| 1 | 1 | | 88R1007 MLH-D |
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| 2 | 2 | | By: Toth H.B. No. 645 |
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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 prohibiting financial institutions and other |
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| 8 | 8 | | businesses from using value-based criteria. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is |
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| 11 | 11 | | amended by adding Chapter 121 to read as follows: |
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| 12 | 12 | | CHAPTER 121. USE OF VALUE-BASED CRITERIA IN BUSINESS PRACTICE |
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| 13 | 13 | | Sec. 121.001. DEFINITIONS. In this chapter: |
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| 14 | 14 | | (1) "Business" means a person engaged in a trade, |
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| 15 | 15 | | occupation, profession, or other commercial activity. |
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| 16 | 16 | | (2) "Financial institution" has the meaning assigned |
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| 17 | 17 | | by Section 201.101, Finance Code. |
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| 18 | 18 | | Sec. 121.002. USE OF VALUE-BASED CRITERIA PROHIBITED. (a) |
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| 19 | 19 | | A financial institution or business in its business practice may |
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| 20 | 20 | | not discriminate against, advocate for, or give disparate treatment |
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| 21 | 21 | | to a person using value-based criteria, including: |
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| 22 | 22 | | (1) the person's social media activity; |
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| 23 | 23 | | (2) the person's membership or participation in a |
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| 24 | 24 | | club, association, union, or other group; |
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| 25 | 25 | | (3) the person's political affiliation or beliefs; |
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| 26 | 26 | | (4) the person's current or former employer; or |
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| 27 | 27 | | (5) any other social credit, environmental, social |
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| 28 | 28 | | governance, or similar value-based standards. |
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| 29 | 29 | | (b) This section does not limit the ability of a financial |
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| 30 | 30 | | institution or business to refuse or discontinue the conduct of |
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| 31 | 31 | | business with a person if the refusal or discontinuance is |
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| 32 | 32 | | necessary for the physical safety of the financial institution's or |
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| 33 | 33 | | business's employees. |
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| 34 | 34 | | (c) Notwithstanding Subsection (a), a financial institution |
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| 35 | 35 | | or business may offer a product or service that uses value-based |
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| 36 | 36 | | criteria. The financial institution or business shall disclose any |
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| 37 | 37 | | value-based criteria used in a product or service to a potential |
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| 38 | 38 | | customer. |
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| 39 | 39 | | Sec. 121.003. CIVIL LIABILITY FOR USING VALUE-BASED |
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| 40 | 40 | | CRITERIA. (a) Any person, other than an officer or employee of a |
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| 41 | 41 | | state or local governmental entity in this state, may bring a civil |
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| 42 | 42 | | action against a financial institution or business who violates |
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| 43 | 43 | | Section 121.002. |
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| 44 | 44 | | (b) If a claimant prevails in an action brought under this |
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| 45 | 45 | | section, the court shall award: |
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| 46 | 46 | | (1) injunctive relief sufficient to prevent the |
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| 47 | 47 | | financial institution or business from violating this chapter; |
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| 48 | 48 | | (2) statutory damages in an amount of not less than |
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| 49 | 49 | | $100,000 for each action that the financial institution or business |
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| 50 | 50 | | performed in violation of Subsection (a); and |
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| 51 | 51 | | (3) costs and attorney's fees. |
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| 52 | 52 | | (c) Notwithstanding Subsection (b), a court may not award |
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| 53 | 53 | | relief under this section in response to a violation of Subsection |
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| 54 | 54 | | (a) if the financial institution or business demonstrates that the |
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| 55 | 55 | | financial institution or business previously paid the full amount |
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| 56 | 56 | | of statutory damages under Subsection (b) in a previous action for |
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| 57 | 57 | | that particular action performed in violation of Section 121.002. |
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| 58 | 58 | | (d) Sections 41.003 and 41.004, Civil Practice and Remedies |
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| 59 | 59 | | Code, do not apply to an action brought under this section. |
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| 60 | 60 | | SECTION 2. The changes in law made by this Act apply only to |
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| 61 | 61 | | a cause of action that accrues on or after the effective date of |
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| 62 | 62 | | this Act. |
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| 63 | 63 | | SECTION 3. This Act takes effect September 1, 2023. |
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