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ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
business; discrimination prohibition; social criteria
Purpose
Prohibits a financial institution, insurer or credit reporting agency from discriminating against any person based on a political affiliation, or other social credit, environmental, social, or governmental score or similar values-based or impact criteria.
Background
A financial institution is a bank, trust company, savings and loan association, credit union, consumer lender, international banking facility or financial institution holding company under the jurisdiction of the Department of Insurance and Financial Institutions (A.R.S. § 6-101). An insurer includes a person engaged in the business of making contracts of insurance (A.R.S. § 20-104). A credit reporting agency is a person that regularly engages in the practice of assembling or evaluating consumer credit information on consumers for the purpose of furnishing consumer reports to third parties (A.R.S. § 44-1691).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Prohibits a financial institution, insurer or credit reporting agency doing business in Arizona, either directly or through a contractor, from discriminating against any person based on:
a) a political affiliation; or
b) other social credit, environmental, social or governmental score or similar values-based or impact criteria.
2. Allows a financial institution to offer investments, products or services to a potential customer or investor that include subjective standards, if the standards are fully disclosed and explained before entering into a contract for the investments, products or services.
3. States that the Legislature declares that:
a) the practice of discrimination against persons or entities in Arizona by using their social credit, environmental, social justice or governmental score is a matter of statewide concern; and
b) discrimination based on such scores not only threatens the rights and proper privileges of Arizona's inhabitants but menaces the institutions and foundation of a free democratic state and threatens the peace, order, health, safety and general welfare of the state and its inhabitants.
4. Stipulates that the prohibition does not interfere with a financial institution's, insurer's or credit reporting agency's ability to discontinue or refuse to conduct business with a person when the action is necessary for the physical safety of its employees.
5. Becomes effective on the general effective date.
Prepared by Senate Research
January 12, 2024
JT/slp