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Panel approves bill to block new merchant code that would single out gun stores

Banks and Financial Institutions · February 22, 2024

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Summary

The committee favorably reported House Bill 1018 (LC550207), which would prohibit using a newly created merchant category code that labels firearm retailers separately and require use of legacy codes for sporting goods or general merchandise; sponsor said the change prevents singling out gun sellers and includes a 30-day cure and enforcement via the attorney general.

An introducer (identified in the transcript as Speaker 10; name not stated) described House Bill 1018 (LC550207), which would bar the use of a new merchant category code (reported as 5723) that specifically identifies firearm retailers and instead require use of the former categories for sporting goods or general merchandise.

The introducer said merchant category codes are standardized four-digit identifiers set by an international organization and apply worldwide. The bill would prevent a new code from being used to single out firearm retailers; the sponsor told the committee the language was modeled on other states' measures and added additional clarifying language to bar any alternative indicator that would identify a merchant as a firearm store.

Committee members questioned enforcement and a referenced $10,000 fine included in similar bills; the sponsor said enforcement ordinarily begins with a letter from the attorney general and a 30-day cure period before fines are imposed. The committee moved to pass the bill; the chair announced the motion carried unanimously by voice vote.