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SB1058 - 572R - S Ver
Senate Engrossed
firearms
transactions; merchant codes; prohibition
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
SENATE BILL 1058
AN
ACT
amending section 44-7851, arizona
revised statutes; amending title 44, chapter 36, article 1, arizona revised
statutes, by adding section 44-7853; relating to firearm transactions.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 44-7851, Arizona Revised
Statutes, is amended to read:
START_STATUTE
44-7851.
Definitions
In this chapter, unless the context otherwise requires:
1. "Ammunition" includes:
(
a
) Cartridge
cases.
(
b
) Primers.
(
c
) Bullets.
(
d
) Propellant
powder that is designed for use in any firearm.
2. "Assign" means a covered
entity's policy, process or practice that labels, links or otherwise associates
a merchant category code with a merchant or a payment card transaction in a
manner that allows a covered entity or any other entity that facilitates or
processes the payment card transaction to identify whether a merchant is a
firearm retailer or whether a transaction involves the sale of firearms or
ammunition.
3. "Covered entity" means
any entity, or agent of the covered entity, that establishes a relationship
with a retailer for the purpose of processing credit card, debit card or
prepaid transactions.
1.
4.
"Firearm"
means any loaded or unloaded handgun, pistol, revolver, rifle, shotgun or other
weapon that will expel or that is designed to or may readily be converted to
expel a solid projectile by the action of expanding gases.
5. "Firearm retailer" means
any person or covered entity that is both of the following:
(
a
) PHYSICALLY
located in this state.
(
b
) Engaged in
the lawful selling or trading of FIREARMS, antique firearms or ammunition.
6. "Government entity"
means this state or any political subdivision of this state, including any
board, governmental body, agency or instrumentality of this state.
7. "Merchant category code"
means a code that is both of the following:
(
a
) Approved by
an INTERNATIONAL organization for STANDARDIZATION or an equivalent successor
organization specifically for firearm retailers.
(
b
) Assigned to
a retailer based on the types of good and services the retailer offers to a
customer.
8. "Payment card" means a
credit card, charge card or debit card or any other card that is issued to a
customer and that allows the customer to PURCHASE goods or services from a
merchant.
9. "Payment card network"
means any covered entity, or agent of the covered entity, that does both of the
following:
(
a
) Provides
the proprietary services, infrastructure and software to conduct debit card or
credit card transaction authorizations, clearances and settlements.
(
b
) Accepts as
a form of payment a brand of debit card, credit card or other device that may
be used to carry out debit or credit transactions.
10. "Payment card
transaction" means any transaction in which a payment card is accepted as
payment.
11. "Person" means a
natural person.
2.
12.
"Private
party" means a person who is not a prohibited possessor under state or
federal law and does not include a person who possesses a federal firearms
license and who primarily engages in the business of selling, trading or
purchasing firearms.
3.
13.
"Transfer"
means when a person gives, loans, offers for sale, wills or in any manner
offers another person a firearm for any lawful purpose and the person is not a
prohibited possessor under state or federal law.
END_STATUTE
Sec. 2. Title 44, chapter 36, article 1,
Arizona Revised Statutes, is amended by adding section 44-7853, to read:
START_STATUTE
44-7853.
Firearm transactions; merchant category codes; registry;
exceptions; attorney general; county attorney; civil penalty; injunction
A. Except for records kept during the
regular course of a criminal investigation or prosecution or as otherwise
required by law, a government entity may not knowingly keep or cause to be kept
any list, record or registry of privately owned firearms or the owners of the
firearms.
B. A payment card network may not
require or incentivize the use of a merchant category code in a manner that
distinguishes a firearm retailer from other retailers.
C. A person and covered entity may
not assign a firearm retailer a merchant category code that distinguishes a
firearm retailer from other retailers.
D. the attorney general or a county
attorney shall investigate a reasonable allegation of a violation of this
section. If the attorney general or county attorney finds a
violation, the attorney general or county attorney shall provide written notice
to the person, covered entity or government entity that violated this section,
and the person, covered entity or government entity shall cease the conduct
that led to the violation within thirty business days after receiving notice. If
a person, covered entity or government entity does not cease the conduct that
led to the violation within thirty business days after receiving written notice
from the attorney general or county attorney, the attorney general or county
attorney shall file an injunction against that person, covered entity or
government entity.� If the court finds that the person, covered entity or
government entity violated this section and has not ceased the activity that
constitutes the violation, the court shall grant the injunction and award attorney
fees and costs.� If a person, covered entity or government entity purposely
fails to comply with the court's injunction after thirty days of being properly
served, the attorney general or county attorney shall petition the court to
seek a civil penalty of not more than $1,000 for each violation. The
court shall consider factors resulting from the violation, including the
financial resources of the violator and the harm or risk of harm to the public,
when assessing the civil penalty.� A court order that imposes a civil penalty
pursuant to this subsection shall be stayed pending any appeal of the court's
order.�
E. The attorney general or county
attorney has exclusive authority to enforce this section.� The remedies set
forth in subsection D of this section are the exclusive remedies for any
violation of this section.
F. It is a defense to any proceeding
that is initiated pursuant to this section that a merchant category code was
required by law.
END_STATUTE
Sec. 3.
Short title
This act may be cited as the
"Second Amendment Financial Privacy Act".