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SB 1143

STATE GOVERNMENT-TECH

104th Regular Session Introduced by John Curran

Arizona SB 1143 shields firearm buyers/sellers' financial privacy by banning firearm ownership registries and MCC labeling that ID firearm retailers; enforced by AGs with penalties.

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WeVote Research Nonpartisan
Bill Summary · SB 1143

Summary — SB 1143 (Second Amendment Financial Privacy Act)

Status: Introduced Feb 6, 2025; Rule 3-9(a) / Re-referred to Assignments
Primary sponsor: Sen. Rogers
Subject: Firearm transactions; merchant category codes; registry restrictions (amends A.R.S. §44-7851 and adds §44-7853)

Purpose / Intent

The bill is intended to protect the financial privacy of firearm purchasers and sellers by (1) preventing the creation or maintenance of registries of privately owned firearms and their owners by state or local governments (except as required by law or for criminal investigations), and (2) prohibiting payment-card actors from using merchant category codes (MCCs) or similar labeling in ways that identify or distinguish firearm retailers from other merchants.

Key provisions

  • Amends A.R.S. §44-7851 to add/clarify definitions, including:
    • “Ammunition” (cartridge cases, primers, bullets, propellant powder).
    • “Assign/Assignment” (labeling or linking an MCC to allow identification of firearm retailers or firearm/ammunition sales).
    • “Covered entity” (entity or agent that establishes a relationship with a retailer to process card transactions).
    • “Firearm retailer” (person or covered entity physically located in Arizona engaged in lawful sale/trade of firearms, antique firearms, or ammunition).
    • Definitions for “merchant category code,” “payment card network,” “payment card,” etc.
  • Adds A.R.S. §44-7853:
    • (A) Prohibits government entities from knowingly keeping any list, record or registry of privately owned firearms or owners, except records kept for criminal investigations/prosecutions or otherwise required by law.
    • (B) Prohibits payment card networks from requiring or incentivizing the use of an MCC in a manner that distinguishes firearm retailers from other retailers.
    • (C) Prohibits any person or covered entity from assigning such a distinguishing MCC to firearm retailers.
    • (D–E) Enforcement is vested exclusively in the Attorney General or a county attorney: they must investigate reasonable allegations, provide written notice, require cessation within 30 business days, and, if not remedied, seek injunctive relief. Courts awarding injunctions also may award attorney fees and costs. Continued noncompliance after 30 days of service of an injunction allows petition for civil penalties up to $1,000 per violation (court considers violator’s finances and public harm). Penalty orders are stayed pending appeal.
    • (F) Establishes a defense that an MCC assignment was required by law.

Who is affected

  • Payment card networks, processors, issuing/acquiring banks and other “covered entities” that assign or use MCCs for transaction classification.
  • Merchants and payment acquirers/processors that currently use or rely on MCCs to classify firearm sales.
  • Firearm retailers physically located in Arizona.
  • Arizona state and local government entities (restrictions on maintaining firearm ownership registries).
  • Attorney General and county attorneys (exclusive enforcement authority).

Practical/operational impacts

  • Would restrict creation/use of firearm-specific MCCs or incentives tied to such codes (potentially affecting how card brands and processors classify merchants, price/underwrite merchant services, or implement risk controls).
  • May affect fraud detection, compliance monitoring, underwriting, or card-brand restrictions that currently differentiate merchant types.
  • Government agencies retain normal investigative and legally required record-keeping powers; the bill bars non‑investigative registries of private firearms.
  • Enforcement is public (state or county prosecutors); private civil suits are precluded by making the listed remedies exclusive.

Penalties / Remedies

  • Notice and 30-business-day cure period; injunctions and award of attorney fees/costs if violation continues.
  • Civil penalty up to $1,000 per violation for purposeful noncompliance with a court injunction (court weighs factors; penalty orders stayed on appeal).

Other

  • Short title: “Second Amendment Financial Privacy Act.”
  • Defense provision if an MCC was required by law.

Note: This summary reflects the bill text as introduced/engrossed (Arizona). The legislative-status log included in the source mixed documents from other jurisdictions; the policy described above pertains to the Arizona bill (SB 1143).

Compiled from official sources — confirm details with the bill’s official record.

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