[Congressional Record Volume 172, Number 114 (Tuesday, July 14, 2026)]
[House]
[Pages H4441-H4445]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              {time}  1520
                  PROTECTING PRIVACY IN PURCHASES ACT

  Mr. HILL of Arkansas. Mr. Speaker, pursuant to House Resolution 1423, 
I call up the bill (H.R. 1181) to prohibit payment card networks and 
covered entities from requiring the use of or assigning merchant 
category codes that distinguish a firearms retailer from general-
merchandise retailer or sporting-goods retailer, and for other 
purposes, and ask for its immediate consideration in the House.
  The Clerk read the title of the bill.
  The SPEAKER pro tempore. Pursuant to House Resolution 1423, the 
amendment in the nature of a substitute recommended by the Committee on 
Financial Services printed in the bill is adopted, and the bill, as 
amended, is considered read.
  The text of the bill, as amended, is as follows:

                               H.R. 1181

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Protecting Privacy in 
     Purchases Act''.

     SEC. 2. DISTINGUISHING FIREARM RETAILERS PROHIBITED.

       (a) Prohibitions Relating to Merchant Category Codes.--
       (1) For payment card networks.--A payment card network may 
     not require--
       (A) a firearms retailer to use a merchant category code 
     that--
       (i) is used only or primarily for firearms retailers; or
       (ii) identifies such retailer as engaged in the business of 
     selling firearms, ammunition, accessories of firearms, or 
     components of firearms; or
       (B) a covered entity to assign a merchant category code 
     that is used only or primarily for firearms retailers or that 
     identifies a firearms retailer as engaged in the business of 
     selling firearms.
       (2) For covered entities.--A covered entity may not assign 
     to a firearms retailer any merchant category code that is 
     used only or primarily for firearms retailers or that 
     identifies such retailer as engaged in the business of 
     selling firearms, ammunition, accessories of firearms, or 
     components of firearms.
       (b) Enforcement.--
       (1) In general.--The Attorney General shall enforce this 
     section and shall, not later than 90 days after the date of 
     the enactment of this section, establish a process for 
     individuals, including firearms retailers, to submit 
     complaints relating to alleged violations of this section.

[[Page H4442]]

       (2) Investigation.--The Attorney General shall investigate 
     any complaint received through the processes established by 
     the Attorney General under paragraph (1).
       (3) Written notice.--If the Attorney General determines, 
     after conducting an investigation under paragraph (2), that a 
     payment card network or covered entity has violated this 
     section, the Attorney General shall send a written notice of 
     such violation to such payment card network or covered entity 
     that requires the payment card network or covered entity to 
     remedy the violation not later than 30 days after the date on 
     which the payment card network or covered entity receives 
     such notice.
       (4) Injunction.--
       (A) In general.--If a payment card network or covered 
     entity does not remedy a violation within 30 days of 
     receiving a written notice under paragraph (3), the Attorney 
     General may bring an action in Federal court to enjoin the 
     violating behavior.
       (B) No private right of action.--This Act does not create a 
     private right of action.
       (c) Preemption.--
       (1)  In general.--Any law of a State or local government 
     regulating the assignment, use, or disclosure of merchant 
     category codes that are used only or primarily for firearms 
     retailers or that identifies a retailer as engaged in the 
     business of selling firearms, ammunition, accessories of 
     firearms, or components of firearms is hereby preempted.
       (2) Limitation.--Notwithstanding paragraph (1), nothing in 
     this Act may be construed to prevent a payment card network 
     or a covered entity from complying with any Federal, State, 
     or local law or regulations related to dispute processing, 
     fraud, compliance management, or protecting transaction 
     integrity from concerns related to illegal or suspicious 
     activities, data breaches, or cyber risks.
       (d) Report.--The Attorney General shall, each year, submit 
     a report to the Congress that--
       (1) identifies the number of investigations undertaken by 
     the Attorney General under subsection (b);
       (2) includes a summary of such investigations and their 
     disposition; and
       (3) provides any available data and analysis that relates 
     to the effectiveness of this Act.
       (e) Definitions.--In this Act:
       (1) Ammunition.--The term ``ammunition'' has the meaning 
     given the term in section 921(a)(17)(A) of title 18, United 
     States Code.
       (2) Covered entity.--The term ``covered entity'' means any 
     entity that--
       (A) has on the date of the enactment of this section, or 
     establishes after the date of the enactment of this section, 
     a relationship with a merchant for the purposes of processing 
     credit, debit, or prepaid transactions; or
       (B) has on the date of the enactment of this section, or 
     establishes after the date of the enactment of this section, 
     a relationship with an entity that establishes a relationship 
     with a merchant for the purposes of processing credit 
     transactions, debit transactions, or prepaid transactions.
       (3) Firearm.--The term ``firearm'' means--
       (A) a ``firearm'' as such term is defined in section 
     921(a)(3) of title 18, United States Code;
       (B) a ``shotgun'' as such term is defined in section 
     921(a)(5) of title 18, United States Code;
       (C) a ``rifle'' as such term is defined in section 
     921(a)(7) of title 18, United States Code;
       (D) an ``antique firearm'' as such term is defined in 
     section 921(a)(16) of title 18, United States Code;
       (E) a ``semiautomatic rifle'' as such term is defined in 
     section 921(a)(29) of title 18, United States Code; and
       (F) a ``handgun'' as such term is defined in section 
     921(a)(30) of title 18, United States Code.
       (4) Firearms retailer.--The term ``firearms retailer'' 
     means a person, entity, or retail location physically located 
     in the United States that is engaged in the business of 
     selling or trading--
       (A) firearms;
       (B) ammunition;
       (C) accessories of firearms; or
       (D) components of firearms.
       (5) Merchant category code.--The term ``merchant category 
     code'' means a multi-digit code, issued by the International 
     Organization for Standardization, for the purposes of 
     enabling the classification of merchants into specific 
     categories based on the type of business, trade, or services 
     supplied.
       (6) Payment card network.--The term ``payment card 
     network'' means an entity that directly or through a network 
     participant, processor, or agent provides proprietary 
     services, infrastructure, software, or hardware used to 
     authorize, clear and settle credit, debit, or prepaid 
     transactions.

