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Indiana Senate Bill SB0028

Indiana 2024 Regular Session

Indiana Senate Bill SB0028 Compare Versions

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22 Introduced Version
33 SENATE BILL No. 28
44 _____
55 DIGEST OF INTRODUCED BILL
66 Citations Affected: IC 24-5-28.
77 Synopsis: Discriminatory financial services practices. Prohibits a
88 financial services provider from discriminating in providing financial
99 services to a consumer by using a social credit score as a basis for
1010 directly or indirectly: (1) declining to provide to the consumer full and
1111 equal access to one or more financial services; or (2) providing the
1212 consumer with one or more financial services on less favorable terms
1313 and conditions than would otherwise apply to the consumer if a social
1414 credit score were not used. Defines "social credit score" for purposes
1515 of these provisions. Specifies that the term does not include an analysis
1616 that involves a financial services provider's evaluation of any
1717 quantifiable risks of a consumer's participation in certain business
1818 activities or business associations, if the analysis is based on impartial,
1919 financial risk based standards that are: (1) established in advance; and
2020 (2) publicly disclosed to customers and potential customers; by the
2121 financial services provider. Provides that if a financial services
2222 provider refuses to provide, terminates, or restricts one or more
2323 financial services with respect to a consumer, the consumer may
2424 request from the financial services provider a statement of the specific
2525 reasons constituting the basis for the refusal, termination, or restriction.
2626 Provides that a financial services provider that receives such a request
2727 shall transmit to the consumer a written statement setting forth the
2828 specific reasons constituting the basis for the refusal, termination, or
2929 restriction. Sets forth requirements regarding the: (1) content of; and
3030 (2) means and time frame for submitting; a request or statement under
3131 these provisions. Provides that a violation of these provisions
3232 constitutes a deceptive act that is actionable under the deceptive
3333 (Continued next page)
3434 Effective: July 1, 2024.
3535 Tomes
3636 January 8, 2024, read first time and referred to Committee on Insurance and Financial
3737 Institutions.
3838 2024 IN 28—LS 6128/DI 101 Digest Continued
3939 consumer sales act only by the attorney general. Provides that a
4040 consumer aggrieved by a violation of these provisions may bring a civil
4141 action for damages, injunctive relief, or both.
4242 2024 IN 28—LS 6128/DI 1012024 IN 28—LS 6128/DI 101 Introduced
4343 Second Regular Session of the 123rd General Assembly (2024)
4444 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
4545 Constitution) is being amended, the text of the existing provision will appear in this style type,
4646 additions will appear in this style type, and deletions will appear in this style type.
4747 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
4848 provision adopted), the text of the new provision will appear in this style type. Also, the
4949 word NEW will appear in that style type in the introductory clause of each SECTION that adds
5050 a new provision to the Indiana Code or the Indiana Constitution.
5151 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
5252 between statutes enacted by the 2023 Regular Session of the General Assembly.
5353 SENATE BILL No. 28
5454 A BILL FOR AN ACT to amend the Indiana Code concerning trade
5555 regulation.
5656 Be it enacted by the General Assembly of the State of Indiana:
5757 1 SECTION 1. IC 24-5-28 IS ADDED TO THE INDIANA CODE AS
5858 2 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
5959 3 1, 2024]:
6060 4 Chapter 28. Equality in Financial Services Act
6161 5 Sec. 1. This chapter may be cited as the "Equality in Financial
6262 6 Services Act".
6363 7 Sec. 2. As used in this chapter, "affiliate" means any person who
6464 8 directly or indirectly:
6565 9 (1) controls;
6666 10 (2) is controlled by; or
6767 11 (3) is under the common control of;
6868 12 another person.
6969 13 Sec. 3. As used in this chapter, "consumer" means:
7070 14 (1) a natural person whose principal residence is in Indiana;
7171 15 or
7272 2024 IN 28—LS 6128/DI 101 2
7373 1 (2) a person, other than a natural person, that is domiciled in
7474 2 Indiana.
7575 3 Sec. 4. As used in this chapter, "discriminate in providing
7676 4 financial services" means using a social credit score as a basis for
7777 5 directly or indirectly:
7878 6 (1) declining to provide to a consumer full and equal access to
7979 7 one (1) or more financial services; or
8080 8 (2) providing a consumer with one (1) or more financial
8181 9 services on less favorable terms and conditions than would
8282 10 otherwise apply to the consumer if a social credit score were
8383 11 not used;
8484 12 including by refusing to provide, terminating, or restricting the
8585 13 provision of financial services to the consumer.
8686 14 Sec. 5. (a) As used in this chapter, "financial institution" means
8787 15 any bank, trust company, corporate fiduciary, savings association,
8888 16 credit union, savings bank, bank of discount and deposit, or
8989 17 industrial loan and investment company organized or reorganized
9090 18 under Indiana law, the law of another state (as defined in
9191 19 IC 28-2-17-19), or United States law.
9292 20 (b) The term includes licensees under IC 24-4.4, IC 24-4.5, and
9393 21 750 IAC 9.
