H.F. 2464 Section 1. NEW SECTION . 554H.1 Definitions. 1 1. “Ammunition” means the same as defined in section 683.1. 2 2. “Assign” or “assignment” means a financial institution’s 3 policy, process, or practice that labels, links, or otherwise 4 associates a firearms code with a merchant or a payment card 5 transaction in a manner that allows the financial institution, 6 or other entity facilitating or processing the payment card 7 transaction, to identify whether a merchant is a firearms 8 retailer or whether a transaction involves the sale of firearms 9 or ammunition. 10 3. “Customer” means a person engaged in a payment 11 card transaction facilitated or processed by a financial 12 institution. 13 4. “Financial institution” means a person other than a 14 merchant involved in facilitating or processing a payment card 15 transaction, including but not limited to any bank incorporated 16 under the provisions of any state or federal law, an acquirer, 17 a payment card issuer, a payment card network, a payment 18 gateway, or a payment card processor. 19 5. “Firearm” means any weapon that is capable of expelling, 20 designed to expel, or that may readily be converted to expel 21 ammunition, and includes a firearm component or accessory. 22 6. “Firearms code” means a merchant category code approved 23 by the international organization for standardization 24 specifically for firearms retailers. 25 7. “Firearms retailer” means a person physically located 26 within the state who engages in the lawful selling or trading 27 of firearms or ammunition. 28 8. “Government entity” means the state, any political 29 subdivision of the state, or any court, agency, or 30 instrumentality of the state. “Government entity” includes a 31 government official or an agent or employee of a government 32 entity. 33 9. a. “Payment card” means any card that is issued pursuant 34 to an agreement or arrangement that provides for all of the 35 -1- LSB 6307HV (3) 90 nls/ko 1/ 5

H.F. 2464 following: 1 (1) One or more issuers of the payment card. 2 (2) A network of persons unrelated to each other and to the 3 issuer who agree to accept a payment card as payment. 4 (3) Standards and mechanisms for settling the transactions 5 between the merchandise-acquiring person and the merchant that 6 agrees to accept the payment card as payment. 7 b. “Payment card” includes credit cards, debit cards, 8 stored-value cards including gift cards, and payment through 9 any distinctive marks of a payment card including a credit card 10 number. The acceptance as payment of any account number or 11 other indicia associated with a payment card shall be treated 12 in the same manner as accepting the payment card as payment. 13 10. “Payment card transaction” means any transaction in 14 which a payment card is accepted as payment. 15 Sec. 2. NEW SECTION . 554H.2 Government entities —— firearm 16 registry or record. 17 Except for records kept during the regular course of a 18 criminal investigation or criminal prosecution, or as otherwise 19 required by law, a government entity shall not knowingly keep 20 or cause to be kept a record or registry of privately owned 21 firearms or of the owners of privately owned firearms. 22 Sec. 3. NEW SECTION . 554H.3 Financial institutions. 23 1. A financial institution or agent of a financial 24 institution shall not do any of the following: 25 a. Require the use of a firearms code in a manner that 26 distinguishes a firearms retailer from other retailers. 27 b. Subject to subsection 2, decline a payment card 28 transaction involving a firearms retailer based solely on 29 the acquirer’s assignment of a firearms code to the firearms 30 retailer. 31 2. This section shall not be construed to prohibit a 32 financial institution from declining or otherwise refusing to 33 process a payment card transaction for any of the following 34 reasons: 35 -2- LSB 6307HV (3) 90 nls/ko 2/ 5

