| 1 | 1 | | 89R8469 MLH-D |
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| 2 | 2 | | By: Harris Davila H.B. No. 3922 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to prohibiting the use of environmental, social, or |
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| 10 | 10 | | governance scores. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Subtitle A, Title 5, Business & Commerce Code, is |
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| 13 | 13 | | amended by adding Chapter 75 to read as follows: |
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| 14 | 14 | | CHAPTER 75. PROHIBITED USE OF CERTAIN CREDIT SCORES |
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| 15 | 15 | | Sec. 75.0001. DEFINITIONS. In this chapter: |
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| 16 | 16 | | (1) "Credit score" means a number or rating derived |
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| 17 | 17 | | from an algorithm, computer application, model, or other process |
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| 18 | 18 | | that is based on information related to a customer and used to |
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| 19 | 19 | | determine a customer's creditworthiness or credit capacity. |
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| 20 | 20 | | (2) "Environmental, social, or governance score" |
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| 21 | 21 | | means a credit score that is based on measuring a customer's |
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| 22 | 22 | | exposure to long-term environmental, social, and governance risks. |
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| 23 | 23 | | Sec. 75.0002. USE OF CERTAIN CREDIT SCORES PROHIBITED. A |
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| 24 | 24 | | person organized in a manner that includes shareholders, as that |
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| 25 | 25 | | term is defined by Section 1.002, Business Organizations Code, that |
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| 26 | 26 | | conducts business in this state may not assign an environmental, |
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| 27 | 27 | | social, or governance score to an individual or family that resides |
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| 28 | 28 | | in this state. |
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| 29 | 29 | | Sec. 75.0003. VIOLATION. A person that violates Section |
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| 30 | 30 | | 75.0002 may not conduct business in this state. |
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| 31 | 31 | | SECTION 2. This Act takes effect September 1, 2025. |
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