Bill > SB946

This bill proposes to amend the Texas Finance Code to prohibit authorized lenders from denying credit to organizations based on certain subjective or value-based criteria. Specifically, the bill defines an "organization" using the Business Organizations Code and adds new protections that prevent lenders from restricting credit extensions for reasons unrelated to genuine financial risk. These prohibited reasons include an organization's social credit score, environmental, social, and governance (ESG) scores, diversity and inclusion practices, or associations with specific industries like agriculture, fossil fuels, firearms, or media platforms. The bill builds upon existing anti-discrimination provisions in lending, which already protect individuals from credit denial based on factors like race, sex, age, or income source. The legislation would take effect immediately if it receives a two-thirds vote in the Texas legislature, or otherwise on September 1, 2025. By introducing these provisions, the bill aims to prevent what it considers ideological discrimination in lending practices and ensure that credit decisions are based solely on objective financial metrics.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB946