Definition of debt buyer modified, Undue Medical Debt grant funding provided, reports required, and money appropriated.

This bill modifies Minnesota's definition of a "debt buyer" to clarify that businesses purchasing charged-off medical debts for collection purposes are considered debt buyers, while excluding nonprofits buying for charitable reasons. It appropriates $5 million from the general fund for a one-time grant to the nonprofit Undue Medical Debt to relieve medical debt for eligible residents who couldn't pay after hospitals completed reasonable collection efforts. The grant must be used by June 30, 2028, and Undue Medical Debt must report recipient demographics to state agencies. The bill directly affects low-income Minnesotans with unpaid medical bills and hospitals that previously pursued collections.