Legislature(2025 - 2026)BELTZ 105 (TSBldg)
04/14/2025 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB136 | |
| SB83 | |
| SB156 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 136 | TELECONFERENCED | |
| += | SB 83 | TELECONFERENCED | |
| *+ | SB 156 | TELECONFERENCED | |
SB 136-FIREARM FINANCIAL PRIVACY
1:34:30 PM
CHAIR BJORKMAN announced the consideration of SENATE BILL NO.
136 "An Act relating to the privacy of firearm transactions;
relating to discrimination against firearm retailers by
financial institutions and payment networks; relating to the
disclosure of financial records by financial institutions and
payment networks; and amending Rules 65 and 82, Alaska Rules of
Civil Procedure."
1:34:49 PM
SENATOR MIKE CRONK, District R, Alaska State Legislature,
Juneau, Alaska, sponsor of SB 136, presented a summary. He
stated that over the past decade, some financial institutions
and states in the Lower 48 have used codes to track firearm
related transactions. He explained that sometimes this practice
has restricted or denied lawful purchases, which is seen as
discriminatory and a violation of Second Amendment rights. In
response, SB 136 aims to protect Alaskans' privacy and Second
Amendment rights by prohibiting financial institutions and
payment networks from discriminating against law-abiding
citizens and retailers engaged in legal firearm commerce.
1:36:18 PM
PAUL MENKE, Staff, Senator Mike Cronk, Alaska State Legislature,
Juneau, Alaska, provided the sectional analysis for SB 136:
Sectional Analysis for SB 136
"An Act relating to the privacy of firearm
transactions; relating to discrimination against
firearm retailers by financial institutions and
payment networks; relating to the disclosure of
financial records by financial institutions and
payment networks; and amending Rules 65 and 82, Alaska
Rules of Civil Procedure."
Section 1:
Amends AS 06.90 to add a new section, AS 06.90.20 that
would prevent financial institutions and payment
networks from discriminating against firearm retailers
or customers by:
-Declining lawful card transactions based on a
merchant's status as a firearm retailer,
-Limiting or declining to do business with a customer,
potential customer, or merchant for lawful firearm
transactions,
-Charging higher transaction or interchange fees for
lawful firearm transactions,
-Taking an action against customers or merchants with
the intention to impede engagement in lawful
transactions involving a firearm, firearm accessory or
component, or ammunition.
1:37:03 PM
MR. MENKE continued with the sectional analysis of SB 136:
Establishes statutory provisions that:
-Prevent the disclosure of financial records collected
in violation of AS 06.90.20,
-Give the attorney general the ability to investigate
alleged violations of AS 44.99.515, created in Section
2 of this bill and, upon finding a violation, obligate
the attorney general to provide written notice to the
violator,
-State that the attorney general may file an action to
enjoin continued violators of AS 44.99.515 after 30
days,
-Establish a maximum fine of $10,000 for knowingly
violating AS 44.99.515, and legally obligates the
court to award the attorney general or petitioner full
reasonable attorney fees and any other remedy the
court deems appropriate, if their action prevails.
Provides definitions in AS 06.90.020 for "ammunition,"
"department," "disclose," "financial institution,"
"financial record," "firearm code," "firearm
retailer," "knowingly," "payment card," and "payment
network."
Section 2:
Amends AS 44.99 by adding a new section, AS 44.99.515,
to prohibit a person, the state, or a political
subdivision of the state from knowingly keeping or
causing to be kept a list, record, or registry of
privately owned firearms or owners of privately owned
firearms.
1:38:40 PM
MR. MENKE continued with the sectional analysis of SB 136:
Section 3:
Amends the uncodified law of the State of Alaska by
adding two Indirect Court Rule Amendments that change
Rule 65 and Rule 82 of the Alaska Rules of Civil
Procedure.
Section 4:
Establishes a conditional effect for AS 06.90.020(g)
and AS 06.90.020(i), enacted in Section 1, requiring a
two-thirds vote of each body for sections 3(a) and
3(b).
1:39:37 PM
SENATOR GRAY-JACKSON asked whether eliminating gun registration
is wise, suggesting that both responsible owners, court systems
and law enforcement benefit from maintaining a registry to
support gun safety.
1:40:06 PM
SENATOR CRONK replied that Alaska and the U.S. does not have a
gun registry. He said he personally opposes a gun registry and
emphasized supporting the freedom to own firearms.
