H.F. 2409 Section 1. NEW SECTION . 529A.1 Definitions. 1 For purposes of this chapter, unless the context otherwise 2 requires: 3 1. “Discriminate” or “discrimination” means a financial 4 institution’s use of a social credit score to directly or 5 indirectly decline to provide the full and equal enjoyment 6 of financial services to a person, and includes refusing to 7 provide, terminating, or restricting financial services to a 8 person. 9 2. “Financial institution” means any bank incorporated 10 under the provisions of any state or federal law, any savings 11 and loan association incorporated under the provisions of 12 federal law, any credit union organized under the provisions 13 of any state or federal law, and any corporation licensed as 14 an industrial loan company under chapter 536A and that is any 15 of the following: 16 a. A bank with total assets over one hundred billion 17 dollars. 18 b. A payment processor, credit card company, credit card 19 network, payment network, payment service provider, or payment 20 gateway that has processed more than one hundred billion 21 dollars in transactions in the last calendar year. 22 c. An affiliate or subsidiary company of a financial 23 institution. 24 3. “Financial service” means any financial product or 25 service offered or provided by a financial institution. 26 4. “Person” means the same as defined in section 4.1. 27 5. “Protected from government interference” means any 28 speech, religious exercise, association, expression, or conduct 29 protected by the first amendment to the Constitution of the 30 United States, Article I of the Constitution of the State of 31 Iowa, or federal or state law. “Protected from government 32 interference” does not include any speech, religious exercise, 33 association, expression, or conduct that the United States 34 supreme court, as of July 1, 2024, has expressly held is not 35 -1- LSB 5652YH (2) 90 nls/ko 1/ 6

H.F. 2409 protected by the first amendment to the Constitution of the 1 United States, Article I of the Constitution of the State of 2 Iowa, or federal or state law. 3 6. a. “Social credit score” means an analysis, rating, 4 scoring, list, or tabulation that evaluates any of the 5 following: 6 (1) A person’s speech, religious exercise, association, 7 expression, or conduct protected by the first amendment 8 to the Constitution of the United States, Article I of the 9 Constitution of the State of Iowa, or federal or state law. 10 (2) A person’s failure or refusal to do any of the 11 following: 12 (a) Adopt targets or disclosures related to greenhouse gas 13 emissions beyond targets or disclosures required by state and 14 federal law. 15 (b) Conduct a racial, diversity, or gender audit or 16 disclosure, or provide a quota, preference, or benefit based 17 on race, diversity, or gender. 18 (c) Facilitate or assist an employee in obtaining an 19 abortion or gender reassignment services. 20 (3) A person’s participation in business activities related 21 to a manufacturer or dealer of firearms and ammunition, or 22 business activities with an oil or gas company. 23 b. “Social credit score” shall not include a financial 24 institution’s evaluation of a person’s quantifiable financial 25 risks based on impartial, financial-risk-based standards if 26 such standards are established in advance by the financial 27 institution and publicly disclosed to customers and potential 28 customers. 29 Sec. 2. NEW SECTION . 529A.2 Discrimination prohibited. 30 1. A financial institution shall not discriminate in the 31 provision of financial services to a person or agree, conspire, 32 or coordinate, directly or indirectly, including through an 33 intermediary or third party, with another person, or group of 34 persons, to discriminate in the provision of financial services 35 -2- LSB 5652YH (2) 90 nls/ko 2/ 6

H.F. 2409 to a person. 1 2. If a financial institution refuses to provide, 2 restricts, or terminates financial services to a person, within 3 ninety days of the refusal, restriction, or termination, the 4 person may request a written statement that specifies the 5 reason for the financial institution’s refusal to provide, or 6 restriction or termination of, the person’s financial services. 7 a. The person may request the statement from a customer 8 service or designated account representative of the financial 9 institution by phone, mail, or electronic mail. The person 10 shall provide the financial institution with a mailing address 11 and an electronic mail address where the statement can be sent. 12 The financial institution shall transmit the statement by mail 13 or electronic mail within fourteen business days of receiving 14 the person’s request. 15 b. The financial institution’s statement shall include all 16 of the following: 17 (1) A detailed explanation of the basis for the denial, 18 restriction, or termination of the person’s financial services, 19 including a description of the person’s speech, religious 20 exercise, business activity with a particular industry, or 21 other conduct that was, in whole or in part, the basis of the 22 financial institution’s decision. 23 (2) A copy of the terms of service agreed upon, if any, by 24 the financial institution and the person to whom the financial 25 institution refuses to provide, or restricts or terminates, 26 financial services, and a citation to the specific provision 27 of the terms of service upon which the financial institution 28 relied to refuse to provide, or to restrict or terminate, 29 financial services. 30 Sec. 3. NEW SECTION . 529A.3 Enforcement —— penalties. 31 1. If the attorney general has reasonable belief that a 32 financial institution is in violation of this chapter, the 33 attorney general may bring a civil action to enforce the 34 provisions of this chapter. Upon finding that a financial 35 -3- LSB 5652YH (2) 90 nls/ko 3/ 6

