#txlege State @SenBryanHughes just filed #SB946 which seeks to prohibit certain discrimination in the extension of credit to organizations based on social credit or value-based standards.

Ultimately the bill amends the Texas Finance Code to prohibit lenders from denying or limiting credit to organizations or individuals based on subjective, value-based criteria not related to financial risk. Specifically, lenders may not use factors such as social credit scores, environmental, social, or governance (ESG) scores, or standards related to diversity, equity, and inclusion when making credit decisions. The bill also prevents discrimination based on an organization's association with specific industries or institutions, including fossil fuels, firearms, agriculture, free-speech media platforms, or religious entities. The proposed changes aim to ensure lending decisions are based solely on objective financial criteria.

Bill: