1 STATE OF OKLAHOMA
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2 1st Session of the 59th Legislature (2023)
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3 SENATE BILL 814 By: Bergstrom
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6 AS INTRODUCED
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7 An Act relating to financial institutions; creating
7 the Oklahoma Second Amendment Financial Privacy Act;
8 providing short title; stating findings and intent;
8 defining terms; prohibiting disclosure of certain
9 financial information; prohibiting access of certain
9 financial information; providing exceptions;
10 providing for disclosure of financial information;
10 providing requirements for disclosure of information
11 in the event of a subpoena; prohibiting use of
11 certain code to engage in discriminatory conduct;
12 authorizing civil action for violations of act;
12 providing for recoverable damages; requiring the
13 award of attorney's fees upon court finding;
13 providing for noncodification; providing for
14 codification; and providing an effective date.
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17 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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18 SECTION 1. NEW LAW A new section of law not to be
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19 codified in the Oklahoma Statutes reads as follows:
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20 This act shall be known and may be cited as the "Oklahoma Second
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21 Amendment Financial Privacy Act".
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22 SECTION 2. NEW LAW A new section of law to be codified
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23 in the Oklahoma Statutes as Section 6-600 of Title 14A, unless there
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24 is created a duplication in numbering, reads as follows:
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 1 The Legislature finds that:
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2 1. The Second Amendment to the United States Constitution
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3 guarantees the people the right to keep and bear arms;
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4 2. On September of 2022, the world's three largest payment card
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5 networks publicly announced they would assign a unique merchant
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6 category code to firearms retailers accepting payment cards for
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7 purchases, after twenty-eight (28) members of Congress sent a public
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8 letter to networks, pressuring them to adopt the new code;
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9 3. In the letter to payment card networks, federal lawmakers
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10 stated that the new merchant category code for firearms retailers
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11 would be "the first step towards facilitating the collection of
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12 valuable financial data that could help law enforcement in
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13 countering the financing of terrorism efforts", expressing a clear
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14 government expectation that networks will utilize the new merchant
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15 category code to conduct mass surveillance of constitutionally
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16 protected firearms and ammunition purchases in cooperation with law
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17 enforcement;
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18 4. The new merchant category code will allow the banks, payment
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19 card networks, acquirers, and other entities involved in payment
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20 card processing to identify and separately track lawful payment card
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21 purchases at firearms retailers in this state, paving the way for
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22 unprecedented surveillance of Second Amendment activity and
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23 information sharing between financial institutions and the
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24 government;
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 1 5. This potential for cooperative surveillance and tracking of
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2 lawful firearms and ammunition purchases will have a significant
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3 chilling effect on citizens wishing to exercise their federal and
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4 state constitutional rights to keep and bear arms in this state;
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5 6. While federal law requires some financial institutions to
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6 report transactions that are highly indicative of money laundering
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7 or other unlawful activities, there is no federal or state law
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8 authorizing financial institutions to surveil and track lawful
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9 activities by customers in cooperation with law enforcement; in
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10 fact, the federal Right to Financial Privacy Act prohibits financial
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11 institutions from disclosing a customer's financial records except
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12 in limited circumstances;
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13 7. This act shall be construed as a generally applicable
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14 consumer financial protection law that does not prevent or
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15 significantly interfere with the duly authorized powers of any bank,
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16 nor does this article directly or indirectly discriminate against
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17 any bank based on its charter or structure; and
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18 8. Based on the above stated findings, it is the intent of the
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19 Legislature to prohibit the misuse of payment card processing
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20 systems to surveil, report, or otherwise discourage constitutionally
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21 protected firearm and ammunition purchases and sales within this
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22 state.
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 1 SECTION 3. NEW LAW A new section of law to be codified
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2 in the Oklahoma Statutes as Section 6-601 of Title 14A, unless there
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3 is created a duplication in numbering, reads as follows:
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4 As used in this act:
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5 1. "Assign" or "assignment" means a financial institution
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6 policy, process, or practice that labels, links, or otherwise
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7 associates a firearms code with a merchant or payment card
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8 transaction in a manner that allows the financial institution or any
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9 other entity facilitating or processing the payment card transaction
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10 to identify whether a merchant is a firearms retailer or whether a
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11 transaction involves the sale of firearms or ammunition;
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12 2. "Customer" means any person who presents a payment card to a
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13 merchant for the purchase of goods or services;
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14 3. "Customer's protected financial information" refers to
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15 protected financial information appearing in the financial records
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16 of a customer;
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17 4. "Disclosure" means the transfer, publication, or
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18 distribution of protected financial information to another person
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19 for any purpose other than to process or facilitate a payment card
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20 transaction.
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21 5. "Financial institution" means an entity other than a
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22 merchant involved in facilitating or processing a payment card
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23 transaction, including but not limited to a bank, acquirer, gateway,
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24 payment card network, or payment card issuer;
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 1 6. "Financial record" means a financial record held by a
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2 financial institution related to a payment card transaction that the
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3 financial institution has processed or facilitated;
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4 7. "Firearms retailer" means any person engaged in the lawful
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5 business of selling or trading firearms or ammunition to be used in
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6 firearms;
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7 8. "Firearms code" means any code or other indicator a
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8 financial institution assigns to a merchant or to a payment card
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9 transaction that identifies whether a merchant is a firearms
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10 retailer or whether the payment card transaction involves the
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11 purchase of a firearm or ammunition. The term shall include but is
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12 not limited to a merchant category code assigned to a retailer by a
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13 payment card network or other financial institution;
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14 9. "Government entity" means any state agency or political
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15 subdivision or agency thereof, located in this state;
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16 10. "Merchant" means a person or entity that accepts payment
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17 cards from customers for the purchase of goods or services. The
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18 term shall include a firearms retailer that accepts payment cards
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19 for the lawful purchase of firearms or ammunition;
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20 11. "Payment card" means a credit card, charge card, debit
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21 card, or any other card that is issued to an authorized card user
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22 and that allows the user to purchase goods or services from a
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23 merchant; and
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 1 12. "Protected financial information" means any record of a
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2 sale, purchase, return, or refund involving a payment card that is
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3 retrieved, characterized, generated, labeled, sorted, or grouped
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4 based on the assignment of a firearms code.
