S.B. No. 946 aims to prohibit discrimination in the extension of credit to organizations based on social credit or value-based standards. The bill amends Section 341.401 of the Finance Code by defining "organization" in accordance with the Business Organizations Code and introducing new provisions that protect both individuals and organizations from discriminatory practices. Specifically, it prohibits authorized lenders from denying credit to individuals based on various personal characteristics, such as sex, race, or income source, and extends similar protections to organizations by preventing credit denial based on non-bona fide credit decisions or subjective standards.

The bill explicitly states that organizations cannot be denied credit based on their social credit scores, diversity practices, or associations with certain industries or religious institutions. This includes criteria related to environmental, social, or governance scores that are derived from subjective assessments. The legislation is designed to ensure that credit decisions are made based on objective financial risk assessments rather than on potentially discriminatory or value-based criteria. The act will take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if such a vote is not achieved.

Statutes affected:
Introduced: Finance Code 341.401 (Finance Code 341)
Senate Committee Report: Finance Code 341.401 (Finance Code 341)
Engrossed: Finance Code 341.401 (Finance Code 341)