Bill Summary – FastDemocracy

WEST VIRGINIA LEGISLATURE
REGULAR SESSION
                ENGROSSED
           House Bill 5694
  By Delegates Householder, Phillips, Burkhammer,
  Mallow, Chiarelli, Horst, Smith, Crouse, Butler, C.
                Pritt, and Longanacre [Originating in the Committee on Government Organization; Reported on February 19, 2024]
     Eng HB 5694
  A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new article,
         designated §5A-13-1, §5A-13-2, §5A-13-3, §5A-13-4, §5A-13-5, and §5A-13-6, all relating
         to the Firearms Industry Nondiscrimination Act; establishing the short title; defining terms;
         establishing application of act to certain government contracts; providing an exception;
         setting forth when certain contracts are void; prohibiting financial institutions from
         discriminating against a firearm entity or firearm trade association; specifying the
         applicability of the prohibition; providing civil remedies for a violation by an individual;
         providing for enforcement by the Attorney General; providing that an enforcement action
         by the Attorney General does not prohibit a civil action by an individual; providing remedies
        in an action by the Attorney General; requiring the Attorney General to submit names of
        financial institutions in violation to the Governor and to request that the state terminate any
        business relationship with the financial institution; providing a statute of limitations for
        actions; and providing exceptions to the prohibition .
     Be it enacted by the Legislature of West Virginia:
     ARTICLE 13. FIREARMS INDUSTRY NONDISCRIMINATION ACT.
     §5A-13-1.                                        Short Title.
         This Act shall be known and may be cited as the Firearm Industry Nondiscrimination Act.
     §5A-13-2.                                                                               Definitions.
         For purposes of the Firearm Industry Nondiscrimination Act:
         (1) "Ammunition" means a loaded cartridge or shot shell, case, primer, projectile, wadding,
  or propellant powder.
         (2) "Contract" means a promise or set of promises constituting an agreement between the
  parties that gives each a legal duty to the other and the right to seek a remedy for the breach of
  those duties: Provided, That the term does not include an agreement related to investment
  services.
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          (3) "Discriminate against a firearm entity or firearm trade association" means, with respect
  to the entity or association, to:
         (A) Refuse to provide or engage in services with the entity or association based on its
 status as a firearm entity or firearm trade association, which includes the lawful products and
 services provided by, and the lawful practices of, firearm entities and firearm trade associations;
         (B) Refrain from continuing an existing business relationship with the entity or association
 based on its status as a firearm entity or firearm trade association, which includes the lawful
 products and services provided by, and the lawful practices of, firearm entities and firearm trade
 associations; or
         (C) Terminate an existing business relationship with the entity or association based on its
 status as a firearm entity or firearm trade association, which includes the lawful products and
 services provided by, and the lawful practices of, firearm entities and firearm trade associations;
         (D) The term does not include the policies of a vendor, merchant, retail seller, or platform
 that restrict or prohibit the listing or selling of ammunition, firearms, or firearm accessories;
         (E) The term also does not include a decision to refrain from continuing an existing
 business relationship, or decision to terminate an existing business relationship to comply with
 federal, state, or local laws, policies, or regulations or a directive by a regulatory agency, or for any
 traditional business reason that is specific to the customer or potential customer and not based on
 the status of an entity or association as a firearm entity or firearm trade association, which includes
 the lawful products and services provided by, and the lawful practices of, firearm entities and
 firearm trade associations.
         (4) “Financial institution” means a financial institution as defined in 31 U.S.C. § 5312:
 Provided, That for the purposes of this article, the term refers only to financial institutions that do
 business or have a contract with this state.
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         (5) "Firearm" means any weapon which will expel a projectile by action of an explosion. For
 purposes of this article, the term "firearm" includes antique firearms, as defined in §61-7-2 of this
 code.
         (6) “Firearm accessories or components” means:
         (A) Any device specifically adapted to enable the wearing or carrying about one’s person or
 the storage or mounting in or on any conveyance of a firearm and any attachment or device
 specifically adapted to be inserted into or affixed onto any firearm to enable, alter, or improve the
 functioning or capabilities of the firearm;
         (B) Any item that is used in conjunction with or mounted upon a firearm, including but not
 limited to telescopic or laser sights, magazines, flash or sound suppressors, folding or aftermarket
 stocks and grips, speedloaders, braces, ammunition carriers, and lights for target illumination;
         (C) Any component for making ammunition, reloading materials and equipment,
 machinery, and tools for manufacturing ammunition; and
         (D) Detachable firearm magazines.
