LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6128 NOTE PREPARED: Nov 7, 2023
BILL NUMBER: SB 28 BILL AMENDED:
SUBJECT: Discriminatory Financial Services Practices.
FIRST AUTHOR: Sen. Tomes BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: Social Credit Score - This bill prohibits a financial services provider from
discriminating in providing financial services to a consumer by using a social credit score as a basis for
directly or indirectly:
(1) declining to provide to the consumer full and equal access to one or more financial services; or
(2) providing the consumer with one or more financial services on less favorable terms and
conditions than would otherwise apply to the consumer if a social credit score were not used.
It defines "social credit score" for purposes of these provisions. It specifies that the term does not include
an analysis that involves a financial services provider's evaluation of any quantifiable risks of a consumer's
participation in certain business activities or business associations, if the analysis is based on impartial,
financial risk based standards that are:
(1) established in advance; and
(2) publicly disclosed to customers and potential customers;
by the financial services provider. It provides that if a financial services provider refuses to provide,
terminates, or restricts one or more financial services with respect to a consumer, the consumer may request
from the financial services provider a statement of the specific reasons constituting the basis for the refusal,
termination, or restriction. It provides that a financial services provider that receives such a request shall
transmit to the consumer a written statement setting forth the specific reasons constituting the basis for the
refusal, termination, or restriction. It sets forth requirements regarding the:
SB 28 1 (1) content of; and
(2) means and time frame for submitting;
a request or statement under these provisions.
Deceptive Acts - The bill provides that a violation of these provisions constitutes a deceptive act that is
actionable under the deceptive consumer sales act only by the Attorney General. It also provides that a
consumer aggrieved by a violation of these provisions may bring a civil action for damages, injunctive relief,
or both.
Effective Date: July 1, 2024.
Explanation of State Expenditures: Deceptive Acts: This bill may increase workload and expenditures for
the Attorney General to the extent that deceptive act violations increase. However, any increase is expected
to be small. The deceptive act is actionable by the consumer or the Attorney General.
Explanation of State Revenues: Deceptive Acts: If the number of deceptive acts increases, revenue to the
General Fund would also increase. Under current law, a civil penalty of $500 is assessed per deceptive act.
A penalty of $5,000 is assessed for each deceptive act committed knowingly. Actual revenue increases are
indeterminable.
Court Fee Revenue: If additional civil cases occur and court fees are collected, revenue to the state General
Fund will increase. The total revenue per case would range between $100 and $122. The amount deposited
will vary depending on whether the case is filed in a court of record or a municipal court. The following
linked document describes the fees and distribution of the revenue: Court fees imposed in civil, probate, and
small claims cases.
Explanation of Local Expenditures:
Explanation of Local Revenues: Court Fee Revenue: If additional cases occur, revenue will be collected
by certain local units. If the case is filed in a court of record, the county will receive $32 and qualifying
municipalities will receive a share of $3. If the case is filed in a municipal court, the county receives $20,
and the municipality will receive $37. The following linked document describes the fees and distribution of
the revenue: Court fees imposed in civil, probate, and small claims cases.
State Agencies Affected: Office of the Attorney General.
Local Agencies Affected: Trial courts, city and town courts.
Information Sources: Indiana Supreme Court, Indiana Trial Court Fee Manual.
Fiscal Analyst: Nate Bodnar, 317-234-9476.
SB 28 2