HB389 Alabama 2024 Session

Updated Feb 23, 2026

High Interest

Summary

Primary Sponsor: Shane StringerRepresentative
Republican
Session: Regular Session 2024
Title: Financial Institutions; to prohibit financial institutions from using a merchant category code to identify firearms transactions; to prohibit disclosure of financial information regarding firearms transactions
Summary: HB389 would protect privacy around firearms transactions by banning the use of firearms-related merchant codes and by prohibiting state records of private gun ownership, with enforcement by the Attorney General.
What This Bill Does
It would bar financial institutions from requiring merchants to use a firearms merchant category code (MCC) to distinguish firearms retailers and from disclosing financial information about firearms purchases. It would require firearms retailers to avoid providing firearms codes and would prevent discrimination by financial institutions against firearms retailers based on such codes, with limited allowances for compliance and fraud controls. It would also bar state and local governments from keeping lists or registries of privately owned firearms or owners, and would give the Attorney General authority to investigate violations, seek civil penalties, and issue injunctions.

Who It Affects
Financial institutions, payment card issuers and networks operating in Alabama would be prohibited from assigning or requiring a firearms code and would face potential civil penalties and enforcement actions by the Attorney General for violations.
Firearms retailers and state/local government agencies would be affected by protections against discrimination in processing transactions and by the prohibition on maintaining lists or registries of privately owned firearms or owners.

Key Provisions
Section 2 defines terms such as customer, disclosure, financial institution, financial record, firearms code, firearms retailer, payment card, and protected financial information.
Section 3 prohibits a financial institution from assigning or requiring a firearms code to distinguish firearms retailers from other retailers, and prohibits firearms retailers from providing a firearms code to payment card issuers or networks.
Section 3 prohibits discrimination against firearms retailers in processing transactions based solely on firearms code status, with limited allowances for compliance, fraud controls, or customer requests.
Section 3 prohibits state or local government from keeping lists or registries of privately owned firearms or owners, and restricts disclosure of such financial records unless required by law or due to enforcement actions.
Section 4 authorizes the Attorney General to investigate violations, issue subpoenas, and pursue civil penalties; it details cure provisions, remedies, and court orders, including destruction of illegal records.
Section 5 establishes that the act’s remedies are exclusive.
Section 6 provides a defense that a firearm code was required in good faith by law or regulation.
Section 7 sets October 1, 2024 as the act’s effective date.

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