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Indiana House Bill HB1528

Indiana 2025 Regular Session

Indiana House Bill HB1528 Compare Versions

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22 Introduced Version
33 HOUSE BILL No. 1528
44 _____
55 DIGEST OF INTRODUCED BILL
66 Citations Affected: IC 24-5-28.
77 Synopsis: Discrimination in providing financial services. 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, 2025.
3535 Ireland
3636 January 21, 2025, read first time and referred to Committee on Financial Institutions.
3737 2025 IN 1528—LS 7733/DI 101 Digest Continued
3838 consumer sales act only by the attorney general. Provides that a
3939 consumer aggrieved by a violation of these provisions may bring a civil
4040 action (including a class action) for damages, injunctive relief, or both.
4141 2025 IN 1528—LS 7733/DI 1012025 IN 1528—LS 7733/DI 101 Introduced
4242 First Regular Session of the 124th General Assembly (2025)
4343 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
4444 Constitution) is being amended, the text of the existing provision will appear in this style type,
4545 additions will appear in this style type, and deletions will appear in this style type.
4646 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
4747 provision adopted), the text of the new provision will appear in this style type. Also, the
4848 word NEW will appear in that style type in the introductory clause of each SECTION that adds
4949 a new provision to the Indiana Code or the Indiana Constitution.
5050 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
5151 between statutes enacted by the 2024 Regular Session of the General Assembly.
5252 HOUSE BILL No. 1528
5353 A BILL FOR AN ACT to amend the Indiana Code concerning trade
5454 regulation.
5555 Be it enacted by the General Assembly of the State of Indiana:
5656 1 SECTION 1. IC 24-5-28 IS ADDED TO THE INDIANA CODE AS
5757 2 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
5858 3 1, 2025]:
5959 4 Chapter 28. Equality in Financial Services Act
6060 5 Sec. 1. This chapter may be cited as the "Equality in Financial
6161 6 Services Act".
6262 7 Sec. 2. As used in this chapter, "affiliate" means any person who
6363 8 directly or indirectly:
6464 9 (1) controls;
6565 10 (2) is controlled by; or
6666 11 (3) is under the common control of;
6767 12 another person.
6868 13 Sec. 3. As used in this chapter, "consumer" means:
6969 14 (1) a natural person whose principal residence is in Indiana;
7070 15 or
7171 2025 IN 1528—LS 7733/DI 101 2
7272 1 (2) a person, other than a natural person, that:
7373 2 (A) is incorporated in Indiana or has its principal place of
7474 3 business in Indiana; or
7575 4 (B) maintains in Indiana one (1) or more fixed physical
7676 5 locations from which the person conducts business.
7777 6 Sec. 4. As used in this chapter, "discriminate in providing
7878 7 financial services" means using a social credit score as a basis for
7979 8 directly or indirectly:
8080 9 (1) declining to provide to a consumer full and equal access to
8181 10 one (1) or more financial services; or
8282 11 (2) providing a consumer with one (1) or more financial
8383 12 services on less favorable terms and conditions than would
8484 13 otherwise apply to the consumer if a social credit score were
8585 14 not used;
8686 15 including by refusing to provide, terminating, or restricting the
8787 16 provision of financial services to the consumer.
8888 17 Sec. 5. (a) As used in this chapter, "financial institution" means
8989 18 any bank, trust company, corporate fiduciary, savings association,
9090 19 credit union, savings bank, bank of discount and deposit, or
9191 20 industrial loan and investment company organized or reorganized
9292 21 under Indiana law, the law of another state (as defined in
9393 22 IC 28-2-17-19), or United States law.
9494 23 (b) The term includes licensees under IC 24-4.4, IC 24-4.5, and
9595 24 750 IAC 9.
9696 25 Sec. 6. As used in this chapter, "financial service" means any
9797 26 financial product or service offered by a financial services
9898 27 provider.
