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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 based on social credit or value-based |
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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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adding Subsection (b) to read as follows: |
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(b) Except as otherwise expressly required by 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, as defined by Section |
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1.001, Business Organizations Code, an extension of credit, |
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including a loan, in the organization's name or restrict or limit |
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the credit extended because of any other reason that is not based on |
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an organization's failure to meet quantitative and impartial |
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risk-based standards established by the lender, including an |
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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) diversity, equity, or inclusion standards or |
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practices; or |
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(3) contracts, services, or other association with a |
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legal industry, including agriculture, fossil fuels, firearms, or |
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free-speech media platforms, or a religious institution. |
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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, 2023. |