Bill > HB3922

This bill proposes to add a new chapter to the Texas Business & Commerce Code that prohibits companies with shareholders from assigning "environmental, social, or governance" (ESG) scores to individuals or families residing in Texas. The bill defines an ESG score as a credit score that measures a customer's exposure to long-term environmental, social, and governance risks. Specifically, the legislation defines a credit score as a numerical rating derived from algorithms or computational models used to assess a customer's creditworthiness. If a company violates the prohibition against assigning ESG scores to Texas residents, the bill stipulates that such a company will be barred from conducting business in the state. The new legal provisions would take effect on September 1, 2025, giving businesses time to adapt to the new requirements. The bill appears to be part of a broader political movement seeking to limit the use of ESG metrics in financial assessments, which some view as potentially discriminatory or politically motivated.

Business and Industry

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3922