Bank Social Credit Ban Leaves A Gun And Energy Exit

The text as introduced · 1,327 words

89R11944 TYPED

By: Hayes
H.B. No. 4333

A BILL TO BE ENTITLED

AN ACT

relating to prohibitions on deceptive and unfair practices related

to financial institutions discriminating in the provision of

financial services to consumers and other persons.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. This Act shall be known as the Equality in

Financial Services Act.

SECTION 2. Subtitle C, Title 5, Business & Commerce Code, is

amended by adding Chapter 121 to read as follows:

CHAPTER 121. PROHIBITION ON FINANCIAL SERVICES DISCRIMINATION

Sec. 121.001. DEFINITIONS. (a) In this chapter:

(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, and includes refusing to provide,

terminating, or restricting financial services.

(2) "Financial institution" means

(A) A bank that has total assets over

$100,000,000,000; or

(B) A payment processor, credit card company,

credit card network, payment network, payment service provider, or

payment gateway that has processed more than $100,000,000,000 in

transactions in the last calendar year.

For purposes of subsections (A) and (B), a

financial institution includes any affiliate or subsidiary

company, even if that affiliate or subsidiary is also a financial

institution.

(3) "Financial service" means any financial product or

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" refers

to any speech, religious exercise, association, expression, or

conduct that is protected by the First Amendment other than

activities that the Supreme Court of the United States has

expressly held are unprotected as of the date of this legislation,

such as obscenity, fraud, incitement, true threats, fighting words,

or defamation.

(6) "Social credit score" means any analysis, rating,

scoring, list, or tabulation that evaluates any of the following:

(A) any person's exercise of religion that is

protected from government interference by the First Amendment to

the United States Constitution, article 1, sections 6 and 6-a of

Texas's Constitution, or federal or state law, including all

aspects of religious observance and practice, as well as belief and

affiliation;

(B) any person's speech, expression, or

association that is protected from government interference by the

First Amendment to the United States Constitution or article 1,

section 8 of Texas's Constitution, or federal or state law,

including the person's opinions, speech, or other expressive

activities, including the lawful preservation of privacy regarding

those activities, such as the refusal to disclose lobbying,

political activity, or contributions beyond what is required by

applicable state and federal law;

(C) failure or refusal to adopt any targets or

disclosures related to greenhouse gas emissions beyond what is

required by applicable state and federal law;

(D) 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;

(E) failure or refusal to facilitate or assist

employees in obtaining abortions or gender transition services; or

(F) except as provided in Subsection (b),

participation in the following lawful business associations or

business activities:

(a) business activity by the person or

others with firearms, ammunition, or firearms accessories

manufacturers or dealers; or

(b) business activity by the person or

others with an entity that engages in the exploration, production,

utilization, transportation, sale, or manufacturing of fossil fuel

sources or fossil-fuel-based energy.

(b) For the purposes of Subsection (F) only, "social credit

score" does not include the financial institution evaluating

quantifiable financial risks of a person based on impartial,

financial-risk-based standards that includes activities described

in Subsection (F), if such standards are established in advance by

the financial institution and publicly disclosed to customers and

potential customers.

(c) These definitions shall be construed in favor of the

broad protection of the conduct, opinions, and beliefs protected by

the First Amendment to the United States Constitution, applicable

federal laws, Texas's Constitution, and state law.

Sec. 121.002. PROHIBITED DISCRIMINATION IN FINANCIAL

SERVICES; EXPLANATION REQUIRED UPON REQUEST. (a) A financial

institution shall not:

(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 Subsection (1).

(b) If a financial institution refuses to provide,

restricts, or terminates service to a person, that person may

request a statement of specific reasons within 90 days after

receiving notice of the refusal to provide, restriction of, or

termination of service. The person may request the statement from a

customer service representative or designated account

representative by phone, U.S. mail, or electronic mail. Unless

otherwise prohibited by federal law, the financial institution must

transmit the statement of specific reasons via U.S. Mail and

electronic mail, if known to the financial institution, within 14

days of receiving the person's 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

person's speech, religious exercise, business activity with a

particular industry, or other conduct that was, in whole or in part,

the basis of the financial institution's denial or termination of

service;

(2) a copy of the terms of service agreed to by the

person 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.

Sec. 121.003. ENFORCEMENT. (a) Any violation of this

chapter shall constitute a violation of Chapter 17, Title 2,

Business & Commerce Code.

(b) If the Attorney General has reasonable cause to believe

that any financial institution has engaged in, is engaging in, or is

about to engage in, any violation of this chapter, the Attorney

General may investigate as provided in Section 17.60 and 17.61,

Business & Commerce Code, may bring a civil action as provided in

Section 17.47, Business & Commerce Code, and may seek remedies as

provided in Section 17.62, Business & Commerce Code.

(c) Any person harmed by a violation of this chapter may

initiate a civil action for either or both of the following:

(1) to recover actual damages, or $10,000, 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 of

up to three times the actual damages sustained, or $30,000,

whichever is greater. A court shall award a prevailing plaintiff

reasonable attorneys' fees and court costs.

(2) To obtain preventive relief, including an

application for a permanent or temporary injunction, restraining

order, or other order as is necessary to enforce the requirements of

this chapter.

SECTION 3. It is the intent of the legislature that every

provision, section, subsection, sentence, clause, phrase, or word

in this Act, and every application of the provisions in this Act,

are severable from each other. If any application of any provision

in this Act to any person, group of persons, or circumstances is

found by a court to be invalid, the remaining applications of that

provision to all other persons and circumstances shall be severed

and may not be affected. All constitutionally valid applications

of this Act shall be severed from any applications that a court

finds to be invalid, leaving the valid applications in force,

because it is the legislature's intent and priority that the valid

applications be allowed to stand alone. The legislature further

declares that it would have passed this Act, and each provision,

section, subsection, sentence, clause, phrase, or word, and all

constitutional applications of this Act, irrespective of the fact

that any provision, section, subsection, sentence, clause, phrase,

or word, or applications of this Act, were to be declared

unconstitutional.

SECTION 4. This Act takes effect September 1, 2025.