OK
Oklahoma House Bill HB3667

Oklahoma 2022 Regular Session

Oklahoma House Bill HB3667 Compare Versions

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2828 STATE OF OKLAHOMA
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3030 2nd Session of the 58th Legislature (2022 )
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3232 HOUSE BILL 3667 By: Munson
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3838 AS INTRODUCED
3939
4040 An Act relating to the Consumer Credit Code ; amending
4141 14A O.S. 2021, Section 2 -417, which relates to
4242 surcharges; allowing surcharges in certain
4343 transactions; limiting surcharge amount; requiring
4444 certain disclosures; limiting application of
4545 surcharge in single transaction ; prohibiting
4646 surcharges in certain transactions; creating
4747 liability for violation ; allowing surcharges under
4848 certain agreements; defining terms; exempting certain
4949 entities from limitations; amending 14A O.S. 2021,
5050 Section 2-211, which relates to discounts; deleting
5151 surcharge limitation; deleting electronic funds
5252 transmission service exception; deleting definition;
5353 deleting certain exception; defining terms;
5454 prohibiting electronic payment fees; providing for
5555 codification; and providing an effective date .
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6262 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
6363 SECTION 1. AMENDATORY 14 A O.S. 2021, Section 2-417, is
6464 amended to read as follows:
6565 Section 2-417. A. No In accordance with this section, a seller
6666 or lessor in any sales or lease transaction may impose a surcharge
6767 on a cardholder buyer or lessee who elects to use a credit card or
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9494 debit charge card in lieu of payment by cash, check or similar
9595 means.
9696 B. A seller or lessor may impose a surcharge that is the lesser
9797 of either:
9898 1. An amount not to exceed two percent (2%) of the total cost
9999 to the buyer or lessee for the sales or lease transa ction. A seller
100100 or lessor that imposes a surcharge on credit cards or charge cards
101101 shall post signage at the seller 's or lessor's premises in a manner
102102 that is visible to customers or, for a sales or lease transaction
103103 made online, display before an online customer's completion of the
104104 sales or lease transaction in a manner that is visible to the online
105105 customer, the following language:
106106 "TO COVER THE COST OF PROCESSING A CREDIT OR CHARGE CARD
107107 TRANSACTION, AND PURSUANT TO SECTION 2 -417 OF TITLE 14A OF THE
108108 OKLAHOMA STATUTES, A SELLER OR LESSOR MAY IMPOSE A PROCESSING
109109 SURCHARGE IN AN AMOUNT NOT TO EX CEED TWO PERCENT (2%) OF THE TOTAL
110110 PAYMENT MADE FOR GOODS OR SERVICES PURCHASED OR LEASED BY USE OF A
111111 CREDIT OR CHARGE CARD. A SELLER OR LESSOR MAY NOT IMPOSE A
112112 PROCESSING SURCHARGE ON PAYMENTS MADE BY USE OF CASH, CHECK, OR
113113 DEBIT CARD OR REDEMPTION OF A GIFT CARD."; or
114114 2. An amount not to exceed the merchant discount fee that the
115115 seller or lessor incurs in processing the sales or lease
116116 transaction. The seller or lessor or the seller's or lessor's
117117 processor or service provider shall calculate the surchar ge at an
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144144 amount not to exceed the actual amount paid to the processor or
145145 service provider to process the transaction. A seller or lessor
146146 shall post signage at the se ller's or lessor's premises in a manner
147147 that is visible to customers or, for a sales or le ase transaction
148148 made online, display before an online customer 's completion of the
149149 sales or lease transaction in a manner that is visible to the online
150150 customer, the following language:
151151 "TO COVER THE COST OF PROCESSING A CREDIT OR CHARGE CARD
152152 TRANSACTION, AND PURSUANT TO SECTION 2 -417 OF TITLE 14A OF THE
153153 OKLAHOMA STATUTES, A SELLER OR LESSOR MAY IMPOSE A PROCESSING
154154 SURCHARGE IN AN AMOUNT NOT TO EXCEED THE MERCHANT DIS COUNT FEE THAT
155155 THE SELLER OR LESSOR INCURS IN PROCESSING THE SALES OR LEASE
156156 TRANSACTION. A SELLER OR LESSOR MAY NOT IMPOSE A PROCESSING
157157 SURCHARGE ON PAYMENTS MADE BY USE OF CASH, CHECK, OR DEBIT CARD OR
158158 REDEMPTION OF A GIFT CARD. "
159159 The processor or service provider may provide the seller or
160160 lessor with the means to make the disclosure required by this
161161 paragraph.
162162 C. For any goods or services purchased or leased through
163163 payment by credit card or charge card, the seller, lessor,
164164 processor, or service provider shall provide as a separate line item
165165 on the customer's receipt the surcharge amount impo sed.
166166 D. A seller or lessor may impose only a single credit card or
167167 charge card surcharge per sales or lease transaction.
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194194 E. A seller or lessor shall not impose a su rcharge if a
195195 customer elects to pay for goods or services by:
196196 1. Using cash or check;
197197 2. Using a debit card, whether or not a personal identification
198198 number is used;
199199 3. Processing a payment as a debit payment; or
200200 4. Redeeming a gift card.
201201 F. A seller or lessor who violates this section violates the
202202 Consumer Credit Code and is subject to li ability under the Code.
203203 G. A seller or lessor may impose a surcharge under this section
204204 regardless of any contract or agreement that the seller or lessor
205205 enters into on or after the effective date of this act.
206206 H. As used in this section , "debit:
207207 1. "Debit card" means any instrument or device, whether known
208208 as a debit card or by any other name, issued with or without fee by
209209 an issuer for the use of the cardholder in depositing, obtaining or
210210 transferring funds from a consumer banking electronic facility ;
211211 2. "Charge card" includes cards on which unpaid balances are
212212 payable on demand;
213213 3. "Merchant discount fee " means the actual fee, expressed as a
214214 percentage or fixed a mount of the total transaction amount, that a
215215 seller or lessor pays its processor or servi ce provider to process
