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ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
VETOED
social credit; use; prohibition
Purpose
Prohibits the State of Arizona from requiring a bank or financial institution to use a social credit score when the bank or financial institution evaluates whether to lend money to a customer.
Background
Statute authorizes and outlines the regulation and operation of banks and financial institutions in Arizona. The Department of Insurance and Financial Institutions licenses, supervises and regulates state-chartered financial institutions and enterprises and is responsible for annual assessments of the financial institutions and enterprises to ensure the safety and stability of the financial services industry (A.R.S. Title 6).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Prohibits the State of Arizona from requiring a bank or financial institution to use a social credit score when the bank or financial institution evaluates whether to lend money to a customer.
2. Becomes effective on the general effective date.
Governor's Veto Message
The Governor indicates in her veto message that H.B. 2472 is vague and is redundant with federal law, which currently prohibits discriminatory lending and provides parameters for credit decisions.
House Action Senate Action
COM 1/31/23 DP 6-4-0-0 FIN 3/6/23 DP 4-3-0
3rd Read 2/21/23 31-28-1 3rd Read 3/28/23 16-13-1
Vetoed by the Governor on 4/3/23
Prepared by Senate Research
April 4, 2023
MG/sr