Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Banking Regulation topic
No spam. Unsubscribe anytime.
Senate passes 'Transparency in Financial Services' bill targeting so-called debanking practices
Summary
The Idaho Senate approved Senate Bill 10-27, the Idaho Transparency in Financial Services Act, aimed at requiring large financial institutions to provide reasons when closing accounts and protecting certain speech- and industry-related activities. The bill passed the Senate 32–2 with one absent and will be transmitted to the House.
BOISE, Idaho — The Idaho Senate on March 3 passed Senate Bill 10-27, the Idaho Transparency in Financial Services Act, designed to give Idaho customers information about why certain large financial institutions may close accounts and to prohibit account closures based on protected beliefs or activities.
The bill, sponsored on the floor by Senator Grantham during the third reading, passed the Senate by a vote of 32 in favor, 2 opposed and 1 absent. The Senate secretary announced the tally after a roll call following closing remarks and final question.
Senator Grantham, speaking in favor of the bill, framed it around the practical consequences of losing access to basic financial services: “How would you navigate your everyday life ... if you could have no access to basic financial services? No bank accounts. No automatic monthly payment withdrawals. No checking, no credit card, no debit card services,” he said on the Senate floor. He said the measure targets “debanking,” instances in which large institutions close accounts because of customers’ beliefs or types of business activity.
Grantham told colleagues the bill seeks four outcomes: transparency about why accounts are closed, protections for free speech and religious exercise and for certain industries (including agriculture, energy and mining), a focus on the largest financial institutions and an extension of existing consumer protections. He said the measure is not intended to regulate smaller, community banks in Idaho.
Senator Anthony, recognized to close debate, echoed concerns that the issue crosses party lines and read excerpts from national testimony documenting complaints about abrupt account closures and the use of so-called "do not bank" lists. Senator Anthony cited research showing complaints concentrated at a small number of national banks.
The Senate president ordered the bill transmitted to the House after the affirmative vote. No title correction was requested on the floor.
Votes at a glance: Senate Bill 10-27 — Passed 32 yes, 2 no, 1 absent; bill transmitted to the House for further consideration.
Background and next steps: The bill passed the Senate and will be transmitted to the Idaho House of Representatives. If enacted by both chambers and signed, the measure would create new state statutory protections and reporting requirements for qualifying financial institutions; further details and implementation rules were not adopted on the floor.
