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A BILL TO BE ENTITLED
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AN ACT
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relating to prohibiting financial institutions and other |
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businesses from using value-based criteria. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is |
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amended by adding Chapter 121 to read as follows: |
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CHAPTER 121. USE OF VALUE-BASED CRITERIA IN BUSINESS PRACTICE |
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Sec. 121.001. DEFINITIONS. In this chapter: |
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(1) "Business" means a person engaged in a trade, |
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occupation, profession, or other commercial activity. |
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(2) "Financial institution" has the meaning assigned |
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by Section 201.101, Finance Code. |
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Sec. 121.002. USE OF VALUE-BASED CRITERIA PROHIBITED. (a) |
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A financial institution or business in its business practice may |
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not discriminate against, advocate for, or give disparate treatment |
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to a person using value-based criteria, including: |
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(1) the person's social media activity; |
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(2) the person's membership or participation in a |
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club, association, union, or other group; |
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(3) the person's political affiliation or beliefs; |
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(4) the person's current or former employer; or |
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(5) any other social credit, environmental, social |
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governance, or similar value-based standards. |
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(b) This section does not limit the ability of a financial |
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institution or business to refuse or discontinue the conduct of |
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business with a person if the refusal or discontinuance is |
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necessary for the physical safety of the financial institution's or |
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business's employees. |
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(c) Notwithstanding Subsection (a), a financial institution |
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or business may offer a product or service that uses value-based |
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criteria. The financial institution or business shall disclose any |
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value-based criteria used in a product or service to a potential |
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customer. |
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Sec. 121.003. CIVIL LIABILITY FOR USING VALUE-BASED |
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CRITERIA. (a) Any person, other than an officer or employee of a |
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state or local governmental entity in this state, may bring a civil |
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action against a financial institution or business who violates |
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Section 121.002. |
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(b) If a claimant prevails in an action brought under this |
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section, the court shall award: |
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(1) injunctive relief sufficient to prevent the |
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financial institution or business from violating this chapter; |
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(2) statutory damages in an amount of not less than |
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$100,000 for each action that the financial institution or business |
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performed in violation of Subsection (a); and |
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(3) costs and attorney's fees. |
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(c) Notwithstanding Subsection (b), a court may not award |
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relief under this section in response to a violation of Subsection |
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(a) if the financial institution or business demonstrates that the |
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financial institution or business previously paid the full amount |
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of statutory damages under Subsection (b) in a previous action for |
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that particular action performed in violation of Section 121.002. |
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(d) Sections 41.003 and 41.004, Civil Practice and Remedies |
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Code, do not apply to an action brought under this section. |
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SECTION 2. The changes in law made by this Act apply only to |
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a cause of action that accrues on or after the effective date of |
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this Act. |
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SECTION 3. This Act takes effect September 1, 2023. |