  The SPEAKER pro tempore. The bill, as amended, shall be debatable for 
1 hour equally divided and controlled by the chair and ranking minority 
member of the Committee on Financial Services or their respective 
designees.
  The gentleman from Arkansas (Mr. Hill) and the gentlewoman from 
California (Ms. Waters) each will control 30 minutes.
  The Chair recognizes the gentleman from Arkansas (Mr. Hill).


                             General Leave

  Mr. HILL of Arkansas. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days to revise and extend their remarks 
and include extraneous material on this measure.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Arkansas?
  There was no objection.
  Mr. HILL of Arkansas. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I rise today in support of Mr. Moore's Protecting 
Privacy in Purchases Act.
  Financial privacy is fundamental to consumer trust and confidence in 
our financial system. As technology continues to transform financial 
services, protecting Americans' financial privacy remains an essential 
part of Congress' oversight role.
  Merchant category codes were designed to help process transactions, 
not create mechanisms for tracking or categorizing lawful purchases. 
Maintaining trust in the payment system requires clear safeguards to 
ensure that these tools are used for commerce, not consumer 
surveillance.
  H.R. 1181 establishes those safeguards by preventing payment card 
networks and processors from using merchant category codes to target 
firearms retailers and their customers. The Protecting Privacy in 
Purchases Act provides important protections for consumers by 
preventing the misuse of payment systems to monitor lawful purchasing 
activity.
  Consumers should not have to sacrifice their financial privacy in 
order to participate in our modern economy. Protecting financial 
privacy helps reinforce confidence in the institutions and 
infrastructure that our payment systems operate around.
  Americans should be able to participate in the economy with 
confidence that their lawful transactions are simply being processed, 
not tracked or categorized or scrutinized beyond what is never 
necessary to essentially facilitate the payment. This bill helps 
preserve the integrity of that payment system by keeping it focused on 
facilitating commerce and efficient movement of funds.
  Importantly, this bill does not interfere with any existing law 
enforcement authorities, anti-money laundering requirements, fraud 
prevention efforts, or other obligations designed to protect consumers 
and safeguard our financial system.
  H.R. 1181 is a commonsense measure that simply safeguards financial 
privacy while maintaining the integrity of our Nation's payment 
network.
  I urge all my colleagues to support the legislation, and I reserve 
the balance of my time.
  Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I strongly oppose this bill because it limits efforts to 
detect and investigate gun violence and acts of terrorism.
  Before I discuss the bill, let's start with a few sobering 
statistics:
  46,000 Americans die from gun violence every year. That comes out to 
an average of more than 125 Americans losing their life each day due to 
gun violence.
  Of course, America is unusual in this regard. Americans are 26 times 
more likely to be shot and killed than if you lived in any other high-
income country.
  Nearly one in five Americans say they have personally witnessed 
someone shot.
  In the past decade, more than 1.2 million Americans have been shot, 
with more than 400,000 who died from gun violence. For many who survive 
a gunshot, they may still suffer a lifetime of devastating 
consequences.
  Most of these data points come from GIFFORDS, a gun violence 
prevention group set up by our former colleague in the House, Gabby 
Giffords. Of course, she herself was shot when she served as a 
Congresswoman, and she later set up the group following the Sandy Hook 
Elementary mass shooting when 20 children and 6 educators lost their 
lives.
  Now, a few States, including California, New York, and Colorado, have 
taken action to require payment card networks to use a merchant 
category code, or an MCC, to distinguish firearms retailers from other 
types of retailers.
  Many different types of retailers have unique MCC codes, including 
florists, barbershops, art dealers, automotive tire shops, and even 
candy stores. While these merchant codes don't reveal what individual 
goods are purchased, they can indicate an unusually large purchase at a 
type of business that might reveal a risk. This information could help 
law enforcement track suspicious purchases and prevent even more gun 
violence.