H.F. 2409 institution violated this chapter, a court may order any of the 1 following: 2 a. Injunctive relief as necessary to enforce compliance with 3 this chapter. 4 b. Other remedies permitted under the law. 5 c. Damages, restitution, or other compensation on behalf of 6 residents of the state, not to exceed the amount provided by 7 subsection 2, paragraph “a” . 8 2. A person harmed by a violation of this chapter by a 9 financial institution may bring a civil action, and upon 10 finding that a financial institution violated this chapter, a 11 court may order any of the following: 12 a. Actual damages not to exceed ten thousand dollars, 13 except if the court finds that the violation by the financial 14 institution was willful, damages in an amount equal to three 15 times the amount of actual damages, but not to exceed thirty 16 thousand dollars, in addition to reasonable attorney fees and 17 court costs. 18 b. Injunctive relief as necessary to enforce compliance with 19 this chapter. 20 EXPLANATION 21 The inclusion of this explanation does not constitute agreement with 22 the explanation’s substance by the members of the general assembly. 23 This bill relates to discrimination by a financial 24 institution in the provision of financial services. 25 The bill prohibits a financial institution from 26 discriminating in the provision of financial services to a 27 person, and from agreeing, conspiring, or coordinating with 28 another person or group of persons to discriminate in the 29 provision of financial services to a person. “Discrimination” 30 is defined by the bill as the use of a social credit score 31 by a financial institution to directly or indirectly decline 32 to provide, terminate, or restrict, financial services to a 33 person. “Social credit score” is defined by the bill as an 34 analysis, rating, scoring, list, or tabulation that evaluates 35 -4- LSB 5652YH (2) 90 nls/ko 4/ 6

H.F. 2409 a person’s protected speech, religious exercise, association, 1 expression, or conduct; a person’s failure or refusal to adopt 2 targets or disclosures related to greenhouse gas emissions 3 beyond state and federal law requirements; a person’s failure 4 or refusal to conduct a racial, diversity, or gender audit 5 or disclosure; a person’s failure or refusal to facilitate 6 or assist an employee in obtaining an abortion or gender 7 reassignment services; or a person's participation in business 8 activities related to a manufacturer or dealer of firearms 9 and ammunition or business activities with an oil or gas 10 company. “Financial institution” and “financial service” are 11 also defined by the bill. The bill permits a person to whom a 12 financial institution has refused to provide, restricted, or 13 terminated financial services to request a written statement 14 within 90 days of such action specifying the reason for the 15 refusal, restriction, or termination. A person can request 16 the statement from a customer service or designated account 17 representative of the financial institution, and the person 18 shall provide the financial institution with a mailing address 19 and an electronic mail address where the statement can be 20 sent. The financial institution shall transmit the statement 21 within 14 business days of receiving the person’s request, 22 and the statement shall include a detailed explanation of the 23 basis for the denial, restriction, or termination, including a 24 description of any of the person’s speech, religious exercise, 25 business activity with a particular industry, or other conduct 26 that was a basis for the action taken. The statement shall 27 also include a copy of the terms of service agreed upon by the 28 person and the financial institution, and a citation to the 29 specific provision of the terms of service that was the basis 30 for the action taken. 31 The attorney general may bring civil action to enforce the 32 provisions of the bill and, upon finding that a financial 33 institution violated the bill, a court may order injunctive 34 relief, damages, restitution, other compensation, or other 35 -5- LSB 5652YH (2) 90 nls/ko 5/ 6

H.F. 2409 remedies permitted by law. A person harmed by a violation 1 of the bill may bring a civil action and, upon finding that 2 a financial institution violated the bill, a court may order 3 injunctive relief and actual damages not to exceed $10,000 or, 4 upon a finding that the violation by the financial institution 5 was willful, damages equal to three times the amount of actual 6 damages but not to exceed $30,000, in addition to reasonable 7 attorney fees and court costs. 8 -6- LSB 5652YH (2) 90 nls/ko 6/ 6