The proposed bill, known as the "Transparency in Financial Services Act," introduces a new chapter to Title 26 of the Idaho Code, which aims to enhance transparency and protect individuals from discrimination in financial services. It defines key terms, including "discriminate in the provision of financial services," which refers to the use of social credit scores to deny or restrict access to financial services. The bill mandates that financial institutions provide a detailed explanation to customers who experience service denial or termination, outlining the reasons for such actions and the specific terms of service that were cited. Additionally, it prohibits financial institutions from discriminating against individuals based on their speech, religious practices, or other protected activities.

Furthermore, the bill amends Section 26-107 of the Idaho Code to extend the applicability of certain provisions to national banks, ensuring that they are also subject to the new regulations established by this act. The legislation includes enforcement mechanisms, allowing the attorney general to investigate violations and enabling affected individuals to pursue civil actions. The bill emphasizes the severability of its provisions, ensuring that if any part is deemed unconstitutional, the remaining sections will still stand. An emergency clause is included, making the act effective on July 1, 2025.

Statutes affected:
Bill Text: 26-107
Engrossment 1: 26-107
Engrossment 2: 26-107