HF 4774

as introduced - 92nd Legislature (2021 - 2022) Posted on 04/07/2022 11:33am

A bill for an act
relating to consumer protection; prohibiting certain financial and business entities
from engaging in certain discriminatory practices; proposing coding for new law
in Minnesota Statutes, chapter 325E.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [325E.67] SOCIAL MEDIA; DISCRIMINATION PROHIBITED.
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new text begin Subdivision 1. new text end

new text begin Definitions new text end new text begin . new text end

new text begin (a) For purposes of this section, the terms in this subdivision
have the meanings given.
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new text begin (b) "Bank" has the meaning given in section 47.01, subdivision 2.
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new text begin (c) "Business entity" means a sole proprietorship, corporation, limited liability company,
association, partnership, joint-stock company, joint venture, mutual fund, trust, joint tenancy,
or other similar form of business organization.
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new text begin (c) "Credit union" has the meaning given in section 52.001, subdivision 4.
new text end

new text begin (d) "Trust company" has the meaning given in section 47.01, subdivision 4.
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new text begin Subd. 2. new text end

new text begin Banks; trust companies. new text end

new text begin (a) A bank or trust company doing business in
Minnesota, either directly or through the use of an outside contractor, is prohibited from
discriminating against, advocating for, or causing adverse treatment of any individual,
business, or other customer based on subjective or arbitrary standards, including but not
limited to:
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new text begin (1) social media posts;
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new text begin (2) participation or membership in any club, association, or union;
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new text begin (3) political affiliation;
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new text begin (4) employer;
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new text begin (5) social credit score;
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new text begin (6) environmental, social, and governance criteria; or
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new text begin (7) other similar values-based or impact criteria.
new text end

new text begin (b) Nothing in this subdivision interferes 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 doing so is necessary to ensure the physical safety of the bank's or trust
company's employees.
new text end

new text begin (c) Notwithstanding paragraph (a), a bank or trust company may offer customers
investments, products, or services that include subjective standards if the standards are fully
disclosed and explained to any potential customer or investor prior to entering into a contract
for an investment, product, or service.
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new text begin (d) A bank or trust company that violates this section is subject to a civil penalty of
$50,000 for a first violation and a civil penalty of $250,000 for a second or subsequent
violation. Any civil penalties collected pursuant to this section must be deposited in the
financial institutions account under section 46.131, subdivision 11.
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new text begin (e) This subdivision is a part of and supplements chapters 46 to 48A.
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new text begin Subd. 3. new text end

new text begin Credit unions. new text end

new text begin (a) A credit union doing business in Minnesota, either directly
or through the use of an outside contractor, is prohibited from discriminating against,
advocating for, or causing adverse treatment of any individual, business, or other customer
based on subjective or arbitrary standards, including but not limited to:
new text end

new text begin (1) social media posts;
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new text begin (2) participation or membership in any club, association, or union;
new text end

new text begin (3) political affiliation;
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new text begin (4) employer;
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new text begin (5) social credit score;
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new text begin (6) environmental, social, and governance criteria; or
new text end

new text begin (7) other similar values-based or impact criteria.
new text end

new text begin (b) Nothing in this subdivision interferes with a credit union's ability to discontinue or
refuse to conduct business with an individual account holder or potential customer when
doing so is necessary to ensure the physical safety of the credit union's employees.
new text end

new text begin (c) Notwithstanding paragraph (a), a credit union may offer customers investments,
products, or services that include subjective standards if the standards are fully disclosed
and explained to any potential customer or investor prior to entering into a contract for an
investment, product, or service.
new text end

new text begin (d) A credit union that violates this section is subject to a civil penalty of $50,000 for a
first violation and a civil penalty of $250,000 for a second or subsequent violation. Any
civil penalties collected pursuant to this section must be deposited in the financial institutions
account under section 46.131, subdivision 11.
new text end

new text begin (e) This subdivision is a part of and supplements chapter 52.
new text end

new text begin Subd. 4. new text end

new text begin Business entities. new text end

new text begin (a) A business entity doing business in Minnesota, either
directly or through the use of an outside contractor, is prohibited from discriminating against,
advocating for, or causing adverse treatment of any individual, business, or other customer
based on subjective or arbitrary standards, including but not limited to:
new text end

new text begin (1) social media posts;
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new text begin (2) participation or membership in any club, association, or union;
new text end

new text begin (3) political affiliation;
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new text begin (4) employer;
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new text begin (5) social credit score;
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new text begin (6) environmental, social, and governance criteria; or
new text end

new text begin (7) other similar values-based or impact criteria.
new text end

new text begin (b) Nothing in this subdivision interferes with a person's or business entity's ability to
discontinue or refuse to conduct business with a customer when doing so is necessary to
ensure the physical safety of the person, the business entity, or the business entity's
employees.
new text end

new text begin (c) Notwithstanding paragraph (a), a business entity may engage in a business practice
described in paragraph (a) if the specific business practice is fully disclosed to the potential
customer before the potential customer and the business entity enter into a business
transaction.
new text end

new text begin (d) A business entity that violates this section is subject to a civil penalty of $50,000 for
a first violation and a civil penalty of $250,000 for a second or subsequent violation. Any
civil penalties collected under this subdivision must be deposited in general fund.
new text end

new text begin Subd. 5. new text end

new text begin Enforcement. new text end

new text begin The attorney general must enforce this section.
new text end