216216 the transaction; and
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243243 4. "Surcharge" means any additional amount imposed at the time
244244 of the sales or lease transaction by the seller or lessor that
245245 increases the charge to the buyer or lessee for the privilege of
246246 using a credit or ch arge card.
247247 C. For purposes of this section, I. The limitations provided
248248 for in this section shall not apply to a private educational
249249 institution as defined in parag raph (e) of Section 3102 of Title 70
250250 of the Oklahoma Statutes, a private school defined as a nonpublic
251251 entity conducting an educational program for at least one grade
252252 between prekindergarten through twelve, a municipality as defined in
253253 paragraph 5 of Secti on 1-102 of Title 11 of the Oklahoma Statutes or
254254 a public trust with a municipality as its beneficiary. Such
255255 entities may charge a service fee. The service fee may be applied
256256 to online or in-person transactions and shall be used to offset bank
257257 processing fees, financial transaction fees, the cost of providing
258258 for secure transaction, portal fe es, and fees necessary to
259259 compensate for increased bandwidth incurred as a result of providing
260260 the transaction.
261261 SECTION 2. AMENDATORY 14 A O.S. 2021, Section 2-211, is
262262 amended to read as follows:
263263 Section 2-211. A. With respect to all sales transactions, a
264264 discount which a seller offers, allows or otherwise makes available
265265 for the purpose of inducing payment by cash, check or similar means
266266 rather than by use of an open -end credit card account shall not
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293293 constitute a credit service c harge as determined under Section 2 -109
294294 of this title if the discount is offered to all prospective buyers
295295 clearly and conspicuously in accordance with regulations of the
296296 Administrator of Consumer Affairs Credit. No seller in any sales
297297 transaction may impose a surcharge on a cardholder who elects an
298298 open-end credit card or debit card account instead of paying by
299299 cash, check or similar means. There is no limit on the discount
300300 which may be offered by the seller. A seller who provides a
301301 discount otherwise t han in accordance with the regulations of the
302302 Administrator must make the disclosures required by those
303303 regulations.
304304 B. A seller who is registered with the United St ates Treasury
305305 Department as a money transmitter pursuant to 31 CFR, Section
306306 103.41, and who provides an electronic funds transmission service,
307307 including service by telephone and the Internet, may charge a
308308 different price for a funds transmission service ba sed on the mode
309309 of transmission used in the transaction without violating this
310310 section so long as the price charged for a service paid for with an
311311 open-end credit card or debit card account is not greater than the
312312 price charged for such service if paid for with currency or other
313313 similar means accepted within the same mode of transmission.
314314 C. Any seller subject to the provisions of subsection B of this
315315 section shall either conduct business at a location in this state or
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342342 comply with the provisions of Section 1022 of Title 18 of the
343343 Oklahoma Statutes.
344344 D. As used in this section, "debit card" means any instrument
345345 or device, whether known as a debit card or by any other name,
346346 issued with or without fee by an issuer for the use of the
347347 cardholder in depositing, o btaining or transferring funds from a
348348 consumer banking electronic facility .
349349 E. For purposes of this section, a private educational
350350 institution as defined in paragraph (e) of Section 3102 of Title 70
351351 of the Oklahoma Statutes, a private school defined as a nonpublic
352352 entity conducting an educational program for at least one grade
353353 between prekindergarten through twelve, a municipality as defined in
354354 paragraph 5 of Section 1 -102 of Title 11 of the Oklahoma Statutes or
355355 a public trust with a municipality as its be neficiary may charge a
356356 service fee. The service fee shall be limited to bank processing
357357 fees and financial transaction fees, the cost of providing for
358358 secure transaction, portal fees, and fees necessary to compensate
359359 for increased bandwidth incurred as a result of providing for an
360360 online transaction.
361361 SECTION 3. NEW LAW A new section of law to be codified
362362 in the Oklahoma Statutes as Section 2-418 of Title 14A, unless there
363363 is created a duplication in numbering, reads as follows:
364364 A. As used in this section:
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391391 1. "Electronic payment fee " means any additional amount, in
392392 excess of a surcharge authorized pursuant to Section 2 -417 of this
393393 title and taxes, imposed at the time of the sales or lease
394394 electronic transaction by the seller or less or that increases the
395395 charge to the buyer or lessee;
396396 2. "Electronic transaction " means a transaction which is
397397 initiated and processed using electronic means. "Electronic
398398 transaction" does not include paper -based transactions such as paper
399399 checks or cash; and
400400 3. "Ordinary and necessary expenses " include, but are not
401401 limited to, rent payments, mortgage payments, utility payments,
402402 maintenance expenses, food expenses, clothing expenses, life, health
403403 and accident insurance, taxes, installment payments, medica l
404404 expenses, support expenses when the individual is legally
405405 responsible, higher education tuition, and expenses for state
406406 government issued documents and licenses.
407407 B. Unless specifically authorized by law, no seller or lessor
408408 shall impose an electronic pa yment fee on a buyer or lessee in any
409409 sales or lease electronic transaction for ordinary and necessary
410410 expenses.
411411 SECTION 4. This act shall become effective November 1, 2022.
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413413 58-2-10252 AQH 01/19/22