HOUSE BILL NO. 1629 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE HALEY.
5200H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To amend chapter 407, RSMo, by adding thereto one new section relating to tracking of firearms purchases by financial institutions, with penalty provisions.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 407, RSMo, is amended by adding thereto one new section, to be 2 known as section 407.439, to read as follows: 407.439. 1. As used in this section, the following terms mean: 2 (1) "Customer", a person who uses, purchases, or obtains an account, extension 3 of credit, or product of a financial institution or for whom a financial institution acts as 4 a fiduciary, agent, or custodian or in another representative capacity; 5 (2) "Disclosure", the transfer, publication, or distribution of protected financial 6 information to another person or entity for any purpose other than to process or 7 facilitate a payment card transaction; 8 (3) "Financial institution", any state bank, state trust company, savings and loan 9 association, federally chartered credit union doing business in this state, credit union 10 chartered by the state of Missouri, national bank, broker-dealer, mutual fund, insurance 11 company, or other similar financial entity qualified to do business in this state; 12 (4) "Financial record", a record held by a financial institution related to a 13 payment card transaction that the financial institution has processed or facilitated; 14 (5) "Firearms code", the Merchant Category Code 5723 approved in September 15 of 2022 by the International Organization for Standardization for firearms retailers; 16 (6) "Firearms retailer", any person or entity engaged in the lawful business of 17 selling or trading firearms or ammunition to be used in firearms.
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language. HB 1629 2
18 2. (1) A financial institution or its agent shall not require the usage of the 19 firearms code in a way that distinguishes a firearms retailer physically located in the 20 state of Missouri from Missouri general merchandise retailers or sporting goods 21 retailers. 22 (2) A financial institution shall not discriminate against a firearms retailer by: 23 (a) Declining a lawful payment card transaction based solely on the assignment 24 or nonassignment of a firearms code to the merchant or transaction; 25 (b) Limiting or declining to do business with a customer, potential customer, or 26 merchant based on the assignment or nonassignment of a firearms code to previous 27 lawful transactions involving the customer, potential customer, or merchant; 28 (c) Charging a higher transaction or interchange fee to any merchant or for a 29 lawful transaction based on the assignment or nonassignment of a firearms code; or 30 (d) Otherwise taking any action against a customer or merchant that is intended 31 to suppress lawful commerce involving firearms, firearm accessories or components, or 32 ammunition, which action is based solely or in part on the customer's or merchant's 33 business involving firearms, firearm accessories or components, or ammunition. 34 (3) Except as otherwise required by law, a financial institution shall not disclose 35 a financial record, including a firearms code, that was collected in violation of this 36 section. 37 3. (1) The attorney general shall investigate alleged violations of this section and, 38 upon finding a violation, shall provide written notice to any individual or entity, public 39 or private, believed to be in violation of this section. Upon receipt of such written notice 40 from the attorney general, the individual or entity shall cease any violation of this 41 section within thirty calendar days. 42 (2) Either a firearms retailer physically located in Missouri whose business was 43 the subject of an alleged violation of this section or a customer who transacted at a 44 firearms retailer physically located in Missouri whose business was the subject of an 45 alleged violation of this section may petition the attorney general to investigate the 46 alleged violation in accordance with subdivision (1) of this subsection. 47 (3) If the attorney general does not commence an action within ninety days of 48 receiving a petition under this subsection, the firearms retailer or customer may file an 49 action in court to enjoin the violation. 50 (4) If an individual or entity is found to be in violation of this section and fails to 51 cease the violation after the expiration of thirty calendar days from the receipt of 52 written notice by the attorney general's office, the attorney general shall pursue an 53 injunction against any such individual or entity, public or private, alleged to be in 54 violation of this section. The attorney general shall pursue an injunction under this HB 1629 3
55 subdivision in a court of competent jurisdiction in the county where the alleged violation 56 occurred against the individual or entity in alleged violation of this section. 57 (5) If a court finds that an individual or entity continues to be in violation of this 58 section after thirty calendar days from receiving written notice from the attorney 59 general in accordance with subdivision (1) of this subsection or from a finding by the 60 court of a violation of this section in an action commenced under subdivision (3) of this 61 subsection, the court shall enjoin the individual or entity from continuing to commit the 62 violation. 63 (6) If an individual or entity knowingly and willfully fails to comply with an 64 injunction as provided in subdivision (5) of this subsection within thirty days after being 65 served with the injunction, the court shall impose a civil penalty in a sum not to exceed 66 ten thousand dollars per violation of an injunction issued under subdivision (5) of this 67 subsection committed after the expiration of the period of thirty days after the 68 individual or entity was served with the injunction. In assessing such a penalty, the 69 court shall consider factors including the financial resources of the violator and the 70 harm or risk of harm to Second Amendment rights resulting from the violation. Any 71 order assessing a penalty for violation of this section in accordance with this subdivision 72 shall be stayed pending appeal of the order. 73 (7) In addition to the remedies provided in this subsection, the attorney general 74 or a petitioner who prevails in an action under this subsection shall recover reasonable 75 expenses incurred in obtaining the civil penalty, including court costs, reasonable 76 attorney's fees, investigative costs, witness fees, and deposition expenses. 77 (8) It shall not be a defense to a civil action filed under this subsection that such 78 information was disclosed to a federal government entity unless such disclosure or 79 action was made based on a good-faith conclusion that the disclosure or action was 80 required by federal law or regulation. ✔
Statutes affected: