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REFERENCE TITLE: social credit; discrimination; financial services |
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State of Arizona Senate Fifty-sixth Legislature Second Regular Session 2024
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SB 1167 |
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Introduced by Senator Kavanagh
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An Act
amending title 6, chapter 2, article 1, Arizona Revised Statutes, by adding section 6-194; relating to financial institutions.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 6, chapter 2, article 1, Arizona Revised Statutes, is amended by adding section 6-194, to read:
A. A financial institution may not:
1. Discriminate in providing financial services to a person.
2. Agree, conspire or coordinate, directly or indirectly, through an intermediary, a third party, another person or a group of persons to engage in any activity that is prohibited by this section.
B. If a financial institution refuses to provide, restricts or terminates service with a customer, that customer may submit a request within ninety days that the financial institution provide a written statement of the specific reasons the financial institution refused to provide, restricted or terminated service with the customer. The customer may request the statement from a customer service representative or designated account representative by telephone, United States mail or email. The financial institution must transmit the statement of specific reasons through United States Mail and email within fourteen days after receiving the customer's request. The statement of specific reasons shall include all of the following:
1. A detailed explanation of the basis for the denial or termination of service that includes a description of any of the customer's:
(a) Speech.
(b) Religious exercise.
(c) Business activity with a particular industry.
(d) Any other conduct that was the basis of the denial or termination of service.
2. A copy of the terms of service agreed to by the customer and the financial institution.
3. A citation to the specific provisions of the terms of service that the financial institution relied on in the financial institution's decision to refuse to provide, restrict or terminate service.
C. If the attorney general has reasonable cause to believe that a financial institution has engaged in, is engaging in or is about to engage in any violation of this section, the attorney general may investigate as the attorney general deems appropriate. If, after the investigation, the attorney general determines that this section has been violated, the attorney general may bring an action in a court of competent jurisdiction.
D. Any person harmed by a violation of this section 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 wilful, the trier of fact 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 attorney fees and court costs.
2. To obtain provisional remedies that include a temporary or permanent injunction, a restraining order or any other necessary remedy to enforce this section.
E. For the purposes of this section:
1. "Discriminate in providing financial services" means using a social credit score to either directly or indirectly decline to provide full and equal enjoyment in the provision of financial services, including refusing to provide, terminating or restricting financial services.
2. "Financial institution":
(a) Means any of the following:
(i) A bank that has total assets over $100,000,000,000.
(ii) 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.
(b) Includes any affiliate or subsidiary company of the financial institutions pursuant to subdivision (a) of this paragraph, even if that company is also a financial institution.
3. "Financial service" means any financial product or service offered by a financial institution.
4. "Person" means any of the following:
(a) An individual.
(b) A partnership.
(c) An association.
(d) A joint stock company.
(e) A trust.
(f) A corporation.
(g) A nonprofit organization.
(h) Any other business or legal entity.
5. "Social credit score":
(a) Means any analysis, rating, scoring, list or tabulation that evaluates any of the following:
(i) A person's exercise of religion that includes any religious practice, observance, belief or affiliation.
(ii) A person's speech, expression or association, including the person's opinions, other expressive activities, lawful preservation of privacy regarding those activities and refusal to disclose lobbying, political activity or contributions except as provided by law.
(iii) A person's failure or refusal to adopt, comply with or disclose information related to greenhouse gas emissions except as provided by law.
(iv) A person's failure or refusal to conduct any type of racial, diversity or gender audit or disclosure or to provide a quota, preference or benefit based, in whole or in part, on race, diversity or gender.
(v) A person's failure or refusal to facilitate or assist employees in obtaining abortions or gender reassignment services.
(vi) Except as provided in subdivision (b) of this paragraph, A person's participation in any lawful business association or business activity that includes firearms and ammunition manufacturers or dealers, an oil or gas company or any other lawful business-related category.
(b) Does not include the financial institution's evaluation of any quantifiable financial risks of a person based on impartial, financial risk-based standards that include activities described in this subsection, if the standards are established in advance by the financial institution and are publicly disclosed to customers and potential customers.
Sec. 2. Short title
This act may be cited as the "Equality in Financial Services Act".