Firearms Merchant Category Code

Section § 110000

Explanation

This section defines key terms related to firearms and commerce in California. It specifies the meaning of terms like "ammunition" and "firearm" by referencing other sections of the Penal Code. It also defines what counts as a "firearm accessory," which includes items that enhance a firearm's capabilities. A "firearms merchant" is defined as a business where selling firearms, accessories, or ammunition is the primary source of sales. A "merchant acquirer" is a company that handles credit and debit transactions for merchants, and a "payment card network" refers to an entity that routes such transactions between banks.

For purposes of this division, the following definitions apply:
(a)CA Financial Code § 110000(a) “Ammunition” has the same meaning as provided in subdivision (b) of Section 16150 of the Penal Code.
(b)CA Financial Code § 110000(b) “Firearm” has the same meaning as provided in subdivisions (a) and (b) of Section 16520 of the Penal Code.
(c)CA Financial Code § 110000(c) “Firearm accessory” means an attachment or device designed or adapted to be inserted into, affixed onto, or used in conjunction with a firearm that is designed, intended, or functions to alter or enhance the firing capabilities of a firearm, the lethality of the firearm, or a shooter’s ability to hold and use a firearm.
(d)CA Financial Code § 110000(d) “Firearms merchant” means a business licensed in California as a firearms dealer or ammunition vendor for which the highest sales value is, or is expected to be, from the combined sale in California of firearms, firearm accessories, or ammunition, as stated by the business to its merchant acquirer in the ordinary course of business.
(e)CA Financial Code § 110000(e) “Merchant acquirer” means an entity that establishes a relationship with a merchant for the purposes of processing credit, debit, or prepaid transactions.
(f)CA Financial Code § 110000(f) “Payment card network” means an entity that provides services that route transactions between bank participants to conduct debit, credit, or prepaid transactions for the purpose of authorization, clearance, or settlement.
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Section § 110001

Explanation

By July 1, 2024, payment card networks must make a specific code available for businesses that sell firearms and ammunition. This code was created by the International Organization for Standardization. Starting May 1, 2025, these businesses must be assigned this code by the companies that handle their payment services. Additionally, any attempt to bypass this requirement is against public policy and won’t be legally valid.

(a)CA Financial Code § 110001(a) By July 1, 2024, a payment card network shall make the merchant category code for firearms and ammunition businesses established by the International Organization for Standardization on September 9, 2022, available for merchant acquirers that provide payment services for firearms merchants.
(b)CA Financial Code § 110001(b) Beginning May 1, 2025, a merchant acquirer shall assign to a firearms merchant the merchant category code for firearms and ammunition businesses established by the International Organization for Standardization on September 9, 2022.
(c)CA Financial Code § 110001(c) A waiver of a provision of this division is contrary to public policy and is void and unenforceable.
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Section § 110002

Explanation

This law explains that the Attorney General is the only one who can enforce these rules. If they believe someone is breaking the law, they must give them a 30-day warning before taking action. This notice should detail exactly what's wrong. If the person fixes the issues and promises to prevent future ones within those 30 days, the Attorney General won't sue them.

If they fail to fix the problems, then the Attorney General can take them to court, where a judge can impose a fine of $10,000 per violation, order them to stop breaking the law, and require them to pay legal fees.

(a)CA Financial Code § 110002(a) The Attorney General has exclusive authority to enforce this division.
(b)CA Financial Code § 110002(b) Not later than the 30th day before bringing an action under subdivision (e), the Attorney General shall give written notice to the person or entity identifying the specific provisions of this chapter that are or were being violated.
(c)CA Financial Code § 110002(c) The Attorney General shall not bring an action under subdivision (e) if the person or entity who receives the notice described in subdivision (b) does both of the following:
(1)CA Financial Code § 110002(c)(1) Cures the identified violation within 30 days of receiving the notice.
(2)CA Financial Code § 110002(c)(2) Provides the Attorney General a written statement confirming that the person or entity has done all of the following:
(A)CA Financial Code § 110002(c)(2)(A) Cured the violation.
(B)CA Financial Code § 110002(c)(2)(B) Provided supporting documentation to show how the violation was cured.
(C)CA Financial Code § 110002(c)(2)(C) Made changes to internal policies to prevent the recurrence of violations in the future.
(d)CA Financial Code § 110002(d) A person or entity who violates this division and fails to cure the violation in accordance with subdivision (c) shall be liable as provided in subdivision (e).
(e)Copy CA Financial Code § 110002(e)
(1)Copy CA Financial Code § 110002(e)(1) The Attorney General may bring a civil action to enforce this division and remedy harm caused by a violation of this division.
(2)CA Financial Code § 110002(e)(2) If a court determines that a person or entity has violated this division, the court shall award all of the following relief:
(A)CA Financial Code § 110002(e)(2)(A) A civil penalty in the amount of ten thousand dollars ($10,000) for each violation.
(B)CA Financial Code § 110002(e)(2)(B) Injunctive relief sufficient to prevent the person or entity from further violations of this division.
(C)CA Financial Code § 110002(e)(2)(C) Reasonable attorney’s fees and costs incurred in investigating and bringing an action under this division.
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