Representative Cheryl K. Acton proposes the following substitute bill:


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     

7     LONG TITLE
8     General Description:
9          This bill addresses social credit scores.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     requires the Division of Consumer Protection to establish a system that allows a
14     consumer to report a financial institution's or company's use of a social credit score;
15          ▸     prohibits a governmental entity from using, enforcing, providing data for use in, or
16     otherwise participating in the creation or use of a system that, based on a social
17     credit score, discriminates against, advocates for, or causes adverse or preferential
18     treatment of a person;
19          ▸     provides rulemaking authority; and
20          ▸     creates reporting requirements.
21     Money Appropriated in this Bill:
22          None
23     Other Special Clauses:
24          None
25     Utah Code Sections Affected:

26     ENACTS:
27          13-2-10, Utah Code Annotated 1953
28          63G-28-101, Utah Code Annotated 1953
29          63G-28-201, Utah Code Annotated 1953
30     

31     Be it enacted by the Legislature of the state of Utah:
32          Section 1. Section 13-2-10 is enacted to read:
33          13-2-10. Social credit score reporting system -- Rulemaking -- Referral to other
34     agencies.
35          (1) As used in this section:
36          (a) "Division" means the Division of Consumer Protection.
37          (b) "Financial institution" means the same as that term is defined in Section 7-1-103.
38          (c) "Social credit score" means the same as that term is defined in Section 63G-28-101.
39          (2) The division shall:
40          (a) establish and operate a system to receive consumer reports regarding a financial
41     institution's or company's use or creation of a social credit score; and
42          (b) before November 1 of each year, submit a written report to the Business and Labor
43     Interim Committee that summarizes the reports received during the immediately preceding year
44     that indicate a financial institution or company used a social credit score to discriminate
45     against, advocate for, or cause adverse or preferential treatment of a person.
46          (3) The division may:
47          (a) make rules in accordance with Title 63G, Chapter 3, Utah Administrative
48     Rulemaking Act, to establish and operate the system described in Subsection (2); and
49          (b) as appropriate, refer a consumer who provides a report through the system
50     described in Subsection (2) to the Department of Financial Institutions or another agency for
51     investigation of the report or other action.
52          Section 2. Section 63G-28-101 is enacted to read:
53     
CHAPTER 28. SOCIAL CREDIT SCORE PROHIBITION ACT

54     
Part 1. General Provisions

55          63G-28-101. Definitions.
56          (1) "Depository institution" means the same as that term is defined in Section 7-1-103.

57          (2) (a) "Governmental entity" means:
58          (i) the state;
59          (ii) a county, city, town, metro township, school district, local district, special service
60     district, or other political subdivision of the state; or
61          (iii) an independent entity.
62          (b) "Governmental entity" includes an agency, bureau, office, department, division,
63     board, commission, institution, laboratory, or other instrumentality of an entity described in
64     Subsection (2)(a).
65          (3) "Independent entity" means the same as that term is defined in Section 63E-1-102.
66          (4) "Members of a person's social network" means the people a person authorizes to be
67     part of the person's social media communications and network.
68          (5) (a) "Social credit score" means a numeric, alphanumeric, or alphabetic value or
69     other categorization assigned to a person based on:
70          (i) the person's:
71          (A) compliance or noncompliance with government guidance;
72          (B) social media post;
73          (C) participation or membership in a lawful club, association, or union;
74          (D) political affiliation; or
75          (E) employment industry or employer; or
76          (ii) the identity of the members of the person's social network.
77          (b) "Social credit score" does not include:
78          (i) a consumer report as defined in 15 U.S.C. Sec. 1681a;
79          (ii) compliance or noncompliance with statute, administrative rule, or other law; or
80          (iii) a numeric, alphanumeric, or alphabetic value or other categorization assigned to a
81     person for:
82          (A) purposes of education, training, or job performance assessment;
83          (B) purposes of a contest or competition;
84          (C) purposes of hiring a prospective employee or independent contractor;
85          (D) purposes of issuance or taking an action against a professional license,
86     certification, registration, or permit;
87          (E) purposes of a professional or tax audit;

88          (F) use by a depository institution to determine risk of loss, impairment, or default; or
89          (G) use by an entity that regulates a depository institution to determine the financial
90     condition of the depository institution.
91          Section 3. Section 63G-28-201 is enacted to read:
92     
Part 2. Prohibitions

93          63G-28-201. Social credit score prohibition.
94          A governmental entity may not use, enforce, provide data for use in, or otherwise
95     participate in the creation or use of a system that, based on a social credit score, discriminates
96     against, advocates for, or causes adverse or preferential treatment of a person.