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A BILL TO BE ENTITLED
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AN ACT
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relating to prohibiting the use of environmental, social, or |
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governance scores. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle A, Title 5, Business & Commerce Code, is |
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amended by adding Chapter 75 to read as follows: |
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CHAPTER 75. PROHIBITED USE OF CERTAIN CREDIT SCORES |
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Sec. 75.0001. DEFINITIONS. In this chapter: |
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(1) "Credit score" means a number or rating derived |
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from an algorithm, computer application, model, or other process |
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that is based on information related to a customer and used to |
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determine a customer's creditworthiness or credit capacity. |
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(2) "Environmental, social, or governance score" |
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means a credit score that is based on measuring a customer's |
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exposure to long-term environmental, social, and governance risks. |
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Sec. 75.0002. USE OF CERTAIN CREDIT SCORES PROHIBITED. A |
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person organized in a manner that includes shareholders, as that |
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term is defined by Section 1.002, Business Organizations Code, that |
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conducts business in this state may not assign an environmental, |
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social, or governance score to an individual or family that resides |
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in this state. |
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Sec. 75.0003. VIOLATION. A person that violates Section |
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75.0002 may not conduct business in this state. |
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SECTION 2. This Act takes effect September 1, 2025. |