103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3840

 

Introduced 2/17/2023, by Rep. Brad Halbrook

 

SYNOPSIS AS INTRODUCED:
 
New Act

    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.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the Second
5Amendment Privacy Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Assign" or "assignment" means a financial institution
8policy, process, or practice that labels, links, or otherwise
9associates a firearms code with a merchant or payment card
10transaction in a manner that allows the financial institution
11or any other entity facilitating or processing the payment
12card transaction to identify whether a merchant is a firearms
13retailer or whether a transaction involves the sale of
14firearms or ammunition.
15    "Customer" means any person engaged in a payment card
16transaction that a financial institution facilitates or
17processes.
18    "Disclosure" means the transfer, publication, or
19distribution of protected financial information to another
20person for any purpose other than to process or facilitate a
21payment card transaction.
22    "Financial institution means an entity involved in
23facilitating or processing a payment card transaction,

 

 

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1including, but not limited to, a bank, acquirer, gateway,
2payment card network, or payment card issuer.
3    "Financial record" means a financial record held by a
4financial institution related to a payment card transaction
5that the financial institution has processed or facilitated.
6    "Firearms retailer" means any person engaged in the lawful
7business of selling or trading firearms or antique firearms or
8ammunition to be used in firearms or antique firearms.
9    "Firearms code" means any code or other indicator a
10financial institution assigns to a merchant or to a payment
11card transaction that identifies whether a merchant is a
12firearms retailer or whether the payment card transaction
13involves the purchase of a firearm or ammunition. "Firearms
14code" includes, but is not limited to, a merchant category
15code assigned to a retailer by a payment card network or other
16financial institution.
17    "Government entity" means any State or local government
18agency or instrumentality.
19    "Protected financial information" means any record of a
20sale, purchase, return, or refund involving a payment card
21that is retrieved, characterized, generated, labeled, sorted,
22or grouped based on the assignment of a firearms code.
23"Protected financial information" includes information
24appearing in the financial records of a customer.
 
25    Section 10. Protected financial information. A financial

 

 

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1institution is prohibited from disclosing a customer's
2protected financial information when purchasing a firearm or
3ammunition 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.
 
15    Section 15. Written authorization for disclosure.
16    (a) Notwithstanding Section 10, a financial institution
17may disclose a customer's protected financial information if
18the customer provides the financial institution with written
19authorization for the disclosure. The written authorization
20described 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
9may not be required as a condition of doing business or
10transacting with any financial institution.
 
11    Section 20. Requirements for subpoenas.
12    (a) If a subpoena issued by a government entity requires
13disclosure of a customer's protected financial information, a
14financial institution may only disclose the information if the
15subpoena meets the requirements this of Section.
16    (b) A subpoena issued by a government entity that
17specifically requires disclosure of protected financial
18information 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.
 
24    Section 25. Use of protected financial information for

 

 

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1discriminatory purpose. A financial institution may not use a
2firearms code to engage in the following discriminatory
3conduct:
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.
 
19    Section 30. Civil remedies.
20    (a) A customer may bring a civil action for damages
21against any financial institution or government entity that
22causes the customer's protected financial information to be
23disclosed in violation of this Act. For each violation, the
24individual may recover against any person who violates this
25Act liquidated damages of $30,000.

 

 

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1    (b) Any person aggrieved by a violation of Section 25 may
2bring a civil action for damages. The person may recover
3liquidated damages of $30,000 or actual damages, whichever is
4greater.
5    (c) If a court finds that a violation of this Act has
6occurred as the result of a civil action filed pursuant to
7subsection (a) or subsection (b), the court shall award
8reasonable attorney's fees to the aggrieved party. A court may
9order such other relief, including an injunction, as the court
10may consider appropriate.
11    (d) It shall not be a defense to a civil action filed under
12this Act that the information was disclosed to a federal
13government entity if the disclosure is neither required nor
14authorized by a federal law or regulation.
15    (e) Any action under this Act is barred unless the action
16is commenced within 5 years after the violation occurs.
17    (f) The remedies provided in this Act are the exclusive
18remedies for violations of this Act.
 
19    Section 35. Contractual authority of the State. In
20selecting a financial institution to provide a financial
21service or product to this State related to payment card
22processing, the State Treasurer may disqualify a financial
23institution from the competitive bidding process or from any
24other 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.
 
9    Section 40. Scope. Nothing in this Act may be construed or
10applied in a manner that violates or conflicts with
11superseding federal law.
 
12    Section 45. Severability. The provisions of this Act are
13severable under Section 1.31 of the Statute on Statutes.