Text of OK SB 1107 (2025)

Req. No. 40 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF OKLAHOMA 1st Session of the 60th Legislature (2025) SENATE BILL 1107 By: Jett AS INTRODUCED An Act relating to financial services; creating the Financial Services Freedom Act; providing short title; stating intent; defining terms; prohibiting financial institutions from refusing service based on certain factors; authorizing customers to request certain information upon denial of service; prescribing procedures for providing information; authorizing the Attorney General to bring civil action and seek remedies; authorizing persons to initiate civil action; providing for recovery of damages; prescribing recovery amounts; authorizing persons to obtain injunction or restraining order under certain circumstance; amending 15 O.S. 2021, Section 753, as amended by Section 1, Chapter 368, O.S.L. 2023 (15 O.S. Supp. 2024, Section 753), which relates to the Oklahoma Consumer Protection Act; making violation of certain provisions unlawful; providing for noncodification; 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 section of law not to be codified in the Oklahoma Statutes reads as follows: This act shall be known and may be cited as the “Financial Services Freedom Act”. Req. No. 40 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SECTION 2. NEW LAW A new section of law not to be codified in the Oklahoma Statutes reads as follows: A. The Financial Services Freedom Act protects consumers by providing transparency and safeguarding against politicized debanking. The bill prohibits large banks and payment processors from discriminating against customers because of their religious or political speech or views, among other criteria often flagged as part of a social credit score. It also increases transparency by giving customers a right to an explanation from the financial institution if their service is denied, restricted, or terminated. B. This Legislature finds that: 1. Obtaining access to financial services is a basic requirement for a person to meaningfully participate in the marketplace of this state; 2. On account of their fundamental role in the marketplace, this state and the United States government have given financial institutions significant privileges and have enacted state and federal laws that guarantee access to certain financial services without discrimination based on race, color, religion, national origin, sex, and other factors; 3. New banks and other financial institutions face significant barriers to entry that reduce the competitiveness of the market and allow existing institutions to wield significant power; Req. No. 40 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 4. Financial institutions should not act as de facto regulators of private conduct by denying financial services based on a person’s religious exercise, association, speech, social views, or participation in a particular industry; 5. Financial institutions have a responsibility to make decisions about whether to provide a person with financial services on the basis of impartial criteria free from discrimination or favoritism based on the above factors; 6. Financial institutions also have a responsibility to disclose the conditions under which they will deny financial services, and if they deny financial services, to provide upon request a truthful and complete explanation to the person as to why financial services were denied; 7. Financial institutions face increasing internal and external pressures to impede otherwise lawful commerce based on a person’s religious exercise, associations, speech, social views, or participation in particular industries, and to do so covertly, without informing the person or the public why services were or will be denied; 8. When financial institutions omit material information about when they will deny financial services or why they denied financial services to a person, this lack of transparency harms specific persons and the general marketplace; Req. No. 40 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 9. This kind of deception and unfair discrimination in the provision of financial services threatens the economy, security, and the soundness of banking and other financial markets in this state; and 10. These deceptive and unfairly discriminatory practices threaten the ability of the citizens of this state to speak freely as part of the democratic process and to live freely according to the dictates of their consciences, and these practices also violate the public trust. SECTION 3. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 2300 of Title 6, unless there is created a duplication in numbering, reads as follows: A. As used in this section: 1. “Discriminate in the provision of financial services” means utilizing a social credit score to directly or indirectly decline to provide full and equal enjoyment in the provision of financial services, including the refusal to provide, termination of, or restriction of financial services; 2. “Financial institution” means a bank having total assets over One Hundred Billion Dollars ($100,000,000,000.00) or a payment processor, credit card company, credit card network, payment network, payment service provider, or payment gateway that has processed more than One Hundred Billion Dollars ($100,000,000,000.00) in transactions in the last calendar year. A Req. No. 40 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 financial institution shall include any affiliate or subsidiary company, and the assets and the amount of transactions processed by such affiliate or subsidiary; 3. “Financial service” means any financial productor service offered by a financial institution; 4. “Person” means any individual, partnership, association, joint stock company, trust, corporation, nonprofit organization, or other business or legal entity; 5. “Protected from government interference” means a reference to any speech, religious exercise, association, expression, or conduct that is protected by the First Amendment to the United States Constitution other than activities that the Supreme Court of the United States has expressly held are unprotected as of the effective date of this act, including obscenity, fraud, incitement, true threats, fighting