88R1007 MLH-D
By: Toth H.B. No. 645
A BILL TO BE ENTITLED
AN ACT
relating to prohibiting financial institutions and other
businesses from using value-based criteria.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is
amended by adding Chapter 121 to read as follows:
CHAPTER 121. USE OF VALUE-BASED CRITERIA IN BUSINESS PRACTICE
Sec. 121.001. DEFINITIONS. In this chapter:
(1) "Business" means a person engaged in a trade,
occupation, profession, or other commercial activity.
(2) "Financial institution" has the meaning assigned
by Section 201.101, Finance Code.
Sec. 121.002. USE OF VALUE-BASED CRITERIA PROHIBITED. (a)
A financial institution or business in its business practice may
not discriminate against, advocate for, or give disparate treatment
to a person using value-based criteria, including:
(1) the person's social media activity;
(2) the person's membership or participation in a
club, association, union, or other group;
(3) the person's political affiliation or beliefs;
(4) the person's current or former employer; or
(5) any other social credit, environmental, social
governance, or similar value-based standards.
(b) This section does not limit the ability of a financial
institution or business to refuse or discontinue the conduct of
business with a person if the refusal or discontinuance is
necessary for the physical safety of the financial institution's or
business's employees.
(c) Notwithstanding Subsection (a), a financial institution
or business may offer a product or service that uses value-based
criteria. The financial institution or business shall disclose any
value-based criteria used in a product or service to a potential
customer.
Sec. 121.003. CIVIL LIABILITY FOR USING VALUE-BASED
CRITERIA. (a) Any person, other than an officer or employee of a
state or local governmental entity in this state, may bring a civil
action against a financial institution or business who violates
Section 121.002.
(b) If a claimant prevails in an action brought under this
section, the court shall award:
(1) injunctive relief sufficient to prevent the
financial institution or business from violating this chapter;
(2) statutory damages in an amount of not less than
$100,000 for each action that the financial institution or business
performed in violation of Subsection (a); and
(3) costs and attorney's fees.
(c) Notwithstanding Subsection (b), a court may not award
relief under this section in response to a violation of Subsection
(a) if the financial institution or business demonstrates that the
financial institution or business previously paid the full amount
of statutory damages under Subsection (b) in a previous action for
that particular action performed in violation of Section 121.002.
(d) Sections 41.003 and 41.004, Civil Practice and Remedies
Code, do not apply to an action brought under this section.
SECTION 2. The changes in law made by this Act apply only to
a cause of action that accrues on or after the effective date of
this Act.
SECTION 3. This Act takes effect September 1, 2023.