Bill Summary – FastDemocracy

H.B. 784
                          GENERAL ASSEMBLY OF NORTH CAROLINA
                                                                                              Apr 18, 2023
                                      SESSION 2023                                      HOUSE PRINCIPAL CLERK
     H                                                                                                 D
                                   HOUSE BILL DRH40402-MU-11A
     Short Title:   Financial Institutions/ESG Factors.                                          (Public)
     Sponsors:      Representative Balkcom.
     Referred to:
                                      A BILL TO BE ENTITLED
 AN ACT TO PROHIBIT FINANCIAL INSTITUTIONS FROM DISCRIMINATING BASED
     ON POLITICAL AFFILIATION OR VALUE-BASED OR IMPACT-BASED CRITERIA,
     INCLUDING ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CREDIT FACTORS.
 The General Assembly of North Carolina enacts:
             SECTION 1. Article 6 of Chapter 53C of the General Statutes is amended by adding
 a new section to read:
 "§ 53C-6-21. Discrimination prohibited.
     (a)     A bank shall not refuse to provide financial services of any kind to, refrain from
 continuing to provide existing financial services to, terminate existing financial services with, or
 otherwise discriminate in the provision of financial services against a person solely based on
 either of the following:
             (1)     The person's political affiliation.
             (2)     Any value-based or impact-based criteria, including social credit scores or
                     environmental, social, and governance credit factors.
     (b)     A bank may offer investments, products, or services to a potential customer or
 investor based on subjective standards only if the standards are fully disclosed and explained to
 the potential customer or investor before entering into a contract for the investment, product, or
 service. The bank shall obtain a signature from the potential customer or investor attesting that
 the bank has disclosed and explained the subjective standards being used by the bank.
     (c)     This section does not limit a bank's ability to discontinue or refuse to conduct business
 with a person when the action is necessary for the physical safety of the bank's employees.
     (d)     A person that is refused services by a bank in violation of this section may bring an
 action for injunctive relief in superior court. If the court finds that the bank has violated this
 section, the court shall also impose a civil penalty of ten thousand dollars ($10,000) against the
 bank. If the court finds that the violation was willful, the court may treble the amount of the civil
 penalty. The clear proceeds of any penalty assessed pursuant to this section shall be remitted to
 the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2."
             SECTION 2. Article 14C of Chapter 54 of the General Statutes is amended by adding
 a new section to read:
 "§ 54-109.23. Discrimination prohibited.
     G.S. 53C-6-21 applies to a credit union organized under Articles 14A to 14L of this Chapter."
             SECTION 3. Article 4 of Chapter 54B of the General Statutes is amended by adding
 a new section to read:
 "§ 54B-79. Discrimination prohibited.
     G.S. 53C-6-21 applies to a State association."
                                   *DRH40402-MU-11A*
    General Assembly Of North Carolina                                            Session 2023
            SECTION 4. Article 8 of Chapter 54C of the General Statutes is amended by adding
 a new section to read:
 "§ 54C-181. Discrimination prohibited.
     G.S. 53C-6-21 applies to a State savings bank."
            SECTION 5. This act is effective when it becomes law and applies to acts and
 omissions occurring on or after that date.
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