SB 1094
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ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature
First Regular Session
Senate: GOV DP 4-3-0-0 | 3
rd
Read 17-12-1-0
House: COM DP 6-3-0-1
SB 1094: business; discrimination prohibition; social criteria
Sponsor: Senator Hoffman, LD 15
Caucus & COW
Overview
Precludes a financial institution, insurer or credit reporting agency from discriminating
based on political affiliation or other social credit or impact criteria.
History
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. An insurer
includes a person engaged in the business of making contracts of insurance. 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. §§ 6-101, 20-104, 44-1691).
The Equal Credit Opportunity Act (ECOA) prohibits discrimination in any aspect of a credit
transaction. It applies to any extension of credit, including extensions of credit to small
businesses, corporations, partnerships, and trusts. The ECOA prohibits discrimination based
on race, color, religion, national origin, sex, marital status, age, the applicant’s receipt of
income derived from any public assistance program or the applicant’s exercise, in good faith,
of any right under the Consumer Credit Protection Act.
Provisions
1. Prohibits a financial institution, an insurer and a credit reporting agency from
discriminating against an individual based on:
a) political affiliation; or
b) other social credit, environmental, social justice or governmental score or similar
values-based or impact criteria. (Sec. 1)
2. Specifies the prohibition does not interfere with the ability for a financial institution, an
insurer or a credit reporting agency to discontinue or refuse to conduct business with a
person when the action is necessary for the physical safety of the employees. (Sec. 1)
3. Stipulates that a financial institution may offer investments, products or services to a
potential customer or investor that include subjective standards if the standards are fully
disclosed and explained to the potential customer or investor before entering a contract.
(Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note SB 1094
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4. Declares that the practice of discrimination based on social credit, environmental, social
justice and governmental score is a matter of statewide concern and threatens the rights,
proper privileges and general welfare of the state and its inhabitants. (Sec. 1)