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House Study Bill 671 - IntroducedA Bill ForAn Act 1relating to government records of firearms, and payment
2card transactions involving firearms and ammunition, and
3providing civil penalties.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 554H.1 Definitions.
21. “Ammunition” means the same as defined in section 683.1.
32. “Assign” or “assignment” means a financial institution’s
4policy, process, or practice that labels, links, or otherwise
5associates a firearms code with a merchant or a payment card
6transaction in a manner that allows the financial institution,
7or other entity facilitating or processing the payment card
8transaction, to identify whether a merchant is a firearms
9retailer or whether a transaction involves the sale of firearms
10or ammunition.
113. “Customer” means a person engaged in a payment
12card transaction facilitated or processed by a financial
13institution.
144. “Financial institution” means a person other than a
15merchant involved in facilitating or processing a payment card
16transaction, including but not limited to any bank incorporated
17under the provisions of any state or federal law, an acquirer,
18a payment card issuer, a payment card network, a payment
19gateway, or a payment card processor.
205. “Firearm” means any weapon that is capable of expelling,
21designed to expel, or that may readily be converted to expel
22ammunition, and includes a firearm component or accessory.
236. “Firearms code” means a merchant category code approved
24by the international organization for standardization that is
25specifically for firearms retailers and that is assigned to a
26retailer by the retailer’s acquirer.
277. “Firearms retailer” means a person physically located
28within the state who engages in the lawful selling or trading
29of firearms or ammunition.
308. “Government entity” means the state, any political
31subdivision of the state, or any court, agency, or
32instrumentality of the state. “Government entity” includes a
33government official or an agent or employee of a government
34entity.
359. a. “Payment card” means any card that is issued pursuant
-1-1to an agreement or arrangement that provides for all of the
2following:
3(1) One or more issuers of the payment card.
4(2) A network of persons unrelated to each other and to the
5issuer who agree to accept a payment card as payment.
6(3) Standards and mechanisms for settling the transactions
7between the merchandise-acquiring person and the merchant that
8agrees to accept the payment card as payment.
9b. “Payment card” includes credit cards, debit cards,
10stored-value cards including gift cards, and payment through
11any distinctive marks of a payment card including a credit card
12number. The acceptance as payment of any account number or
13other indicia associated with a payment card shall be treated
14in the same manner as accepting the payment card as payment.
1510. “Payment card transaction” means any transaction in
16which a payment card is accepted as payment.
17 Sec. 2. NEW SECTION. 554H.2 Government entities — firearm
18registry or record.
19Except for records kept during the regular course of a
20criminal investigation or criminal prosecution, or as otherwise
21required by law, a government entity shall not knowingly keep
22or cause to be kept a record or registry of privately owned
23firearms or of the owners of privately owned firearms.
24 Sec. 3. NEW SECTION. 554H.3 Financial institutions.
251. A financial institution or agent of a financial
26institution shall not do any of the following:
27a. Require the use of a firearms code in a manner that
28distinguishes a firearms retailer from other retailers.
29b. Subject to subsection 2, decline a payment card
30transaction involving a firearms retailer based solely on
31the acquirer’s assignment of a firearms code to the firearms
32retailer.
332. This section shall not be construed to prohibit a
34financial institution from declining or otherwise refusing to
35process a payment card transaction for any of the following
-2-1reasons:
2a. If necessary to comply with applicable state or federal
3laws.
4b. If requested by a customer.
5c. If necessary due to fraud controls.
6d. For purposes of merchant category exclusions offered by
7a financial institution for expenditure control or corporate
8card control.
93. This section shall not be construed to limit the
10authority of a financial institution to negotiate with
11responsible parties, or to otherwise impair a financial
12institution’s actions related to dispute processing, fraud
13management, protection from illegal activities, breach, cyber
14risks, or from taking any action that restricts the use or
15availability of the firearms code in the state.
16 Sec. 4. NEW SECTION. 554H.4 Enforcement — penalties.
171. The attorney general shall investigate reasonable
18alleged violations of this chapter. If the attorney general
19has reasonable belief that a person is in violation of this
20chapter, the attorney general shall provide written notice to
21the person determined to have committed the violation.
222. Upon receipt of notice of a violation under subsection
231, the person shall have ninety calendar days to cease the
24violation.
253. If the violation persists after the expiration of the
26ninety-day period under subsection 2, the attorney general has
27the sole authority to bring civil action in district court to
28enjoin further violations by a person found to be in violation
29of this chapter, in addition to other remedies permitted by
30law.
314. If a person knowingly or willfully fails to comply
32with an injunction issued under subsection 3, after thirty
33calendar days of the date the person is served with the
34injunction, the attorney general may petition the district
35court to impose civil penalties in an amount not to exceed one
-3-1thousand dollars per violation, taking into consideration the
2financial resources of the violator and the harm or risk of
3harm to the violator’s rights under the second amendment to the
4Constitution of the United States and Article I, section 1A,
5of the Constitution of the State of Iowa resulting from the
6violation.
