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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. | |||||||||||||||||||
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. | ||||||
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. | ||||||
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. | ||||||
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. | ||||||
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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