[[Page H4443]]

  Leading gun safety groups, including Brady, Community Justice, 
Everytown for Gun Safety, GIFFORDS, Guns Down America, and Newtown 
Action Alliance, sent the House a letter to urge Members to vote ``no'' 
on this harmful legislation.
  In the letter that was sent to me, they said: ``We write in strong 
opposition to H.R. 1181, the Protecting Privacy in Purchases Act. This 
bill would make it easier for mass shooters, gun traffickers, and even 
terrorists to abuse our financial systems to stockpile firearms and 
ammunition undetected.''
  They go on to note that between 2007 and 2018, credit cards were used 
to finance at least eight major mass shootings. One of these included 
the shooting at Pulse nightclub in Orlando, Florida, where 49 people 
were killed and nearly 60 more were injured a decade ago last month, in 
June 2016.''
  Now, listen to this: Just days before the shooter opened fire, his 
internet search history included the terms ``credit card unusual 
spending,'' ``FBI,'' and ``why banks stop your purchases.''
  He had opened six new credit card accounts in the 8 months prior, and 
12 days before the shooting, he spent more than $26,000 on things like 
a rifle, a semiautomatic pistol, several large magazines, and thousands 
of rounds of ammunition. Before this, his average monthly spending on 
his single card was $1,500.
  None of the credit card operators, payment processors, or banks were 
alerted to the types of transactions being undertaken, and they did not 
notify law enforcement officials about these purchases.
  We don't know for sure, but had these MCC codes been in place for gun 
shops back then, a financial institution would have been empowered to 
report these suspicious credit card purchases to law enforcement.

