Committee backs bill barring use of payment‑processing merchant codes to compile lists of firearm purchasers

The Judiciary Committee voted to give H.3930 a favorable report after a lengthy discussion about merchant codes, purchaser privacy and the scope of state authority over payment networks.

Representative Bridal presented the bill, which would prohibit governmental entities or their agents from maintaining lists of privately owned firearms or firearm owners unless the data were gathered pursuant to a criminal investigation or required by law. The bill would also prohibit payment card networks or financial institutions from requiring or incentivizing the use of a merchant category code (MCC) that distinguishes firearm and ammunition retailers from other merchants, and would limit payment processors from assigning an identifying merchant code for firearms or ammunition sales.

Under the bill, the attorney general is to investigate allegations and, if necessary, seek injunctions in equity; civil fines of $1,000 per violation and attorney-fee awards are available after specified steps. Representative Britton and others said the bill is intended to prevent third‑party lists compiled by private payment processors from being used to single out lawful gun owners; critics asked whether the measure interferes with private contracting and interstate commerce.

Representative Wetmore asked whether there were documented examples of harm from existing MCC usage; Bridal replied that the legislation is preventive. Representative Luck and others questioned the mandatory language directing the attorney general to investigate and bring actions; Bridal said the attorney general’s office had been informed and was comfortable with the language.

The committee approved H.3930 by roll call: 19 in favor, 3 opposed, 2 not voting. The bill will move forward to the next stage of the process.