King Bill Bars Big Banks From Using Social Credit Scores

The text as introduced · 623 words

89R10644 MZM-F

By: King
S.B. No. 2492

A BILL TO BE ENTITLED

AN ACT

relating to prohibiting certain discrimination in the provision of

financial services.

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

SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is

amended by adding Chapter 121 to read as follows:

CHAPTER 121. PROHIBITED DISCRIMINATION IN PROVISION OF FINANCIAL

SERVICES

Sec. 121.001. DEFINITIONS. In this chapter:

(1) "Financial institution" has the meaning assigned

by Section 201.101, Finance Code.

(2) "Financial service" means a financial product or

service offered by a financial service provider.

(3) "Financial service provider" means a financial

institution or payment service provider.

(4) "Payment service provider" includes:

(A) a payment processor, credit card issuer,

credit card network, payment card network, or payment gateway

provider; and

(B) an affiliate or subsidiary company of a

person described by Paragraph (A).

(5) "Social credit score" means an analysis, rating,

scoring, list, or tabulation that evaluates a customer's:

(A) religious beliefs, speech, affiliations, or

other activities; or

(B) political opinions, speech, associations, or

other activities, including the customer's refusal to disclose

those activities.

Sec. 121.002. APPLICABILITY. This chapter applies only to

a financial service provider that:

(1) provides financial services to customers in this

state; and

(2) engaged in transactions totaling at least $100

billion in the preceding calendar year.

Sec. 121.003. CERTAIN DISCRIMINATION IN PROVISION OF

FINANCIAL SERVICES PROHIBITED. A financial service provider may

not:

(1) use a social credit score to directly or

indirectly decline to provide financial services, including

refusing to provide, terminate, or restrict financial services, to

a customer; or

(2) agree, conspire, or coordinate, directly or

indirectly, including through an intermediary or third party, with

another person or group of persons, to engage in conduct prohibited

by Subdivision (1).

Sec. 121.004. STATEMENT OF EXPLANATION. (a) A customer who

suspects the customer was declined a financial service in violation

of Section 121.003 may, not later than the 90th day after the date

the customer is informed of the financial service provider's

decision to decline to provide the service, request a statement of

explanation of the denial from the provider.

(b) A customer may request the statement of explanation:

(1) verbally from a customer service representative or

other agent of the financial service provider; or

(2) in writing, by submitting a written request by

mail or electronic mail to an address maintained and made publicly

available by the provider for that purpose.

(c) Not later than the 14th day after the date a financial

service provider receives a customer's request under this section,

the financial service provider shall provide the customer with a

written statement of explanation delivered by mail or, if known by

the provider, electronic mail. The statement of explanation must

include:

(1) a detailed explanation of the basis for the denial

of service, including a description of any activity engaged in by

the customer that, wholly or partly, formed the basis for the

provider's decision to deny service;

(2) if applicable, a copy of the terms of service

agreed to by the customer and the provider; and

(3) if applicable, a citation to the specific

provisions of the terms of service on which the provider relied in

its denial of service.

Sec. 121.005. DECEPTIVE TRADE PRACTICE. A violation of

Section 121.003 is a false, misleading, or deceptive act or

practice under Subchapter E, Chapter 17, and is actionable under

that subchapter.

Sec. 121.006. INTERPRETATION OF CHAPTER. This chapter

shall be broadly construed in favor of protecting rights guaranteed

by:

(1) the First Amendment to the United States

Constitution and related federal law; and

(2) Section 8, Article I, Texas Constitution, and

related state law.

SECTION 2. This Act takes effect September 1, 2025.