HB 328 — Prohibiting consumer reporting agencies from furnishing

90R3837 SRA-D By: Lalani H.B. No. 328 relating to prohibiting consumer reporting agencies from furnishing consumer reports containing information regarding medically necessary debt.

SECTION 1. Section 20.05, Business & Commerce Code, is amended by amending Subsections (a) and (d) to read as follows: (a) Except as provided by Subsection (b), a consumer reporting agency may not furnish a consumer report containing information related to: (1) a case under Title 11 of the United States Code or under the federal Bankruptcy Act in which the date of entry of the order for relief or the date of adjudication predates the consumer report by more than 10 years; (2) a suit or judgment in which the date of entry predates the consumer report by more than seven years or the governing statute of limitations, whichever is longer; (3) a tax lien in which the date of payment predates the consumer report by more than seven years; (4) a record of arrest, indictment, or conviction of a crime in which the date of disposition, release, or parole predates the consumer report by more than seven years; (5) a collection account with a medical industry code, if the consumer was covered by a health benefit plan at the time of the event giving rise to the collection and the collection is for an outstanding balance, after copayments, deductibles, and coinsurance, owed to an emergency care provider or a facility-based provider for an out-of-network benefit claim; [ or ] (6) medically necessary debt, regardless of the date on which the medical debt was incurred; or (7) another item or event that predates the consumer report by more than seven years. (d) In this section: (1) "Emergency care provider" means a physician, health care practitioner, facility, or other health care provider who provides emergency care. (2) "Facility" has the meaning assigned by Section 324.001, Health and Safety Code. (3) "Facility-based provider" means a physician, health care practitioner, or other health care provider who provides health care or medical services to patients of a facility. (4) "Health care practitioner" means an individual who is licensed to provide health care services. (5) "Medically necessary debt" means a debt or alleged debt arising from the receipt of health care services provided to: (A) diagnose or treat an illness, injury, condition, or disease or the symptoms of an illness, injury, condition, or disease that meet accepted standards of medicine; or (B) prevent illness or detect illness at an early stage, including preventative screening services, vaccines, and tests.

SECTION 2. Section 20.05(a), Business & Commerce Code, as amended by this Act, applies only to a consumer report furnished on or after the effective date of this Act. A consumer report furnished before the effective date of this Act is governed by the law in effect on the date the report was furnished, and the former law is continued in effect for that purpose.

SECTION 3. This Act takes effect September 1, 2027.