1:40:33 PM
MR. MENKE replied that currently, Federal Firearms License (FFL)
holders must keep records of all firearm sales for the duration
of their business. These records can be accessed via the
National Instant Criminal Background Check System (NICS) for
criminal investigations, except federal law prohibits using them
to create a nationwide gun registry.
1:41:23 PM
SENATOR GRAY-JACKSON stated she supports the right to bear arms
and also stated her belief in responsible gun ownership and gun
safety in Alaska.
1:41:45 PM
SENATOR DUNBAR asked Mr. Menke to specify which other states had
enacted similar bills, whether the laws faced constitutional
challenges, and when was one last upheld.
1:42:03 PM
MR. MENKE replied that seven statesFlorida, Idaho, Mississippi,
Montana, North Dakota, Tennessee, Texas, and West Virginia have
passed legislation like SB 136, while California and New York
have passed laws requiring firearm codes. The constitutional
question, including potential preemption, remains unresolved and
may ultimately be decided by a federal court or the Supreme
Court. He said similar disclosure regulations already exist in
Alaska, such as the Personal Information Protection Act, AS
45.48, and healthcare data laws, AS 18.23. Though these are not
identical issues, these laws do regulate the disclosure of
financial records.
1:43:17 PM
SENATOR DUNBAR referenced a 2023 case that emphasized
constitutional rights are generally protected against government
infringement, not private action. He asked whether private
financial institutions restricting firearm transactions could
still implicate Second Amendment rights. He drew comparisons to
whether a private company could deny services tied to other
constitutional rights, such as religion or marriage.
1:44:32 PM
MR. MENKE replied that under the Dormant Commerce Clause, Alaska
would need to meet strict scrutiny by showing a compelling
government interest narrowly tailored to the law. He posed the
question of whether protecting constitutional rights such as
the Second Amendment, privacy, or religious freedom qualifies
as such an interest.
1:45:16 PM
SENATOR DUNBAR agreed that private companies should not be able
to deny services that infringe on fundamental rights, comparing
it to civil rights cases. However, he noted the Supreme Court
ruled in 2023 that companies do have the right to discriminate
in such situations. He stated that in cases involving religion
and LGBT marriage, the Supreme Court has allowed private
companies to discriminate. He compared this to firearm
transactions, where private companies might restrict Second
Amendment rights, prompting government intervention to prohibit
such actions. He highlighted that in 2023 the Supreme Court
created an exemption of that law. He asked if recent cases show
limits on restricting private companies' actions and whether the
government has constitutional authority to prohibit such
conduct.
1:46:47 PM
MR. MENKE replied that the constitutionality of the issue
remains to be determined, with states passing laws on both
sides, leaving the final decision to the courts.
1:47:08 PM
SENATOR CRONK replied that financial institutions differ from
ordinary businesses, because they handle credit cards and share
sensitive information, making this situation distinct.
1:47:28 PM
SENATOR DUNBAR acknowledged the argument that financial
institutions are distinct and noted individuals still choose
banks and credit cards. He asked whether financial institutions
retain freedom of contract to decide how and with whom they
conduct business.
1:48:06 PM
MR. MENKE replied that financial institutions do have the right
to contract and choose business partners, though a court could
allow the state to override that if it demonstrates a compelling
interest.
1:48:39 PM
SENATOR DUNBAR agreed with the distinction noted by Senator
Cronk, yet he pointed out that the Supreme Court has ruled
differently in other constitutional contexts. He noted it would
be interesting to see how a court reconciles allowing
discrimination in some cases and not others.
1:49:08 PM
SENATOR YUNDT noted a distinction between small businesses,
which use their own funds, and other businesses like lending
institutions, which use federally insured, taxpayer-backed
money. He pointed out that while firearm purchases from FFL
dealers require paperwork and background checks, private sales
between individuals do not require paperwork.
1:50:26 PM
CHAIR BJORKMAN announced invited testimony on SB 136.
1:50:37 PM
AOIBHEANN CLINE, Regional Director, State and Local Legislative
Affairs, National Rifle Association (NRA), Anchorage, Alaska,
testified by invitation on SB 136 and stated that this bill
would ban private financial institutions in Alaska from using
firearm and ammunition specific Merchant Category Codes (MCCs),
which could enable financial surveillance and the creation of
private gun registries. SB 136 provides Alaskans with legal
recourse to protect their rights under both the state and U.S.
constitutions, since federal law already prohibits national
firearm registries yet doesn't give individuals remedies against
private institutions. She stated in 2022, the International
Organization for Standardization (ISO) created a firearm-
specific MCC at the request of Amalgamated Bank, despite initial
opposition from major processors like Visa. MCCs categorize
transactions that others could use to monitor firearm purchases.
