89R11944 TYPED     By: Hayes H.B. No. 4333       A BILL TO BE ENTITLED   AN ACT   relating to prohibitions on deceptive and unfair practices related   to financial institutions discriminating in the provision of   financial services to consumers and other persons.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  This Act shall be known as the Equality in   Financial Services Act.          SECTION 2.  Subtitle C, Title 5, Business & Commerce Code, is   amended by adding Chapter 121 to read as follows:   CHAPTER 121. PROHIBITION ON FINANCIAL SERVICES DISCRIMINATION          Sec. 121.001.  DEFINITIONS. (a)  In this chapter:                (1)  "Discriminate in the provision of financial   services" means utilizing a social credit score to directly or   indirectly decline to provide full and equal enjoyment in the   provision of financial services, and includes refusing to provide,   terminating, or restricting financial services.                (2)  "Financial institution" means                      (A)  A bank that has total assets over   $100,000,000,000; or                      (B)  A payment processor, credit card company,   credit card network, payment network, payment service provider, or   payment gateway that has processed more than $100,000,000,000 in   transactions in the last calendar year.                      For purposes of subsections (A) and (B), a   financial institution includes any affiliate or subsidiary   company, even if that affiliate or subsidiary is also a financial   institution.                (3)  "Financial service" means any financial product or   service offered by a financial institution.                (4)  "Person" means any individual, partnership,   association, joint stock company, trust, corporation, nonprofit   organization, or other business or legal entity.                (5)  "Protected from government interference" refers   to any speech, religious exercise, association, expression, or   conduct that is protected by the First Amendment other than   activities that the Supreme Court of the United States has   expressly held are unprotected as of the date of this legislation,   such as obscenity, fraud, incitement, true threats, fighting words,   or defamation.                (6)  "Social credit score" means any analysis, rating,   scoring, list, or tabulation that evaluates any of the following:                      (A)  any person's exercise of religion that is   protected from government interference by the First Amendment to   the United States Constitution, article 1, sections 6 and 6-a of   Texas's Constitution, or federal or state law, including all   aspects of religious observance and practice, as well as belief and   affiliation;                      (B)  any person's speech, expression, or   association that is protected from government interference by the   First Amendment to the United States Constitution or article 1,   section 8 of Texas's Constitution, or federal or state law,   including the person's opinions, speech, or other expressive   activities, including the lawful preservation of privacy regarding   those activities, such as the refusal to disclose lobbying,   political activity, or contributions beyond what is required by   applicable state and federal law;                      (C)  failure or refusal to adopt any targets or   disclosures related to greenhouse gas emissions beyond what is   required by applicable state and federal law;                      (D)  failure or refusal to conduct any type of   racial, diversity, or gender audit or disclosure or to provide any   sort of quota, preference, or benefit based, in whole or in part, on   race, diversity, or gender;                      (E)  failure or refusal to facilitate or assist   employees in obtaining abortions or gender transition services; or                      (F)  except as provided in Subsection (b),   participation in the following lawful business associations or   business activities:                            (a)  business activity by the person or   others with firearms, ammunition, or firearms accessories   manufacturers or dealers; or                            (b)  business activity by the person or   others with an entity that engages in the exploration, production,   utilization, transportation, sale, or manufacturing of fossil fuel   sources or fossil-fuel-based energy.          (b)  For the purposes of Subsection (F) only, "social credit   score" does not include the financial institution evaluating   quantifiable financial risks of a person based on impartial,   financial-risk-based standards that includes activities described   in Subsection (F), if such standards are established in advance by   the financial institution and publicly disclosed to customers and   potential customers.          (c)  These definitions shall be construed in favor of the   broad protection of the conduct, opinions, and beliefs protected by   the First Amendment to the United States Constitution, applicable   federal laws, Texas's Constitution, and state law.          Sec. 121.002.  PROHIBITED DISCRIMINATION IN FINANCIAL   SERVICES; EXPLANATION REQUIRED UPON REQUEST. (a) A financial   institution shall not:                (1)  discriminate in the provision of financial   services to a person; or                (2)  agree, conspire, or coordinate, directly or   indirectly, including through any intermediary or third party, with   another person, or group of persons, to engage in activity   prohibited by Subsection (1).          (b)  If a financial institution refuses to provide,   restricts, or terminates service to a person, that person may   request a statement of specific reasons within 90 days after   receiving notice of the refusal to provide, restriction of, or   termination of service.  The person may request the statement from a   customer service representative or designated account   representative by phone, U.S. mail, or electronic mail.  Unless   otherwise prohibited by federal law, the financial institution must   transmit the statement of specific reasons via U.S. Mail and   electronic mail, if known to the financial institution, within 14   days of receiving the person's request. The statement of specific   reasons shall include:                (1)  a detailed explanation of the basis for the denial   or termination of service, including a description of any of the   person's speech, religious exercise, business activity with a   particular industry, or other conduct that was, in whole or in part,   the basis of the financial institution's denial or termination of   service;                (2)  a copy of the terms of service agreed to by the   person and the financial institution; and                (3)  a citation to the specific provisions of the terms   of service upon which the financial institution relied to refuse to   provide, restrict, or terminate service.          Sec. 121.003.  ENFORCEMENT. (a) Any violation of this   chapter shall constitute a violation of Chapter 17, Title 2,   Business & Commerce Code.          (b)  If the Attorney General has reasonable cause to believe   that any financial institution has engaged in, is engaging in, or is   about to engage in, any violation of this chapter, the Attorney   General may investigate as provided in Section 17.60 and 17.61,   Business & Commerce Code, may bring a civil action as provided in   Section 17.47, Business & Commerce Code, and may seek remedies as   provided in Section 17.62, Business & Commerce Code.          (c)  Any person harmed by a violation of this chapter may   initiate a civil action for either or both of the following:                (1)  to recover actual damages, or $10,000, whichever   is greater for each violation.  If the trier of fact finds that the   violation was willful, it may increase the damages to an amount of   up to three times the actual damages sustained, or $30,000,   whichever is greater.  A court shall award a prevailing plaintiff   reasonable attorneys' fees and court costs.                (2)  To obtain preventive relief, including an   application for a permanent or temporary injunction, restraining   order, or other order as is necessary to enforce the requirements of   this chapter.          SECTION 3.  It is the intent of the legislature that every   provision, section, subsection, sentence, clause, phrase, or word   in this Act, and every application of the provisions in this Act,   are severable from each other.  If any application of any provision   in this Act to any person, group of persons, or circumstances is   found by a court to be invalid, the remaining applications of that   provision to all other persons and circumstances shall be severed   and may not be affected.  All constitutionally valid applications   of this Act shall be severed from any applications that a court   finds to be invalid, leaving the valid applications in force,   because it is the legislature's intent and priority that the valid   applications be allowed to stand alone.  The legislature further   declares that it would have passed this Act, and each provision,   section, subsection, sentence, clause, phrase, or word, and all   constitutional applications of this Act, irrespective of the fact   that any provision, section, subsection, sentence, clause, phrase,   or word, or applications of this Act, were to be declared   unconstitutional.          SECTION 4.  This Act takes effect September 1, 2025.