On March 24, Idaho enacted SB 1027, referred to as the “Transparency in Financial Services Act,” which prohibits financial institutions from discriminating based on social credit scores. The Act prohibits large banks and payment processors from using social credit scores to deny, restrict or terminate financial services, except when evaluating quantifiable financial risks based on impartial standards if the standards are established in advance by the financial institution and publicly disclosed. One’s “social credit score” is defined as any analysis, rating, scoring, list or tabulation that evaluates a person’s (i) exercise of religion; (ii) speech protected by the First Amendment; (iii) the failure or refusal to adopt targets or disclosures related to greenhouse emissions; (iv) failure to conduct any racial, diversity or gender audit or disclosure; (v) failure to facilitate employees obtaining abortions or gender reassignment services; or (vi) participation in activities related to fossil-fuels or firearms.
If a financial institution refuses or restricts services, it must provide a detailed explanation upon request, including the basis for the decision and relevant terms of service. The Act also outlines enforcement mechanisms, stating that violations are subject to the Idaho Consumer Protection Act, and allows the state attorney general to investigate and enforce compliance. The Act takes effect on July 1.
