A federal appeals court on Wednesday upheld most of the sweeping gun restrictions enacted in New Jersey since a 2022 Supreme Court decision prompted the state to ban firearms in most public spaces.

The Third Circuit Court of Appeals ruled in a 2-1 decision that New Jersey can prohibit guns in parks, libraries, entertainment venues, healthcare facilities and locations serving alcohol under its “sensitive places” doctrine, but found the state’s $300,000 insurance mandate and portions of its permit fees unconstitutional.

The decision affects Chapter 131, New Jersey’s 2022 response to the Supreme Court’s ruling in New York State Rifle & Pistol Association v. Bruen, which struck down “may issue” concealed carry laws, which gave officials discretion to deny permits. New Jersey had previously required applicants to show “justifiable need“—a specific reason beyond general self-defense—to carry guns publicly, but replaced that standard after Bruen with new restrictions on where permitted gun owners can carry their firearms.

Wednesday’s decision came in response to consolidated challenges from several gun rights organizations and individual permit holders who argued Chapter 131 violated their rights under Second Amendment of the US Constitution, which stipulates, “the right of the people to keep and bear Arms… shall not be infringed.” The state defended the law as consistent with America’s historical tradition of firearms regulation.

In the ruling, the Third Circuit allowed bans on carrying firearms in public parks, beaches, zoos, libraries, museums, entertainment facilities, casinos, healthcare facilities, and any location serving alcohol. It also upheld requirements that applicants obtain endorsements from four “reputable persons.”

However, the court struck down the state’s requirement that gun owners carry $300,000 in liability insurance, calling it inconsistent with historical firearms regulation traditions. The panel also invalidated a $50 portion of permit fees designated for the state’s Victims of Crime Compensation Office and restrictions on carrying firearms in private vehicles.

The ruling creates a circuit split on sensitive places doctrine, with the Third Circuit taking a more expansive view than other appeals courts. The Second Circuit has upheld most of New York’s sensitive places restrictions, while the Ninth Circuit blocked some California and Hawaii provisions including bans in hospitals, banks, and public transit. The Fourth Circuit is currently considering a challenge to Maryland’s broad sensitive places law.

Given the judicial divide, the case may be appealed to the Supreme Court, which has increasingly scrutinized state attempts to limit gun rights in recent years. The legal battles reflect broader tensions in US society over constitutionally protected gun rights and public safety concerns, heightened by frequent mass shootings in schools, workplaces, places of worship and other public spaces.