BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                AB 1220
                                                                Page  1


        ASSEMBLY THIRD READING
        AB 1220 (Skinner)
        As Amended  May 20, 2013
        Majority vote 
         
        BANKING & FINANCE   7-2         APPROPRIATIONS      12-0           
         
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        |Ayes:|Dickinson, Blumenfield,   |Ayes:|Gatto, Bocanegra, Bradford, |
        |     |Bonta, Chau, Gatto,       |     |                            |
        |     |Torres, Weber             |     |Ian Calderon, Campos,       |
        |     |                          |     |Eggman, Gomez, Hall,        |
        |     |                          |     |Rendon, Pan, Quirk, Weber   |
        |     |                          |     |                            |
        |-----+--------------------------+-----+----------------------------|
        |Nays:|Morrell, Linder           |     |                            |
        |     |                          |     |                            |
         ------------------------------------------------------------------- 
         SUMMARY  :  Specifies that it is unlawful for a consumer credit  
        reporting agency (CRA) to prohibit in any manner a user of a  
        consumer credit reporting from providing a copy of the report to the  
        consumer, upon the consumer's request, if the user has taken an  
        adverse action against the consumer based on information in the  
        report.  

         EXISTING LAW  : 

        1)Regulates consumer CRAs via the Consumer Credit Reporting Agencies  
          Act.  (Civil Code Section 1785.1 et seq.  All further references  
          are to the Civil Code).

        2)Defines consumer credit report as any written, oral, or other  
          communication of any information by a consumer CRA bearing on a  
          consumer's credit worthiness, credit standing, or credit capacity,  
          which is used or is expected to be used, or collected in whole or  
          in part, for the purpose of serving as a factor in establishing  
          the consumer's eligibility for:  a) credit to be used primarily  
          for personal, family, or household purposes; b) employment  
          purposes; c) hiring of a dwelling unit, as defined in subdivision  
          (c) of Section 1940; or d) other purposes authorized in Section  
          1785.11.  (Section 1785.3)

        3)Requires that every CRA shall, upon request and proper  
          identification of any consumer, allow the consumer to visually  
          inspect all files maintained regarding that consumer at the time  







                                                                AB 1220
                                                                Page  2


          of the request.  (Section 1785.10)

        4)Specifies the circumstances under which a CRA shall furnish a  
          consumer credit report.  (Section 1785.11)  

        5)Requires a user of a consumer credit report to provide written  
          notice of an adverse action to the consumer.  (Section 1785.20)

         FISCAL EFFECT  :  According to the Assembly Appropriations Committee,  
        negligible fiscal impact.

         COMMENTS  :  AB 1220 builds on provisions contained in the Fair Credit  
        Reporting Act (FCRA), 15 United States Code Section 1681 et seq.   
        Section 607 (c) of FCRA provides that a CRA may not prohibit a user  
        from disclosing the contents of the report to the consumer if an  
        adverse action has taken place. 
         
        Analysis Prepared by  :    Mark Farouk / B. & F. / (916) 319-3081 FN:  
        0000578