This bill aims to prohibit the use of a firearms code by financial institutions for transactions involving firearms, accessories, components, and ammunition, establishing civil penalties for violations. It introduces several new definitions, including "firearms code," which refers to an indicator assigned to transactions that identifies whether they involve firearms or related products. The bill explicitly states that financial institutions cannot require the use of a firearms code in a way that distinguishes firearms dealers from other retailers, nor can they discriminate against firearms dealers based on the assignment of such codes. Additionally, it prohibits governmental entities from maintaining lists or registries of privately owned firearms and their owners, except in the context of criminal investigations.

The bill empowers the attorney general to investigate alleged violations and mandates that violators cease using firearms codes upon receiving written notice. If violations persist, the attorney general can seek injunctions, and courts may impose civil penalties of up to $25,000 for continued non-compliance. The bill also clarifies that disclosing information to federal entities is not a valid defense unless it is based on a good faith belief that such disclosure is required by federal law. Overall, the legislation seeks to protect the rights of firearms dealers and customers while imposing strict penalties for non-compliance with its provisions.