words, or defamation; and 6. a. “Social credit score” means any analysis, rating, scoring, list, or tabulation that evaluates the following: (1) the exercise of religion that is protected from government interference by the First Amendment to the United States Constitution, Section 2 of Article I of the Oklahoma Constitution, or federal or state law, including all aspects of Req. No. 40 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 religious observance and practices, beliefs, and affiliations, (2) any speech, expression, or association that is protected from government interference by the First Amendment to the United States Constitution or federal or state law, including opinions, speech, or other expressive activities, including the lawful preservation of privacy regarding those activities, including the refusal to disclose lobbying, political activity, or contributions beyond what is required by applicable state and federal law, (3) failure or refusal to adopt any targets or disclosures related to greenhouse gas emissions beyond what is required by applicable state and federal law, (4) failure or refusal to conduct any type of racial, diversity, or gender audit or disclosure or to provide any sort of quota, preference, or benefit based, in whole or in part, on race, diversity, or gender, (5) failure or refusal to facilitate or assist employees in obtaining abortions or gender reassignment services, or Req. No. 40 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (6) except as provided in subparagraph a of this paragraph, participation in the following lawful business associations or business activities: (a) business activities with an entity that engages in the manufacture, distribution, wholesale, supply, or retail sale of firearms, firearms accessories, or ammunition, (b) business activity with an entity that engages in the exploration, production, utilization, transportation, sale, or manufacture of fossil fuel or fossil fuel- based energy, or (c) agriculture, and b. For the purpose of division 6 of subparagraph a, social credit score shall not include the financial institution evaluating quantifiable risks of a person based on impartial, financial risk-based standards that include activities described in division 6 of subparagraph a, if the standards are established in advance by the financial institution and publicly disclosed to customers and potential customers. These terms defined in this subsection shall be construed in favor of the broad protection of the conduct, opinions, and beliefs Req. No. 40 Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 protected by the First Amendment to the United States Constitution, applicable federal law, the Oklahoma Constitution, and state law. B. If a financial institution refuses to provide, restricts, or terminates service to a customer, that customer may request a statement of specific reasons within ninety (90) days after receiving notice of the refusal to provide, restriction of, or termination of service. The customer may request the statement from a customer service representative or designated account representative by phone, mail, or electronic mail. Unless prohibited by law, the financial institution shall transmit the statement of specific reasons via mail and electronic mail within fourteen (14) days of receipt of the request. The statement of specific reasons shall include: 1. A detailed explanation of the basis for the denial or termination of service, including a description of any of the speech, religious exercise, business activity of the consumer with a particular industry, or other conduct that was, in whole or in part, the basis of the denial or termination of service; 2. A copy of the terms of service agreed to by the customer and the financial institution; and 3. A citation to the specific provisions of the terms of service upon which the financial institution relied to refuse to provide, restrict, or terminate service if relevant. C. A financial institution shall not: Req. No. 40 Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1. Discriminate in the provision of financial services to a person; or 2. Agree, conspire, or coordinate, directly or indirectly, including through any intermediary or third party, with another person, or group of persons, to engage in activity prohibited by paragraph 1 of this subsection. D. Any violation of this section shall be considered a violation of the Oklahoma Consumer Protection Act, Section 751d et seq. of Title 15 of the Oklahoma Statutes. E. If the Attorney General has reasonable cause to believe that any financial institution has engaged in, is engaging in, or intends to engage in any violation of this section, the Attorney General may investigate, bring civil action, and seek remedies as provided in the Oklahoma Consumer Protection Act. F. Any person harmed by a violation of this section may initiate a civil action for either or both of the following: 1. To recover actual damages or Ten Thousand Dollars ($10,000.00), whichever is greater, for each violation. If the trier of fact finds that the violation was willful, it may increase the damages to an amount not to exceed three times the actual damages sustained, or Thirty Thousand Dollars ($30,000.00), whichever is greater. A court shall award a prevailing plaintiff reasonable attorney fees and court costs; or Req. No. 40 Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. To obtain preventative relief, including an application for a permanent or temporary injunction, restraining order, or other order as necessary to enforce the provisions of this section. SECTION 4. AMENDATORY 15 O.S. 2021, Section 753, as amended by Section 1, Chapter 368, O.S.L. 2023 (15 O.S. Supp. 2024, Section 753), is amended to read as follows: Section 753. A person engages in a practice which is declared to be unlawful under the Oklahoma Consumer Protection Act when, in the course of the person’s business, the person: 1. Represents, knowingly or with reason to know, that the subject of a consumer transaction is of a particular make or brand, when it is of another; 2. Makes a false or misleading representation, knowingly or with reason to know, as to the source, sponsorship, approval, or certification of the subject of a consumer transaction; 3. Makes