HB 1469-FN - AS AMENDED BY THE HOUSE

16Feb2022... 0342h

2022 SESSION

22-2580

07/08

HOUSE BILL 1469-FN

AN ACT relative to prohibited acts for banks, credit unions, and businesses.

SPONSORS: Rep. Bernardy, Rock. 16; Rep. Vose, Rock. 9; Rep. Hobson, Rock. 35; Rep. Ammon, Hills. 40; Rep. Notter, Hills. 21; Rep. Greeson, Graf. 16; Rep. Greene, Hills. 37

COMMITTEE: Commerce and Consumer Affairs

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AMENDED ANALYSIS

This bill prohibits banks, credit unions, and businesses from engaging in discriminatory practices.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

16Feb2022... 0342h 22-2580

07/08

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty Two

AN ACT relative to prohibited acts for banks, credit unions, and businesses.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1  New Subparagraph; Bank and Credit Union Regulatory and Enforcement; Prohibited Acts.  Amend RSA 383-A:7-701 by inserting after subparagraph (f) the following new subparagraph:

(g)(1)  All banks and other financial institutions doing business in the state of New Hampshire, either directly or through the use of an outside contractor, shall not discriminate against, impose as a precondition, advocate for or cause adverse treatment of, any person, business, or organization in their business practices based on the following, unless such action is necessary for the physical safety of its employees:

(A)  The entity’s ideological, philosophical, or political views and opinions;

(B)  Non-financial criteria such as, but not limited to, social media posts; Internet browsing history, dietary habits, medical status, participation or membership in any clubs, associations, or unions, etc.; political affiliation; or place of employment or source of legal income;

(C)  Property or investments already owned by the entity;

(D)  Gun ownership;

(E)  Nature of business, if that business is governed or regulated or otherwise permitted to operate legally in the state of New Hampshire.   

(2)  Notwithstanding paragraph (g)(1), banks and other financial institutions may offer customers investments, products, and services that include subjective criteria, provided that criteria are fully disclosed and explained to any potential customer or investor prior to entering into a contract for such products and services.

(3)  No provision of this law shall interfere with a person or business' ability to discontinue or refuse to conduct business with a customer when such action is necessary for the physical safety of the person, the business, or the business' employees.

2  New Paragraph; Regulation of Business Practices for Consumer Protection; Acts Unlawful.  Amend RSA 358-A:2 by inserting after paragraph XVIII the following new paragraph:

XIX.(a)  Discriminate against, impose as a precondition, advocate for or cause adverse treatment of any person, business, or organization in their business practices based on the following:

(1)  The entity’s ideological, philosophical, or political views and opinions;

(2)  Non-financial criteria such as, but not limited to, social media posts; Internet browsing history, dietary habits, medical status, participation or membership in any clubs, associations, or unions, etc.; political affiliation; or place of employment or source of legal income;

(3)  Property or investments already owned by the entity,

(4)  Gun ownership; or

(5)  Nature of business, if that business is governed or regulated or otherwise permitted to operate legally in the state of New Hampshire, unless the practice is fully disclosed to the potential consumer before the consumer and business enter into any business transaction.  

(b)  No provision of this law shall interfere with a person or business' ability to discontinue or refuse to conduct business with a customer when such action is necessary for the physical safety of the person, the business, or the business' employees.

3  Effective Date.  This act shall take effect January 1, 2023.

LBA

22-2580

Redraft 11/17/21

HB 1469-FN- FISCAL NOTE

AS INTRODUCED

AN ACT prohibiting banks or businesses from using social credit scores.

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

METHODOLOGY:

This bill prohibits banks and other financial institutions from engaging in discriminatory practices.

The Banking Department indicates this bill introduces an additional prohibited act which the Bank Commissioner shall enforce against all banks and other financial institutions doing business in the state.  If any bank or other financial institution is found to have violated the proposed legislation, the entity shall be subject to varying fine levels depending on the number of offenses.  The amount of additional revenue is indeterminable, as the Banking Department cannot reasonably calculate whether such violations will occur.  In addition, the bill may increase the number of consumer complaints received.  The Department may require additional staff or staff time to handle such complaints, investigations and related enforcement actions.  The amount of any potential increase cannot be determined.

The Department states any revenue from fines would reduce dollar for dollar, the annual assessment imposed in accordance with RSA 383:11,II.  Also any increase in Department expenses would increase the Department costs charged to the regulated and licensed entities by way of the annual assessment.  In years in which an assessment is imposed, there would be no net gain in total revenue to the Department.  If in any given year no assessment is imposed, any revenue generated that is not be needed to cover Banking Department’s expenses related to the regulation of charted entities and licensees in that year, would then be held in the dedicated fund and carried forward as restricted revenue to reduce possible assessment in the next year.  It is impossible to anticipate whether assessments in Fiscal Years 2022-2025 will be impacted since the assessment is based on revenue from all examination fees, fines and penalties which vary from year to year.

AGENCIES CONTACTED:

Banking Department