An Idaho Senate committee passed a bill that would prevent banks from refusing services to customers based on their religious or political views.
The proposed law would prohibit financial institutions from debanking customers for expressing speech protected under the first amendment right. Bill sponsor Sen. Kelly Anthon (R-Burley) said it would protect freedom of religion, Second Amendment rights and industries like agriculture, energy and mining.
“You can't be de-banked because a financial institution suddenly dislikes the fact that your store sells guns or your bank account is used to run a meat processing plant,“ he said in front of the State Senate Affairs Committee on Friday.
“Political activity is not a protected class, and it's a very amorphous term, one not easily defined and easy to expand as needed,” said Committee member and Assistant Minority Leader Sen. James Ruchti (D-Pocatello).
“Some people that the bank really should have the right to not do business with because we're a free market may find protection in the language of a bill,” he said.
“This doesn't feel like respect for the free market. I do think these banks should be able to determine whether dealing with a hate or extremist group is one they want to be affiliated with,” Ruchti added.
“A fair number of the members on this committee have been called extremist or hateful,” said committee member Sen. Ben Toews (R-Coeur D’Alene). “Do we really want that to be the decision of a bank whether because they think somebody is hateful or because they think somebody is extremist, that they can take away the their ability to bank and work within our society?”
“The answer is clearly, no, we do not,” he added.
The bill would require banks to provide an explanation to dropped customers within 14 days of a request. Under the code, consumers could pursue civil action against the financial institution.
The regulations would only apply to banks and financial institutions worth at least 100 billion dollars. Anthon said the bill is not meant to target homegrown Idaho banks.
It now goes to the Senate floor for possible amendments.