9494 22 Sec. 6. As used in this chapter, "financial service" means any
9595 23 financial product or service offered by a financial services
9696 24 provider.
9797 25 Sec. 7. (a) As used in this chapter, "financial services provider"
9898 26 means any of the following:
9999 27 (1) A financial institution that has total assets of more than
100100 28 ten million dollars ($10,000,000).
101101 29 (2) Any payment card network, payment platform, or other
102102 30 payment service provider that:
103103 31 (A) processed more than ten million dollars ($10,000,000)
104104 32 in transactions in the preceding calendar year; or
105105 33 (B) processes or will process more than ten million dollars
106106 34 ($10,000,000) in transactions in the current calendar year,
107107 35 if the payment card network, payment platform, or other
108108 36 payment service provider did not process more than ten
109109 37 million dollars ($10,000,000) in transactions in the
110110 38 preceding calendar year.
111111 39 (b) The term includes an affiliate of any of the following:
112112 40 (1) A financial institution described in subsection (a)(1),
113113 41 regardless of whether the affiliate is also a financial institution
114114 42 described in subsection (a)(1).
115115 2024 IN 28—LS 6128/DI 101 3
116116 1 (2) Any:
117117 2 (A) payment card network;
118118 3 (B) payment platform; or
119119 4 (C) other payment service provider;
120120 5 described in subsection (a)(2), regardless of whether the
121121 6 affiliate is also a payment card network, a payment platform,
122122 7 or another payment service provider described in subsection
123123 8 (a)(2).
124124 9 Sec. 8. As used in this chapter, "payment card network" means
125125 10 an entity that directly, or through licensed members, processors,
126126 11 or agents, provides the proprietary services, infrastructure, and
127127 12 software that:
128128 13 (1) route information and data to conduct debit card or credit
129129 14 card transaction authorization, clearance, and settlement; and
130130 15 (2) a merchant or seller uses in order to accept as a form of
131131 16 payment a brand of:
132132 17 (A) debit card;
133133 18 (B) credit card; or
134134 19 (C) another device that may be used to carry out debit or
135135 20 credit transactions.
136136 21 Sec. 9. As used in this chapter, "person" means:
137137 22 (1) a natural person; or
138138 23 (2) an organization, including a corporation, a partnership, a
139139 24 proprietorship, an association, a cooperative, an estate, or a
140140 25 trust.
141141 26 Sec. 10. (a) As used in this chapter, "social credit score" means
142142 27 any analysis, rating, score, numerical value, or categorization that
143143 28 is derived from an evaluation of any of the following:
144144 29 (1) A consumer's exercise of religion as protected from
145145 30 governmental interference by:
146146 31 (A) the First Amendment to the Constitution of the United
147147 32 States;
148148 33 (B) Article 1, Sections 2 and 3 of the Constitution of the
149149 34 State of Indiana; or
150150 35 (C) federal or state law;
151151 36 including all aspects of religious observance, practice, belief,
152152 37 and affiliation.
153153 38 (2) A consumer's exercise of speech, expression, or assembly
154154 39 as protected from governmental interference by:
155155 40 (A) the First Amendment to the Constitution of the United
156156 41 States;
157157 42 (B) Article 1, Sections 9 and 31 of the Constitution of the
158158 2024 IN 28—LS 6128/DI 101 4
159159 1 State of Indiana; or
160160 2 (C) federal or state law;
161161 3 including the lawful protection of privacy regarding a
162162 4 consumer's expressive activities, such as the refusal to disclose
163163 5 political activity, lobbying activity, or political contributions,
164164 6 beyond what is required by applicable federal or state law.
165165 7 (3) A consumer's failure or refusal to adopt or disseminate
166166 8 any targets, goals, or disclosures related to greenhouse gas
167167 9 emissions, beyond what is required by applicable federal or
168168 10 state law.
169169 11 (4) A consumer's failure or refusal to:
170170 12 (A) conduct or disseminate any type of diversity, equity,
171171 13 and inclusion program, audit, or disclosure; or
172172 14 (B) establish or provide any quota, preference, or benefit
173173 15 based, in whole or in part, on race, diversity, or gender.
174174 16 (5) A consumer's failure or refusal to facilitate or assist
175175 17 employees in obtaining abortions or gender transition
176176 18 procedures.
177177 19 (6) Except as provided in subsection (b), a consumer's
178178 20 participation in any lawful business activities or business
179179 21 associations, including:
180180 22 (A) business activity with firearms or ammunition
181181 23 manufacturers or dealers; or
182182 24 (B) business activity with the fossil fuel industry.
183183 25 (b) For purposes of subsection (a)(6), "social credit score" does
184184 26 not include an analysis that involves a financial services provider's
185185 27 evaluation of any quantifiable risks of a consumer's participation
186186 28 in business activities or business associations, if the analysis is
187187 29 based on impartial, financial risk based standards that are:
188188 30 (1) established in advance by the financial services provider;
189189 31 and
190190 32 (2) publicly disclosed to the financial services provider's
191191 33 customers and potential customers.
