SB228 Alabama 2025 Session

Summary

Primary Sponsor

Andrew JonesSenator

Republican

Session

2025 Regular Session

Title

Financial Institutions and Insurers; using social credit score to discriminate prohibited; violations of insurers an unfair trade practice; fines, penalties and remedies authorized

Summary

SB228 would prohibit Alabama banks and insurers from using a social credit score or biased, nonquantitative factors to discriminate in providing services, with enforcement and penalties.

What This Bill Does

The bill defines a social credit score and restricts its use by financial institutions and insurers. It bans denying or limiting services based on a social credit score or nonquantitative factors, while allowing a religious purpose exemption in some determinations. It creates enforcement by state agencies, a complaint process with potential damages and attorney fees, and a state-contract certification requirement that could lead to termination and a two-year ineligibility to work with the state. The act becomes effective October 1, 2025.

Who It Affects

• Consumers and businesses in Alabama who rely on banking, lending, or insurance services and would be protected from discrimination based on religion, speech, or other protected characteristics.
• Financial institutions and insurers operating in Alabama, which must comply with the new rules, disclosures, and potential penalties, and may be investigated by state regulatory agencies.

Key Provisions

• Defines 'social credit score' to include factors such as religion, speech, beliefs, firearm ownership, environmental or diversity disclosures, and various other listed activities or affiliations.
• Prohibits financial institutions and insurers from using a social credit score or nonquantitative factors to deny or limit services, and prohibits coordination to do so.
• Provides a religious purpose exemption for certain service determinations and requires use of sound underwriting and actuarial principles for certain insurance decisions.
• Requires denial-related communications to include specific reasons and terms of service; requires disclosure of terms and basis for denial upon request within 14 days.
• Creates a certification requirement for entering state contracts, with termination and two-year ineligibility if the entity violates the act.
• Enforces violations through the Alabama State Banking Department (for banks) and the Alabama Department of Insurance (for insurers); provides civil remedies, including damages, potential tripling of damages for willful violations, and attorney fees.
• Allows consumers to file complaints within 90 days, with a filing fee up to $50; requires investigations and timely responses; allows civil action if no remedy is provided.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Businesses & Financial Institutions