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| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3840 Introduced , by Rep. Brad Halbrook SYNOPSIS AS INTRODUCED:
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Creates the Second Amendment Privacy Act. Provides that a financial institution is prohibited from disclosing a customer's protected financial information when purchasing a firearm or ammunition unless specified conditions apply. Provides that a financial institution may disclose a customer's protected financial information if the customer provides the financial institution with written authorization for the disclosure. Provides that if a subpoena issued by a government entity requires disclosure of a customer's protected financial information, a financial institution may only disclose the information if the subpoena meets specified requirements. Provides that a financial institution may not use a firearms code to engage in discriminatory conduct. Provides that a customer may bring a civil action for damages against any financial institution or government entity that causes the customer's protected financial information to be disclosed in violation of the Act.
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| | A BILL FOR |
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| 1 | | AN ACT concerning business.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 1. Short title. This Act may be cited as the Second |
| 5 | | Amendment Privacy Act.
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| 6 | | Section 5. Definitions. As used in this Act: |
| 7 | | "Assign" or "assignment" means a financial institution |
| 8 | | policy, process, or practice that labels, links, or otherwise |
| 9 | | associates a firearms code with a merchant or payment card |
| 10 | | transaction in a manner that allows the financial institution |
| 11 | | or any other entity facilitating or processing the payment |
| 12 | | card transaction to identify whether a merchant is a firearms |
| 13 | | retailer or whether a transaction involves the sale of |
| 14 | | firearms or ammunition. |
| 15 | | "Customer" means any person engaged in a payment card |
| 16 | | transaction that a financial institution facilitates or |
| 17 | | processes. |
| 18 | | "Disclosure" means the transfer, publication, or |
| 19 | | distribution of protected financial information to another |
| 20 | | person for any purpose other than to process or facilitate a |
| 21 | | payment card transaction. |
| 22 | | "Financial institution means an entity involved in |
| 23 | | facilitating or processing a payment card transaction, |
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| 1 | | including, but not limited to, a bank, acquirer, gateway, |
| 2 | | payment card network, or payment card issuer. |
| 3 | | "Financial record" means a financial record held by a |
| 4 | | financial institution related to a payment card transaction |
| 5 | | that the financial institution has processed or facilitated. |
| 6 | | "Firearms retailer" means any person engaged in the lawful |
| 7 | | business of selling or trading firearms or antique firearms or |
| 8 | | ammunition to be used in firearms or antique firearms. |
| 9 | | "Firearms code" means any code or other indicator a |
| 10 | | financial institution assigns to a merchant or to a payment |
| 11 | | card transaction that identifies whether a merchant is a |
| 12 | | firearms retailer or whether the payment card transaction |
| 13 | | involves the purchase of a firearm or ammunition. "Firearms |
| 14 | | code" includes, but is not limited to, a merchant category |
| 15 | | code assigned to a retailer by a payment card network or other |
| 16 | | financial institution. |
| 17 | | "Government entity" means any State or local government |
| 18 | | agency or instrumentality. |
| 19 | | "Protected financial information" means any record of a |
| 20 | | sale, purchase, return, or refund involving a payment card |
| 21 | | that is retrieved, characterized, generated, labeled, sorted, |
| 22 | | or grouped based on the assignment of a firearms code. |
| 23 | | "Protected financial information" includes information |
| 24 | | appearing in the financial records of a customer.
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| 25 | | Section 10. Protected financial information. A financial |
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| 1 | | institution is prohibited from disclosing a customer's |
| 2 | | protected financial information when purchasing a firearm or |
| 3 | | ammunition unless: |
| 4 | | (1) disclosure is expressly permitted by law and the |
| 5 | | protected financial information is not singled out, |
| 6 | | segregated, or disclosed based on the assignment of a |
| 7 | | firearms code; |
| 8 | | (2) disclosure is made pursuant to a valid warrant |
| 9 | | issued in a criminal investigation, stating the grounds or |
| 10 | | probable cause for its issuance; |
| 11 | | (3) the customer has consented to disclosure under |
| 12 | | Section 15; or |
| 13 | | (4) disclosure is made in response to a subpoena |
| 14 | | meeting the requirements of this Act.
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| 15 | | Section 15. Written authorization for disclosure. |
| 16 | | (a) Notwithstanding Section 10, a financial institution |
| 17 | | may disclose a customer's protected financial information if |
| 18 | | the customer provides the financial institution with written |
| 19 | | authorization for the disclosure. The written authorization |
| 20 | | described by this Section must contain the following: |
| 21 | | (1) a statement that the customer consents to the |
| 22 | | disclosure of the protected financial information for a |
| 23 | | specific period; |
| 24 | | (2) a statement that the customer has the right to |
| 25 | | refuse to consent to disclosure; |
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| 1 | | (3) a statement that the customer understands his or |
| 2 | | her right to revoke consent at any time before the |
| 3 | | protected financial information is disclosed; |
| 4 | | (4) a description of the financial records authorized |
| 5 | | to be disclosed; and |
| 6 | | (5) the purpose for which disclosure of the protected |
| 7 | | financial information is authorized. |
| 8 | | (b) The written authorization described in this Section |
| 9 | | may not be required as a condition of doing business or |
| 10 | | transacting with any financial institution.
