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