SB2492 - Relating to prohibiting certain discrimination in the provision of financial services.

  89R10644 MZM-F     By: King S.B. No. 2492       A BILL TO BE ENTITLED   AN ACT   relating to prohibiting certain discrimination in the provision of   financial services.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle C, Title 5, Business & Commerce Code, is   amended by adding Chapter 121 to read as follows:   CHAPTER 121.   PROHIBITED DISCRIMINATION IN PROVISION OF FINANCIAL   SERVICES           Sec. 121.001.  DEFINITIONS. In this chapter:                 (1)     "Financial institution" has the meaning assigned   by Section 201.101, Finance Code.                 (2)     "Financial service" means a financial product or   service offered by a financial service provider.                 (3)     "Financial service provider" means a financial   institution or payment service provider.                 (4)  "Payment service provider" includes:                       (A)     a payment processor, credit card issuer,   credit card network, payment card network, or payment gateway   provider; and                       (B)     an affiliate or subsidiary company of a   person described by Paragraph (A).                 (5)     "Social credit score" means an analysis, rating,   scoring, list, or tabulation that evaluates a customer's:                       (A)     religious beliefs, speech, affiliations, or   other activities; or                       (B)     political opinions, speech, associations, or   other activities, including the customer's refusal to disclose   those activities.           Sec.   121.002.     APPLICABILITY. This chapter applies only to   a financial service provider that:                 (1)     provides financial services to customers in this   state; and                 (2)     engaged in transactions totaling at least $100   billion in the preceding calendar year.           Sec.   121.003.     CERTAIN DISCRIMINATION IN PROVISION OF   FINANCIAL SERVICES PROHIBITED. A financial service provider may   not:                 (1)     use a social credit score to directly or   indirectly decline to provide financial services, including   refusing to provide, terminate, or restrict financial services, to   a customer; or                 (2)     agree, conspire, or coordinate, directly or   indirectly, including through an intermediary or third party, with   another person or group of persons, to engage in conduct prohibited   by Subdivision (1).           Sec.   121.004.     STATEMENT OF EXPLANATION. (a) A customer who   suspects the customer was declined a financial service in violation   of Section 121.003 may, not later than the 90th day after the date   the customer is informed of the financial service provider's   decision to decline to provide the service, request a statement of   explanation of the denial from the provider.           (b)  A customer may request the statement of explanation:                 (1)     verbally from a customer service representative or   other agent of the financial service provider; or                 (2)     in writing, by submitting a written request by   mail or electronic mail to an address maintained and made publicly   available by the provider for that purpose.           (c)     Not later than the 14th day after the date a financial   service provider receives a customer's request under this section,   the financial service provider shall provide the customer with a   written statement of explanation delivered by mail or, if known by   the provider, electronic mail. The statement of explanation must   include:                 (1)     a detailed explanation of the basis for the denial   of service, including a description of any activity engaged in by   the customer that, wholly or partly, formed the basis for the   provider's decision to deny service;                 (2)     if applicable, a copy of the terms of service   agreed to by the customer and the provider; and                 (3)     if applicable, a citation to the specific   provisions of the terms of service on which the provider relied in   its denial of service.           Sec.   121.005.     DECEPTIVE TRADE PRACTICE. A violation of   Section 121.003 is a false, misleading, or deceptive act or   practice under Subchapter E, Chapter 17, and is actionable under   that subchapter.           Sec.   121.006.     INTERPRETATION OF CHAPTER.   This chapter   shall be broadly construed in favor of protecting rights guaranteed   by:                 (1)     the First Amendment to the United States   Constitution and related federal law; and                 (2)     Section 8, Article I, Texas Constitution, and   related state law.          SECTION 2.  This Act takes effect September 1, 2025.