The bill amends Section 20.05 of the Business & Commerce Code to prohibit consumer reporting agencies from including certain types of information in consumer reports, specifically regarding medically necessary debt. The new language specifies that medically necessary debt cannot be reported regardless of when it 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.

Furthermore, the bill clarifies that the amendments to Section 20.05(a) 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 previous law. 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)