Amendments	Fiscal Memos
HA0669	Amendment 1-0 to HB2100
HA0728	Amendment 2-0 to HB2100
HA0730	Amendment 3-0 to HB2100

	Amendments	Fiscal Memos
SA0724	Amendment 1-1 to SB2148
SA0725	Amendment 2-2 to SB2148

NOTE: Each fiscal memorandum applies only to the amendment(s) identified in the memorandum. The fiscal memorandum must be matched to any amendments that have been adopted.

Fiscal Summary

Increase State Expenditures – $310,600/FY24-25/Financial Institutions $307,600/FY25-26 and Subsequent Years/Financial Institutions

Bill Summary

This bill (i) requires a state or national bank, a savings and loan association, savings bank, credit union, industrial loan and thrift company, or mortgage lender ("financial institution") to make determinations about the provision or denial of services based on an analysis of risk factors unique to each current or prospective customer and (ii) prohibits a financial institution from engaging in a practice described below. However, this provision does not restrict a financial institution that claims a religious purpose from making such determinations based on the current or prospective customer's religious beliefs, religious exercise, or religious affiliations.

This bill prohibits a financial institution from denying or canceling its services to a person, or otherwise discriminating against a person in making available such services or in the terms or conditions of such services, on the basis of the following:

(1) The person's political opinions, speech, or affiliations;

(2) Except as described above, the person's religious beliefs, religious exercise, or religious affiliations;

(3) Any factor if it is not a quantitative, impartial, and risk-based standard, including any such factor related to the person's business sector; or

(4) The use of a rating, scoring, analysis, tabulation, or action that considers a social credit score based on factors including (i) the person's political opinions, speech, or affiliations; (ii) except as described above, the person's religious beliefs, religious exercise, or religious affiliations; (iii) the person's lawful ownership of a firearm; (iv) the person's engagement in the lawful manufacture, distribution, sale, purchase, or use of firearms or ammunition; (v) the person's engagement in the exploration, production, utilization, transportation, sale, or manufacture of fossil fuel-based energy, timber, mining, or agriculture; (vi) the person's support of the state or federal government in combatting illegal immigration, drug trafficking, or human trafficking; (vii) the person's engagement with, facilitation of, employment by, support of, business relationship with, representation of, or advocacy for any person described in this subsection; or (viii) the person's failure to meet or commit to meet, or expected failure to meet, any of the following as long as such person is in compliance with applicable state or federal law:

(A) Environmental standards;

(B) Social governance standards, benchmarks, or requirements;

(C) Corporate board or company employment composition standards, benchmarks, requirements, or disclosures based on characteristics protected under this state's human rights law; or

(D) Policies or procedures requiring or encouraging employee participation in social justice programming, including diversity, equity, or inclusion training.

This bill provides that, in addition to other remedies and penalties provided under law, a violation of the above is a violation of the Tennessee Consumer Protection Act of 1977.

INSURERS

This bill requires insurers to make determinations about the provision of services based on an analysis of sound underwriting and actuarial principles related to actual or reasonably anticipated loss experience unique to each current or prospective customer and shall not engage in a practice described below. However, this provision does not restrict an insurer that claims a religious purpose from making such determinations based on the current or prospective customer's religious beliefs, religious exercise, or religious affiliations.

This bill prohibits an insurer from denying or canceling its services to a person, or otherwise discriminating against a person in making available such services or in the terms or conditions of such services, on the basis of the items described above in (1)-(4).

This bill provides that a violation of the above is a violation of the Tennessee Consumer Protection Act of 1977.

ON MARCH 18, 2024, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 2100, AS AMENDED.

AMENDMENT #1 makes the following changes:

(1) Revises the definition of "financial institution" to mean a state or national bank, a savings and loan association, savings bank, credit union, industrial loan and thrift company, or mortgage lender that has more than $100,000,000,000 in assets;

(2) Clarifies that "services" means a financial product or service offered by a financial institution, but does not include a loan;

(3) If a financial institution refuses to provide, restricts, or terminates service to a person, authorizes that person to request a statement of specific reasons for the refusal, restriction, or termination within 90 days after receiving notice of the refusal to provide, restriction of, or termination of service. The person may request the statement from a customer service representative or designated account representative by phone, mail, or electronic mail. Unless otherwise prohibited by federal law, the financial institution must transmit the statement of specific reasons by mail and electronic mail, if known to the financial institution, within 30 days of receiving the person's request. The statement of specific reasons must include (i) a detailed explanation of the basis for the denial, restriction, or termination of service, including a description of any of the person's speech, religious exercise, business activity with a particular industry, or other conduct that was, in whole or in part, the basis of the financial institution's denial, restriction, or termination of service; (ii) a copy of the terms of service agreed to by the person and the financial institution; and (iii) a citation to the specific provisions of the terms of service upon which the financial institution relied to refuse to provide, restrict, or terminate service;

(4) Clarifies that the bill does not prohibit a financial institution from declining to provide financial services to a person that is engaged in fraud, criminal conduct, incitement to unlawful actions, or that creates obscenity or another form of expression that is not protected by the Constitution of Tennessee or the United States Constitution;

(5) Prohibits an insurer from refusing to insure, or charging a different rate to a person, solely on the basis of (i) the person's political opinions, speech, or affiliations; or (ii) the person's religious beliefs, religious exercise, or religious affiliations, except as provided in the bill.

ON MARCH 25, 2024, THE SENATE SUBSTITUTED HOUSE BILL 2100 FOR SENATE BILL 2148, ADOPTED AMENDMENT #2, AND PASSED HOUSE BILL 2100, AS AMENDED.

AMENDMENT #2 revises the provision in the bill that prohibits an insurer from insuring, or charging a different rate to a person, solely on the basis of:

(1) The person's political opinions, speech, or affiliations; or

(2) The person's religious beliefs, religious exercise, or religious affiliations, except as provided in the provision of the bill requiring insurers to make determinations about the provision of services based on an analysis of sound underwriting and actuarial principles related to actual or reasonably anticipated loss experience unique to each current or prospective customer and to not engage in a practice prohibited by this bill.

This amendment rewrites the above provision to, instead, apply the exception in (2) above to both (1) and (2) above.