9999 28 Sec. 7. (a) As used in this chapter, "financial services provider"
100100 29 means any of the following:
101101 30 (1) A financial institution that has total assets of more than
102102 31 ten million dollars ($10,000,000).
103103 32 (2) Any payment card network, payment processor, or other
104104 33 payment service provider that:
105105 34 (A) processed more than ten million dollars ($10,000,000)
106106 35 in transactions in the preceding calendar year; or
107107 36 (B) processes or will process more than ten million dollars
108108 37 ($10,000,000) in transactions in the current calendar year,
109109 38 if the payment card network, payment processor, or other
110110 39 payment service provider did not process more than ten
111111 40 million dollars ($10,000,000) in transactions in the
112112 41 preceding calendar year.
113113 42 (3) A person not otherwise described in subdivision (1) or (2)
114114 2025 IN 1528—LS 7733/DI 101 3
115115 1 that:
116116 2 (A) offers one (1) or more financial services; and
117117 3 (B) meets the:
118118 4 (i) asset threshold set forth in subdivision (2)(A); or
119119 5 (ii) transaction threshold set forth in subdivision (2)(B);
120120 6 as applicable to the person's business.
121121 7 (b) The term includes:
122122 8 (1) a director;
123123 9 (2) an executive officer;
124124 10 (3) a manager; or
125125 11 (4) any other person, including an agent;
126126 12 that has the power to exercise a controlling influence over the
127127 13 management or policies of a person described in subsection (a)(1)
128128 14 through (a)(3).
129129 15 (c) The term includes an affiliate of any of the following:
130130 16 (1) A financial institution described in subsection (a)(1),
131131 17 regardless of whether the affiliate is also a financial institution
132132 18 described in subsection (a)(1).
133133 19 (2) Any:
134134 20 (A) payment card network;
135135 21 (B) payment processor; or
136136 22 (C) other payment service provider;
137137 23 described in subsection (a)(2), regardless of whether the
138138 24 affiliate is also a payment card network, a payment
139139 25 proccessor, or another payment service provider described in
140140 26 subsection (a)(2).
141141 27 (3) A person described in subsection (a)(3), regardless of
142142 28 whether the affiliate:
143143 29 (A) is engaged in the same business; or
144144 30 (B) offers the same financial services;
145145 31 as the person described in subsection (a)(3).
146146 32 Sec. 8. As used in this chapter, "payment card network" means
147147 33 an entity that directly, or through licensed members, processors,
148148 34 or agents, provides the proprietary services, infrastructure, and
149149 35 software that:
150150 36 (1) route information and data to conduct debit card or credit
151151 37 card transaction authorization, clearance, and settlement; and
152152 38 (2) a merchant or seller uses in order to accept as a form of
153153 39 payment a brand of:
154154 40 (A) debit card;
155155 41 (B) credit card; or
156156 42 (C) another device that may be used to carry out debit or
157157 2025 IN 1528—LS 7733/DI 101 4
158158 1 credit transactions.
159159 2 Sec. 9. As used in this chapter, "person" means:
160160 3 (1) a natural person; or
161161 4 (2) an organization, including a corporation, a partnership, a
162162 5 proprietorship, an association, a cooperative, an estate, a
163163 6 trust, or any other group or entity.
164164 7 Sec. 10. (a) As used in this chapter, "social credit score" means
165165 8 any analysis, rating, score, numerical value, or categorization that
166166 9 is derived from an evaluation of any of the following:
167167 10 (1) A consumer's exercise of religion as protected from
168168 11 governmental interference by:
169169 12 (A) the First Amendment to the Constitution of the United
170170 13 States;
171171 14 (B) Article 1, Sections 2 and 3 of the Constitution of the
172172 15 State of Indiana; or
173173 16 (C) federal or state law;
174174 17 including all aspects of religious observance, practice, belief,
175175 18 and affiliation.
