The bill amends Section 20.05 of the Business & Commerce Code to enhance the regulations surrounding consumer reports, specifically regarding the reporting of medically necessary debt. It prohibits consumer reporting agencies from including information about medically necessary debt in consumer reports, regardless of when the debt was incurred. Additionally, the bill introduces a definition for "medically necessary debt," which encompasses debts arising from health care services aimed at diagnosing, treating, or preventing illnesses, injuries, or conditions that meet accepted medical standards.

The bill also clarifies that the new provisions will only apply to consumer reports furnished on or after the effective date of the Act, which is set for September 1, 2025. Reports generated before this date will continue to be governed by the existing laws. This legislative change aims to protect consumers from the negative impacts of having medically necessary debt reported on their credit histories.

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