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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; providing a civil penalty. |
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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 that conducts business in this state may not assign an |
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environmental, social, or governance score to an individual or |
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family that resides in this state. |
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Sec. 75.0003. CIVIL PENALTY; INJUNCTION. (a) A person that |
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violates Section 75.0002 is liable to this state for a civil penalty |
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in an amount not to exceed $1,000 for each individual or family that |
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resides in this state to whom the person assigns an environmental, |
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social, or governance score. Each day a violation continues is a |
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separate violation for purposes of a civil penalty assessment. |
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(b) The attorney general may bring an action: |
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(1) to collect a civil penalty imposed under this |
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section; and |
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(2) in the name of this state to enjoin a violation of |
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this chapter. |
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(c) The attorney general is entitled to recover reasonable |
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expenses incurred in bringing an action under this section, |
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including reasonable attorney's fees and court costs. |
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SECTION 2. This Act takes effect September 1, 2025. |