192192 34 Sec. 11. (a) A financial services provider shall not:
193193 35 (1) discriminate in providing financial services to a consumer;
194194 36 or
195195 37 (2) agree, conspire, or coordinate, directly or indirectly or
196196 38 through any intermediary or third party, with another person
197197 39 to discriminate in providing financial services to a consumer.
198198 40 (b) If a financial services provider refuses to provide,
199199 41 terminates, or restricts one (1) or more financial services with
200200 42 respect to a consumer, the consumer may request from the
201201 2024 IN 28—LS 6128/DI 101 5
202202 1 financial services provider a statement of the specific reasons
203203 2 constituting the basis for the refusal, termination, or restriction. A
204204 3 consumer must submit a request under this subsection not later
205205 4 than ninety (90) days after receiving notice of the refusal to
206206 5 provide, the termination, or the restriction. A consumer may
207207 6 submit a request under this subsection by:
208208 7 (1) telephone:
209209 8 (A) through a toll free telephone number; and
210210 9 (B) from one (1) or more customer service or account
211211 10 representatives;
212212 11 designated by the financial services provider;
213213 12 (2) United States mail; or
214214 13 (3) electronic mail or through other electronic means.
215215 14 Not later than fourteen (14) days after receiving a request under
216216 15 this subsection, a financial services provider shall transmit to the
217217 16 consumer, by United States mail or by electronic means, a written
218218 17 statement setting forth the specific reasons constituting the basis,
219219 18 in whole or in part, for the refusal, termination, or restriction. If a
220220 19 financial services provider transmits the required statement by
221221 20 United States mail, the financial services provider complies with
222222 21 the time frame set forth in this subsection if the financial services
223223 22 provider deposits the statement in the United States mail with
224224 23 postage prepaid, and the notice is postmarked not later than
225225 24 fourteen (14) days after the date of receipt of the consumer's
226226 25 request under this subsection.
227227 26 (c) A financial services provider's statement under subsection
228228 27 (b) must include the following:
229229 28 (1) A detailed explanation of the reasons for the refusal,
230230 29 termination, or restriction of financial services with respect to
231231 30 the consumer, including any:
232232 31 (A) exercise of religion;
233233 32 (B) exercise of speech, expression, or assembly;
234234 33 (C) participation in business activities or business
235235 34 associations; or
236236 35 (D) other conduct, including any conduct described in
237237 36 section 10(a)(3), 10(a)(4), or 10(a)(5) of this chapter;
238238 37 undertaken by the consumer and that constituted the basis, in
239239 38 whole or in part, for the refusal, termination, or restriction of
240240 39 financial services by the financial services provider.
241241 40 (2) In the case of a consumer who is an existing customer of
242242 41 the financial services provider:
243243 42 (A) a copy of the terms of service agreed to by the
244244 2024 IN 28—LS 6128/DI 101 6
245245 1 consumer and the financial services provider; and
246246 2 (B) a citation to the specific provisions of the terms of
247247 3 service upon which the financial services provider relied in
248248 4 refusing to provide, terminating, or restricting the
249249 5 financial services to the consumer;
250250 6 to the extent applicable.
251251 7 Sec. 12. (a) A violation of this chapter constitutes a deceptive act
252252 8 that is actionable under IC 24-5-0.5 only by the attorney general
253253 9 under IC 24-5-0.5-4(c).
254254 10 (b) If the attorney general has reasonable cause to believe that
255255 11 a financial services provider has engaged in, is engaging in, or is
256256 12 about to engage in a violation of this chapter, the attorney general
257257 13 may:
258258 14 (1) investigate the violation or suspected violation;
259259 15 (2) bring an action and seek remedies as provided in
260260 16 IC 24-5-0.5-4(c); and
261261 17 (3) accept an assurance of voluntary compliance from a
262262 18 financial services provider under IC 24-5-0.5-7.
263263 19 Sec. 13. A consumer who is aggrieved by a violation of this
264264 20 chapter may bring a civil action, in a court having jurisdiction, for
265265 21 one (1) or both of the following:
266266 22 (1) Actual damages or ten thousand dollars ($10,000),
267267 23 whichever is greater. The court may increase damages for a
268268 24 willful violation in an amount that does not exceed the greater
269269 25 of:
270270 26 (A) three (3) times the actual damages sustained; or
271271 27 (B) thirty thousand dollars ($30,000).
272272 28 (2) Injunctive relief, including:
273273 29 (A) a permanent or temporary injunction;
274274 30 (B) a permanent or temporary restraining order; or
275275 31 (C) any other order;
276276 32 as necessary to enforce the requirements of this chapter.
277277 33 A court shall award a prevailing plaintiff in an action brought
278278 34 under this section reasonable attorney's fees and court costs.
279279 35 Sec. 14. The provisions of this chapter are severable as provided
280280 36 in IC 1-1-1-8(b).
281281 2024 IN 28—LS 6128/DI 101