         (7) "Firearm entity" means:
         (A) A firearm, firearm accessory, or ammunition manufacturer, distributor, wholesaler,
 supplier, or retailer; or
         (B) A shooting range as defined in §61-6-23 of this code.
         (8) "Firearm trade association" means any person, corporation, unincorporated
 association, federation, business league, or business organization that:
         (A) Is not organized or operated for profit and for which none of its net earnings inures to
 the benefit of any private shareholder or individual;
         (B) Has two or more firearm entities as members; and
         (C) Is exempt from federal income taxation under section 501(a) of the Internal Revenue
 Code of 1986, as an organization described by section 501(c) of such code.
         (9) "Governmental entity" means:
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         (A) Any state agency; or
         (B) Any political subdivision of this state.
         (10) "Sole-source provider" means a supplier who provides services of a unique nature or
 services that are solely available through the supplier and the supplier is the only practicable
 source to provide the services.
         (11) "State agency" means any agency, board, or commission of this state other than the
 courts and the Legislature.
     §5A-13-3.          Application of           act to     certain contracts.
          (a) The Firearm Industry Nondiscrimination Act shall apply to a contract that:
          (1) Is between a governmental entity and a financial institution; and
          (2) Is entered into on or after the effective date of this act.
          (b) Except as provided in §5A-13-4 of this code, a governmental entity may not enter into a
  contract with any financial institution that discriminates against any firearm entity or firearm trade
  association.
          (c) Any contract to which §5A-13-3(a) of this code applies that violates the requirements of
  this article shall be void as against public policy.
     §5A-13-4.                                                                               Exceptions.
          The requirements of §5A-13-3 of this code do not apply if a governmental entity contracts
  with                          a sole-source provider.
     §5A-13-5. Unlawful discrimination against a firearm entity or firearm trade association;
             exception.
          (a) A financial institution that does business or has a contract with this state may not
  discriminate against a firearm entity or firearm trade association because the firearm entity or
  firearm trade association supports or is engaged in the lawful commerce of firearms, firearm
  accessories, or ammunition products.
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          (b) This section shall not apply to a financial institution that chooses not to provide services
  to a firearm entity or firearm trade association for a business or financial reason or due to a
  directive by the state banking commissioner or a bank supervisory agency as defined by §31A-8D-
  2(c) of this code. This section shall also not apply to a financial institution that has a written policy
  prohibiting the institution from discriminating against firearm entities or firearm trade associations
 as those terms are defined in §5A-13-2 of this code. For the purposes of this subsection, “business
 or financial reason” does not include a policy of refusing to provide financial services or otherwise
 discriminating when providing financial services to a firearm entity.
     §5A-13-6. Remedies; attorney general notice; statute of limitations.
          (a) A person who is injured by a violation of §5A-13-5 of this code may bring a civil action
  against the financial institution in his or her own name in the circuit court for the county where the
  alleged violation occurred. If the injured person prevails on his or her claim, then the court shall
  award the injured person reasonable attorney fees and costs. The court may further award the
  prevailing injured person any of the following:
          (1) Actual and compensatory damages;
          (2) Punitive or exemplary damages;
          (3) Injunctive relief; and
          (4) Any other appropriate civil relief.
         (b) The Attorney General may file a civil action for a violation of §5A-3-5 of this code:
 Provided, That the authority granted to the Attorney General does not affect the right of a person
 who is injured by a violation of §5A-3-5 of this code to bring an action for a violation of the rights
 protected under this article. The Attorney General may request the court to do any of the following:
         (1) Issue a declaratory judgment that an act or practice violates this article;
         (2) Enjoin any act or practice that violates this article by issuing a temporary restraining
 order or preliminary or permanent injunction, without a bond, after providing appropriate notice;
 and
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         (c) The Attorney General shall submit the name of any financial institution that has violated
 this article to the Governor and request that the state terminate any business relationship with the
 financial institution.
         (d) Any civil action brought pursuant to this section shall be commenced within not more
 than two years after the date that the violation is discovered or should reasonably have been
 discovered.
         (e) The remedies and actions available or required under this section shall not be
 applicable if a financial institution has a written policy prohibiting the institution from discriminating
 against firearm entities as those terms are defined in §5A-13-2 of this code.
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Statutes affected: 
Originating in Committee: 5A-13-1, 5A-13-2, 5A-13-3, 5A-13-4, 5A-13-5, 5A-13-6
Engrossed Version: 5A-13-1, 5A-13-2, 5A-13-3, 5A-13-4, 5A-13-5, 5A-13-6