Text of LA HB 418 (2025)

HLS 25RS-957 ORIGINAL 2025 Regular Session HOUSE BILL NO. 418 BY REPRESENTATIVE WILDER Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. FINANCIAL INSTITUTIONS: Provides with respect to transactions of financial institutions 1 AN ACT 2 To enact R.S. 51:1430, relative to financial institutions transaction; to provide for 3 definitions; to provide for adverse actions; to prohibit certain actions by a financial 4 institutional; to provide for violations; to provide for civil actions; to provide for 5 severability; and to provide for related matters. 6 Be it enacted by the Legislature of Louisiana: 7 Section 1. R.S. 51:1430 is hereby enacted to read as follows: 8 §1430. Practices by a financial institution 9 A.(1) As used in this Section, the following terms have the following 10 meanings: 11 (a) "Adverse action" means a decision by a financial institution to directly 12 or indirectly decline to provide full and equal enjoyment in the provision of financial 13 services and includes refusing to provide, terminating, or restricting financial 14 services. An adverse action does not include: 15 (i) A change in the terms of an account expressly agreed to by an applicant. 16 (ii) Any action or forbearance relating to an account taken in connection with 17 inactivity, default, or delinquency as to that account. 18 (iii) A refusal to provide services because applicable law prohibits the 19 creditor from providing the service requested. Page 1 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 25RS-957 ORIGINAL HB NO. 418 1 (iv) A refusal to provide a service because the creditor does not offer the 2 type of service requested. 3 (b)(i) "Discriminate in the provision of financial services" means taking an 4 adverse action against a customer on the basis of one of the following criteria: 5 (aa) Any person's exercise of religion that is protected from government 6 interference by the First Amendment to the Constitution of the United States of 7 America, Article 1, Section 8 of the Constitution of Louisiana, or federal or state law, 8 including all aspects of religious observance and practice, as well as belief and 9 affiliation. 10 (bb) Any person's speech, expression, or association that is protected from 11 government interference by the First Amendment to the Constitution of the United 12 States of America, Article 1, Sections 7 and 9 of the Constitution of Louisiana, or 13 federal or state law, including the person's opinions, speech, or other expressive 14 activities, including the lawful preservation of privacy regarding those activities, 15 such as the refusal to disclose lobbying, political activity, or contributions beyond 16 what is required by applicable state and federal law. 17 (cc) Failure or refusal to adopt any targets or disclosures related to 18 greenhouse gas emissions beyond what is required by applicable state and federal 19 law. 20 (dd) Failure or refusal to conduct any type of racial, diversity, or gender 21 audit or disclosure or to provide any sort of quota, preference, or benefit based, in 22 whole or in part, on race, diversity, or gender. 23 (ee) Failure or refusal to facilitate or assist employees in obtaining abortions 24 or gender transition services. 25 (ff) Except as provided in Item (ii) of this Subparagraph, participation in 26 business activities with an entity that engages in the exploration, production, 27 utilization, transportation, sale, or manufacturing of fossil fuel sources or 28 fossil-fuel-based energy or business activities with an entity that engages in the Page 2 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 25RS-957 ORIGINAL HB NO. 418 1 manufacture, distribution, wholesale, supply, or retail of firearms, firearms 2 accessories, or ammunition. 3 (ii) For the purposes of Subitem (i)(ff) of this Subparagraph only, 4 "discriminate in the provision of financial services" does not include the financial 5 institution evaluating quantifiable financial risks of a person based on impartial, 6 financial-risk-based standards that include activities described in Subitem (i)(ff) of 7 this Subparagraph, if such standards are established in advance by the financial 8 institution and publicly disclosed to customers and potential customers. 9 (c)(i) "Financial institution" means, notwithstanding R.S. 51:1406, one of the 10 following: 11 (aa) A bank that has total assets over one hundred billion dollars. 12 (bb) A payment processor, credit card company, credit card network, 13 payment network, payment service provider, or payment gateway that has processed 14 more than one hundred billion dollars in transactions in the last calendar year. 15 (ii) A financial institution includes any affiliate or subsidiary company, even 16 if that company is also a financial institution. 17 (d) "Financial service" means any financial product or service offered by a 18 financial institution. 19 (e) "Person" means any individual, partnership, association, joint stock 20 company, trust, corporation, nonprofit organization, or other business or legal entity. 21 (f) "Protected from government interference" refers to any speech, religious 22 exercise, association, expression, or conduct that is protected by the First 23 Amendment other than activities that the Supreme Court of the United States has 24 expressly held are unprotected as of the date of this Act, such as obscenity, fraud, 25 incitement, true threats, fighting words, or defamation. 