Assigned to GOV FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
FACT SHEET FOR S.B. 1094
business; discrimination prohibition; social criteria
Purpose
Prohibits a financial institution, insurer or credit reporting agency from discriminating
against any person based on a political affiliation or other social credit, environmental, social or
governmental score or similar values-based or impact criteria.
Background
A financial institution is a bank, trust company, savings and loan association, credit union,
consumer lender, international banking facility or financial institution holding company under the
jurisdiction of the Department of Insurance and Financial Institutions (A.R.S. § 6-101). An insurer
includes a person engaged in the business of making contracts of insurance (A.R.S. § 20-104). A
credit reporting agency is a person that regularly engages in the practice of assembling or
evaluating consumer credit information on consumers for the purpose of furnishing consumer
reports to third parties (A.R.S. § 44-1691).
The federal Equal Credit Opportunity Act prohibits creditors from discriminating against
credit applicants on the basis of race, color, religion, national origin, sex marital status, age, use of
a public assistance program for income or because the applicant has, in good faith, exercised any
right under the federal Consumer Credit Protection Act (15 U.S.C. 1691).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Prohibits a financial institution, insurer or credit reporting agency doing business in Arizona
from discriminating, either directly or indirectly, against any person based on:
a) a political affiliation; or
b) other social credit, environmental, social or governmental score or similar values-based or
impact criteria.
2. Allows a financial institution to offer investments, products or services to a potential customer
or investor that include subjective standards if the standards are fully disclosed and explained
before entering into a contract for the investments, products or services.
3. States that the Legislature declares that:
a) the practice of discrimination against persons or entities in Arizona by using the person's
or entity's social credit, environmental, social justice or governmental score is a matter of
statewide concern; and
b) discrimination based on such scores not only threatens the rights and proper privileges of
Arizona's inhabitants but menaces the institutions and foundation of a free democratic state
and threatens the peace, order, health, safety and general welfare of the state and its
inhabitants. FACT SHEET
S.B. 1094
Page 2
4. Stipulates that the prohibition does not interfere with a financial institution's, insurer's or credit
reporting agency's ability to discontinue or refuse to conduct business with a person when the
action is necessary for the physical safety of its employees.
5. Becomes effective on the general effective date.
Prepared by Senate Research
January 27, 2025
AN/SDR/slp