SB 949

relating to prohibitions on deceptive and unfair practices related
to financial institutions discriminating in the provision of
financial services to consumers and other persons.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  This Act shall be known as the Equality in
SECTION 2.  Subtitle C, Title 5, Business & Commerce Code, is
amended by adding Chapter 121 to read as follows:
CHAPTER 121. PROHIBITION ON FINANCIAL SERVICES DISCRIMINATION
Sec. 121.001.  DEFINITIONS.  (a)  In this chapter:
(1)  "Discriminate in the provision of financial
services" means utilizing a social credit score to directly or
indirectly decline to provide full and equal enjoyment in the
provision of financial services, and includes refusing to provide,
terminating, or restricting financial services.
(2)  "Financial institution" means
(A)  A bank that has total assets over
(B)  A payment processor, credit card company,
credit card network, payment network, payment service provider, or
payment gateway that has processed more than $100,000,000,000 in
transactions in the last calendar year.
For purposes of subsections (A) and (B), a
financial institution includes any affiliate or subsidiary
company, even if that affiliate or subsidiary is also a financial
(3)  "Financial service" means any financial product or
service offered by a financial institution.
(4)  "Person" means any individual, partnership,
association, joint stock company, trust, corporation, nonprofit
organization, or other business or legal entity.
(5)  "Protected from government interference" refers
to any speech, religious exercise, association, expression, or
conduct that is protected by the First Amendment other than
activities that the Supreme Court of the United States has
expressly held are unprotected as of the date of this legislation,
such as obscenity, fraud, incitement, true threats, fighting words,
(6)  "Social credit score" means any analysis, rating,
scoring, list, or tabulation that evaluates any of the following:
(A)  any person's exercise of religion that is
protected from government interference by the First Amendment to
the United States Constitution, article 1, sections 6 and 6-a of
Texas's Constitution, or federal or state law, including all
aspects of religious observance and practice, as well as belief and
(B)  any person's speech, expression, or
association that is protected from government interference by the
First Amendment to the United States Constitution or article 1,
section 8 of Texas's Constitution, or federal or state law,
including the person's opinions, speech, or other expressive
activities, including the lawful preservation of privacy regarding
those activities, such as the refusal to disclose lobbying,
political activity, or contributions beyond what is required by
applicable state and federal law;
(C)  failure or refusal to adopt any targets or
disclosures related to greenhouse gas emissions beyond what is
required by applicable state and federal law;
(D)  failure or refusal to conduct any type of
racial, diversity, or gender audit or disclosure or to provide any
sort of quota, preference, or benefit based, in whole or in part, on
(E)  failure or refusal to facilitate or assist
employees in obtaining abortions or gender transition services; or
(F)  except as provided in Subsection (b),
participation in the following lawful business associations or
(a)  business activity by the person or
others with firearms, ammunition, or firearms accessories
(b)  business activity by the person or
others with an entity that engages in the exploration, production,
utilization, transportation, sale, or manufacturing of fossil fuel
sources or fossil-fuel-based energy.
(b)  For the purposes of Subsection (F) only, "social credit
score" does not include the financial institution evaluating
quantifiable financial risks of a person based on impartial,
financial-risk-based standards that includes activities described
in Subsection (F), if such standards are established in advance by
the financial institution and publicly disclosed to customers and
(c)  These definitions shall be construed in favor of the
broad protection of the conduct, opinions, and beliefs protected by
the First Amendment to the United States Constitution, applicable
federal laws, Texas's Constitution, and state law.
Sec. 121.002.  PROHIBITED DISCRIMINATION IN FINANCIAL
SERVICES; EXPLANATION REQUIRED UPON REQUEST.  (a)  A financial
(1)  discriminate in the provision of financial
(2)  agree, conspire, or coordinate, directly or
indirectly, including through any intermediary or third party, with
another person, or group of persons, to engage in activity
(b)  If a financial institution refuses to provide,
restricts, or terminates service to a person, that person may
request a statement of specific reasons within 90 days after
receiving notice of the refusal to provide, restriction of, or
termination of service.  The person may request the statement from a
customer service representative or designated account
representative by phone, U.S. mail, or electronic mail.  Unless
otherwise prohibited by federal law, the financial institution must
transmit the statement of specific reasons via U.S. Mail and
electronic mail, if known to the financial institution, within 14
days of receiving the person's request. The statement of specific
(1)  a detailed explanation of the basis for the denial
or termination of service, including a description of any of the
person's speech, religious exercise, business activity with a
particular industry, or other conduct that was, in whole or in part,
the basis of the financial institution's denial or termination of
(2)  a copy of the terms of service agreed to by the
person and the financial institution; and
(3)  a citation to the specific provisions of the terms
of service upon which the financial institution relied to refuse to
provide, restrict, or terminate service.
Sec. 121.003.  ENFORCEMENT.  (a)  Any violation of this
chapter shall constitute a violation of Chapter 17, Title 2,
(b)  If the Attorney General has reasonable cause to believe
that any financial institution has engaged in, is engaging in, or is
about to engage in, any violation of this chapter, the Attorney
General may investigate as provided in Section 17.60 and 17.61,
Business & Commerce Code, may bring a civil action as provided in
Section 17.47, Business & Commerce Code, and may seek remedies as
provided in Section 17.62, Business & Commerce Code.
(c)  Any person harmed by a violation of this chapter may
initiate a civil action for either or both of the following:
(1)  to recover actual damages, or $10,000, whichever
is greater for each violation.  If the trier of fact finds that the
violation was willful, it may increase the damages to an amount of
up to three times the actual damages sustained, or $30,000,
whichever is greater.  A court shall award a prevailing plaintiff
reasonable attorneys' fees and court costs.
(2)  To obtain preventive relief, including an
application for a permanent or temporary injunction, restraining
order, or other order as is necessary to enforce the requirements of
SECTION 3.  It is the intent of the legislature that every
provision, section, subsection, sentence, clause, phrase, or word
in this Act, and every application of the provisions in this Act,
are severable from each other.  If any application of any provision
in this Act to any person, group of persons, or circumstances is
found by a court to be invalid, the remaining applications of that
provision to all other persons and circumstances shall be severed
and may not be affected.  All constitutionally valid applications
of this Act shall be severed from any applications that a court
finds to be invalid, leaving the valid applications in force,
because it is the legislature's intent and priority that the valid
applications be allowed to stand alone.  The legislature further
declares that it would have passed this Act, and each provision,
section, subsection, sentence, clause, phrase, or word, and all
constitutional applications of this Act, irrespective of the fact
that any provision, section, subsection, sentence, clause, phrase,
or word, or applications of this Act, were to be declared
SECTION 4.  This Act takes effect September 1, 2025.