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Oklahoma House Bill HB4351

Oklahoma 2022 Regular Session

Oklahoma House Bill HB4351 Compare Versions

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29-HOUSE OF REPRESENTATIVES - FLOOR VERSION
30-
3128 STATE OF OKLAHOMA
3229
3330 2nd Session of the 58th Legislature (2022 )
3431
35-COMMITTEE SUBSTITUTE
36-FOR
37-HOUSE BILL NO. 4351 By: Hill
32+HOUSE BILL 4351 By: Hill
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43-COMMITTEE SUBSTITUTE
38+AS INTRODUCED
4439
4540 An Act relating to the Uniform Consumer Credit Code ;
4641 defining terms; allowing surcharges in certain
4742 transactions; limiting surcharge amount; requiring
4843 certain disclosures; limiting application of
4944 surcharge in a single transaction; prohibiting
5045 surcharges in certain transactions; creating
51-liability for violation ; repealing 14A O.S. 2021,
52-Section 2-417, which prohibits surcharges; amending
53-14A O.S. 2021, Section 2 -211, which relates to
54-discounts; deleting surc harge prohibition; providing
55-for codification; and providing an effective date .
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46+liability for violation ; allowing surcharges under
47+certain agreements; repealing 14A O.S. 2021, Section
48+2-417, which prohibits surcharges; amending 14A O.S.
49+2021, Section 2-211, which relates to discounts;
50+deleting surcharge prohibition; providing for
51+codification; and providing an effective date .
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6156 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
6257 SECTION 1. NEW LAW A new section of law to be codified
6358 in the Oklahoma Statutes as Sect ion 2-418 of Title 14A, unless there
6459 is created a duplication in numbering, reads as follows:
6560 A. As used in this section:
6661 1. "Debit card" means any instrument or device, whether known
6762 as a debit card or by any other name, issued with or without fee by
63+an issuer for the use of the cardholder in depositing, obtaining , or
64+transferring funds from a consumer banking electronic facility;
6865
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95-an issuer for the use of the cardholder in depositing, obtaining , or
96-transferring funds from a consumer banking electronic facili ty;
9791 2. "Charge card" includes cards on which unpaid balances are
9892 payable on demand;
99-3. "Surcharge" means any additional amount imposed at the time
93+3. "Merchant discount fee " means the actual fee, expressed as a
94+percentage or fixed amount of the total transaction amount, that a
95+seller or lessor pays its processor or service provider to process
96+the transaction; and
97+4. "Surcharge" means any additional amount imposed at the time
10098 of the sales or lease transaction by the seller or lessor that
10199 increases the charge to the buyer or lessee for the privilege of
102100 using a credit or charge card.
103101 B. In accordance with this section, a seller or lessor in any
104102 sales or lease transaction may impose a surcharge on a buyer or
105103 lessee who elects to use a credit card or charge card in lieu of
106104 payment by cash, check , or similar means.
107-C. A seller or lessor doing business in Oklahoma may impose a
108-surcharge of an amount not to exceed two percent (2%) of the total
109-cost to the buyer or lessee for the sales or lease transaction.
110-Such seller or lessor that impo ses a surcharge on credit cards or
111-charge cards shall post signage at the seller 's or lessor's premises
112-in a manner that is visible to customers or, for a sales or lease
113-transaction made online, display before an online customer 's
114-completion of the sales o r lease transaction in a manner that is
115-visible to the online customer, the following language:
116-"TO COVER THE COST OF PROCESSING A CREDIT OR CHARGE CARD
117-TRANSACTION, AND PURSUANT TO S ECTION 2-418 OF TITLE 14A OF THE
118-OKLAHOMA STATUTES, A SELLER OR LESSOR MA Y IMPOSE A PROCESSING
105+C. A seller or lessor may impose a surcharge of either:
106+1. An amount not to exceed two percent (2%) of the total cost
107+to the buyer or lessee for the sales or lease transaction. A seller
108+or lessor that imposes a surcharge on credit cards or charge cards
109+shall post signage at t he seller's or lessor's premises in a manner
110+that is visible to customers or, for a sales or lease transaction
111+made online, display before an online customer 's completion of the
112+sales or lease transaction in a manner that is visible to the online
113+customer, the following language:
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140+"TO COVER THE COST OF PROCESSING A CREDIT OR CHARGE CARD
141+TRANSACTION, AND PURSUANT TO S ECTION 2-418 OF TITLE 14A OF THE
142+OKLAHOMA STATUTES, A SELLER OR LESSOR MAY IMPOSE A PROCESSING
146143 SURCHARGE IN AN AMOUNT NOT TO EXCEED TWO PERCENT (2%) OF THE TOTAL
147144 PAYMENT MADE FOR GOODS OR SERVICES PURCHASED OR LEASED BY USE OF A
148145 CREDIT OR CHARGE CARD. A SELLER OR LESSOR MAY NOT IMPOSE A
149146 PROCESSING SURCHARGE ON PAYMENTS MADE BY USE OF CASH, CHECK, OR
150-DEBIT CARD OR REDEMPTION OF A GIFT CARD. ";
151-The processor or service provider may provide the seller or
152-lessor with the means to make the disclosure required by this
153-subsection.
