SF 1347

as introduced - 94th Legislature (2025 - 2026) Posted on 04/23/2025 09:45am

A bill for an act
relating to commerce; modifying the definition of debt buyer; appropriating money
for a grant to Undue Medical Debt; requiring reports; amending Minnesota Statutes
2024, section 332.31, subdivision 8.

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

Section 1.

Minnesota Statutes 2024, section 332.31, subdivision 8, is amended to read:

Subd. 8.

Debt buyer.

"Debt buyer" means a business engaged in the purchase of any
charged-off account, bill, or other indebtedness for collection purposes, whether the business
collects the account, bill, or other indebtedness, hires a third party for collection, or hires
an attorney for litigation related to the collection. new text begin Debt buyer does not include a nonprofit
organization purchasing a charged-off account, bill, or other indebtedness for charitable
purposes.
new text end

Sec. 2. new text begin APPROPRIATION; MEDICAL DEBT RELIEF; REPORT.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin $5,000,000 in fiscal year 2026 is appropriated from the
general fund to the commissioner of commerce for a grant to Undue Medical Debt to relieve
the medical debt of eligible residents who were unable to pay medical bills after reasonable
collections efforts undertaken by hospital providers were completed. This is a onetime
appropriation and is available until June 30, 2028.
new text end

new text begin Subd. 2. new text end

new text begin Report. new text end

new text begin Undue Medical Debt must share information with the commissioner
of commerce and the attorney general regarding the number and characteristics of the
residents who have had medical debts relieved under this appropriation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end