176176 19 (2) A consumer's exercise of speech, expression, or assembly
177177 20 as protected from governmental interference by:
178178 21 (A) the First Amendment to the Constitution of the United
179179 22 States;
180180 23 (B) Article 1, Sections 9 and 31 of the Constitution of the
181181 24 State of Indiana; or
182182 25 (C) federal or state law;
183183 26 including the lawful protection of privacy regarding a
184184 27 consumer's expressive activities, such as the refusal to disclose
185185 28 political activity, lobbying activity, or political contributions,
186186 29 beyond what is required by applicable federal or state law.
187187 30 (3) A consumer's failure or refusal to adopt or disseminate
188188 31 any targets, goals, or disclosures related to greenhouse gas
189189 32 emissions, beyond what is required by applicable federal or
190190 33 state law.
191191 34 (4) A consumer's failure or refusal to:
192192 35 (A) conduct or disseminate any type of diversity, equity,
193193 36 and inclusion program, audit, or disclosure; or
194194 37 (B) establish or provide any quota, preference, or benefit
195195 38 based, in whole or in part, on race, diversity, or gender.
196196 39 (5) A consumer's failure or refusal to facilitate or assist
197197 40 employees in obtaining abortions or gender transition
198198 41 procedures.
199199 42 (6) Except as provided in subsection (b), a consumer's
200200 2025 IN 1528—LS 7733/DI 101 5
201201 1 participation in any lawful business activities or business
202202 2 associations, including:
203203 3 (A) business activity with firearms, firearms accessories, or
204204 4 ammunition manufacturers or dealers; or
205205 5 (B) business activity with the fossil fuel industry.
206206 6 (b) For purposes of subsection (a)(6), "social credit score" does
207207 7 not include an analysis that involves a financial services provider's
208208 8 evaluation of any quantifiable risks of a consumer's participation
209209 9 in business activities or business associations, if the analysis is
210210 10 based on impartial, financial risk based standards that are:
211211 11 (1) established in advance by the financial services provider;
212212 12 and
213213 13 (2) publicly disclosed to the financial services provider's
214214 14 customers and potential customers.
215215 15 Sec. 11. (a) A financial services provider shall not:
216216 16 (1) discriminate in providing financial services to a consumer;
217217 17 or
218218 18 (2) agree, conspire, or coordinate, directly or indirectly or
219219 19 through any intermediary or third party, with another person
220220 20 to discriminate in providing financial services to a consumer.
221221 21 (b) If a financial services provider refuses to provide,
222222 22 terminates, or restricts one (1) or more financial services with
223223 23 respect to a consumer, the consumer may request from the
224224 24 financial services provider a statement of the specific reasons
225225 25 constituting the basis for the refusal, termination, or restriction. A
226226 26 consumer must submit a request under this subsection not later
227227 27 than ninety (90) days after receiving notice of the refusal to
228228 28 provide, the termination, or the restriction. A consumer may
229229 29 submit a request under this subsection by:
230230 30 (1) telephone:
231231 31 (A) through a toll free telephone number; and
232232 32 (B) from one (1) or more customer service or account
233233 33 representatives;
234234 34 designated by the financial services provider;
235235 35 (2) United States mail; or
236236 36 (3) electronic mail or through other electronic means.
237237 37 Not later than fourteen (14) days after receiving a request under
238238 38 this subsection, a financial services provider shall transmit to the
239239 39 consumer, by United States mail or by electronic means, a written
240240 40 statement setting forth the specific reasons constituting the basis,
241241 41 in whole or in part, for the refusal, termination, or restriction. If a
242242 42 financial services provider transmits the required statement by
243243 2025 IN 1528—LS 7733/DI 101 6
244244 1 United States mail, the financial services provider complies with
245245 2 the time frame set forth in this subsection if the financial services
246246 3 provider deposits the statement in the United States mail with
247247 4 postage prepaid, and the notice is postmarked not later than
248248 5 fourteen (14) days after the date of receipt of the consumer's
249249 6 request under this subsection.
250250 7 (c) A financial services provider's statement under subsection
251251 8 (b) must include the following:
252252 9 (1) A detailed explanation of the reasons for the refusal,
253253 10 termination, or restriction of financial services with respect to
254254 11 the consumer, including any:
255255 12 (A) exercise of religion;
256256 13 (B) exercise of speech, expression, or assembly;
257257 14 (C) participation in business activities or business
258258 15 associations; or
259259 16 (D) other conduct, including any conduct described in
260260 17 section 10(a)(3), 10(a)(4), or 10(a)(5) of this chapter;
261261 18 undertaken by the consumer and that constituted the basis, in
262262 19 whole or in part, for the refusal, termination, or restriction of
263263 20 financial services by the financial services provider.
264264 21 (2) In the case of a consumer who is an existing customer of
265265 22 the financial services provider:
266266 23 (A) a copy of the terms of service agreed to by the
267267 24 consumer and the financial services provider; and
268268 25 (B) a citation to the specific provisions of the terms of
269269 26 service upon which the financial services provider relied in
270270 27 refusing to provide, terminating, or restricting the
271271 28 financial services to the consumer;
272272 29 to the extent applicable.
273273 30 Sec. 12. (a) A violation of this chapter constitutes a deceptive act
274274 31 that is actionable under IC 24-5-0.5 only by the attorney general
275275 32 under IC 24-5-0.5-4(c).
276276 33 (b) If the attorney general has reasonable cause to believe that
277277 34 a financial services provider has engaged in, is engaging in, or is
278278 35 about to engage in a violation of this chapter, the attorney general
279279 36 may:
280280 37 (1) investigate the violation or suspected violation;
281281 38 (2) bring an action and seek remedies as provided in
282282 39 IC 24-5-0.5-4(c); and
283283 40 (3) accept an assurance of voluntary compliance from a
284284 41 financial services provider under IC 24-5-0.5-7.
285285 42 Sec. 13. (a) A consumer who is aggrieved by a violation of this
286286 2025 IN 1528—LS 7733/DI 101 7
287287 1 chapter may bring a civil action in a court having jurisdiction, for
288288 2 one (1) or both of the following:
289289 3 (1) Actual damages or ten thousand dollars ($10,000),
290290 4 whichever is greater. The court may increase damages for a
291291 5 willful violation in an amount that does not exceed the greater
292292 6 of:
293293 7 (A) three (3) times the actual damages sustained; or
294294 8 (B) thirty thousand dollars ($30,000).
295295 9 (2) Injunctive relief, including:
296296 10 (A) a permanent or temporary injunction;
297297 11 (B) a permanent or temporary restraining order; or
298298 12 (C) any other order;
299299 13 as necessary to enforce the requirements of this chapter.
300300 14 (b) Any consumer who is entitled to bring an action under
301301 15 subsection (a) on the consumer's own behalf for a violation of this
302302 16 chapter may bring a class action on behalf of any class of persons
303303 17 of which that person is a member and that has been damaged by
304304 18 the violation, subject to and under the Indiana Rules of Trial
305305 19 Procedure governing class actions.
306306 20 (c) An action under this section must be brought not later than
307307 21 five (5) years after the date:
308308 22 (1) a consumer first discovers the action constituting
309309 23 discrimination in the provision of financial services as
310310 24 described in this chapter; or
311311 25 (2) a consumer receives a notice under section 11(b) of this
312312 26 chapter;
313313 27 whichever is later.
314314 28 (d) A court shall award a prevailing plaintiff in an action
315315 29 brought under this section reasonable attorney's fees and costs.
316316 30 (e) A foreign entity's registration with the secretary of state
317317 31 under IC 23-0.5, including the foreign entity's appointment of an
318318 32 agent for service of process, constitutes consent to personal
319319 33 jurisdiction in Indiana for purposes of an action brought under this
320320 34 section.
321321 35 Sec. 14. The provisions of this chapter are severable as provided
322322 36 in IC 1-1-1-8(b).
323323 2025 IN 1528—LS 7733/DI 101