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House
File
594
-
Introduced
HOUSE
FILE
594
BY
THOMSON
A
BILL
FOR
An
Act
relating
to
discrimination
in
the
provision
of
financial
1
services,
and
providing
civil
penalties.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
NEW
SECTION
.
529A.1
Definitions.
1
For
purposes
of
this
chapter,
unless
the
context
otherwise
2
requires:
3
1.
“Discriminate”
or
“discrimination”
means
a
financial
4
institution’s
use
of
a
social
credit
score
to
directly
or
5
indirectly
decline
to
provide
the
full
and
equal
enjoyment
6
of
financial
services
to
a
person,
and
includes
refusing
to
7
provide,
terminating,
or
restricting
financial
services
to
a
8
person.
9
2.
“Financial
institution”
means
any
bank
incorporated
10
under
the
provisions
of
any
state
or
federal
law,
any
savings
11
and
loan
association
incorporated
under
the
provisions
of
12
federal
law,
any
credit
union
organized
under
the
provisions
13
of
any
state
or
federal
law,
and
any
corporation
licensed
as
14
an
industrial
loan
company
under
chapter
536A
and
that
is
any
15
of
the
following:
16
a.
A
bank
with
total
assets
over
one
hundred
billion
17
dollars.
18
b.
A
payment
processor,
credit
card
company,
credit
card
19
network,
payment
network,
payment
service
provider,
or
payment
20
gateway
that
has
processed
more
than
one
hundred
billion
21
dollars
in
transactions
in
the
last
calendar
year.
22
c.
An
affiliate
or
subsidiary
company
of
a
financial
23
institution.
24
3.
“Financial
service”
means
any
financial
product
or
25
service
offered
or
provided
by
a
financial
institution.
26
4.
“Person”
means
the
same
as
defined
in
section
4.1.
27
5.
“Protected
from
government
interference”
means
any
28
speech,
religious
exercise,
association,
expression,
or
conduct
29
protected
by
the
first
amendment
to
the
Constitution
of
the
30
United
States,
Article
I
of
the
Constitution
of
the
State
of
31
Iowa,
or
federal
or
state
law.
“Protected
from
government
32
interference”
does
not
include
any
speech,
religious
exercise,
33
association,
expression,
or
conduct
that
the
United
States
34
supreme
court,
as
of
July
1,
2025,
has
expressly
held
is
not
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protected
by
the
first
amendment
to
the
Constitution
of
the
1
United
States,
Article
I
of
the
Constitution
of
the
State
of
2
Iowa,
or
federal
or
state
law.
3
6.
a.
“Social
credit
score”
means
an
analysis,
rating,
4
scoring,
list,
or
tabulation
that
evaluates
any
of
the
5
following:
6
(1)
A
person’s
speech,
religious
exercise,
association,
7
expression,
or
conduct
protected
by
the
first
amendment
8
to
the
Constitution
of
the
United
States,
Article
I
of
the
9
Constitution
of
the
State
of
Iowa,
or
federal
or
state
law.
10
(2)
A
person’s
failure
or
refusal
to
do
any
of
the
11
following:
12
(a)
Adopt
targets
or
disclosures
related
to
greenhouse
gas
13
emissions
beyond
targets
or
disclosures
required
by
state
and
14
federal
law.
15
(b)
Conduct
a
racial,
diversity,
or
gender
audit
or
16
disclosure,
or
provide
a
quota,
preference,
or
benefit
based
17
on
race,
diversity,
or
gender.
18
(c)
Facilitate
or
assist
an
employee
in
obtaining
an
19
abortion
or
gender
reassignment
services.
20
(3)
A
person’s
participation
in
business
activities
related
21
to
a
manufacturer
or
dealer
of
firearms
and
ammunition,
or
22
business
activities
with
an
oil
or
gas
company.
23
(4)
A
person’s
status
as
an
elected
official
or
a
person’s
24
status
as
a
politically
exposed
person.
25
b.
