Should New Hampshire prohibit the use of “social credit scores” in business?

In the last legislative session, New Hampshire passed HB 1469, a bill which would prohibit use of "social credit scores" in business dealings. The bill was amended by the Senate to instead establish a committee to study the need for anti-discrimination legislation in the New Hampshire financial services industry. Still, some believe the Granite State needs an explicit prohibition against the use of social credit scores. 

What is a social credit score? 

“Social credit score” might have a different meaning depending on who you talk to. As introduced, HB 1469 did not include a definition. Generally speaking, social credit scores give citizens a “score” based on their behavior and/or affiliations. China is currently developing a social credit system which gathers information about individuals and businesses. In most trials of the system, citizens begin with an initial “score” to which points may be added or deducted depending on their behavior. Tracked behaviors can include everything from paying taxes on time to jaywalking.  
For businesses, a “Corporate Social Credit System” in China is under development to promote “trustworthiness.” Under this system, companies that have good scores will enjoy benefits like lower taxes and more investment opportunities, while businesses with bad scores could face unfavorable loan terms and higher tax rates.  

A social credit system in New Hampshire? 

While New Hampshire government obviously doesn’t utilize a social credit system for individuals, some worry that the idea will eventually make its way to the Granite State business community. On the national level, businesses are beginning to be judged by their “ESG” scores, a series of metrics created by the Business Roundtable and the World Economic Forum to determine environmental friendliness and other social and governance factors. This was a particular concern of the bill’s sponsor, Rep. J.D. Bernardy (R-South Hampton). Bernardy and others fear that the growing importance of ESG scores is forcing a radical political agenda onto businesses.  
At a bill hearing Rep. Jeffrey Greeson (R-Wentworth) suggested that one day consumers will similarly be judged by the environmental-friendliness of their behaviors and may be declined by a bank because they drive a gas car or buy meat. 

What’s good for business? 

Members of New Hampshire’s banking community spoke in opposition to the original form of HB 1469, pointing out that it takes away the freedom of businesses to choose who they do and do not work with. If a customer is combative and offensive, for example, a business should be able to turn them away. The bill might also spark frivolous lawsuits with costs likely passed onto consumers.  
Banks are already subject to strict regulations preventing discrimination based on race, religion, sex, etc. The Business and Industry Association also testified against HB 1469, saying it was ultimately a solution in search of a problem. 

What do you think? 

Should a future Legislature revisit this proposal? Let your legislators know where you stand on this issue by contacting them.