26 (2) These definitions shall be construed in favor of the broad protection of 27 the conduct, opinions, and beliefs protected by the First Amendment to the 28 Constitution of the United States of America, applicable federal laws, the 29 Constitution of Louisiana, and state law. Page 3 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 25RS-957 ORIGINAL HB NO. 418 1 B.(1) If a financial institution takes an adverse action against a person, that 2 person may request a statement of specific reasons within ninety days after receiving 3 notice of the refusal to provide, restriction of, or termination of service. 4 (2) The person may request the statement from a customer service 5 representative or designated account representative by phone, U.S. mail, or electronic 6 mail. 7 (3) Unless otherwise prohibited by federal law, the financial institution shall 8 transmit the statement of specific reasons by U.S. mail and electronic mail, if known 9 to the financial institution, within thirty days of receiving the person's request. 10 (4) The statement of specific reasons shall include a description of the 11 reasons for the denial or termination of service. This statement shall be specific and 12 indicate the principal reason or reasons for the adverse action. A statement that the 13 adverse action was based on the institution's internal standards or policies or that the 14 person failed to achieve a qualifying score on the institution's credit scoring system 15 is insufficient. If any criteria listed in Subparagraph (A)(1)(b) of this Section 16 factored into the institution's decision to take an adverse action, it must be described 17 in the statement. 18 (5) If the financial institution provides an adverse action statement to the 19 customer consistent with its obligations under the Equal Credit Opportunity Act and 20 implementing regulations, that statement shall be considered to satisfy the 21 requirements of this Subsection. 22 C. A financial institution shall not do either of the following: 23 (1) Discriminate in the provision of financial services to a person. 24 (2) Agree, conspire, or coordinate, directly or indirectly, including through 25 any intermediary or third party, with another person, or group of persons, to engage 26 in activity prohibited by Paragraph (1) of this Subsection. 27 (3) Provide false or misleading information in the report required in 28 Subsection B of this Section. Page 4 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 25RS-957 ORIGINAL HB NO. 418 1 D. Any violation of this Section shall be an unfair or deceptive act or 2 practice declared unlawful by R.S. 51:1405 and, in addition to the rights and 3 remedies provided in this Section, shall subject the violator to any and all other 4 actions and penalties provided for in this Chapter. 5 E. Any person harmed by a violation of this Chapter may initiate a civil 6 action for either of the following: 7 (1) To recover actual damages, or ten thousand dollars, whichever is greater, 8 for each violation. If the trier of fact finds that the violation was willful, it may 9 increase the damages to an amount of up to three times the actual damages sustained, 10 or thirty thousand dollars, whichever is greater. A court shall award a prevailing 11 plaintiff reasonable attorney fees and court costs. 12 (2) To obtain preventive relief, including an application for a permanent or 13 temporary injunction, restraining order, or other order as is necessary to enforce the 14 requirements of this Chapter. 15 F. If a financial institution can show by clear and convincing evidence that 16 the plaintiff filed a civil action pursuant to Subsection E in bad faith, it shall be 17 entitled to reasonable attorney fees and court costs from the plaintiff. 18 Section 2. If any provision of this Act or the application thereof is held invalid, such 19 invalidity shall not affect other provisions or applications of this Act which can be given 20 effect without the invalid provisions or applications, and to this end the provisions of this 21 Act are hereby declared severable. DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] HB 418 Original 2025 Regular Session Wilder Abstract: Provides relative to financial institutions transaction. Proposed law defines "adverse action", "discriminate in the provision of financial services", "financial institution", "financial service", "person", and "protected from government interference". Page 5 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 25RS-957 ORIGINAL HB NO. 418 Proposed law provides that if a financial institution takes an adverse action against a person, that person may request a statement of specific reasons within 90 days after receiving notice of the refusal to provide, restriction of, or termination of service. Proposed law provides that a financial institution shall not: (1) Discriminate in the provision of financial services to a person. (2) Agree, conspire, or coordinate, directly or indirectly, including through any intermediary or third party, with another person, or group of persons, to engage in activity prohibited by proposed law. (3) Provide false or misleading information in the report required in proposed law. Proposed law provides that any violation of proposed law shall be an unfair or deceptive act or practice declared unlawful by present law. Proposed law provides for what civil actions any person harmed by a violation of proposed law may initiate. Proposed law provides that if a financial institution can show by clear and convincing evidence that the plaintiff filed a civil action pursuant to proposed law in bad faith, it shall be entitled to fees and costs. Provides for severability. (Adds R.S. 51:1430) Page 6 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions.