An Act concerning merchant category codes for purchases of firearms and ammunition and supplementing Title 2C of the New Jersey Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. (1) By July 1, 2026, 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.

(2) Beginning May 1, 2027, 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.

b. The Office of the Attorney General shall have sole and exclusive authority to enforce a violation of this act. Nothing in this act shall be construed as providing the basis for, or subject to, a private right of action for violations of this act or under any other law.

(1) A person that violates the provisions of this act and fails to cure the violation in accordance with paragraph (3) of this subsection shall be liable to the penalties enumerated in this paragraph. The Attorney General may bring a civil action to enforce the provisions of this section and remedy harm caused by a violation.

If a court determines that a person has violated the provisions of this act, the court shall award the following relief:

(a) civil penalty in the amount of $10,000 for each violation;

(b) injunctive relief sufficient to prevent the person from further violations; and

(2) At least 30 days before bringing an action against a person pursuant to paragraph (1) of this subsection, the Attorney General shall give written notice to the person identifying the specific provisions of this act that are or were being violated.

(3) The Attorney General shall not bring an action under paragraph (1) of this subsection if the person that receives the notice described in paragraph (2) of this subsection:

(a) cures the identified violation within 30 days of receiving the notice; and

(b) provides the Attorney General a written statement confirming that the person has:

(i) cured the violation;

(ii) provided supporting documentation to show how the violation was cured; and

(iii) made changes to internal policies to prevent the recurrence of violations in the future.

c. As used in this section:

"Ammunition" means the same as that term is defined in section 1 of P.L.2007, c.318 (C.2C:58-3.3).

"Firearm" means the same as that term is defined in N.J.S.2C:39-1.

"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 a firearm, or a shooter's ability to hold and use a firearm.

"Firearms merchant" means a business licensed in this State as a retail firearms dealer for which the highest sales value is, or is expected to be, from the combined sale in this State of firearms, firearm accessories, or ammunition, as stated by the business to its merchant acquirer in the ordinary course of business.

"Merchant acquirer" means an entity that establishes a relationship with a merchant for the purposes of processing credit, debit, or prepaid transactions.

"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.

"Person" means a firearms merchant, merchant acquirer, or payment card network.

2. This act shall take effect immediately.

STATEMENT

This bill requires payment card networks to make available for merchant acquirers that provide payment services for firearms merchants, and requires merchant acquirers to use, the merchant category code for firearms and ammunition businesses established by the International Organization for Standardization.

Pursuant to the bill, "firearms merchant" means a business licensed in New Jersey as a retail firearms dealer for which the highest sales value is, or is expected to be, from the combined sale in New Jersey of firearms, firearm accessories, or ammunition, as stated by the business to its merchant acquirer in the ordinary course of business. The term "merchant acquirer" is defined to mean an entity that establishes a relationship with a merchant for the purposes of processing credit, debit, or prepaid transactions.

The bill authorizes the Attorney General to bring a civil action to enforce the provisions of the bill against any person that violates the provisions of the bill and who does not cure the violation. A person determined by a court to have violated the provisions of the bill is subject to:

(a) civil penalty in the amount of $10,000 for each violation;

(b) injunctive relief sufficient to prevent the person from further violations; and