HB 1597 Mississippi House · 2026 Regular Session

Mississippi Fair Banking Standards Act; create.

HB 1597, the "Mississippi Fair Banking Standards Act," requires state banking regulators to prohibit financial institutions from closing customer accounts based on non-quantitative factors like political views or protected beliefs. It creates a formal complaint process for individuals or businesses denied banking services under these circumstances and mandates the Department of Banking and Consumer Finance to review agency guidance to align with federal "Guaranteeing Fair Banking for All Americans" standards. The bill directly affects Mississippi banks, financial institutions, and their customers - particularly those in lawful industries or with protected affiliations who face potential account closures due to regulatory pressure. It also urges federal lawmakers to modernize anti-money laundering laws to better balance crime prevention with fair access to banking services.

Bill status died 3 of 5 stages cleared

Introduction

Feb 2026

Committee Review

Feb 2026

House Passage

Feb 2026

Senate Passage

Governor

Introduced Feb 13, 2026 Last action Mar 3, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

Committee Substitute → Current version · 7 edits

MODERATE

This bill was amended from a Committee Substitute version to reflect changes made after passing the House. The primary substantive changes include capitalizing department titles (Department of Banking and Consumer Finance, Commissioner, department, commissioner), adjusting confidentiality provisions for complaints, and modifying the Treasurer's authority from discretionary review to mandatory review when violations occur. These changes standardize terminology and strengthen enforcement mechanisms by removing the Treasurer's discretion in certain situations.

Scope change

The bill's scope remains focused on fair banking standards and preventing debanking of lawful industries, but enforcement mechanisms were strengthened by making the Treasurer's review mandatory rather than discretionary.

TECHNICAL

Capitalization of department titles changed from lowercase to uppercase in several instances for consistency.

REQUIREMENT

Complaint confidentiality requirements were modified to remove specific section references and streamline language.

Modified the definition of 'adverse action' to clarify that it applies to 'financial institution' rather than 'Financial Institution'.

TIMELINE

Added a specific 20-business-day timeline for the Commissioner to determine if complaints are frivolous.

ENFORCEMENT

Changed the Treasurer's authority from discretionary review to mandatory review of financial institutions found to have violated the Act.

Removed court authority to award monetary damages, attorney's fees, or costs against financial institutions or the department.

DEFINITION

Changed 'Financial Institution' to lowercase 'financial institution' in several definitions for consistency.

As Introduced → Committee Substitute · 7 edits

MODERATE

The bill was amended from its original version to include a new administrative complaint process for individuals who believe they were unfairly denied banking services, added specific definitions for 'adverse action' and 'non-risk factors,' and established a fee structure for filing complaints. The Committee Substitute also changed the bill title to 'Mississippi Fair Banking Standards Act' and added provisions for judicial review and penalties for frivolous complaints.

Scope change

The bill's scope expanded to include a formal state-level complaint mechanism for alleged unfair debanking, whereas the original version focused primarily on declaratory policy and regulatory guidance.

REQUIREMENT

Added a new Section 5 creating an administrative complaint process where individuals can file verified complaints with the Commissioner of Banking and Consumer Finance alleging unfair termination of financial services based on non-risk factors.

Added Section 8 requiring the Commissioner to notify the State Treasurer of violations, enabling the Treasurer to potentially revoke a financial institution's status as a qualified public depository.

FISCAL

Established a $200 filing fee for complaints, refundable if the financial institution is found to have violated the Act, with provisions for fee waivers for indigent complainants.

ENFORCEMENT

Added provisions allowing the Commissioner to impose penalties up to $5,000 on complainants who file frivolous or vexatious complaints, and barred repeat offenders from filing future complaints until penalties are paid.

Created a judicial review process requiring aggrieved parties to seek review in Chancery Court within 30 days, with limited court authority to only affirm or remand decisions without awarding damages or attorney's fees.

DEFINITION

Added specific definitions for 'adverse action,' 'financial service,' 'risk-based standard,' and 'non-risk factor' to clarify what constitutes unfair debanking versus legitimate risk management.

SCOPE

Changed the bill title from 'Guaranteeing Fair Banking for All Americans Act' to 'Mississippi Fair Banking Standards Act' and added 'Create an Administrative Complaint Process to Resolve Debunking Complaints' to the legislative findings.

Floor votes · House Feb 11, 2026

How they voted

99–17

Passed · 6 other

Total votes 122

Feb 11, 2026

D Democratic40

23 Yea 16 Nay 1

57% Yea

I Independent2

1 Yea 1

50% Yea

R Republican80

75 Yea 1 Nay 4

93% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Feb 16, 2026

Committee

Referred To Business and Financial Institutions

upper

Feb 13, 2026

Introduced

Transmitted To Senate

lower

Feb 11, 2026

Lower · Passed

Passed As Amended

lower

Feb 11, 2026

Lower · Passed

Amended

lower

Feb 3, 2026

Lower · Passed

Title Suff Do Pass Comm Sub

lower

Jan 19, 2026

Committee

Referred To Banking and Financial Services

lower

1 primary · 2 co-sponsors