Senate Bill 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 prevent authorized lenders from denying credit to individuals based on various personal characteristics, including sex, race, and income sources. Additionally, it establishes that organizations cannot be denied credit based on subjective criteria such as social credit scores or practices related to diversity and inclusion.

The bill specifically states that credit decisions must be based on bona fide financial assessments rather than subjective or value-based standards. It outlines that organizations should not be restricted from receiving credit due to their associations with certain industries or religious institutions. The legislation is set to take effect immediately upon receiving a two-thirds vote from both houses of the Texas Legislature, 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)