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HB 1509

TO CREATE THE SECOND AMENDMENT FINANCIAL PRIVACY ACT; AND TO PROHIBIT FINANCIAL INSTITUTIONS FROM USING CERTAIN DISCRIMINATORY PRACTICES.

2025 Regular Session Introduced by Howard Beaty and 1 co-sponsor

House Bill 1509 protects financial privacy for firearms transactions by banning discriminatory merchant codes, ensuring fair treatment for retailers and consumers in Arkansas.

Notification that HB1509 is now Act 452
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WeVote Research Nonpartisan
Bill Summary · HB 1509

Summary of House Bill 1509: Second Amendment Financial Privacy Act

Bill Number: HB 1509
Status: Now Act 452
Introduced: February 17, 2025
Classification: Bill

Purpose and Intent

House Bill 1509, titled the Second Amendment Financial Privacy Act, aims to protect the financial privacy of individuals engaging in transactions related to firearms and ammunition. The bill seeks to prohibit financial institutions from employing discriminatory practices that could negatively impact firearms retailers and their customers.

Key Provisions

The bill introduces several significant provisions, including:

  1. Prohibition of Discriminatory Merchant Category Codes:

    • Financial institutions and payment card networks are prohibited from requiring or assigning a merchant category code that distinguishes firearms retailers from other retailers. This includes the specific merchant category code (5723) that was approved in September 2022 for firearms retailers.

  2. Definitions:

    • The bill provides comprehensive definitions for terms such as:
      • Acquirer Bank: A bank that processes electronic payment transactions for merchants.
      • Covered Entity: An entity that processes credit, debit, or prepaid transactions.
      • Firearms Retailer: A business engaged in the lawful sale or trade of firearms and related products.

  3. Scope of Transactions:

    • The provisions apply to transactions conducted within the state of Arkansas. Transactions at retailers outside of Arkansas are exempt from these regulations.

  4. Exemptions for Fraud and Security:

    • The bill does not limit the ability of financial institutions to engage in necessary actions related to fraud management, dispute processing, or protecting transaction integrity from illegal activities or cyber threats.

Affected Parties

  • Financial Institutions: Banks, credit unions, and payment card networks that process transactions.
  • Firearms Retailers: Businesses that sell firearms, ammunition, and related accessories.
  • Consumers: Individuals purchasing firearms or related products who may be affected by the categorization of their transactions.

Legislative Timeline

  • February 17, 2025: Bill filed and introduced.
  • March 10, 2025: Amendment No. 2 adopted; bill engrossed.
  • March 18, 2025: Passed in the House and transmitted to the Senate.
  • March 31, 2025: Passed in the Senate; returned to the House.
  • April 1, 2025: Correctly enrolled and ordered transmitted to the Governor.
  • April 3, 2025: Notification that HB 1509 is now Act 452.

Conclusion

The Second Amendment Financial Privacy Act represents a legislative effort to safeguard the financial privacy of individuals involved in firearms transactions. By prohibiting discriminatory practices in the categorization of these transactions, the bill aims to ensure fair treatment for firearms retailers and their customers within the financial system.

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

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