On April 3, Arkansas enacted HB 1509 (the “Act”), known as the Arkansas Second Amendment Financial Privacy Act. The Act prohibits financial institutions from using merchant category codes that distinguish firearms retailers from other types of retailers, with the aim of preventing discrimination against firearms-related electronic payment transactions.

The Act prohibits payment card networks from assigning distinct merchant category codes to firearms retailers, including merchant category code 5723, which was approved in September 2022 by the International Organization for Standardization for firearms retailers. It also prohibits merchants from assigning merchant category code 5723 to purchases of firearms, firearm accessories, firearm components, or ammunition. The Act bans government agencies and individuals from maintaining records of private firearm ownership, except in specific limited cases.

The Act grants the Arkansas attorney general with the authority to enforce and investigate alleged violations. After finding a violation, the attorney general must notify the alleged violator to cease the violation and may seek an injunction and potentially recover a civil penalty of up to $10,000 for each violation. The attorney general’s actions are the exclusive remedies for violations, as the Act does not create a private right of action.