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5 SECTION 4. NEW LAW A new section of law to be codified
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6 in the Oklahoma Statutes as Section 6-602 of Title 14A, unless there
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7 is created a duplication in numbering, reads as follows:
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8 A. A financial institution shall be prohibited from disclosing
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9 a customer's protected financial information and a governmental
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10 entity is prohibited from accessing or obtaining the information
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11 unless:
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12 1. Otherwise required by law and the protected financial
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13 information is not singled out, segregated, or disclosed based on
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14 the assignment of a firearms code;
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15 2. Disclosure is made pursuant to a valid warrant issued in a
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16 criminal investigation, stating the grounds or probable cause for
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17 its issuance;
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18 3. The customer has provided written authorization for
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19 disclosure, as provided in Section 5 of this act; or
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20 4. Disclosure is made pursuant to a subpoena or to a grand jury
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21 subpoena.
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22 SECTION 5. NEW LAW A new section of law to be codified
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23 in the Oklahoma Statutes as Section 6-603 of Title 14A, unless there
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24 is created a duplication in numbering, reads as follows:
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 1 A. A financial institution may disclose a customer's protected
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2 financial information if the customer provides the financial
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3 institution with written authorization for the disclosure. The
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4 written authorization described by this section must contain the
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5 following:
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6 1. A statement that the customer consents to the disclosure of
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7 the protected financial information for a specific period;
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8 2. A statement that the customer has the right to refuse to
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9 consent to disclosure;
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10 3. A statement that the customer understands his or her right
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11 to revoke the consent at any time before the protected financial
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12 information is disclosed;
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13 4. A description of the financial records authorized to be
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14 disclosed;
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15 5. The purpose for which disclosure of the protected financial
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16 information is authorized; and
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17 6. The customer's signature.
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18 B. The written authorization described in this section shall
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19 not be required as a condition of doing business or transacting with
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20 any financial institution.
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21 C. The written authorization required by this section shall be
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22 executed distinctly and separately from other agreements or
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23 instruments entered into between the customer and financial
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24 institution.
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 1 SECTION 6. NEW LAW A new section of law to be codified
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2 in the Oklahoma Statutes as Section 6-604 of Title 14A, unless there
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3 is created a duplication in numbering, reads as follows:
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4 A. If a subpoena issued by a government entity requires
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5 disclosure of a customer's protected financial information, a
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6 financial institution shall only disclose the information if the
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7 subpoena meets the following requirements:
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8 1. The subpoena must state that protected financial information
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9 is being sought;
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10 2. A copy of the subpoena must be served to customer according
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11 to the procedure provided in Section 5 of this act and the subpoena
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12 must contain a certification that the service was executed.
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13 SECTION 7. NEW LAW A new section of law to be codified
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14 in the Oklahoma Statutes as Section 6-605 of Title 14A, unless there
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15 is created a duplication in numbering, reads as follows:
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16 A. A financial institution shall not use a firearms code to
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17 engage in the following discriminatory conduct:
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18 1. Declining a lawful payment card transaction based on the
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19 assignment of a firearms code to the merchant or transaction;
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20 2. Limiting or declining to do business with a customer,
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21 potential customer, or merchant based on the assignment of a
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22 firearms code to previous lawful transactions involving the
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23 customer, potential customer, or merchant;
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 1 3. Charge a higher transaction or interchange fee to any
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2 merchant or for a lawful transaction, as compared to the fee charged
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3 to a similarly situated merchant or for a similar transaction, based
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4 on the assignment of a firearms code; or
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5 4. Take any action against a customer or merchant that is
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6 intended to suppress lawful commerce involving firearms or
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7 ammunition.
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8 SECTION 8. NEW LAW A new section of law to be codified
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9 in the Oklahoma Statutes as Section 6-606 of Title 14A, unless there
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10 is created a duplication in numbering, reads as follows:
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11 A. A customer may bring a civil action for damages against any
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12 financial institution or government entity that causes the
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13 customer's protected financial information to be disclosed in
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14 violation of this act. For each violation, the individual may
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15 recover:
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16 1. Against any person who negligently or recklessly violates
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17 this act, damages of Ten Thousand Dollars ($10,000.00) or actual
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18 damages, whichever is greater; and
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19 2. Against any person who intentionally violates this act,
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20 damages of Twenty-five Thousand Dollars ($25,000.00) or actual
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21 damages, whichever is greater.
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22 B. A customer or merchant aggrieved by a violation of Section 7
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23 of this act may bring a civil action for damages. The person may
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 1 recover damages of Thirty Thousand Dollars ($30,000.00) or actual
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2 damages, whichever is greater.
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3 C. If a court finds that a violation of this act has occurred
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4 as the result of a civil action filed pursuant to subsection A or
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5 subsection B of this section, the court shall award reasonable
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6 attorney fees to the aggrieved party. A court may order other
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7 relief, including an injunction, as the court considers appropriate.
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8 SECTION 9. This act shall become effective November 1, 2023.
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10 59-1-4 QD 1/18/2023 10:58:02 PM
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