75. It shall be a defense to a proceeding initiated pursuant
8to this section that a firearms code was required to be
9disclosed or assigned by law.
10EXPLANATION
11The inclusion of this explanation does not constitute agreement with
12the explanation’s substance by the members of the general assembly.
13This bill relates to records and payment card transactions
14of firearms and ammunition.
15Under the bill, except for records kept during the regular
16course of a criminal investigation or criminal prosecution, or
17as otherwise required by law, a government entity shall not
18knowingly keep or cause to be kept a record or registry of
19privately owned firearms, or of the owners of privately owned
20firearms. “Government entity” and “firearm” are defined in the
21bill.
22The bill prohibits a financial institution, or an agent of
23a financial institution, from requiring the use of a firearms
24code in a way that distinguishes a firearms retailer from other
25retailers. “Financial institution”, “firearms code”, and
26“firearms retailer” are defined in the bill. The bill also
27prohibits a financial institution from declining a payment
28card transaction involving a firearms retailer based on the
29assignment of a firearms code. “Payment card transaction”
30and “assignment” are defined in the bill. The bill does not
31prohibit a financial institution from declining or refusing to
32process a payment card transaction if necessary to comply with
33applicable state or federal laws, if requested by a customer,
34if necessary due to fraud controls, or for purposes of merchant
35category exclusions offered by a financial institution for
-4-1purposes of expenditure control or corporate card control. The
2bill does not limit or impair the authority of a financial
3institution to negotiate with responsible parties or a
4financial institution’s actions related to dispute processing,
5fraud management, or protecting against illegal activities,
6breach, cyber risks, or from taking any action that restricts
7the use or availability of the firearms code.
8Under the bill, the attorney general shall investigate
9reasonable alleged violations of the bill and, if the attorney
10general has reasonable belief that a person is in violation of
11the bill, the attorney general shall provide written notice
12to the person determined to have committed the violation.
13Upon receipt of notice of a violation, a person shall have
1490 calendar days to cease the violation or, if the violation
15persists, the attorney general may bring civil action in
16district court to enjoin further violations, in addition to
17other remedies permitted by law. If a person knowingly or
18willfully fails to comply with an injunction after 30 calendar
19days from the date of being served with the injunction,
20the attorney general may petition the district court to
21impose civil penalties in an amount not more than $1,000
22per violation. The bill creates a defense to a proceeding
23initiated under the bill that a firearms code was required to
24be disclosed or assigned by law.
-5-nls/ko
2card transactions involving firearms and ammunition, and
3providing civil penalties.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 554H.1 Definitions.
21. “Ammunition” means the same as defined in section 683.1.
32. “Assign” or “assignment” means a financial institution’s
4policy, process, or practice that labels, links, or otherwise
5associates a firearms code with a merchant or a payment card
6transaction in a manner that allows the financial institution,
7or other entity facilitating or processing the payment card
8transaction, to identify whether a merchant is a firearms
9retailer or whether a transaction involves the sale of firearms
10or ammunition.
113. “Customer” means a person engaged in a payment
12card transaction facilitated or processed by a financial
13institution.
144. “Financial institution” means a person other than a
15merchant involved in facilitating or processing a payment card
16transaction, including but not limited to any bank incorporated
17under the provisions of any state or federal law, an acquirer,
18a payment card issuer, a payment card network, a payment
19gateway, or a payment card processor.
205. “Firearm” means any weapon that is capable of expelling,
21designed to expel, or that may readily be converted to expel
22ammunition, and includes a firearm component or accessory.
236. “Firearms code” means a merchant category code approved
24by the international organization for standardization that is
25specifically for firearms retailers and that is assigned to a
26retailer by the retailer’s acquirer.
277. “Firearms retailer” means a person physically located
28within the state who engages in the lawful selling or trading
29of firearms or ammunition.
308. “Government entity” means the state, any political
31subdivision of the state, or any court, agency, or
32instrumentality of the state. “Government entity” includes a
33government official or an agent or employee of a government
34entity.
359. a. “Payment card” means any card that is issued pursuant
-1-1to an agreement or arrangement that provides for all of the
2following:
3(1) One or more issuers of the payment card.
4(2) A network of persons unrelated to each other and to the
5issuer who agree to accept a payment card as payment.
6(3) Standards and mechanisms for settling the transactions
7between the merchandise-acquiring person and the merchant that
8agrees to accept the payment card as payment.
9b. “Payment card” includes credit cards, debit cards,
10stored-value cards including gift cards, and payment through
11any distinctive marks of a payment card including a credit card
12number. The acceptance as payment of any account number or
13other indicia associated with a payment card shall be treated
14in the same manner as accepting the payment card as payment.
1510. “Payment card transaction” means any transaction in
16which a payment card is accepted as payment.
17 Sec. 2. NEW SECTION. 554H.2 Government entities — firearm
18registry or record.
19Except for records kept during the regular course of a
20criminal investigation or criminal prosecution, or as otherwise
21required by law, a government entity shall not knowingly keep
22or cause to be kept a record or registry of privately owned
23firearms or of the owners of privately owned firearms.
24 Sec. 3. NEW SECTION. 554H.3 Financial institutions.
251. A financial institution or agent of a financial
26institution shall not do any of the following:
27a. Require the use of a firearms code in a manner that
28distinguishes a firearms retailer from other retailers.
29b. Subject to subsection 2, decline a payment card
30transaction involving a firearms retailer based solely on
31the acquirer’s assignment of a firearms code to the firearms
32retailer.
332. This section shall not be construed to prohibit a
34financial institution from declining or otherwise refusing to
35process a payment card transaction for any of the following
-2-1reasons:
2a. If necessary to comply with applicable state or federal
3laws.
4b. If requested by a customer.
5c. If necessary due to fraud controls.
6d. For purposes of merchant category exclusions offered by
7a financial institution for expenditure control or corporate
8card control.
93. This section shall not be construed to limit the
10authority of a financial institution to negotiate with
11responsible parties, or to otherwise impair a financial
12institution’s actions related to dispute processing, fraud
13management, protection from illegal activities, breach, cyber
14risks, or from taking any action that restricts the use or
15availability of the firearms code in the state.
16 Sec. 4. NEW SECTION. 554H.4 Enforcement — penalties.
171. The attorney general shall investigate reasonable
18alleged violations of this chapter. If the attorney general
19has reasonable belief that a person is in violation of this
20chapter, the attorney general shall provide written notice to
21the person determined to have committed the violation.
222. Upon receipt of notice of a violation under subsection
231, the person shall have ninety calendar days to cease the
24violation.
253. If the violation persists after the expiration of the
26ninety-day period under subsection 2, the attorney general has
27the sole authority to bring civil action in district court to
28enjoin further violations by a person found to be in violation
29of this chapter, in addition to other remedies permitted by
30law.
314. If a person knowingly or willfully fails to comply
32with an injunction issued under subsection 3, after thirty
33calendar days of the date the person is served with the
34injunction, the attorney general may petition the district
35court to impose civil penalties in an amount not to exceed one
-3-1thousand dollars per violation, taking into consideration the
2financial resources of the violator and the harm or risk of
3harm to the violator’s rights under the second amendment to the
4Constitution of the United States and Article I, section 1A,
5of the Constitution of the State of Iowa resulting from the
6violation.
75. It shall be a defense to a proceeding initiated pursuant
8to this section that a firearms code was required to be
9disclosed or assigned by law.
10EXPLANATION
11The inclusion of this explanation does not constitute agreement with
12the explanation’s substance by the members of the general assembly.
13This bill relates to records and payment card transactions
14of firearms and ammunition.
15Under the bill, except for records kept during the regular
16course of a criminal investigation or criminal prosecution, or
17as otherwise required by law, a government entity shall not
18knowingly keep or cause to be kept a record or registry of
19privately owned firearms, or of the owners of privately owned
20firearms. “Government entity” and “firearm” are defined in the
21bill.
22The bill prohibits a financial institution, or an agent of
23a financial institution, from requiring the use of a firearms
24code in a way that distinguishes a firearms retailer from other
25retailers. “Financial institution”, “firearms code”, and
26“firearms retailer” are defined in the bill. The bill also
27prohibits a financial institution from declining a payment
28card transaction involving a firearms retailer based on the
29assignment of a firearms code. “Payment card transaction”
30and “assignment” are defined in the bill. The bill does not
31prohibit a financial institution from declining or refusing to
32process a payment card transaction if necessary to comply with
33applicable state or federal laws, if requested by a customer,
34if necessary due to fraud controls, or for purposes of merchant
35category exclusions offered by a financial institution for
-4-1purposes of expenditure control or corporate card control. The
2bill does not limit or impair the authority of a financial
3institution to negotiate with responsible parties or a
4financial institution’s actions related to dispute processing,
5fraud management, or protecting against illegal activities,
6breach, cyber risks, or from taking any action that restricts
7the use or availability of the firearms code.
8Under the bill, the attorney general shall investigate
9reasonable alleged violations of the bill and, if the attorney
10general has reasonable belief that a person is in violation of
11the bill, the attorney general shall provide written notice
12to the person determined to have committed the violation.
13Upon receipt of notice of a violation, a person shall have
1490 calendar days to cease the violation or, if the violation
15persists, the attorney general may bring civil action in
16district court to enjoin further violations, in addition to
17other remedies permitted by law. If a person knowingly or
18willfully fails to comply with an injunction after 30 calendar
19days from the date of being served with the injunction,
20the attorney general may petition the district court to
21impose civil penalties in an amount not more than $1,000
22per violation. The bill creates a defense to a proceeding
23initiated under the bill that a firearms code was required to
24be disclosed or assigned by law.
-5-nls/ko