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A BILL TO BE ENTITLED
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AN ACT
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relating to the prohibition on certain discrimination in the |
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extension of credit to organizations based on social credit or |
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value-based standards. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 341.401, Finance Code, is amended by |
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amending Subsection (a) and adding Subsections (a-1) and (a-2) to |
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read as follows: |
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(a) In this section, "organization" has the meaning |
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assigned by Section 1.002, Business Organizations Code. |
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(a-1) An authorized lender or other person involved in a |
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transaction subject to this title may not deny to an individual who |
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has the capacity to contract an extension of credit, including a |
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loan, in the individual's name or restrict or limit the credit |
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extended: |
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(1) because of sex, race, color, religion, national |
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origin, marital status, or age; |
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(2) because all or part of the individual's income |
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derives from a public assistance program in the form of social |
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security or supplemental security income; or |
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(3) because the individual has in good faith exercised |
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a right under the Consumer Credit Protection Act (15 U.S.C. Section |
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1601 et seq.; 18 U.S.C. Section 891 et seq.). |
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(a-2) Except as expressly required by other law, an |
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authorized lender or other person involved in a transaction subject |
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to this title may not deny to an organization an extension of |
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credit, including a loan, in the organization's name or restrict or |
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limit the credit extended for any reason not based on a bona fide |
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credit decision or the organization's failure to meet quantitative, |
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impartial standards established by the lender for assessing |
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financial risk, including the organization's: |
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(1) social credit score or an environmental, social, |
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or governance score that is derived from subjective or value-based |
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standards; |
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(2) standards or practices pertaining to diversity, |
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equity, or inclusion; or |
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(3) contracts in, services given to, or association |
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with a particular religious institution or legal industry, |
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including agriculture, fossil fuels, firearms, or free-speech |
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media platforms. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2025. |