arrests without convictions stay off consumer reports

The text as introduced · 343 words

89R2785 SRA-F

By: Plesa
H.B. No. 5433

A BILL TO BE ENTITLED

AN ACT

relating to limitations on the information reported by consumer

reporting agencies.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 20.05(a), Business & Commerce Code, is

amended 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;

(4-a) a record of arrest, charge, or indictment for an

alleged crime that did not result in a conviction or a grant of

deferred adjudication community supervision;

(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) another item or event that predates the consumer

report by more than seven years.

SECTION 2. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.