorney General to investigate the alleged violation in accordance with subsection (1) of this section.

(3) (a) If an individual or entity is found to be in violation of this act and fails to cease the violating activity H.

B.