Assigned to FICO FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
FACT SHEET FOR S.B. 1167
social credit; discrimination; financial services
Purpose
Prohibits a financial institution from discriminating in providing financial services or
engaging in any prohibited activities. Allows a customer to request a financial institution to provide
a written statement of the specific reason for refusal, restriction or termination of service and
outlines statement requirements. Grants investigative authority to the Attorney General (AG) and
establishes civil penalties.
Background
Statute authorizes and outlines the regulation and operation of banks and financial
institutions in Arizona. The Department of Insurance and Financial Institutions licenses, supervises
and regulates state-chartered financial institutions and enterprises and is responsible for annual
assessments of the financial institutions and enterprises to ensure the safety and stability of the
financial services industry (A.R.S. Title 6).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Prohibits a financial institution from:
a) using a social credit score to either directly or indirectly decline to provide full and equal
enjoyment in the provision of financial services, including refusing to provide, terminating
or restricting financial services; or
b) agreeing, conspiring or coordinating, directly or indirectly, through an intermediary, a third
party, another person or a group of persons to engage in any prohibited activity.
2. Allows a customer, if a financial institution refuses to provide service or restricts or terminates
the customer's service, to request within 90 days the financial institution to provide a written
statement of specific reasons for the financial institution's refusal, restriction or termination of
service.
3. Allows a customer to request the statement from a customer service representative or
designated account representative by telephone, U.S. mail or email.
4. Requires a financial institution to transmit the statement of specific reasons through U.S. mail
and email within 14 days of receiving the customer's request and requires the statement to
include:
a) a detailed explanation of the basis for the denial or termination of service that includes a
description of the customer's speech, religious exercise, business activity with a particular
industry or any other related conduct;
b) a copy of the service terms agreed to by the customer and financial institution; and
c) a citation to the specific provisions of the service terms that the financial institution relied
on in its decision. FACT SHEET
S.B. 1167
Page 2
5. Allows, if the AG has reasonable cause to believe that a financial institution has engaged in, is
engaging in or is about to engage in prohibited activity, the AG to investigate as deemed
appropriate and, after determining from the investigation that a violation exists, to bring an
action in a court of competent jurisdiction.
6. Allows a person harmed by a violation to initiate a civil action to:
a) recover actual damages or $10,000, whichever is greater, for each violation, except that if
a trier of fact finds a violation wilful, the damages recoverable increase to an amount up to
three times the actual damages sustained or $30,000, whichever is greater; and
b) obtain provisional remedies that include a temporary or permanent injunction, a restraining
order or any other necessary enforcement remedy.
7. Requires a court to award a prevailing plaintiff reasonable attorney fees and court costs.
8. Defines terms.
9. Designates this legislation as the Equality in Financial Services Act.
10. Becomes effective on the general effective date.
Prepared by Senate Research
January 25, 2024
MG/AB/cs