SB 24-066

Senate Bill 24-066, known as the Firearms Merchant Category Code Act, requires payment networks to provide specific codes for firearms and ammunition transactions to processors who handle payments for firearm-related businesses. This ensures that these merchants are clearly identified in financial records. If a processor fails to comply with this requirement, the Colorado Attorney General can take legal action, imposing fines of up to $10,000 per violation or court orders to stop further violations. The bill was signed into law and will go into effect on August 7, 2024.

Official Summary

The act requires certain networks that facilitate payment transactions to make the merchant category code for firearms and ammunition available to merchant acquirers (processor) who process transactions for firearms merchants. A processor must assign the code to each firearms merchant to which the processor provides services. The attorney general's office has exclusive authority to enforce the act. Before bringing an enforcement action, the attorney general's office must notify in writing the person alleged to have violated the act. Standards are set for the notice. A violator has 30 days to cure the violation in accordance with the standards in the act. If a person violates the act and does not cure the violation, the attorney general's office may bring a civil action to seek: A civil penalty of up to $10,000 for each violation; or An injunction or equitable relief that prevents a further violation. If the attorney general's office prevails in the action, a court may issue an order requiring the violator to pay reasonable attorney fees and costs incurred in bringing the action. APPROVED by Governor May 1, 2024 EFFECTIVE August 7, 2024(Note: This summary applies to this bill as enacted.)

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