a false or misleading representation, knowingly or with reason to know, as to affiliation, connection, association with, or certification by another; 4. Makes a false or misleading representation or designation, knowingly or with reason to know, of the geographic origin of the subject of a consumer transaction; 5. Makes a false representation, knowingly or with reason to know, as to the characteristics, ingredients, uses, benefits, alterations, or quantities of the subject of a consumer transaction Req. No. 40 Page 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 or a false representation as to the sponsorship, approval, status, affiliation or connection of a person therewith; 6. Knowingly or with reason to know, makes a false or misleading representation or gives the false or misleading impression of being affiliated with a state agency or an affiliate of a state agency through advertisement or publication; 7. Represents, knowingly or with reason to know, that the subject of a consumer transaction is original or new if the person knows that it is reconditioned, reclaimed, used, or secondhand; 8. Represents, knowingly or with reason to know, that the subject of a consumer transaction is of a particular standard, style or model, if it is of another; 9. Advertises, knowingly or with reason to know, the subject of a consumer transaction with intent not to sell it as advertised; 10. Advertises, knowingly or with reason to know, the subject of a consumer transaction with intent not to supply reasonably expected public demand, unless the advertisement discloses a limitation of quantity; 11. Advertises under the guise of obtaining sales personnel when in fact the purpose is to sell the subject of a consumer transaction to the sales personnel applicants; 12. Makes false or misleading statements of fact, knowingly or with reason to know, concerning the price of the subject of a Req. No. 40 Page 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 consumer transaction or the reason for, existence of, or amounts of price reduction; 13. Employs “bait and switch” advertising, which consists of an offer to sell the subject of a consumer transaction which the seller does not intend to sell, which advertising is accompanied by one or more of the following practices: a. refusal to show the subject of a consumer transaction advertised, b. disparagement of the advertised subject of a consumer transaction or the terms of sale, c. requiring undisclosed tie-in sales or other undisclosed conditions to be met prior to selling the advertised subject of a consumer transaction, d. refusal to take orders for the subject of a consumer transaction advertised for delivery within a reasonable time, e. showing or demonstrating defective subject of a consumer transaction which the seller knows is unusable or impracticable for the purpose set forth in the advertisement, f. accepting a deposit for the subject of a consumer transaction and subsequently charging the buyer for a higher priced item, or Req. No. 40 Page 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 g. willful failure to make deliveries of the subject of a consumer transaction within a reasonable time or to make a refund therefor upon the request of the purchaser; 14. Conducts a closing out sale without having first obtained a license as required in the Oklahoma Consumer Protection Act; 15. Resumes the business for which the closing out sale was conducted within thirty-six (36) months from the expiration date of the closing out sale license; 16. Falsely states, knowingly or with reason to know, that services, replacements or repairs are needed; 17. Violates any provision of the Oklahoma Health Spa Act; 18. Violates any provision of the Home Repair Fraud Act; 19. Violates any provision of the Consumer Disclosure of Prizes and Gifts Act; 20. Violates any provision of Section 755.1 of this title or Section 1847a of Title 21 of the Oklahoma Statutes; 21. Commits an unfair or deceptive trade practice as defined in Section 752 of this title; 22. Violates any provision of Section 169.1 of Title 8 of the Oklahoma Statutes in fraudulently or intentionally failing or refusing to honor the contract to provide certain cemetery services specified in the contract entered into pursuant to the Perpetual Care Fund Act; Req. No. 40 Page 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 23. Misrepresents a mail solicitation as an invoice or as a billing statement; 24. Offers to purchase a mineral or royalty interest through an offer that resembles an oil and gas lease and that the consumer believed was an oil and gas lease; 25. Refuses to honor gift certificates, warranties, or any other merchandise offered by a person in a consumer transaction executed prior to the closing of the business of the person without providing a purchaser a means of redeeming such merchandise or ensuring the warranties offered will be honored by another person; 26. Knowingly causes a charge to be made by any billing method to a consumer for services which the person knows was not authorized in advance by the consumer; 27. Knowingly causes a charge to be made by any billing method to a consumer for a product or products which the person knows was not authorized in advance by the consumer; 28. Violates Section 752A of this title; 29. Makes deceptive use of another’s name in notification or solicitation, as defined in Section 752 of this title; 30. Falsely states or implies that any person, product or service is recommended or endorsed by a named third person; 31. Falsely states that information about the consumer, including but not limited to, the name, address or phone number of Req. No. 40 Page 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 the consumer has been provided by a third person, whether that person is named or unnamed; 32. Acting as a debt collector, contacts a debtor and threatens to file a suit against the debtor over a debt barred by the statute of limitations which has passed for filing suit for such debt; or 33. Acting as a debt collector, contacts a debtor and uses obscene or profane language to collect a debt; or 34. Any violation of the provisions of Section 1 of this act. SECTION 5. This act shall become effective November 1, 2025. 60-1-40 QD 1/16/2025 3:41:04 PM