HB181 Alabama 2023 Session

Summary

Primary Sponsor

Mack N. ButlerRepresentative

Republican

Session

Regular Session 2023

Title

Relating to financial institutions; to amend Section 5-5A-43, Code of Alabama 1975, to prohibit financial institutions from disclosing certain customer financial records of firearms transactions with certain exceptions; to allow the Department of Finance to disqualify a financial institution from any selection process for state contracts for violation of this prohibition; and to provide civil penalties and criminal penalties for violation of the act.

Summary

HB181 would create the Second Amendment Financial Privacy Act to shield customers’ payment card records from firearms transactions from disclosure, with penalties for violators and potential loss of state contracts.

What This Bill Does

If enacted, it would bar financial institutions from disclosing a customer’s protected financial information tied to firearm purchases, except when the customer authorizes disclosure in writing or when a lawful subpoena or court order requires it. It would also prohibit discriminatory conduct against firearms merchants or customers, such as refusing transactions or charging higher fees. The act provides civil penalties and criminal penalties for violations, allows reasonable attorney fees, and sets a five-year time limit for filing suits, with remedies that may include injunctions. It would also let the Department of Finance disqualify a financial institution from state contract processes for violations or public statements of intent to violate the act, and would amend existing law to reinforce disclosure limits.

Who It Affects

• Customers who use payment cards to buy firearms; their protected financial information would be protected from disclosure unless they authorize it in writing or a lawful subpoena applies, and they could sue for violations and recover damages.
• Financial institutions and payment card networks operating in Alabama; they would face new restrictions on disclosing firearms-related transaction data, potential civil and criminal penalties for violations, and possible disqualification from state contracts, with enforcement by the Department of Finance.

Key Provisions

• Establishes the Second Amendment Financial Privacy Act to prohibit disclosure of protected financial information related to firearms transactions, with specified exceptions.
• Defines key terms such as firearms code, protected financial information, firearms retailer, merchant category code, and financial institution.
• Restricts disclosures to only lawful subpoenas, summons, warrants, or court orders, and requires written customer authorization for any other disclosure; outlines what must be included in the authorization.
• Prohibits discriminatory conduct by financial institutions toward firearms merchants or customers, including refusing transactions, penalizing lawful purchases, higher fees, or other actions intended to suppress firearm commerce.
• Creates civil damages for violations (greater of $5,000 or actual damages for negligent/reckless violations; greater of $20,000 or actual damages for intentional violations), allows attorney fees, and sets a five-year statute of limitations; remedies may include injunctions.
• Empowers the Department of Finance to disqualify a financial institution from state bidding or selection processes for up to five years if they violate the act, admit violations, or publicly state intent to violate.
• Amends Section 5-5A-43 to reinforce disclosure limits, restricting banks from disclosing customer records except under lawful subpoena and providing civil remedies for violations.
• Effective immediately upon governor’s approval.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.