Critics argue this initiative is driven by anti-gun groups and
could significantly impact gun owners.
1:54:00 PM
MS. CLINE stated that using firearm retailer financial data
through MCCs effectively amounts to surveillance and
registration of law-abiding gun owners, potentially sharing this
information with government authorities or private gun control
organizations. She said Federal law prohibits national firearm
registries, and this approach could circumvent those
restrictions while creating risks of political abuse and First
Amendment infringements. She raised concerns about how banks
would determine "dangerous" gun stockpiles, who decides
thresholds, and who receives the data. She said collecting such
sensitive information increases the risk of theft or leaks,
citing global and U.S. examples like New Zealand (2019) and
California (concealed carry data exposure). SB 136 aims to
protect firearm privacy, prevent misuse of data, and discourage
proliferation into black markets or unregulated private
transfers.
1:57:40 PM
SENATOR DUNBAR stated that initially he thought SB 136 addressed
cases in the Lower 48 where financial institutions denied
individuals the ability to purchase firearms with credit. He
asked whether she has specific examples to support this claim.
1:58:09 PM
MS. CLINE replied that such instances exist, citing a firearms
retailer in Idaho who was "debanked" by two smaller financial
institutions after MCC codes were required. She offered to
provide specific details and connect the committee with the
retailer.
1:59:00 PM
SENATOR DUNBAR asked for retailer information to be sent to the
committee to verify if these incidents occurred. He noted that
SB 136 seems more focused on preventing registry than addressing
actual discrimination in firearm purchases. He asked whether the
primary government interest relates to federal registry concerns
rather than purchase restrictions.
1:59:43 PM
MS. CLINE replied that she will provide the committee with legal
analysis from the NRA on SB 136, focusing on the MCC issue and
its secondary constitutional effects. She emphasized that
protecting the right to keep and bear arms is paramount, and any
legislation should be narrowly tailored to prevent infringement,
noting the particular importance of the Second Amendment to the
safety and lifestyle of Alaskans.
2:01:39 PM
SENATOR CRONK gave an example of being a survivor of the 2017
Las Vegas mass shooting and concluded that the core issue is not
guns it is people. He emphasized that in Alaska, guns are viewed
as tools, he affirmed his support for Second Amendment rights
and stressed the importance of protecting privacy.
2:02:39 PM
CHAIR BJORKMAN stated that the Division of Banking and
Securities did not anticipate a fiscal impact in the fiscal
note.
2:03:16 PM
CHAIR BJORKMAN held SB 136 in committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB136 ver A.pdf |
SL&C 4/14/2025 1:30:00 PM |
SB 136 |
| SB136 Sponsor Statement ver A.pdf |
SL&C 4/14/2025 1:30:00 PM |
SB 136 |
| SB136 Sectional Analysis ver A.pdf |
SL&C 4/14/2025 1:30:00 PM |
SB 136 |
| SB156 ver A.pdf |
SL&C 4/14/2025 1:30:00 PM |
SB 156 |
| SB156 Sponsor Statement ver A.pdf |
SL&C 4/14/2025 1:30:00 PM |
SB 156 |
| SB156 Sectional Analysis ver A.pdf |
SL&C 4/14/2025 1:30:00 PM |
SB 156 |
| SB156 Supporting Documents-Seafood Taskforce CFAB Recommendation.pdf |
SL&C 4/14/2025 1:30:00 PM |
SB 156 |
| SB156 Supporting Documents-Southwest Alaska Municipal Conference Resolution.pdf |
SL&C 4/14/2025 1:30:00 PM |
SB 156 |
| SB136 Fiscal Note-DCCED-DBS 04.11.25.pdf |
SL&C 4/14/2025 1:30:00 PM |
SB 136 |
| SB156 Fiscal Note-DCCED-DBS 04.11.25.pdf |
SL&C 4/14/2025 1:30:00 PM |
SB 156 |
| SB83 Public Testimony-Email-Sul Ross Thorward 04.09.25.pdf |
SL&C 4/14/2025 1:30:00 PM |
SB 83 |