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A BILL TO BE ENTITLED
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AN ACT
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relating to the collection and publication of information regarding |
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the use of environmental, social, or governance scores by certain |
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financial institutions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle Z, Title 3, Finance Code, is amended by |
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adding Chapter 272 to read as follows: |
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CHAPTER 272. REPORTING REQUIREMENTS RELATING TO USE OF |
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ENVIRONMENTAL, SOCIAL, OR GOVERNANCE SCORES |
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Sec. 272.001. DEFINITIONS. In this chapter: |
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(1) "Environmental, social, or governance score" |
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means a score that is based on measuring a customer's exposure to |
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long-term environmental, social, and governance risks. |
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(2) "Financial institution" means: |
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(A) a bank chartered under state law, including |
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Chapter 32; |
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(B) a savings and loan association chartered |
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under Chapter 62; |
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(C) a state savings bank chartered under Chapter |
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92; |
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(D) a credit union chartered under Chapter 122; |
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or |
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(E) a trust company chartered under the laws of |
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this state. |
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Sec. 272.002. COLLECTION OF INFORMATION FROM FINANCIAL |
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INSTITUTIONS REGARDING USE OF ENVIRONMENTAL, SOCIAL, OR GOVERNANCE |
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SCORES. (a) A financial institution shall provide nonconfidential |
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information regarding the institution's policies for the use of |
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environmental, social, or governance scores to the finance |
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commission in the form and manner prescribed by the commission, |
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including whether an environmental, social, or governance score |
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affects the institution's determination of whether to make a loan |
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or other extension of credit to a customer. |
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(b) A financial institution shall provide updated |
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information to the commission under this section if the institution |
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substantively changes the institution's policies regarding |
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environmental, social, or governance scores. |
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Sec. 272.003. TRANSFER TO COMPTROLLER. The finance |
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commission shall provide information collected under this chapter |
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to the comptroller in the form and manner prescribed by the |
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comptroller. |
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Sec. 272.004. RULES. The finance commission may adopt |
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rules to implement this section. |
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SECTION 2. Subchapter B, Chapter 403, Government Code, is |
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amended by adding Section 403.0146 to read as follows: |
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Sec. 403.0146. PUBLICATION OF INFORMATION REGARDING USE OF |
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ENVIRONMENTAL, SOCIAL, OR GOVERNANCE SCORES. (a) In this section, |
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"environmental, social, or governance score" and "financial |
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institution" have the meanings assigned by Section 272.001, Finance |
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Code. |
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(b) The comptroller shall publish on the comptroller's |
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Internet website information regarding the use of environmental, |
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social, or governance scores by financial institutions in this |
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state using information collected under Chapter 272, Finance Code. |
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The information published must: |
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(1) include a list of each financial institution that |
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has committed to not using environmental, social, or governance |
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scores in lending in this state; and |
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(2) be written in language intended to be easily |
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understood by consumers. |
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SECTION 3. This Act takes effect September 1, 2023. |