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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
SENATE BILL 2016 By: Dahm
AS INTRODUCED
An Act relating to financial institutions; defining
terms; prohibiting disclosure of certain fi nancial
information; prohibiting access of certain financial
information; providing exceptions; providing for
disclosure of financial information; providing
requirements for disclosure of information in the
event of a subpoena; prohibiting the assignment o r
use of certain code; requiring the assignment of
certain code; requiring notif ication upon assignment
of certain code; prohibiting use of certain code to
engage in discriminatory conduct; authorizing civil
action for violations of act; providing for
recoverable damages; requiring the award of
attorney’s fees upon court finding; providing for
codification; and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new secti on of law to be codified
in the Oklahoma Statutes as Section 6 -601 of Title 14A, unless there
is created a duplication in n umbering, reads as follows:
As used in this act:
1. “Assign” or “assignment” means a financial institution
policy, process, or pract ice that labels, links, or otherwise
associates a firearms code with a merchant or payment card
transaction in a manner that allows the financial i nstitution or any
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other entity facilitating or processing the payment card transaction
to identify whether a merchant is a firearms retailer or whether a
transaction involves the sale of fi rearms or ammunition;
2. “Customer” means any person who presents a payment card to a
merchant for the purchase of goods or services;
3. “Customer’s protected financial infor mation” refers to
protected financial information appearing in the financial records
of a customer;
4. “Disclosure” means the transfer, publicatio n, or
distribution of protected financial information to another person
for any purpose other than to process or facilitate a payment card
transaction;
5. “Financial institution ” means an entity other than a
merchant involved in fa cilitating or processing a payment card
transaction, including but not limited to a bank, acquirer, gateway,
payment card network, or payment card issuer;
6. “Financial record” means a financial record held by a
financial institution related to a payment card transaction that the
financial institution has processed or facilitated;
7. “Firearms retailer” means any person engaged in the lawful
business of selling or trading fir earms or ammunition to be used in
firearms;
8. “Firearms code” means any code or other indicator a
financial institution assigns to a merchant or to a payment card
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transaction that identifies whether a merchant is a firearms
retailer or whether the payment card transaction involves the
purchase of a firearm or ammunition. The term shall include but is
not limited to a merchant category code assigned to a retailer by a
payment card network or other financial instit ution;
9. “Government entity” means any state agency or political
subdivision or agency thereof, located in this state;
10. “Merchant” means a person or entity that accepts payment
cards from customers for the purchase of goods or services. The
term shall include a firearms retailer that accepts payment cards
for the lawful purchase of firearms or ammunition;
11. “Payment card” means a credit card, charge card, debit
card, or any other card that is issued to an authorized card user
and that allows the u ser to purchase goods or services from a
merchant; and
12. “Protected financial information” means any record of a
sale, purchase, return, or refund involving a payment card that is
retrieved, characterized, generated, labeled, sorted, or grouped
based on the assignment of a firearms code.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 6 -602 of Title 14A, unless there
is created a duplication in numbering, reads as follows:
A. A financial institution shall be prohibited from disc losing
a customer’s protected financia l information and a governmental
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entity is prohibited from accessing or obtaining the information
unless:
1. Otherwise required by law and the protected financial
information is not singled out, segregated, or disclosed based on
the assignment of a firearms code;
2. Disclosure is made pursuant to a valid warrant issued in a
criminal investigation, stating the grounds or probable cause for
its issuance;
3. The customer has pro vided written authorization for
disclosure, as provided in Section 3 of this act; or
4. Disclosure is made pursuant to a s ubpoena or to a grand jury
subpoena.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 6 -603 of Title 14A, unless there
is created a duplication in numbering, reads as follows:
A. A financial institution may disclose a customer ’s protected
financial information if the customer provides the financial
institution with writt en authorization for the disclosure. The
written authorization described by thi s section must contain the
following:
1. A statement that the customer consents to the disclosure of
the protected financial information for a specific period;
2. A statement that the customer has the right to refuse to
consent to disclosure;
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3. A statement that the customer understands his or her right
to revoke the consent at any time before the protected financial
information is disclosed;
4. A description of the financia l records authorized to be
disclosed;
5. The purpose for which disclosure of th e protected financial
information is author ized; and
6. The customer’s signature.
B. The written authorization described in this section shall
not be required as a condition of doing business or transacting with
any financial institution.
C. The written authorization required by this section shall be
executed distinctly and separately from other agreements or
instruments entered into between the customer and financial
institution.
SECTION 4. NEW LAW A new section of law to be codi fied
in the Oklahoma Statutes as Section 6 -604 of Title 14A, unless there
is created a duplication in numbering, reads as follows:
If a subpoena issued by a government entity r equires disclosure
of a customer’s protected financial information, a financial
institution shall only disclose the information if the subpoena
meets the following requirements:
1. The subpoena must state that protected financial information
is being sought; and
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2. A copy of the subpoena must be served to customer according
to the procedure provided in Section 3 of this act and the subpoena
must contain a certification that the service was executed.
SECTION 5. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 6 -605 of Title 14A, unless there
is created a duplication in numbering, reads as follows:
A. A financial institution shall not assign to a merchant or
require a merchant to use a firearms code.
B. For the sale of firearms, firearms ammunition, and firearms
accessories, a merchant or financial institution shall not pr ovide
or assign a firearms code to the purchase and shall assign only a
merchant code for general merchandise retailers or sporting g oods
retailers.
C. A financial institution shall notify a customer, in writing,
on every occasion that a firearms code is assigned to a transaction
on the customer’s account.
D. A financial institution shall not use a firearms code to
engage in the following discriminatory conduct:
1. Declining a lawful payment card transaction bas ed on the
assignment of a firearms code to the merchant or transaction;
2. Limiting or declining to do business with a customer,
potential customer, or merchant based on the a ssignment of a
firearms code to previous lawful transactions involving the
customer, potential customer, or merchant;
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3. Charge a higher transaction or interchange fee to any
merchant or for a lawful transaction, as compared to the fee charged
to a similarly situated merchant or for a similar transaction, based
on the assignment of a firearms code; or
4. Take any action agai nst a customer or merchant that is
intended to suppress lawful commerce involving firearms or
ammunition.
SECTION 6. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 6 -606 of Title 14A, unless there
is created a duplication in numbering, reads as follows:
A. A customer may bring a civil action for damages against any
financial institution or government entity that causes the
customer’s protected financial info rmation to be disclosed in
violation of this act. For each violation, the individual may
recover:
1. Against any person who negligently or recklessly violates
this act, damages of Ten Thousand Dollars ($10,000.00) or actual
damages, whichever is greater; and
2. Against any person who intentionally violates this act,
damages of Twenty-five Thousand Dollars ($25,000.00) or actual
damages, whichever is greater.
B. A customer or merchant aggrieved by a violation of Section 5
of this act may bring a civil ac tion for damages. The person may
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recover damages of Thirty Thousand Dollars ($30,000.00) or actual
damages, whichever is greater.
C. If a court finds that a violation of this act has occurred
as the result of a civil action filed pursuant to subsection A or
subsection B of this section, the court shall award reasonable
attorney fees to the aggrieved party. A court may order other
relief, including an injunction, as the court considers appropriate.
SECTION 7. This act shall become effecti ve November 1, 2024.
59-2-2412 QD 1/18/2024 4:09:37 PM