LITTLE ROCK, Ark. (March 15, 2023) – A bill introduced in the Arkansas House would prohibit financial institutions operating in the state from using a credit card merchant code that would enable the tracking of firearm and ammunition purchases.
Rep. Wayne Long (R) introduced House Bill 1620 (HB1620) on March 14. Titled the Second Amendment Financial Privacy Act, the proposed law would prohibit a financial institution or its agent from requiring or “assigning” a specific firearm or ammunition merchant code separately from general merchandise retailers or sporting goods retailers to any firearms business located in Arkansas.
The bill defines “assigning” as “a financial institution policy, process, or practice that labels, links, or otherwise associates a firearms code with a merchant or payment card transaction in a manner that allows the financial institution or any other entity facilitating or processing the payment card transaction to identify whether a merchant is a firearms retailer or whether a transaction involves the sale of firearms or ammunition.”
HB1620 explains the background for this bill in the legislative findings.
“In September 2022, the International Standards Organization, based in Switzerland, approved a new merchant category code for firearm and ammunition merchants. In the letter to payment card networks, federal lawmakers stated that the new Merchant Category Code for firearms retailers would be “. . .the first step towards facilitating the collection of valuable financial data that could help law enforcement in countering the financing of terrorism efforts,” expressing a clear government expectation that networks will utilize the new Merchant Category Code to conduct mass surveillance of constitutionally protected firearms and ammunition purchases in cooperation with law enforcement. The new Merchant Category Code will allow financial institutions, payment card networks, acquirers, and other entities involved in payment card processing to identify and separately track lawful payment card purchases at firearms retailers in this state, paving the way for both unprecedented surveillance of Second Amendment activity and unprecedented information sharing between financial institutions and the government.”
HB1620 would also prohibit a financial institution from knowingly keeping a list, record, or registry of privately owned firearms or the owners of privately owned firearms.
The legislation includes provisions empowering the state attorney general to enforce the law and creating a cause of action for individuals harmed by a violation of the law to sue in civil court.
IMPACT ON FEDERAL PROGRAMS
As the legislative findings warn, data collected from this merchant code would almost certainly end up in federal government databases.
Concern about the misuse of federal firearms databases isn’t just paranoia. The Taliban has reportedly used a firearm ownership database created by the U.S. government to track down gun owners and confiscate firearms in Afghanistan. This goes to show that even if you trust the people creating the database, it can fall into the wrong hands. In other words, the very existence of a database is a danger.
The feds can share and tap into vast amounts of information gathered at the state and local level through fusion centers and a system known as the “information sharing environment” or ISE.
Fusion centers were sold as a tool to combat terrorism, but that is not how they are being used. The ACLU pointed to a bipartisan congressional report to demonstrate the true nature of government fusion centers: “They haven’t contributed anything meaningful to counterterrorism efforts. Instead, they have largely served as police surveillance and information sharing nodes for law enforcement efforts targeting the frequent subjects of police attention: Black and brown people, immigrants, dissidents, and the poor.”
Fusion centers operate within the broader ISE. According to its website, the ISE “provides analysts, operators, and investigators with information needed to enhance national security. These analysts, operators, and investigators…have mission needs to collaborate and share information with each other and with private sector partners and our foreign allies.” In other words, ISE serves as a conduit for the sharing of information gathered without a warrant. Known ISE partners include the Office of Director of National Intelligence which oversees 17 federal agencies and organizations, including the NSA. ISE utilizes these partnerships to collect and share data on the millions of unwitting people they track.
In practice, local data collection using ALPRs, stingrays, drones and other spy technologies create the potential for the federal government to obtain and store information on millions of Americans including phone calls, emails, web browsing history, location history, and text messages, all with no warrant, no probable cause, and without the people even knowing it.
In a nutshell, without state and local assistance, the feds have a much more difficult time gathering information. When the state limits surveillance and data collection, it means less information the feds can tap into. This represents a major blow to the surveillance state and a win for privacy.
HB1620 was referred to the House Committee on Insurance and Commerce where it must get a hearing and pass by a majority vote before moving forward in the legislative process.
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