89R11944 TYPED
	By: Parker	S.B. No. 949

	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.