154-D. For any goods or services purchased or leased thro ugh
155-payment by credit card or charge card, the seller, l essor,
156-processor, or service provider shall provide the surcharge amount
157-imposed as a separate line item on the customer 's receipt.
158-E. A seller or lessor may impose only a single credit card or
159-charge card surcharge per sales or lease transaction.
160-F. A seller or lessor shall not impose a surcharge if a
161-customer elects to pay for goods or services by:
162-1. Using cash or check;
163-2. Using a debit card, whether or not a personal identification
164-number is used;
165-3. Processing a payment as a debit payment; or
166-4. Redeeming a gift card.
167-G. A seller or lessor who violates this section violates the
168-Uniform Consumer Credit Code and is subject to liability under the
169-Code.
147+DEBIT CARD OR REDEMPTION OF A GIFT CARD. "; or
148+2. An amount not to exceed the merchant discount fee that the
149+seller or lessor incurs in processing the sales or lease
150+transaction. The seller or lessor or the seller's or lessor's
151+processor or service provider shall calculate the surcharge at an
152+amount not to exceed the actual amount paid to the processor or
153+service provider to process the transaction. A seller or lessor
154+shall post signage at the seller 's or lessor's premises in a manner
155+that is visible to customers or, for a sales or lease transaction
156+made online, display before an online customer 's completion of the
157+sales or lease transaction in a manner that is visible to the online
158+customer, the following language:
159+"TO COVER THE COST OF PROCESSING A CREDIT OR CHARGE CARD
160+TRANSACTION, AND PURSUANT TO SECTION 2-418 OF TITLE 14A OF THE
161+OKLAHOMA STATUTES, A SELLER OR LESSOR MAY IMPOSE A PROCESSING
162+SURCHARGE IN AN AMOUNT NOT TO EXCEED THE MERCHANT DISCOUNT FEE THAT
163+THE SELLER OR LESSOR INCURS IN PROCESSING THE SALES OR LEASE
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197-SECTION 2. REPEALER 14A O.S. 2021, Section 2-417, is
198-hereby repealed.
199-SECTION 3. AMENDATORY 14 A O.S. 2021, Section 2 -211, is
200-amended to read as follows:
201-Section 2-211. A. With respect to all sales transactions, a
202-discount which a seller offers, allows or otherwise makes available
203-for the purpose of inducing payment by cash, check or similar means
204-rather than by use of an open-end credit card account shall not
205-constitute a credit service charge as determined under Section 2 -109
206-of this title if the discount is offered to all prospective buyers
207-clearly and conspicuously in accordance with regulations of the
208-Administrator of Consumer Affairs. No seller in any sales
209-transaction may impose a surcharge on a cardholder who elects an
210-open-end credit card or debit card account instead of paying by
211-cash, check or similar means. There is no limit on the discount
212-which may be offered by the seller. A seller who provides a
213-discount otherwise than in accordance with the regulations of the
214-Administrator must m ake the disclosures required by those
215-regulations.
216-B. A seller who is registered with the United States Treasury
217-Department as a money transmitter pursuant to 31 CFR, Section
218-103.41, and who provides an electronic funds transmission service,
219-including service by telephone and the Internet, may charge a
220-different price for a funds transmission service based on the mode
190+TRANSACTION. A SELLER OR LESSOR MAY NOT IMPOSE A PROCESSING
191+SURCHARGE ON PAYMENTS MADE BY USE OF CASH, CHECK, OR DEBIT CARD OR
192+REDEMPTION OF A GIFT CARD."
193+The processor or service provider may provide the seller or
194+lessor with the means to make the disclosure required by this
195+paragraph.
196+D. For any goods or services purchased or leased through
197+payment by credit card or charge card, the seller, l essor,
198+processor, or service provider shall provide the surcharge amount
199+imposed as a separate line item on the customer 's receipt.
200+E. A seller or lessor may impose only a single credit card or
201+charge card surcharge per sales or lease transaction.
202+F. A seller or lessor shall not impose a surcharge if a
203+customer elects to pay for goods or services by:
204+1. Using cash or check;
205+2. Using a debit ca rd, whether or not a personal identification
206+number is used;
207+3. Processing a payment as a debit payment; or
208+4. Redeeming a gift card.
