Revises provisions relating to medical debt. (BDR 52-135)

Enforcement authority was transferred from the Attorney General to the Commissioner of Financial Institutions, and the standard for prosecution was tightened to require a 'willful' violation.

A new condition was added prohibiting the reporting of medical debt to consumer reporting agencies unless the creditor first offers the consumer a payment plan.

The definition of 'extraordinary collection action' was modified to clarify that placing a lien on third-party settlements is not considered an extraordinary action.

Changed the geographic scope of emergency protections from the county where a consumer resides to the entire state, ensuring broader coverage during emergencies.

Added a 6-month time limit on prohibiting extraordinary collection actions when federal emergency declarations are in effect.

Removed references to appearance-focused treatments from the definition of medical services.

Added new Section 2.5 defining 'Amounts generally billed to individuals who have insurance' based on IRS regulations for tax purposes.

Added new Section 4 defining 'Consumer' as a natural person.

Added new Section 5.5 defining 'Cosmetic surgery' as procedures that don't promote proper body function, treat illness, or improve appearance.

Updated section references from 'sections 3-12' to 'sections 2.5-12' to account for the new definition sections.

Reorganized the Legislative Counsel's Digest to reflect the new section numbering and removed redundant text about reporting medical debt.

Reprint date changed from April 21, 2025 to May 27, 2025, indicating subsequent amendments were adopted.

Legislative Counsel's Digest revised to clarify that payment plan protections apply to both health care entities and collection agencies, and to add new requirements for providing payment plan copies and receipts.

Removed specific prohibitions on liens and wage garnishments from the digest's list of prohibited actions, while retaining the ban on arresting consumers and seizing bank accounts.

Expanded scope to explicitly include 'health care entity' alongside 'collection agency' in multiple sections, broadening the entities subject to medical debt collection restrictions.