The proposed bill, HB2727, amends Arizona law to prohibit financial institutions from requiring merchants, specifically retailers of firearms or ammunition, to use a designated merchant category code related to firearms. This change aims to protect the financial privacy of individuals purchasing firearms and ammunition by preventing the categorization of these transactions in a way that could lead to discrimination or profiling.

Additionally, the bill establishes a process for individuals to file complaints with the attorney general regarding violations of this prohibition. If the attorney general does not take action, individuals can pursue legal recourse in court. Should the court find a violation, it can impose various penalties on the financial institution, including injunctions against collecting further protected financial information, suspension of business licenses for up to five years, and civil penalties of up to $50,000. This represents a significant shift in the regulatory landscape for financial institutions in relation to firearms transactions.

Statutes affected:
Introduced Version: 6-194