1     
SOCIAL CREDIT SCORE AMENDMENTS

2     
2023 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Cheryl K. Acton

5     
Senate Sponsor: Michael K. McKell

6     Cosponsors:
7     Melissa G. Ballard
8     Kera Birkeland
9     Bridger Bolinder
10     Walt Brooks
11     Tyler Clancy
Stephanie Gricius
Ken Ivory
Colin W. Jack
Tim Jimenez
Quinn Kotter
Michael J. Petersen
Thomas W. Peterson
Judy Weeks Rohner
Rex P. Shipp

12     

13     LONG TITLE
14     General Description:
15          This bill addresses social credit scores.
16     Highlighted Provisions:
17          This bill:
18          ▸     defines terms;
19          ▸     requires the Division of Consumer Protection to establish a system that allows a
20     consumer to report a financial institution's or company's use of a social credit score;
21          ▸     prohibits a governmental entity from using, enforcing, providing data for use in, or
22     otherwise participating in the creation or use of a system that, based on a social
23     credit score, discriminates against, advocates for, or causes adverse or preferential
24     treatment of a person;
25          ▸     provides rulemaking authority; and
26          ▸     creates reporting requirements.
27     Money Appropriated in this Bill:

28          None
29     Other Special Clauses:
30          None
31     Utah Code Sections Affected:
32     ENACTS:
33          13-2-10, Utah Code Annotated 1953
34          63G-28-101, Utah Code Annotated 1953
35          63G-28-201, Utah Code Annotated 1953
36     

37     Be it enacted by the Legislature of the state of Utah:
38          Section 1. Section 13-2-10 is enacted to read:
39          13-2-10. Social credit score reporting system -- Rulemaking -- Referral to other
40     agencies.
41          (1) As used in this section:
42          (a) "Division" means the Division of Consumer Protection.
43          (b) "Financial institution" means the same as that term is defined in Section 7-1-103.
44          (c) "Social credit score" means the same as that term is defined in Section 63G-28-101.
45          (2) The division shall:
46          (a) establish and operate a system to receive consumer reports regarding a financial
47     institution's or company's use or creation of a social credit score; and
48          (b) before November 1 of each year, submit a written report to the Business and Labor
49     Interim Committee that summarizes the reports received during the immediately preceding year
50     that indicate a financial institution or company used a social credit score to discriminate
51     against, advocate for, or cause adverse or preferential treatment of a person.
52          (3) The division may:
53          (a) make rules in accordance with Title 63G, Chapter 3, Utah Administrative
54     Rulemaking Act, to establish and operate the system described in Subsection (2); and

55          (b) as appropriate, refer a consumer who provides a report through the system
56     described in Subsection (2) to the Department of Financial Institutions or another agency for
57     investigation of the report or other action.
58          Section 2. Section 63G-28-101 is enacted to read:
59     
CHAPTER 28. SOCIAL CREDIT SCORE PROHIBITION ACT

60     
Part 1. General Provisions

61          63G-28-101. Definitions.
62          (1) (a) "Governmental entity" means:
63          (i) the state;
64          (ii) a county, city, town, metro township, school district, local district, special service
65     district, or other political subdivision of the state; or
66          (iii) an independent entity.
67          (b) "Governmental entity" includes an agency, bureau, office, department, division,
68     board, commission, institution, laboratory, or other instrumentality of an entity described in
69     Subsection (1)(a).
70          (2) "Independent entity" means the same as that term is defined in Section 63E-1-102.
71          (3) "Members of a person's social network" means the people a person authorizes to be
72     part of the person's social media communications and network.
73          (4) (a) "Social credit score" means a numeric, alphanumeric, or alphabetic value or
74     other categorization assigned to a person based on:
75          (i) the person's:
76          (A) compliance or noncompliance with government guidance;
77          (B) social media post;
78          (C) participation or membership in a lawful club, association, or union;
79          (D) political affiliation; or
80          (E) employment industry or employer; or
81          (ii) the identity of the members of the person's social network.

82          (b) "Social credit score" does not include:
83          (i) a consumer report as defined in 15 U.S.C. Sec. 1681a;
84          (ii) compliance or noncompliance with statute, administrative rule, or other law; or
85          (iii) a numeric, alphanumeric, or alphabetic value or other categorization assigned to a
86     person for:
87          (A) purposes of education, training, or job performance assessment;
88          (B) purposes of a contest or competition;
89          (C) purposes of hiring a prospective employee or independent contractor;
90          (D) purposes of issuance or taking an action against a professional license,
91     certification, registration, or permit;
92          (E) purposes of a professional or tax audit; or
93          (F) use by a financial institution or an affiliate of a financial institution regulated under
94     Title V of the Gramm-Leach-Bliley Act, 15 U.S.C. Sec. 6801 et seq., to determine risk of loss,
95     impairment, or default.
96          Section 3. Section 63G-28-201 is enacted to read:
97     
Part 2. Prohibitions

98          63G-28-201. Social credit score prohibition.
99          A governmental entity may not use, enforce, provide data for use in, or otherwise
100     participate in the creation or use of a system that, based on a social credit score, discriminates
101     against, advocates for, or causes adverse or preferential treatment of a person.