The bill amends Section 20.05 of the Business & Commerce Code to enhance consumer protections regarding the reporting of medically necessary debt on consumer reports. Specifically, it prohibits consumer reporting agencies from including information about medically necessary debt, regardless of when the debt was incurred. This addition aims to ensure that consumers are not penalized for medical debts that arise from necessary healthcare services. The bill also clarifies the definition of "medically necessary debt," which includes debts related to healthcare services that diagnose, treat, or prevent illnesses, injuries, or conditions.

Additionally, the bill modifies existing provisions related to the reporting of various types of debts and judgments, including bankruptcy cases, tax liens, and criminal records, by maintaining the time limits for reporting these items. The changes will take effect on September 1, 2025, and will only apply to consumer reports furnished on or after that date, ensuring that reports generated before this date will still adhere to the previous regulations.

Statutes affected:
Introduced: Commerce Code 20.05 (Commerce Code 20)