Consumer credit report: sale of property: natural disasters.

Healthcare

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Calderon
Last action: 2025-06-18
Official status: Referred to Coms. on JUD. and B. & F.I.
Effective date: Not listed

Plain English Breakdown

The official source material does not specify the exact date when the bill becomes effective.

Consumer Credit Reports and Property Sales During Natural Disasters

This law stops consumer credit reporting agencies from including information about property sales in areas affected by natural disasters, and it prevents lenders from using such information negatively when making lending decisions.

What This Bill Does

It prohibits consumer credit reporting agencies from including information on reports about the sale of properties damaged beyond repair or rendered uninhabitable due to wildfires or other natural disasters after January 7, 2025, in areas where a state of emergency has been declared by the Governor.
It also stops lenders and others who use these reports for credit decisions from considering such property sales as a negative factor.

Who It Names or Affects

People whose homes are damaged beyond repair or rendered uninhabitable due to wildfires or other natural disasters after January 7, 2025.
Credit reporting companies that make consumer credit reports.
Lenders and others who use these reports for making lending decisions.

Terms To Know

Consumer Credit Reporting Agencies Act: A law that defines and regulates how consumer credit reports are made and used.
State of Emergency: When the Governor declares a state of emergency, it means there is an urgent situation like a wildfire or other natural disaster.

Limits and Unknowns

The bill does not specify what happens if property sales are included in credit reports before January 7, 2025.
It's unclear how the law will be enforced and what penalties might apply for breaking it.

Bill History

2025-06-18 California Legislative Information
Referred to Coms. on JUD. and B. & F.I.
2025-06-04 California Legislative Information
In Senate. Read first time. To Com. on RLS. for assignment.
2025-06-03 California Legislative Information
Read third time. Passed. Ordered to the Senate. (Ayes 76. Noes 0. Page 1996.)
2025-05-27 California Legislative Information
Read second time. Ordered to third reading.
2025-05-23 California Legislative Information
From committee: Do pass. (Ayes 12. Noes 0.) (May 23).
2025-05-14 California Legislative Information
In committee: Set, first hearing. Referred to APPR. suspense file.
2025-05-08 California Legislative Information
Re-referred to Com. on APPR.
2025-05-07 California Legislative Information
Read second time and amended.
2025-05-06 California Legislative Information
From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (May 6).
2025-04-01 California Legislative Information
Re-referred to Com. on JUD.
2025-03-28 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on JUD. Read second time and amended.
2025-03-28 California Legislative Information
Referred to Com. on JUD.
2025-02-24 California Legislative Information
Read first time.
2025-02-22 California Legislative Information
From printer. May be heard in committee March 24.
2025-02-21 California Legislative Information
Introduced. To print.

Official Summary Text

AB 1427, as amended, Calderon.
Consumer credit report: sale of property:
wildfires.
natural disasters.
Existing law, the Consumer Credit Reporting Agencies Act, defines and regulates consumer credit reports and consumer credit reporting agencies. The act prohibits a consumer credit reporting agency from making any consumer credit report containing specified items of information, including information about medical debt, as defined. Existing law prohibits a person who uses a consumer credit report in connection with a credit transaction from using medical debt listed on the report as a negative factor when making a credit decision.
This bill would prohibit a consumer credit reporting agency from making a consumer credit report containing information about the sale of property that is located in an area where the Governor has proclaimed a state of emergency due to a
wildfire on or after January 7, 2025,
natural disaster
and the property is
damaged beyond repair
rendered uninhabitable
as a result of the
wildfire.
natural disaster.
The bill would prohibit a person who uses a consumer credit report in connection with a credit transaction from using the sale of an aforementioned property listed on the report as a negative factor when making a credit decision.

Current Bill Text

Read the full stored bill text

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