Purpose of the Bill

The bill aims to modify the definition of "debt buyer" within Minnesota's commerce laws and to reduce medical debt for Minnesota residents through financial support to a specific program.

Main Provisions

• Definition Modification: The bill changes the definition of "debt buyer" in Minnesota's commerce statutes to include any business that purchases charged-off debts for collection. It clarifies that the definition does not apply to nonprofit organizations buying such debts for charitable purposes.
• Medical Debt Relief Grant: A one-time appropriation of $5 million is allocated from the state’s general fund for a grant to "Undue Medical Debt," an organization tasked with relieving the medical debt of residents unable to pay after hospitals have completed reasonable collection efforts.
• Reporting Requirements: "Undue Medical Debt" must report back to the commissioner of commerce and the attorney general on the number and characteristics of the residents whose medical debts were relieved.

Significant Changes to Existing Law

The bill provides a more detailed definition of what constitutes a "debt buyer," potentially affecting businesses involved in debt collection. It also introduces a funding mechanism targeting medical debt relief, prioritizing transparency and accountability through mandatory reporting.

Relevant Terms

• Debt buyer
• Charged-off account
• Medical debt relief
• Appropriation
• Nonprofit organization