                              {time}  1530

  Americans are tired of the senseless gun violence and want Congress 
to do something to curb it.
  Unfortunately, this bill goes in the opposite direction and would 
implement a ban on such merchant reporting on the Federal level and 
would literally preempt existing State laws like those in California, 
New York, and Colorado.
  Mr. Speaker, I urge my colleagues to vote ``no'' on this bill, and I 
reserve the balance of my time.
  Mr. HILL of Arkansas. Mr. Speaker, I yield 5 minutes to the gentleman 
from West Virginia (Mr. Moore), who is the sponsor of this bill.
  Mr. MOORE of West Virginia. Mr. Speaker, I rise in support of my 
bill, H.R. 1181, the Protecting Privacy in Purchases Act. My bill 
preserves two fundamental rights: the right to privacy and the right to 
bear arms. Americans should not be forced to disclose to payment 
processors when they buy firearms.
  The bill preserves Americans' rights by prohibiting the creation of a 
separate merchant category code for firearms. This would, of course, 
become a de facto gun registry. The bill also preempts harmful State 
laws and gives the Attorney General authority to take any bank or 
payment processor that assigns or requires a separate code to Federal 
court.
  For too long, the American people have had their rights undermined by 
the radical left. The bill's premise is simple: no gun registries, 
period. In fact, this very body has twice prohibited these unjust 
registries, once in 1986 and again in 1993, to prohibit the left from 
destroying Americans' rights.
  However, the gun-grabbing left never stops trying. In 2021, the 
progressive Amalgamated Bank lobbied the International Organization for 
Standardization to create a separate merchant category code for firearm 
retailers to advance a backdoor gun registry. Previously, these 
retailers had always been accurately categorized as miscellaneous 
retail stores or sporting goods stores.
  Amalgamated Bank was hell-bent on tracking firearm purchases. It 
pressured a faceless, unaccountable, foreign standards body in Geneva 
to stand up a new merchant category code explicitly targeting American 
gun owners and American businesses. When I was State treasurer in West 
Virginia, we said ``no'' to the gun-grabbing progressive bank 
partnering with a European NGO destroying American rights.
  Under my leadership as State treasurer, West Virginia enacted one of 
the first bans on separate merchant category codes for firearms 
retailers, protecting the privacy of our State's gun owners. Nineteen 
States after that followed suit.
  However, a patchwork of State regulations is not enough. California, 
Colorado, and New York currently mandate that firearm stores have a 
separate merchant category code, creating a de facto registry in some 
of the most populous States in our country. This cannot be allowed to 
stand. We have already seen the Biden administration pressure financial 
institutions to hand over data on their customers. A private database 
of gun owners falling into the hands of a future anti-gun 
administration is a threat that we cannot accept.
  Our God-given right to own a firearm does not stop at the border of 
blue States.
  Mr. Speaker, I thank my colleagues, Representatives Barr and Hudson, 
for their work on this bill. I also thank Chairman Hill for getting it 
across the finish line. I also thank Representative Stefanik for her 
leadership on this issue.
  These are our God-given rights, spelled out in our Constitution, and 
we proudly exercise them. We will not allow an elitist bank partnered 
with a foreign, faceless bureaucracy to rob Americans of their right to 
protect themselves. In West Virginia, we don't ask permission to 
protect ourselves and our families, and no American should ever have to 
wonder whether buying a firearm will land them on a government watch 
list. Privacy and gun ownership go hand in hand.
  Mr. Speaker, I urge my colleagues to vote ``yes.''
  Ms. WATERS. Mr. Speaker, I yield 2 minutes to the gentleman from 
California (Mr. Thompson), who is a leader in this Congress against gun 
violence.
  Mr. THOMPSON of California. Mr. Speaker, I thank the gentlewoman for 
yielding.
  Mr. Speaker, I rise in opposition to H.R. 1181, a bill which makes it 
harder to catch criminals and makes our communities less safe.
  Today, under current law, financial institutions are required to 
report suspicious transactions to law enforcement. They do this every 
day, and that helps catch human traffickers. These alerts give law 
enforcement leads that uncover human trafficking rings and evidence 
that help put these bad guys away.
  The bill on the floor today blocks States from using this same 
process to flag suspicious firearms transactions to uncover gun 
trafficking rings.
  Many gun traffickers don't buy guns like responsible gun owners, and 
once guns are trafficked, we know bad things happen.
  Approximately 60 percent of trafficked guns are delivered to 
convicted felons. The felons who seek out and obtain trafficked 
firearms are the people who pose the greatest risk to everyone's 
safety.
  Mr. Speaker, gun violence is the leading cause of death for children, 
for teenagers, and for law enforcement in the line of duty. We should 
be working to break up gun trafficking rings which supply the guns that 
kill kids and cops.
  Mr. Speaker, I urge my colleagues to vote ``no'' on this bill.
  Mr. HILL of Arkansas. Mr. Speaker, I yield 4 minutes to the gentleman 
from Kentucky (Mr. Barr), who chairs the Subcommittee on Financial 
Institutions and Monetary Policy.
  Mr. BARR. Mr. Speaker, I rise today in support of H.R. 1181, the 
Protecting Privacy in Purchases Act. I thank my friend, the gentleman 
from Arkansas, the chairman of the Financial Services Committee, for 
his leadership on the bill and for yielding.
  I am proud to be a cosponsor of this legislation.
  I thank Congressman Riley Moore for his leadership on this important 
bill. I thank Congressman Richard Hudson for his longstanding work 
defending the constitutional rights of law-abiding citizens, and our 
colleague from New York, Elise Stefanik, for her original introduction 
of this bill in several previous Congresses.
  At its core, this bill is about protecting privacy and preventing 
government surveillance on citizens simply for exercising their 
constitutionally enshrined Second Amendment rights.