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| 11 | | Section 20. Requirements for subpoenas. |
| 12 | | (a) If a subpoena issued by a government entity requires |
| 13 | | disclosure of a customer's protected financial information, a |
| 14 | | financial institution may only disclose the information if the |
| 15 | | subpoena meets the requirements this of Section. |
| 16 | | (b) A subpoena issued by a government entity that |
| 17 | | specifically requires disclosure of protected financial |
| 18 | | information shall meet the following requirements: |
| 19 | | (1) the subpoena must state that protected financial |
| 20 | | information is being sought; and |
| 21 | | (2) a copy of the subpoena must be served upon the |
| 22 | | customer as provided by law and the subpoena must contain |
| 23 | | a certification that the service was executed.
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| 24 | | Section 25. Use of protected financial information for |
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| 1 | | discriminatory purpose. A financial institution may not use a |
| 2 | | firearms code to engage in the following discriminatory |
| 3 | | conduct: |
| 4 | | (1) declining a lawful payment card transaction based |
| 5 | | on the assignment of a firearms code to the merchant or |
| 6 | | transaction; |
| 7 | | (2) limiting or declining to do business with a |
| 8 | | customer or potential customer based on the assignment of |
| 9 | | a firearms code to previous lawful transactions involving |
| 10 | | the customer or potential customer; |
| 11 | | (3) charging a higher transaction or interchange fee |
| 12 | | to any merchant or for a lawful transaction, as compared |
| 13 | | to the fee charged to a similarly situated merchant or for |
| 14 | | a similar transaction, based on the assignment of a |
| 15 | | firearms code; or |
| 16 | | (4) otherwise taking any action against a customer or |
| 17 | | merchant that is intended to suppress lawful commerce |
| 18 | | involving firearms or ammunition.
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| 19 | | Section 30. Civil remedies. |
| 20 | | (a) A customer may bring a civil action for damages |
| 21 | | against any financial institution or government entity that |
| 22 | | causes the customer's protected financial information to be |
| 23 | | disclosed in violation of this Act. For each violation, the |
| 24 | | individual may recover against any person who violates this |
| 25 | | Act liquidated damages of $30,000. |
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| 1 | | (b) Any person aggrieved by a violation of Section 25 may |
| 2 | | bring a civil action for damages. The person may recover |
| 3 | | liquidated damages of $30,000 or actual damages, whichever is |
| 4 | | greater. |
| 5 | | (c) If a court finds that a violation of this Act has |
| 6 | | occurred as the result of a civil action filed pursuant to |
| 7 | | subsection (a) or subsection (b), the court shall award |
| 8 | | reasonable attorney's fees to the aggrieved party. A court may |
| 9 | | order such other relief, including an injunction, as the court |
| 10 | | may consider appropriate. |
| 11 | | (d) It shall not be a defense to a civil action filed under |
| 12 | | this Act that the information was disclosed to a federal |
| 13 | | government entity if the disclosure is neither required nor |
| 14 | | authorized by a federal law or regulation. |
| 15 | | (e) Any action under this Act is barred unless the action |
| 16 | | is commenced within 5 years after the violation occurs. |
| 17 | | (f) The remedies provided in this Act are the exclusive |
| 18 | | remedies for violations of this Act.
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| 19 | | Section 35. Contractual authority of the State. In |
| 20 | | selecting a financial institution to provide a financial |
| 21 | | service or product to this State related to payment card |
| 22 | | processing, the State Treasurer may disqualify a financial |
| 23 | | institution from the competitive bidding process or from any |
| 24 | | other official selection process if: |
| 25 | | (1) during the past 5 years a court of competent |
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| 1 | | jurisdiction has entered an order or opinion finding that |
| 2 | | the financial institution violated this Act; |
| 3 | | (2) during the past 5 years the financial institution |
| 4 | | has admitted to violating this Act in the records of a |
| 5 | | court or other official proceeding; or |
| 6 | | (3) the financial institution has publicly stated that |
| 7 | | it has adopted or intends to adopt policies or practices |
| 8 | | that violate this Act.
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| 9 | | Section 40. Scope. Nothing in this Act may be construed or |
| 10 | | applied in a manner that violates or conflicts with |
| 11 | | superseding federal law.
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| 12 | | Section 45. Severability. The provisions of this Act are |
| 13 | | severable under Section 1.31 of the Statute on Statutes.
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