| 1 | 1 | | 88R8206 JES-D |
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| 2 | 2 | | By: Leo-Wilson H.B. No. 3661 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the collection and publication of information regarding |
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| 8 | 8 | | the use of environmental, social, or governance scores by certain |
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| 9 | 9 | | financial institutions. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subtitle Z, Title 3, Finance Code, is amended by |
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| 12 | 12 | | adding Chapter 272 to read as follows: |
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| 13 | 13 | | CHAPTER 272. REPORTING REQUIREMENTS RELATING TO USE OF |
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| 14 | 14 | | ENVIRONMENTAL, SOCIAL, OR GOVERNANCE SCORES |
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| 15 | 15 | | Sec. 272.001. DEFINITIONS. In this chapter: |
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| 16 | 16 | | (1) "Environmental, social, or governance score" |
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| 17 | 17 | | means a score that is based on measuring a customer's exposure to |
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| 18 | 18 | | long-term environmental, social, and governance risks. |
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| 19 | 19 | | (2) "Financial institution" means: |
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| 20 | 20 | | (A) a bank chartered under state law, including |
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| 21 | 21 | | Chapter 32; |
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| 22 | 22 | | (B) a savings and loan association chartered |
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| 23 | 23 | | under Chapter 62; |
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| 24 | 24 | | (C) a state savings bank chartered under Chapter |
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| 25 | 25 | | 92; |
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| 26 | 26 | | (D) a credit union chartered under Chapter 122; |
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| 27 | 27 | | or |
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| 28 | 28 | | (E) a trust company chartered under the laws of |
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| 29 | 29 | | this state. |
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| 30 | 30 | | Sec. 272.002. COLLECTION OF INFORMATION FROM FINANCIAL |
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| 31 | 31 | | INSTITUTIONS REGARDING USE OF ENVIRONMENTAL, SOCIAL, OR GOVERNANCE |
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| 32 | 32 | | SCORES. (a) A financial institution shall provide nonconfidential |
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| 33 | 33 | | information regarding the institution's policies for the use of |
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| 34 | 34 | | environmental, social, or governance scores to the finance |
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| 35 | 35 | | commission in the form and manner prescribed by the commission, |
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| 36 | 36 | | including whether an environmental, social, or governance score |
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| 37 | 37 | | affects the institution's determination of whether to make a loan |
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| 38 | 38 | | or other extension of credit to a customer. |
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| 39 | 39 | | (b) A financial institution shall provide updated |
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| 40 | 40 | | information to the commission under this section if the institution |
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| 41 | 41 | | substantively changes the institution's policies regarding |
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| 42 | 42 | | environmental, social, or governance scores. |
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| 43 | 43 | | Sec. 272.003. TRANSFER TO COMPTROLLER. The finance |
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| 44 | 44 | | commission shall provide information collected under this chapter |
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| 45 | 45 | | to the comptroller in the form and manner prescribed by the |
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| 46 | 46 | | comptroller. |
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| 47 | 47 | | Sec. 272.004. RULES. The finance commission may adopt |
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| 48 | 48 | | rules to implement this section. |
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| 49 | 49 | | SECTION 2. Subchapter B, Chapter 403, Government Code, is |
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| 50 | 50 | | amended by adding Section 403.0146 to read as follows: |
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| 51 | 51 | | Sec. 403.0146. PUBLICATION OF INFORMATION REGARDING USE OF |
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| 52 | 52 | | ENVIRONMENTAL, SOCIAL, OR GOVERNANCE SCORES. (a) In this section, |
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| 53 | 53 | | "environmental, social, or governance score" and "financial |
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| 54 | 54 | | institution" have the meanings assigned by Section 272.001, Finance |
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| 55 | 55 | | Code. |
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| 56 | 56 | | (b) The comptroller shall publish on the comptroller's |
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| 57 | 57 | | Internet website information regarding the use of environmental, |
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| 58 | 58 | | social, or governance scores by financial institutions in this |
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| 59 | 59 | | state using information collected under Chapter 272, Finance Code. |
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| 60 | 60 | | The information published must: |
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| 61 | 61 | | (1) include a list of each financial institution that |
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| 62 | 62 | | has committed to not using environmental, social, or governance |
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| 63 | 63 | | scores in lending in this state; and |
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| 64 | 64 | | (2) be written in language intended to be easily |
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| 65 | 65 | | understood by consumers. |
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| 66 | 66 | | SECTION 3. This Act takes effect September 1, 2023. |
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