HLS 22RS-692 ORIGINAL
2022 Regular Session
HOUSE BILL NO. 342
BY REPRESENTATIVE HODGES
FINANCIAL INSTITUTIONS: Provides relative to discrimination by financial institutions
1 AN ACT
2To enact R.S. 6:424, relative to discrimination by financial institutions; to prohibit
3 discrimination by financial institutions; to provide factors for discrimination; to
4 require disclosure and explanation of certain practices; to provide for application of
5 law; to provide for declaration of intent; and to provide for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 6:424 is hereby enacted to read as follows:
8 ยง424. Discrimination prohibited; application of law; disclosure and explanation;
9 legislative intent
10 A. A bank, credit union, financial institution, payment processor, savings and
11 loan association, or trust company shall not refuse to provide financial services of
12 any kind to, refrain from continuing to provide existing financial services to,
13 terminate existing financial services with, or otherwise discriminate in the provision
14 of financial services against a person solely based on either of the following:
15 (1) The person's political affiliation.
16 (2) Any value-based or impact-based criteria including but not limited to
17 social credit scores or environmental, social, and governance credit (ESG) factors.
18 B. Notwithstanding any other provision to the contrary, a financial institution
19 may offer investments, products, or services to a potential customer or investor based
20 on subjective standards only if the standards are fully disclosed and explained to the
Page 1 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 22RS-692 ORIGINAL
HB NO. 342
1 potential customer or investor before entering into a contract for the investment,
2 product, or service. The financial institution shall obtain a signature from the
3 potential customer or investor attesting that the financial institution has disclosed and
4 explained the subjective standards being used by the financial institution.
5 C. The provisions of this Section are not to be construed in any manner that
6 would interfere with a financial institution's ability to discontinue or refuse to
7 conduct business with a person when the action is necessary for the physical safety
8 of the financial institution's employees.
9 D. The legislature declares that the practice of discriminating against a
10 person or entity in this state based upon his social credit score or any other valuation
11 based on his environmental, social, and governmental credit (ESG) factors, is a
12 matter of statewide concern, that discrimination based on such scores and metrics is
13 not only a threat to the rights and proper privileges of this state's inhabitants but
14 menaces the institutions and foundation of a free democratic state and threatens the
15 peace, order, health, safety, and general welfare of this state and its inhabitants.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 342 Original 2022 Regular Session Hodges
Abstract: Prohibits financial institutions from denying financial services to a person based
upon a person's political affiliation or any environmental, social, or governmental
credit factors.
Proposed law prohibits financial institutions from denying financial services to a person
based on either of the following criteria:
1. The person's political affiliation.
2. Any value-based or impact-based criteria including but not limited to
environmental, social, or governmental (ESG) factors.
Proposed law allows a financial institution to offer services based subjective standards, only
if the financial institution has disclosed and explained the standards to the potential
customer.
Under proposed law the financial institution is required to obtain a signature from the
potential customer confirming disclosure and explanation of the subjective standards.
Page 2 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 22RS-692 ORIGINAL
HB NO. 342
Proposed law is not intended to interfere with a financial institution's ability to discontinue
or refuse to conduct business with a person when the action is necessary for the physical
safety of the financial institution's employees.
Proposed law provides a legislative declaration on the use of political affiliation or ESG
factors as a basis for discrimination.
(Adds R.S. 6:424)
Page 3 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.