Louisiana 2022 Regular Session

Louisiana House Bill HB342

Introduced
3/2/22  
Introduced
3/2/22  
Refer
3/2/22  
Refer
3/2/22  
Refer
3/14/22  

Caption

Provides relative to discrimination by financial institutions

Impact

The bill's enactment would amend existing financial laws to protect individuals from being refused financial services based on their political beliefs or ESG scores. By establishing guidelines that prevent financial institutions from basing their services on these factors, HB 342 aims to foster a more inclusive environment for all individuals seeking financial assistance. This legislative change underscores the importance of individual rights and highlights concerns regarding the potential misuse of social credit systems that could disadvantage certain populations.

Summary

House Bill 342 seeks to prohibit discrimination by financial institutions based on a person's political affiliation or environmental, social, and governance (ESG) factors. The proposed law aims to ensure that individuals are not denied financial services solely based on these criteria. It mandates financial institutions to disclose and explain any subjective standards used before offering investments or services, ensuring transparency in their decision-making practices. This legislation acknowledges the significance of these discrimination issues as a matter of statewide concern, emphasizing the need for fairness in financial dealings.

Sentiment

The general sentiment surrounding HB 342 appears to be supportive among those who advocate for individual rights and equitable treatment in financial services. Proponents argue that the bill is necessary to protect citizens against unwarranted discrimination and to promote social justice. However, there may also be concerns raised by those who argue that such legislation could complicate the operations of financial institutions, potentially creating unintended consequences. The debate reflects broader discussions on the balance between business regulations and protecting personal liberties.

Contention

Notable points of contention include the implications of regulating financial institutions' practices while maintaining the necessary flexibility for these entities to refuse services on grounds related to safety. Critics may argue that the bill could lead to increased burdens on financial institutions to justify their service decisions. Additionally, questions arise about how to effectively implement and enforce the requirements for transparency and disclosure outlined in the bill, particularly regarding subjective standards in financial services.

Companion Bills

No companion bills found.

Previously Filed As

LA HB474

Prohibits discrimination by a financial institution based on certain factors

LA HB914

Provides relative to practices of financial institutions to provide or deny services

LA H784

Financial Institutions/ESG Factors

LA SB384

Provides relative to financial institutions. (8/1/22)

LA HB418

Provides with respect to transactions of financial institutions

LA HB273

Provides relative to financial institutions (OR +$28,297 SG EX See Note)

LA HF1902

State Board of Investment prohibited from investing in companies that boycott mining, energy production, production agriculture, or commercial lumber production; State Board required to divest; state entities prohibited from entering into contracts; banks, credit unions, and other financial institutions prohibited from discriminating against people based on subjective criteria; and civil penalties provided.

LA HF2806

State Board of Investment prohibited from investing in companies that boycott mining, energy production, production agriculture, or commercial lumber production; State Board of Investment required to divest from companies boycotting said industries; state agency contracts prohibited; and certain financial institution discrimination prohibited.

LA SB1453

Financial institutions; discrimination prohibited, penalty.

LA HB2073

Financial institutions; discrimination prohibited, penalty.

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