| 1 | 1 | | 89R2046 MLH-F |
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| 2 | 2 | | By: Hughes S.B. No. 946 |
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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 the prohibition on certain discrimination in the |
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| 10 | 10 | | extension of credit to organizations based on social credit or |
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| 11 | 11 | | value-based standards. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Section 341.401, Finance Code, is amended by |
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| 14 | 14 | | amending Subsection (a) and adding Subsections (a-1) and (a-2) to |
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| 15 | 15 | | read as follows: |
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| 16 | 16 | | (a) In this section, "organization" has the meaning |
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| 17 | 17 | | assigned by Section 1.002, Business Organizations Code. |
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| 18 | 18 | | (a-1) An authorized lender or other person involved in a |
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| 19 | 19 | | transaction subject to this title may not deny to an individual who |
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| 20 | 20 | | has the capacity to contract an extension of credit, including a |
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| 21 | 21 | | loan, in the individual's name or restrict or limit the credit |
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| 22 | 22 | | extended: |
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| 23 | 23 | | (1) because of sex, race, color, religion, national |
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| 24 | 24 | | origin, marital status, or age; |
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| 25 | 25 | | (2) because all or part of the individual's income |
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| 26 | 26 | | derives from a public assistance program in the form of social |
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| 27 | 27 | | security or supplemental security income; or |
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| 28 | 28 | | (3) because the individual has in good faith exercised |
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| 29 | 29 | | a right under the Consumer Credit Protection Act (15 U.S.C. Section |
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| 30 | 30 | | 1601 et seq.; 18 U.S.C. Section 891 et seq.). |
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| 31 | 31 | | (a-2) Except as expressly required by other law, an |
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| 32 | 32 | | authorized lender or other person involved in a transaction subject |
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| 33 | 33 | | to this title may not deny to an organization an extension of |
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| 34 | 34 | | credit, including a loan, in the organization's name or restrict or |
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| 35 | 35 | | limit the credit extended for any reason not based on the |
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| 36 | 36 | | organization's failure to meet quantitative, impartial standards |
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| 37 | 37 | | established by the lender for assessing financial risk, including |
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| 38 | 38 | | the organization's: |
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| 39 | 39 | | (1) social credit score or an environmental, social, |
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| 40 | 40 | | or governance score that is derived from subjective or value-based |
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| 41 | 41 | | standards; |
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| 42 | 42 | | (2) standards or practices pertaining to diversity, |
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| 43 | 43 | | equity, or inclusion; or |
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| 44 | 44 | | (3) contracts in, services given to, or association |
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| 45 | 45 | | with a particular religious institution or legal industry, |
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| 46 | 46 | | including agriculture, fossil fuels, firearms, or free-speech |
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| 47 | 47 | | media platforms. |
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| 48 | 48 | | SECTION 2. This Act takes effect immediately if it receives |
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| 49 | 49 | | a vote of two-thirds of all the members elected to each house, as |
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| 50 | 50 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 51 | 51 | | Act does not receive the vote necessary for immediate effect, this |
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| 52 | 52 | | Act takes effect September 1, 2025. |
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