Oklahoma HB 1228: Unfair business practices; banks; trust companies; credit unions; businesses entities; civil penalties; emergency.

Bill Text

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STATE OF OKLAHOMA

1st Session of the 60th Legislature (2025)

HOUSE BILL 1228 By: West (Kevin)

AS INTRODUCED

An Act relating to unfair business practices;
prohibiting banks and trust companies from engaging
in certain discriminatory practices; permitting
certain conduct for safety reasons; permitting
certain practices after full disclosure and
explanation; imposing civil penalties for violation;
prohibiting credit unions from engaging in certain
discriminatory practices; permitting certain conduct
for safety reasons; permitting certain practices
after full disclosure and explanation; imposing civil
penalties for violation; prohibiting business
entities from engaging in certain discriminatory
practices; permitting certain conduct for safety
reasons; permitting certain practices after full
disclosure and explanation; imposing civil penalties
for violation; requiring enforcement by the Attorney
General; defining term; providing for codification;
and declaring an emergency.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1801 of Title 6, unless there is
created a duplication in numbering, reads as follows:
A. No bank or trust company doing business in this state,
either directly or through the use of an outside contractor, shall
discriminate against, advocate for, or cause adverse treatment of

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any individual, business, or other customer based on subjective or
arbitrary standards, including, but not limited to:
1. Social media posts;
2. Participation or membership in any club, association, or
union;
3. Political affiliation;
4. Employer;
5. Social credit score;
6. Environmental, social, and governance criteria; or
7. Other similar values-based or impact criteria.
B. Nothing in this section shall be construed to interfere with
a bank's or trust company's ability to discontinue or refuse to
conduct business with an individual account holder or potential
customer when such action is necessary for the physical safety of
such bank's or trust company's employees.
C. Notwithstanding the provisions of subsection A of this
section, a bank or trust company may offer customers investments,
products, or services that include subjective standards if such
standards are fully disclosed and explained to any potential
customer or investor prior to entering into a contract for such
investment, product, or service.
D. Any bank or trust company that violates the provisions of
this section shall be subject to a civil penalty of Fifty Thousand
Dollars ($50,000.00) for a first violation and a civil penalty of

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Two Hundred Fifty Thousand Dollars ($250,000.00) for a second or
subsequent violation.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2028 of Title 6, unless there is
created a duplication in numbering, reads as follows:
A. No credit union doing business in this state shall
discriminate against, advocate for, or cause adverse treatment of
any individual, business, or other customer based on subjective or
arbitrary standards, including, but not limited to:
1. Social media posts;
2. Participation or membership in any club, association, or
union;
3. Political affiliation;
4. Employer;
5. Social credit score;
6. Environmental, social, and governance criteria; or
7. Other similar values-based or impact criteria.
B. Nothing in this section shall be construed to interfere with
a credit union's ability to discontinue or refuse to conduct
business with an individual account holder or potential customer
when such action is necessary for the physical safety of such credit
union's employees.
C. Notwithstanding the provisions of subsection A of this
section, a credit union may offer customers investments, products,

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or services that include subjective standards if such standards are
fully disclosed and explained to any potential customer or investor
prior to entering into a contract for such investment, product, or
service.
D. A credit union that violates the provisions of this section
shall be subject to a civil penalty of Fifty Thousand Dollars
($50,000.00) for a first violation and a civil penalty of Two
Hundred Fifty Thousand Dollars ($250,000.00) for a second or
subsequent violation.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2101 of Title 18, unless there
is created a duplication in numbering, reads as follows:
A. No business entity in this state shall discriminate against,
advocate for, or cause adverse treatment of any individual,
business, or other customer in such business entity's business
practices based o