[[Page H4444]]

  H.R. 1181 prohibits payment card networks and financial institutions 
from requiring or assigning merchant category codes, or MCCs, that 
single out firearm retailers for separate tracking and monitoring.
  Unfortunately, we have seen repeated examples of progressive 
regulators and government officials pressuring financial institutions 
to target lawful industries and lawful customers.
  From Operation Choke Point under the Obama administration and Choke 
Point 2.0 under Biden to New York financial regulators pressuring 
insurance companies to abandon longstanding relationships with the NRA, 
Americans have legitimate reasons to be concerned about the 
weaponization of the financial system.
  Despite what those on the other side of the aisle may say, this bill 
does nothing to prevent law enforcement or regulators from 
investigating criminal activity, nor does it change the stringent 
requirements on financial institutions to comply with existing anti-
money laundering laws or suspicious activity reporting requirements.
  However, what my friend from California who just spoke doesn't say, 
but it needs to be said, is that the lawful purchase of a firearm 
protected by the Second Amendment is not in and of itself suspicious 
activity, nor should it be surveilled by the government.
  What it does is prevent the creation of a framework that could be 
used to monitor, flag, and discourage lawful purchases from federally 
licensed firearm retailers.
  This is about preventing government actors from using financial data 
to target Americans who are engaged in conduct expressly protected by 
the Second Amendment's right to keep and bear arms, a fundamental 
liberty for Americans.
  Americans should not have to worry that lawful purchases that they 
made will be used to create lists, databases, or surveillance tools 
aimed at this constitutionally protected activity.

