BILL ANALYSIS Senate Research Center S.B. 584 89R574 MLH-D By: West Business & Commerce 4/2/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Consumer reporting agencies must comply with certain reporting information laws that protect the customer's privacy. However, consumer reporting agencies can circumvent these regulations by using information from a third party or another consumer agency. As a result, consumer reporting agencies have purchased new data for their consumer reports that do not comply with the regulations from Section 20.05 of the Texas Business & Commerce Code. S.B. 584 would amend Section 20.05, Business & Commerce Code, by adding Subsection (c-1) to clarify that consumer reporting agencies using information obtained from other consumer reporting agencies or third parties must comply with the regulations set in Section 20.05. S.B. 584 aims to protect customer privacy by ensuring all information furnished in consumer reports conforms to the regulations previously set in place regardless of the source of information. As proposed, S.B. 584 amends current law relating to the responsibility of consumer reporting agencies to ensure compliance with certain consumer reporting laws. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 20.05, Business & Commerce Code, by adding Subsection (c-1), as follows: (c-1) Requires a consumer reporting agency that prepares a consumer report using information obtained from another consumer reporting agency or a third party to ensure that the information obtained is compiled and furnished by the agency in a consumer report in a manner that complies with Section 20.05 (Reporting of Information Prohibited). SECTION 2. Makes application of this Act prospective. SECTION 3. Effective date: September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 584
89R574 MLH-D By: West
Business & Commerce
4/2/2025
As Filed
Senate Research Center
S.B. 584
89R574 MLH-D
By: West
Business & Commerce
4/2/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Consumer reporting agencies must comply with certain reporting information laws that protect the customer's privacy. However, consumer reporting agencies can circumvent these regulations by using information from a third party or another consumer agency. As a result, consumer reporting agencies have purchased new data for their consumer reports that do not comply with the regulations from Section 20.05 of the Texas Business & Commerce Code.
S.B. 584 would amend Section 20.05, Business & Commerce Code, by adding Subsection (c-1) to clarify that consumer reporting agencies using information obtained from other consumer reporting agencies or third parties must comply with the regulations set in Section 20.05.
S.B. 584 aims to protect customer privacy by ensuring all information furnished in consumer reports conforms to the regulations previously set in place regardless of the source of information.
As proposed, S.B. 584 amends current law relating to the responsibility of consumer reporting agencies to ensure compliance with certain consumer reporting laws.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 20.05, Business & Commerce Code, by adding Subsection (c-1), as follows:
(c-1) Requires a consumer reporting agency that prepares a consumer report using information obtained from another consumer reporting agency or a third party to ensure that the information obtained is compiled and furnished by the agency in a consumer report in a manner that complies with Section 20.05 (Reporting of Information Prohibited).
SECTION 2. Makes application of this Act prospective.
SECTION 3. Effective date: September 1, 2025.