SB 487

Under present law, financial institutions are required to make determinations about the provisio n or denial of services based on an analysis of factors that are unique to each current or prospective customer. Present law does not restrict a financial institution that claims a religious purpose from making such determinations based on the current or prospective customer's religious beliefs, religious exercise, or religious affiliations . However, a financial institution must not deny or cancel its services to a person, or discriminate against a person in making available such services or in the terms or conditions of such services, on the basis of any of the following: (1) The person's political opinions, speech, or affiliations ; (2) Generally, t he person's religious beliefs, religious exercise, or religious affiliations ; (3) Any factor if it is not a quantitative, impartial, and risk-based standard, including any such factor related to the person's business sector; or (4) The use of a rating, scoring, analysis, tabulation, or action that considers a social credit score based on factors , in cluding , but not limited to, (i) t he person's political opinions, speech, or affiliations , (ii) generally, t he person's religious beliefs, religious exercise, or religious affiliations , (iii) t he person's lawful ownership of a firearm ; (iv) t he person's en gagement in the lawful manufacture, distribution, sale, purchase, or use of firearms or ammunition ; (v) t he person's engagement in the exploration, production, utilization, transportation, sale, or manufacture of fossil fuel-based energy, timber, mining, o r agriculture ; (vi) t he person's support of the state or federal government in combatting illegal immigration, drug trafficking, or human trafficking ; or (vii) t he person's failure to meet or commit to meet, or expected failure to meet, any of the followin g as long as such person is in compliance with applicable state or federal law : environmental standards, social governance standards, benchmarks, or requirements, corporate board or company employment composition standards, benchmarks, requirements, or dis closures based on characteristics protected under human rights law, or policies or procedures requiring or encouraging employee participation in social justice programming, including diversity, equity, or inclusion training. REQUEST TO FINANCIAL INSTITUTI ON If a financial institution refuses to provide, restrict, or terminate service to a person, present law authorizes that person to request a statement of specific reasons for the refusal, restriction, or termination within 90 days after receiving notice of the refusal to provide, restriction of, or termination of service. The person may request the statement from a customer service representative or designated account representative by phone, mail, or electronic mail. Unless otherwise prohibited by fed eral law, the financial institution must transmit the statement of specific reasons by mail and electronic mail, if known to the financial institution, within 30 days of receiving the person's request. The statement of specific reasons must include: (1) A detailed explanation of the basis for the denial, restriction, or termination of service, including a description of any of the person's speech, religious exercise, business activity with a particular industry, or other conduct that was, in whole or i n part, the basis of the financial institution's denial, restriction, or termination of service; (2) A copy of the terms of service agreed to by the person and the financial institution; and (3) A citation to the specific provisions of the terms of se rvice upon which the financial institution relied to refuse to provide, restrict, or terminate service. Present law does not prohibit a financial institution from declining to provide financial services to a person that is engaged in fraud, criminal conduct, incitement to unlawful actions, or that creates obscenity or another form of expression that is not protected by the Constitution of Tennessee or the United States Constitution. VIOLATIONS A violation of present law constitutes a violation of t he Tennessee Consumer Protection Act of 1977 and constitutes an unfair or deceptive act or practice affecting trade or commerce and is subject to the penalties and remedies of that Act . "FINANCIAL INSTITUTION"" DEFINED As used in present law, a ""financial institution"" means a state or national bank, a savings and loan association, savings bank, credit union, industrial loan and thrift company, or mortgage lender that has more than $100 billion in assets. This bill revises this definition by dec r easing the required dollar amount of assets from to $50 billion. Thereby, this bill expands the applicability of the present law to more financial institutions."