                              {time}  1540

  My friend, the ranking member from California, cited statistics about 
annual and daily deaths that she says are the result of gun violence. 
Respectfully, the right to bear arms is not the cause of violence. One 
murder is too many in America, period. We all agree on that.
  Rather than blaming gun violence, Congress would be more productive 
focusing on the root causes of homicide: the breakdown of the family, 
lack of active parenting, mental illness, open-border policies, 
policies to defund the police, soft-on-crime policies like no cash 
bail, and politically motivated violence, like the kind that was behind 
the murder of Charlie Kirk. Addressing these societal problems does not 
require unconstitutional surveillance of Americans.
  H.R. 1181 establishes commonsense guardrails to prevent regulatory 
abuse and safeguards constitutional freedoms.
  Mr. Speaker, I urge my colleagues to support this legislation.
  Ms. WATERS. Mr. Speaker, I yield 2 minutes to the gentleman from 
Florida (Mr. Frost) who has been active on this issue of gun violence.
  Mr. FROST. Mr. Speaker, I strongly oppose the Protecting Privacy in 
Purchases Act.
  Sponsors claim this bill prevents the privacy of gun owners, but in 
reality, it protects mass shooters, terrorists, gun traffickers, and 
the profits of the firearms industry.
  Financial institutions have already been using merchant codes to 
detect crimes like money laundering and human trafficking. They should 
be allowed to use that same responsible monitoring to help prevent gun 
violence.
  I know personally why this matters. The Pulse nightclub shooter 
opened up six new credit cards in 8 months. He racked up more than 
$26,000 in credit card charges on guns and ammunition in the days 
before his killing spree in the middle of my district in my home of 
Orlando, Florida.
  Our system failed to turn those warning signs into an alert for 
police. He murdered 49 angels in my community and wounded another 49.
  Instead of helping to prevent the next tragedy, this bill makes it 
easier for those warning signs to be missed yet again. It strips law 
enforcement of an essential tool to stop violence before it happens, 
making every community in our Nation less safe.
  For this reason, at the appropriate time, I will offer a motion to 
recommit this bill back to committee. If the House rules permitted, I 
would have offered an important amendment to make clear that nothing in 
this bill should prevent law enforcement from using merchant category 
codes to assist in investigating and preventing acts of terrorism.
  Mr. Speaker, I ask unanimous consent to insert the text of this 
amendment into the Record immediately prior to the vote on the motion 
to recommit.
  The SPEAKER pro tempore (Mr. DesJarlais). Is there objection to the 
request of the gentleman from Florida?
  There was no objection.
  Mr. FROST. Mr. Speaker, I hope my colleagues will join me in voting 
for the motion to recommit.
  Mr. HILL of Arkansas. Mr. Speaker, I yield 2 minutes to the gentleman 
from Ohio (Mr. Jordan), the distinguished chair of the House Judiciary 
Committee.
  Mr. JORDAN. Mr. Speaker, I thank the gentleman for yielding me time.
  Mr. Speaker, you don't give up your Fourth Amendment rights when you 
are exercising your Second Amendment rights. That is what is happening 
out there: People's privacy is being invaded. These merchant codes are 
there so the government can abuse them and track you.
  If you don't think I am right about this, we have the evidence: 
January 15, 2021, an email from the FBI to Bank of America saying give 
us every debit card and credit card purchase for anyone in Washington, 
D.C., for these particular dates. That is bad enough. You are allowed 
to travel in this country, too. That is a right we have. Here is what 
they also say: Also, overlay that with any historic purchase for 
weapons or weapons-related purchases.
  What? We want to know what you bought when you were at a certain 
location, and we want to know if you ever purchased a gun anytime in 
your life with that credit card or debit card. That is what the FBI 
asked Bank of America to do.
  That is how dangerous this practice is. That is why the sponsor from 
West Virginia, the chairman, and the committee's work is so good. God 
bless them.
  You don't give up your Fourth Amendment rights. Our Constitution 
protects our First, Second, and Fourth Amendment liberties--all of 
them. They are all important. That is why this legislation is critical.
  Mr. Speaker, I thank the chairman for his good work and Mr. Moore 
from West Virginia for sponsoring the bill.
  Ms. WATERS. Mr. Speaker, I now yield 1 minute to the gentleman from 
Texas (Mr. Green), the ranking member of the Oversight and 
Investigations Subcommittee, who has always been an advocate against 
gun violence.
  Mr. GREEN of Texas. Mr. Speaker, I thank those who had the foresight 
to declare that all persons are created equal and endowed by their 
creator with certain unalienable rights, among them: life, liberty, and 
the pursuit of happiness.
  You are not giving up your constitutional rights when you are doing 
what you can to protect life. I have been to the funerals. I have seen 
the people who have lost their loved ones to gun violence. At some 
point we have to do more than contend that privacy trumps the right to 
life. The person's right to life trumps privacy, especially when no 
court has said that this is unconstitutional.
  Mr. Speaker, that is pure speculation on behalf of some people. I 
believe that the right to life trumps this right to privacy that they 
are contending.
  Mr. HILL of Arkansas. Mr. Speaker, I yield 2 minutes to the gentleman 
from New Jersey (Mr. Van Drew).
  Mr. VAN DREW. Mr. Speaker, I rise in strong support of this bill.
  This is not about crime. It is about control. Once you can flag a 
purchase, any purchase, you can flag a person. Once you can flag a 
person, you can control what they buy, what banks they use, and even 
what they believe. It is wrong. It is un-American.

  This bill is not just about guns. It is about the precedent that was 
set. If we allow financial institutions to become the surveillance arm 
of one party's political agenda today, there will be no limit to what 
gets flagged tomorrow.

[[Page H4445]]

  Let me be clear: Buying a firearm is not extremism; buying a Bible is 
not extremism; reading the news you choose and want to read is not 
extremism; exercising a constitutional right is not extremism.
  The extreme position is using America's banks to build a permanent 
list to track who people worship, what they read, and what 
constitutional rights they happen to choose to exercise.
  Mr. Speaker, I urge my colleagues to vote for privacy, freedom, and 
the Constitution of the United States of America.
  Ms. WATERS. Mr. Speaker, I yield one minute to the gentleman from 
Florida (Mr. Frost).
  Mr. FROST. Mr. Speaker, I think it is important to say because we 
hear over and over from our colleagues about the Constitution: If using 
merchant category codes violated the Fourth Amendment, where is your 
bill on amending this for every purchase at a pharmacy, liquor store, 
or casino?
  This is a standard accounting tool that is used by banks. This 
argument, unless you are going to follow it up with legislation to 
essentially make it illegal to track and have the same codes, which is 
just a four-digit number, for pharmacies, casinos, liquor, and other 
things as well, the argument falls flat. Law enforcement needs to go 
through a legal process to access the financial records here.
  Mr. Speaker, it is not a good argument. We are talking about 
something that doesn't track what you are buying. It doesn't track the 
guns you are buying. It won't tell them that, but it is just a general 
tool to help us stop some of the worst of the worst mass shootings.
  Mr. HILL of Arkansas. Mr. Speaker, I yield 2 minutes to the 
gentlewoman from Florida (Ms. Lee).
  Ms. LEE of Florida. Mr. Speaker, I rise today in support of H.R. 
1181, the Protecting Privacy in Purchases Act.
  The Second Amendment is a constitutional right. Americans should not 
have their lawful purchases singled out simply because they choose to 
exercise that right.
  This bill stops efforts to create a special system for identifying 
and organizing purchases made at firearm and ammunition retailers.

