Representative A. Cory Maloy proposes the following substitute bill:


1     
FIREARMS FINANCIAL TRANSACTION AMENDMENTS

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: A. Cory Maloy

5     
Senate Sponsor: Chris H. Wilson

6     

7     LONG TITLE
8     General Description:
9          This bill addresses consumer transactions related to firearms.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     prohibits the use of a firearms merchant category code;
14          ▸     establishes a complaint process and civil penalties for certain violations; and
15          ▸     gives enforcement powers to the attorney general.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          None
20     Utah Code Sections Affected:
21     ENACTS:
22          13-70-101, Utah Code Annotated 1953
23          13-70-201, Utah Code Annotated 1953
24          13-70-301, Utah Code Annotated 1953
25     


26     Be it enacted by the Legislature of the state of Utah:
27          Section 1. Section 13-70-101 is enacted to read:
28     
CHAPTER 70. FIREARM FINANCIAL TRANSACTIONS

29     
Part 1. General Provisions

30          13-70-101. Definitions.
31          (1) "Ammunition" means ammunition or cartridge cases, primers, bullets, or propellant
32     powder designed for use in a firearm.
33          (2) "Customer" means an individual who presents a payment card to a merchant for the
34     purchase of a good or service.
35          (3) "Financial entity" means any person involved in facilitating or processing a
36     payment card transaction, including:
37          (a) a payment card network;
38          (b) a merchant acquirer; or
39          (c) a payment facilitator.
40          (4) "Firearm" means the same as that term is defined in Section 76-10-501.
41          (5) (a) "Firearm accessory or component" means a device specifically adapted to:
42          (i) enable the wearing or carrying about one's person or the storage or mounting in or
43     on any conveyance of a firearm; or
44          (ii) be inserted into or affixed to a firearm to enable, alter, or improve the functioning
45     or capabilities of the firearm.
46          (b) "Firearm accessory or component" includes a telescopic or laser sight, magazine,
47     flash or sound suppressor, folding or aftermarket stock or grip, speedloader, brace, ammunition
48     carrier, or light for target illumination.
49          (6) "Firearms code" means the merchant category code 5723, approved in September
50     2022 by the International Organization for Standardization, for firearms retailers.
51          (7) "Firearms retailer" means a merchant engaged in the lawful business of selling or
52     trading firearms, firearm accessories or components, or ammunition.
53          (8) "Merchant" means a person physically located in the state who accepts a payment
54     card from a customer for the purchase of a good or service.
55          (9) "Payment card" means a card, code, or other means by which a person may debit a
56     deposit account or use a line of credit to purchase a good or service.

57          (10) "Reloading supplies" means any equipment, component, or material designed for
58     the reloading of ammunition, including reloading presses, shell holders, powder measures,
59     priming tools, reloading manuals, casings, and gunpowder.
60          Section 2. Section 13-70-201 is enacted to read:
61     
Part 2. Prohibited Conduct

62          13-70-201. Limitations on firearms merchant codes.
63          (1) For the processing of a payment card transaction, a financial entity may not assign
64     to a firearms retailer or require a firearms retailer to use the firearms code.
65          (2) For purposes of the sale of a firearm, a firearm accessory or component,
66     ammunition, or reloading supplies, a firearms retailer may not provide the firearms code to a
67     financial entity.
68          (3) A financial entity may not otherwise classify a firearms retailer separately from
69     general merchandise retailers or sporting goods retailers.
70          (4) Nothing in this chapter:
71          (a) limits a financial entity's ability to:
72          (i) negotiate with responsible parties; or
73          (ii) comply with state or federal laws or regulations; or
74          (b) impairs a financial entity's activities related to dispute processing, fraud or
75     compliance management, or protecting transaction integrity from concerns related to illegal or
76     suspicious activities, data breaches, or cyber risks.
77          Section 3. Section 13-70-301 is enacted to read:
78     
Part 3. Enforcement

79          13-70-301. Enforcement powers of the attorney general.
80          (1) (a) The attorney general has the sole authority to enforce the provisions of this
81     chapter.
82          (b) Nothing in this chapter creates a private right of action.
83          (2) (a) If a person believes that a financial entity violated or is in violation of this
84     chapter, the person may file a complaint with the attorney general.
85          (b) Upon receipt of a complaint, the attorney general shall initiate an investigation.
86          (3) If, based on investigation, the attorney general believes that a financial entity
87     violated or is in violation of this chapter, the attorney general shall send the financial entity

88     written notice that identifies each violation and directs the financial entity to cease each
89     violation within 30 days after the day on which the financial entity receives the notice.
90          (4) (a) The attorney general shall initiate a civil action against a financial entity that
91     fails to cease a violation of this chapter within the 30-day time period described in Subsection
92     (3).
93          (b) In an action under this subsection, the attorney general may seek, and the court may
94     order:
95          (i) injunctive relief;
96          (ii) (A) if the court determines that the financial entity recklessly violated a provision
97     of this chapter, a civil fine of $10,000 for each violation or actual damages, whichever is
98     greater; or
99          (B) if the court determines that the financial entity willfully violated a provision of this
100     chapter, a civil fine of $25,000 for each violation or actual damages, whichever is greater; and
101          (iii) costs and reasonable attorney fees to the attorney general if the court issues an
102     injunction or imposes a civil fine.
103          Section 4. Effective date.
104          This bill takes effect on May 1, 2024.