H.F. 2464 a. If necessary to comply with applicable state or federal 1 laws. 2 b. If requested by a customer. 3 c. If necessary due to fraud controls. 4 d. For purposes of merchant category exclusions offered by 5 a financial institution for expenditure control or corporate 6 card control. 7 3. This section shall not be construed to limit the 8 authority of a financial institution to negotiate with 9 responsible parties, or to otherwise impair a financial 10 institution’s actions related to dispute processing, fraud 11 management, protection from illegal activities, breach, cyber 12 risks, or from taking any action that restricts the use or 13 availability of the firearms code in the state. 14 Sec. 4. NEW SECTION . 554H.4 Enforcement —— penalties. 15 1. The attorney general shall investigate reasonable 16 alleged violations of this chapter. If the attorney general 17 has reasonable belief that a person is in violation of this 18 chapter, the attorney general shall provide written notice to 19 the person determined to have committed the violation. 20 2. Upon receipt of notice of a violation under subsection 21 1, the person shall have ninety calendar days to cease the 22 violation. 23 3. If the violation persists after the expiration of the 24 ninety-day period under subsection 2, the attorney general has 25 the sole authority to bring civil action in district court to 26 enjoin further violations by a person found to be in violation 27 of this chapter, in addition to other remedies permitted by 28 law. 29 4. If a person knowingly or willfully fails to comply 30 with an injunction issued under subsection 3, after thirty 31 calendar days of the date the person is served with the 32 injunction, the attorney general may petition the district 33 court to impose civil penalties in an amount not to exceed one 34 thousand dollars per violation, taking into consideration the 35 -3- LSB 6307HV (3) 90 nls/ko 3/ 5

H.F. 2464 financial resources of the violator and the harm or risk of 1 harm to the violator’s rights under the second amendment to the 2 Constitution of the United States and Article I, section 1A, 3 of the Constitution of the State of Iowa resulting from the 4 violation. 5 5. It shall be a defense to a proceeding initiated pursuant 6 to this section that a firearms code was required to be 7 disclosed or assigned by law. 8 EXPLANATION 9 The inclusion of this explanation does not constitute agreement with 10 the explanation’s substance by the members of the general assembly. 11 This bill relates to records and payment card transactions 12 of firearms and ammunition. 13 Under the bill, except for records kept during the regular 14 course of a criminal investigation or criminal prosecution, or 15 as otherwise required by law, a government entity shall not 16 knowingly keep or cause to be kept a record or registry of 17 privately owned firearms, or of the owners of privately owned 18 firearms. “Government entity” and “firearm” are defined in the 19 bill. 20 The bill prohibits a financial institution, or an agent of 21 a financial institution, from requiring the use of a firearms 22 code in a way that distinguishes a firearms retailer from other 23 retailers. “Financial institution”, “firearms code”, and 24 “firearms retailer” are defined in the bill. The bill also 25 prohibits a financial institution from declining a payment 26 card transaction involving a firearms retailer based on the 27 assignment of a firearms code. “Payment card transaction” 28 and “assignment” are defined in the bill. The bill does not 29 prohibit a financial institution from declining or refusing to 30 process a payment card transaction if necessary to comply with 31 applicable state or federal laws, if requested by a customer, 32 if necessary due to fraud controls, or for purposes of merchant 33 category exclusions offered by a financial institution for 34 purposes of expenditure control or corporate card control. The 35 -4- LSB 6307HV (3) 90 nls/ko 4/ 5

H.F. 2464 bill does not limit or impair the authority of a financial 1 institution to negotiate with responsible parties or a 2 financial institution’s actions related to dispute processing, 3 fraud management, or protecting against illegal activities, 4 breach, cyber risks, or from taking any action that restricts 5 the use or availability of the firearms code. 6 Under the bill, the attorney general shall investigate 7 reasonable alleged violations of the bill and, if the attorney 8 general has reasonable belief that a person is in violation of 9 the bill, the attorney general shall provide written notice 10 to the person determined to have committed the violation. 11 Upon receipt of notice of a violation, a person shall have 12 90 calendar days to cease the violation or, if the violation 13 persists, the attorney general may bring civil action in 14 district court to enjoin further violations, in addition to 15 other remedies permitted by law. If a person knowingly or 16 willfully fails to comply with an injunction after 30 calendar 17 days from the date of being served with the injunction, 18 the attorney general may petition the district court to 19 impose civil penalties in an amount not more than $1,000 20 per violation. The bill creates a defense to a proceeding 21 initiated under the bill that a firearms code was required to 22 be disclosed or assigned by law. 23 -5- LSB 6307HV (3) 90 nls/ko 5/ 5