                              {time}  1550

  While its proponents present this as simply an administrative tool, 
in practice it raises serious concerns about privacy and the unjust 
treatment of lawful conduct.
  Americans are increasingly concerned about how much information is 
collected, stored, and shared. Those concerns are especially valid when 
it comes to information being tracked that relates to the exercise of a 
constitutional freedom. Here is the reality: Tracking the lawful 
purchase of firearms and ammunition creates a framework for collecting 
information about law-abiding citizens who have done nothing wrong.
  My home State of Florida already prohibits this type of surveillance. 
Floridians understand something that most Americans agree with: Your 
bank should process your transaction, not track your activities.
  This bill prevents payment networks and financial institutions from 
requiring special codes for firearms retailers, while preserving 
existing tools used to combat fraud, protect consumers, maintain 
cybersecurity, and report suspicious activity.
  At its core, this legislation is about privacy, fairness, and the 
principle that the exercise of constitutional rights should never 
become the basis for surveillance.
  I thank the chairman and the bill's sponsor for their work on this 
important issue. I urge my colleagues to support H.R. 1181.
  Mr. HILL of Arkansas. Mr. Speaker, I reserve the balance of my time.
  Ms. WATERS. Mr. Speaker, I yield myself the balance of my time.
  As I conclude, I will point out that when our committee held a 
hearing last year, none of the majority's witnesses said a single 
positive thing about this bill in their testimony. That is probably 
because there is nothing positive to say about this harmful bill.
  Now, using merchant category codes for firearm retailers won't solve 
this problem, not even close. The codes themselves don't identify what 
is purchased, but it might have triggered a flag for unusual and 
suspicious purchases that get reported to law enforcement. Mr. Speaker, 
that might save 1 life or 10 lives or 100 lives or 1,000 lives or 
10,000 lives. Even if it is a fraction of the 416,000 who have died 
from gun violence over the past decade, wouldn't it be worth it?
  Mr. Speaker, the audacity of the opposite side of the aisle to tell 
States they cannot use these merchant codes, any State in the United 
States of America, even those who started in some way using these 
codes, they are now saying they want a law that would preempt your 
State from being able to use the merchant codes.
  Mr. Speaker, I yield back the balance of my time.
  Mr. HILL of Arkansas. Mr. Speaker, I yield myself the balance of my 
time.
  I thank my colleagues on both sides of the aisle for this debate. I 
thank Mr. Moore for writing this bill, drafting it, persuading the 
support that he has. I urge all Members on both sides of the aisle to 
support this bill in the name of privacy in the United States.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. All time for debate has expired.
  Pursuant to House Resolution 1423, the previous question is ordered 
on the bill, as amended.
  The question is on the engrossment and third reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.


                           Motion to Recommit

  Mr. FROST. Mr. Speaker, I have a motion to recommit at the desk.
  The SPEAKER pro tempore. The Clerk will report the motion to 
recommit.
  The Clerk read as follows:
       Mr. Frost of FL moves to recommit the bill H.R. 1181 to the 
     Committee on Financial Services.

  The material previously referred to by Mr. Frost is as follows:

       Mr. Frost moves to recommit the bill H.R. 1181 to the 
     Committee on Financial Services with instructions to report 
     the same back to the House forthwith with the following 
     amendment:

       Add at the end the following:

     SEC. 3. TERRORISM EXCEPTION.

       Nothing in this Act shall prevent law enforcement from 
     using merchant category codes as part of an investigation 
     relating to an act of terrorism or suspected act of 
     terrorism, or to prevent an act of terrorism.

  The SPEAKER pro tempore. Pursuant to clause 2(b) of rule XIX, the 
previous question is ordered on the motion to recommit.
  The question is on the motion to recommit.
  The question was taken; and the Speaker pro tempore announced that 
the noes appeared to have it.
  Mr. FROST. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this question will be postponed.

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