Bill Summary – FastDemocracy

H.B. 564
                          GENERAL ASSEMBLY OF NORTH CAROLINA
                                                                                             Apr 4, 2023
                                      SESSION 2023                                    HOUSE PRINCIPAL CLERK
     H                                                                                               D
                                   HOUSE BILL DRH40294-MU-19
     Short Title:   Second Amendment Financial Privacy Act.                                    (Public)
     Sponsors:      Representative Pyrtle.
     Referred to:
                                    A BILL TO BE ENTITLED
 AN ACT TO ENACT THE SECOND AMENDMENT FINANCIAL PRIVACY ACT.
 The General Assembly of North Carolina enacts:
             SECTION 1. Chapter 66 of the General Statutes is amended by adding a new Article
 to read:
                                             "Article 51.
                            "Second Amendment Financial Privacy Act.
 "§ 66-501. Legislative findings.
     The General Assembly finds all of the following:
             (1)    The right of individuals to keep and bear arms is guaranteed under both the
                    Second Amendment to the United State Constitution and Section 30 of Article
                    I of the North Carolina Constitution.
             (2)    In September 2022, the International Organization for Standardization, based
                    in Switzerland, approved a new merchant category code for firearms retailers.
             (3)    The new merchant category code would allow banks, payment card networks,
                    and others involved in payment card processing to identify and separately
                    track lawful payment card purchases at firearms retailers in North Carolina.
                    This surveillance would cause a significant chilling effect on individuals in
                    North Carolina wishing to exercise their federal and State constitutional rights
                    to keep and bear arms.
 "§ 66-502. Definitions.
     The following definitions apply in this Article:
             (1)    Financial institution. – An entity involved in facilitating or processing a
                    payment card transaction, including a bank, acquirer, payment card network,
                    or payment card issuer.
             (2)    Firearms code. – Any code or other indicator that identifies whether a person
                    is a firearms retailer or whether a payment card transaction involves the
                    purchase of a firearm or firearm ammunition.
             (3)    Firearms retailer. – A person engaged in the lawful business of selling or
                    trading firearms or firearm ammunition.
 "§ 66-503. Prohibitions.
     (a)     No financial institution shall use a firearms code in connection with a payment card
 transaction involving a firearms retailer located in this State.
     (b)     No financial institution shall knowingly maintain a record of individuals residing in
 this State who own firearms.
 "§ 66-504. Enforcement; civil penalty.
                                    *DRH40294-MU-19*
     General Assembly Of North Carolina                                                    Session 2023
     (a)      The Attorney General may investigate an alleged violation of this Article. After notice
 and an opportunity for hearing, if the Attorney General determines that a financial institution
 violated this Article, the Attorney General may assess a civil penalty of not more than ten
 thousand dollars ($10,000) for each violation. The clear proceeds of any penalty assessed
 pursuant to this section shall be remitted to the Civil Penalty and Forfeiture Fund in accordance
 with G.S. 115C-457.2.
     (b)      The powers vested in the Attorney General by this Article are in addition to and do
 not limit the ability of the Attorney General to take other enforcement action.
 "§ 66-505. Civil liability for violation.
     (a)      Cause of Action. – A civil action may be brought against a financial institution for
 violation of this Article by any of the following:
              (1)     A firearms retailer located in this State whose payment card transactions are
                      designated with a firearms code.
              (2)     A person that makes a payment card transaction with a firearms retailer
                      located in this State and whose payment card record includes a firearms code
                      for that transaction.
              (3)     An individual for whom a financial institution maintains a record of firearm
                      ownership.
     (b)      Relief and Damages. – A person authorized to institute a civil action by subsection
 (a) of this section may seek and the court may award any or all of the following types of relief:
              (1)     An injunction to enjoin continued violation of this Article.
              (2)     Statutory damages in the amount of ten thousand dollars ($10,000) for each
                      instance of violation of this Article connected to the person filing the civil
                      action.
              (3)     Costs and attorneys' fees.
     (c)      Statute of Limitations. – No action shall be maintained under subsection (a) of this
 section unless it is commenced no later than three years after the discovery of the violation of
 this Article."
              SECTION 2. This act becomes effective October 1, 2023.
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