“Social
credit
score”
shall
not
include
a
financial
26
institution’s
evaluation
of
a
person’s
quantifiable
financial
27
risks
based
on
impartial,
financial-risk-based
standards
if
28
such
standards
are
established
in
advance
by
the
financial
29
institution
and
publicly
disclosed
to
customers
and
potential
30
customers.
31
Sec.
2.
NEW
SECTION
.
529A.2
Discrimination
prohibited.
32
1.
A
financial
institution
shall
not
discriminate
in
the
33
provision
of
financial
services
to
a
person
or
agree,
conspire,
34
or
coordinate,
directly
or
indirectly,
including
through
an
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intermediary
or
third
party,
with
another
person,
or
group
of
1
persons,
to
discriminate
in
the
provision
of
financial
services
2
to
a
person.
3
2.
If
a
financial
institution
refuses
to
provide,
4
restricts,
or
terminates
financial
services
to
a
person,
within
5
ninety
days
of
the
refusal,
restriction,
or
termination,
the
6
person
may
request
a
written
statement
that
specifies
the
7
reason
for
the
financial
institution’s
refusal
to
provide,
or
8
restriction
or
termination
of,
the
person’s
financial
services.
9
a.
The
person
may
request
the
statement
from
a
customer
10
service
or
designated
account
representative
of
the
financial
11
institution
by
phone,
mail,
or
electronic
mail.
The
person
12
shall
provide
the
financial
institution
with
a
mailing
address
13
and
an
electronic
mail
address
where
the
statement
can
be
sent.
14
The
financial
institution
shall
transmit
the
statement
by
mail
15
or
electronic
mail
within
fourteen
business
days
of
receiving
16
the
person’s
request.
17
b.
The
financial
institution’s
statement
shall
include
all
18
of
the
following:
19
(1)
A
detailed
explanation
of
the
basis
for
the
denial,
20
restriction,
or
termination
of
the
person’s
financial
services,
21
including
a
description
of
the
person’s
speech,
religious
22
exercise,
business
activity
with
a
particular
industry,
or
23
other
conduct
that
was,
in
whole
or
in
part,
the
basis
of
the
24
financial
institution’s
decision.
25
(2)
A
copy
of
the
terms
of
service
agreed
upon,
if
any,
by
26
the
financial
institution
and
the
person
to
whom
the
financial
27
institution
refuses
to
provide,
or
restricts
or
terminates,
28
financial
services,
and
a
citation
to
the
specific
provision
29
of
the
terms
of
service
upon
which
the
financial
institution
30
relied
to
refuse
to
provide,
or
to
restrict
or
terminate,
31
financial
services.
32
Sec.
3.
NEW
SECTION
.
529A.3
Enforcement
——
penalties.
33
1.
If
the
attorney
general
has
reasonable
belief
that
a
34
financial
institution
is
in
violation
of
this
chapter,
the
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attorney
general
may
bring
a
civil
action
to
enforce
the
1
provisions
of
this
chapter.
Upon
finding
that
a
financial
2
institution
violated
this
chapter,
a
court
may
order
any
of
the
3
following:
4
a.
Injunctive
relief
as
necessary
to
enforce
compliance
with
5
this
chapter.
6
b.
Other
remedies
permitted
under
the
law.
7
c.
Damages,
restitution,
or
other
compensation
on
behalf
of
8
residents
of
the
state,
not
to
exceed
the
amount
provided
by
9
subsection
2,
paragraph
“a”
.
10
2.
A
person
harmed
by
a
violation
of
this
chapter
by
a
11
financial
institution
may
bring
a
civil
action,
and
upon
12
finding
that
a
financial
institution
violated
this
chapter,
a
13
court
may
order
any
of
the
following:
14
a.
Actual
damages
not
to
exceed
ten
thousand
dollars,
15
except
if
the
court
finds
that
the
violation
by
the
financial
16
institution
was
willful,
damages
in
an
amount
equal
to
three
17
times
the
amount
of
actual
damages,
but
not
to
exceed
thirty
18
thousand
dollars,
in
addition
to
reasonable
attorney
fees
and
19
court
costs.
20
b.
