SB281 Alabama 2024 Session

Summary

Primary Sponsor

Tim MelsonSenator

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

SB281 protects firearm buyers’ financial privacy by banning firearm-related codes in transaction data and prohibiting government firearm registries, with enforcement by the Attorney General.

What This Bill Does

It bans financial institutions from requiring merchants to use a firearm-specific merchant category code to identify firearm retailers or transactions and from disclosing information about those transactions. It also forbids state and local government entities from creating or maintaining lists or registries of privately owned firearms or firearm owners. It sets rules about when a financial institution can decline a firearm-related payment, allowing only specific exceptions and requiring processing under other protections, and it gives the Attorney General authority to investigate violations, seek injunctions, and impose civil penalties. The act takes effect on October 1, 2024.

Who It Affects

• Financial institutions, payment networks, and firearm retailers: must not use firearm-specific codes to identify firearm sales, cannot deny firearm-related transactions solely based on such codes, and must follow the specified exceptions.
• Firearm owners and the general public: gain privacy protections from government lists/registries of firearms or owners and from potential discriminatory practices related to firearms transactions.

Key Provisions

• Prohibits requiring a firearms code (MCC) to distinguish firearm retailers or firearm transactions and restricts disclosure of firearms transaction data by financial institutions.
• Prohibits governmental entities from creating or maintaining lists or registries of privately owned firearms or firearm owners.
• Prohibits financial institutions or their agents from using a firearms code to discriminate against or decline firearm-related transactions solely on that basis, with specified exceptions (e.g., complying with law, customer requests, fraud/compliance controls, or merchant category exclusions).
• Allows limited processing deviations for lawful requirements, customer requests, fraud controls, or other protections; clarifies that certain actions may be taken to restrict firearms code use within the state.
• Authorizes the Attorney General to investigate violations, issue written notices, seek injunctions, and impose civil penalties up to $1,000 per violation; remedies are exclusive and there is a defense if a firearms code was legally required.
• Effective date: October 1, 2024.

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