BILL ANALYSIS

H.B. 1575

By: Zedler

Investments & Financial Services

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Under current law, the transfer of real or personal community property or the incurrence of debt by a spouse that would subject the other spouse or the community property to liability during a suit for divorce or annulment is void with respect to the other spouse. Interested parties contend that while current law protects the other spouse from responsibility for debt or property transfer, it does not protect the other spouse's credit.  H.B. 1575 seeks to prevent the actions of one spouse from harming the credit rating of the other spouse during a divorce settlement.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 1575 amends the Business & Commerce Code to prohibit a consumer reporting agency from including in a consumer report information about a transaction of a consumer's spouse while a suit for divorce or annulment is pending that subjects the consumer or the community property to liability if the consumer provides a copy of the court order making a finding that the transaction was intended to injure the rights of the consumer.

EFFECTIVE DATE

September 1, 2013.