Injunctive
relief
as
necessary
to
enforce
compliance
with
21
this
chapter.
22
EXPLANATION
23
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
24
the
explanation’s
substance
by
the
members
of
the
general
assembly.
25
This
bill
relates
to
discrimination
by
a
financial
26
institution
in
the
provision
of
financial
services.
27
The
bill
prohibits
a
financial
institution
from
28
discriminating
in
the
provision
of
financial
services
to
a
29
person,
and
from
agreeing,
conspiring,
or
coordinating
with
30
another
person
or
group
of
persons
to
discriminate
in
the
31
provision
of
financial
services
to
a
person.
“Discrimination”
32
is
defined
by
the
bill
as
the
use
of
a
social
credit
score
33
by
a
financial
institution
to
directly
or
indirectly
decline
34
to
provide,
terminate,
or
restrict,
financial
services
to
a
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person.
“Social
credit
score”
is
defined
by
the
bill
as
an
1
analysis,
rating,
scoring,
list,
or
tabulation
that
evaluates
2
a
person’s
protected
speech,
religious
exercise,
association,
3
expression,
or
conduct;
a
person’s
failure
or
refusal
to
adopt
4
targets
or
disclosures
related
to
greenhouse
gas
emissions
5
beyond
state
and
federal
law
requirements;
a
person’s
failure
6
or
refusal
to
conduct
a
racial,
diversity,
or
gender
audit
7
or
disclosure;
a
person’s
failure
or
refusal
to
facilitate
8
or
assist
an
employee
in
obtaining
an
abortion
or
gender
9
reassignment
services;
a
person’s
participation
in
business
10
activities
related
to
a
manufacturer
or
dealer
of
firearms
and
11
ammunition
or
business
activities
with
an
oil
or
gas
company;
12
or
a
person’s
status
as
an
elected
official
or
a
politically
13
exposed
person.
“Financial
institution”
and
“financial
14
service”
are
also
defined
by
the
bill.
The
bill
permits
a
15
person
to
whom
a
financial
institution
has
refused
to
provide,
16
restricted,
or
terminated
financial
services
to
request
a
17
written
statement
within
90
days
of
such
action
specifying
18
the
reason
for
the
refusal,
restriction,
or
termination.
A
19
person
can
request
the
statement
from
a
customer
service
or
20
designated
account
representative
of
the
financial
institution,
21
and
the
person
shall
provide
the
financial
institution
with
22
a
mailing
address
and
an
electronic
mail
address
where
the
23
statement
can
be
sent.
The
financial
institution
shall
24
transmit
the
statement
within
14
business
days
of
receiving
the
25
person’s
request,
and
the
statement
shall
include
a
detailed
26
explanation
of
the
basis
for
the
denial,
restriction,
or
27
termination,
including
a
description
of
any
of
the
person’s
28
speech,
religious
exercise,
business
activity
with
a
particular
29
industry,
or
other
conduct
that
was
a
basis
for
the
action
30
taken.
The
statement
shall
also
include
a
copy
of
the
31
terms
of
service
agreed
upon
by
the
person
and
the
financial
32
institution,
and
a
citation
to
the
specific
provision
of
the
33
terms
of
service
that
was
the
basis
for
the
action
taken.
34
The
attorney
general
may
bring
civil
action
to
enforce
the
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provisions
of
the
bill
and,
upon
finding
that
a
financial
1
institution
violated
the
bill,
a
court
may
order
injunctive
2
relief,
damages,
restitution,
other
compensation,
or
other
3
remedies
permitted
by
law.
A
person
harmed
by
a
violation
4
of
the
bill
may
bring
a
civil
action
and,
upon
finding
that
5
a
financial
institution
violated
the
bill,
a
court
may
order
6
injunctive
relief
and
actual
damages
not
to
exceed
$10,000
or,
7
upon
a
finding
that
the
violation
by
the
financial
institution
8
was
willful,
damages
equal
to
three
times
the
amount
of
actual
9
damages
but
not
to
exceed
$30,000,
in
addition
to
reasonable
10
attorney
fees
and
court
costs.
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