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THE FLORIDA SENATE
<br />2023 SUMMARY OF LEGISLATION PASSED
<br />Committee on Banking and Insurance
<br />CS/CS/HB 3 — Government and Corporate Activism
<br />by State Affairs Committee; Commerce Committee; and Reps. Rommel, Sirois, and others
<br />(CS/SB 302 by Banking and Insurance Committee and Senator Grall)
<br />The bill (Chapter 2023-28, L.O.F). addresses the provision of products and services by financial
<br />institutions, the investment of certain state and local government funds, the issuance of
<br />environmental, social, and governance (ESG) bonds, and procurement of and contracting with
<br />vendors by certain state and local entities and educational institutions.
<br />Prohibition against Engaging in Unsafe and Unsound Practices — Financial Institutions,
<br />Consumer Finance Lenders, and Money Services Businesses
<br />The bill requires financial institutions such as banks and credit unions, consumer finance lenders,
<br />and money services businesses to make decisions about the provision or denial of services based
<br />on an analysis of risk factors unique to each customer, and prohibits them from engaging in any
<br />"unsafe and unsound practice." The bill specifies that it is an "unsafe or unsound practice" to
<br />deny or cancel services to a person, or discriminate against a person in making available such
<br />services or in the terms or conditions of such services, on the basis of:
<br />• The person's political opinions, speech, or affiliations.
<br />• Except for such entities that claim a religious purpose in certain circumstances, the
<br />person's religious beliefs, exercise, or affiliations.
<br />• Any factor that is not a quantitative, impartial, and risk-based standard.
<br />• The use of any rating, scoring, analysis, tabulation, or action that considers a "social
<br />credit score" based on factors, including, but not limited to:
<br />o The person's political opinions, speech, or affiliations.
<br />o The person's religious beliefs, religious exercise, or religious affiliations.
<br />o The person's lawful ownership of a firearm.
<br />o The person's engagement in the lawful manufacture, distribution, sale, purchase, or
<br />use of firearms or ammunition.
<br />o The person's engagement in the exploration, production, utilization, transportation,
<br />sale, or manufacture of fossil fuel -based energy, timber, mining, or agriculture.
<br />o The person's support of the state or federal government in combatting illegal
<br />immigration, drug trafficking, or human trafficking.
<br />o The person's engagement with, facilitation of, employment by, support of, business
<br />relationship with, representation of, or advocacy for any person described by the
<br />aforementioned factors.
<br />o The person's failure to meet or commit to meet, or expected failure to meet, any of the
<br />following as long as such person is in compliance with applicable state or federal law:
<br />■ Environmental standards including emissions standards, benchmarks,
<br />requirements, or disclosures.
<br />■ Social governance standards, benchmarks, or requirements, including (but not
<br />limited to) environmental and social justice.
<br />This summary is provided for information only and does not represent the opinion of any Senator, Senate Officer, or Senate Office.
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