209+G. A seller or lessor who violates this section violates the
210+Uniform Consumer Credit Code and is subject to liability u nder the
211+Code.
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248-of transmission used in the transaction without violating this
249-section so long as the price charged for a service paid for with an
250-open-end credit card or debit card account is not greater than the
251-price charged for such service if paid for with currency or other
252-similar means accepted within the same mode of transmission.
253-C. Any seller subject to the provisions of subsection B of this
254-section shall either conduct business at a location in this state or
255-comply with the provisions of Section 1022 of Title 18 of the
256-Oklahoma Statutes.
257-D. As used in this section, "debit card" means any instrument
258-or device, whether known as a debit card or by an y other name,
259-issued with or without fee by an issuer for the use of the
260-cardholder in depositing, obtaining or transferring funds from a
261-consumer banking electronic facility.
262-E. For purposes of this section, a private educational
263-institution as defined i n paragraph (e) of Section 3102 of Title 70
264-of the Oklahoma Statutes, a private school defined as a nonpublic
265-entity conducting an educational program for at least one grade
266-between prekindergarten through twelve, a municipality as defined in
267-paragraph 5 of Section 1-102 of Title 11 of the Oklahoma Statutes or
268-a public trust with a municipality as its beneficiary may charge a
269-service fee. The service fee shall be limited to bank processing
270-fees and financial transaction fees, the cost of providing for
271-secure transaction, portal fees, and fees necessary to compensate
238+H. A seller or lessor may impose a surcharge under this section
239+regardless of any contract or ag reement that the seller or lessor
240+enters into on or after the effective date of this act.
241+SECTION 2. REPEALER 14A O.S. 2 021, Section 2-417, is
242+hereby repealed.
243+SECTION 3. AMENDATORY 14 A O.S. 2021, Section 2 -211, is
244+amended to read as follows:
245+Section 2-211. A. With respect to all sales transactions, a
246+discount which a seller offers, allows or oth erwise makes available
247+for the purpose of inducing payment by cash, check or similar means
248+rather than by use of an open-end credit card account shall not
249+constitute a credit service charge as determined under Section 2 -109
250+of this title if the discount is offered to all prospective buyers
251+clearly and conspicuously in accordance with regulations of the
252+Administrator of Consumer Affairs. No seller in any sales
253+transaction may impose a surcharge on a cardholder who elects an
254+open-end credit card or debit car d account instead of paying by
255+cash, check or similar means. There is no limit on the discount
256+which may be offered by the seller. A seller who provides a
257+discount otherwise than in accordance with the regulations of the
258+Administrator must make the discl osures required by those
259+regulations.
260+B. A seller who is registered with the United States Treasury
261+Department as a money transmitter pursuant to 31 CFR, Section
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288+103.41, and who provides an electronic funds transmission service,
289+including service by telep hone and the Internet, may charge a
290+different price for a funds transmission service based on the mode
291+of transmission used in the transaction without violating this
292+section so long as the price charged for a service paid for with an
293+open-end credit card or debit card account is not greater than the
294+price charged for such service if paid for with currency or other
295+similar means accepted within the same mode of transmission.
296+C. Any seller subject to the provisions of subsection B of this
297+section shall either conduct business at a location in this state or
298+comply with the provisions of Section 1022 of Title 18 of the
299+Oklahoma Statutes.
300+D. As used in this section, "debit card" means any instrument
301+or device, whether known as a debit card or by any other name,
302+issued with or without fee by an issuer for the use of the
303+cardholder in depositing, obtaining or transferring funds from a
304+consumer banking electronic facility.
305+E. For purposes of this section, a private educational
306+institution as defined in paragraph ( e) of Section 3102 of Title 70
307+of the Oklahoma Statutes, a private school defined as a nonpublic
308+entity conducting an educational program for at least one grade
309+between prekindergarten through twelve, a municipality as defined in
310+paragraph 5 of Section 1 -102 of Title 11 of the Oklahoma Statutes or
311+a public trust with a municipality as its beneficiary may charge a
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338+service fee. The service fee shall be limited to bank processing
339+fees and financial transaction fees, the cost of providing for
340+secure transaction, portal fees, and fees necessary to compensate
299341 for increased bandwidth incurred as a result of providing for a n
300342 online transaction.
301343 SECTION 4. This act shall become effective November 1, 2022.
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303-COMMITTEE REPORT BY: COMMITTEE ON BANKING, FINANCIAL SERVICES AND
304-PENSIONS, dated 02/28/2022 - DO PASS, As Amended.
345+58-2-8663 AQH 01/04/22