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.