An Act to Prohibit Unfair Practices Related to the Collection of IMedical Debt
Maine Legislature, Session 131, LD 2115
Committee Amendment CA_B_S668 (Senate)
Amends: 32 MRSA §11002, 32 MRSA §11013

COMMITTEE AMENDMENT "j^" to S.P 908 L D. 2115 "An^ Act Requiring
Health Care Providers to Engage in Fair Practices When Selling Medical Debt"
Amend the bill by striking out the title and substituting the following:
'An Act to Prohibit Unfair Practices Related to the Collection of IMedical Debt'
Amend the bill by striking out everything after the enacting clause and inserting the
following:
'See. 1. 32 MRSA §11002, sub-§7-A is enacted to read:
7-A. Medical debt. "Medical debt" means debt arising from health care services.
mcluding dental services, or health care soods, includine products, devices^dyrable
medical equipment and prescription drugs. "Medical debt" does not include debt arising
from services provided by a veterinarian: debt charged to a credit card unless the credit
card is issued under an open-end or closed-end credit plan offered solely for the payment
of health care services; debt charged to a home equity or general purpose line of credit; or
secured debt.
Sec. 2. 32 MRSA §11013, sub-§2, ^[0, as enacted by PL 1985, c, 702, §2, is
amended to read:
0. The false representation or unplication that documents are not legal process forms
or do not require action by the consumer; w
Sec. 3. 32 MRSA §11013, sub-§2, ^fP, as amended by PL 2013, c. 588, Pt. C,§17,
is further amended to read:
P. The false representation or implication that a debt collector operates or is employed
by a consumer reporting agency, as defined by Title 10, section 1308, subsection 3^
Sec. 4. 32 MRSA §11013, sub-§2, ^[Q is enacted to read:
0. The false, deceptive or misleadine representation or implication that interest will
accumulate on the debt principal when the debt collectOLOLcoUection agency is
attempting to collect debt that the debt collector or collection^ agency knows is medical
COMMITTEE AMENDMENT
^ COMMITTEE AMENDMENT "^ " to S.P. 908, L.D. 21 15 (^
<y-
debt or to obtain information about a consumer in relation to an attempt to collect
medical debt;
Sec. 5. 32 MRSA §11013, sub-§2, ^R is enacted to read:
R. The false, deceptive or misleading representation or implication that a fee will be
charged in connection with the debt when the debt CQllector or collection agency is
attemptme to collect debt that the debt collector or collection agency knows is medical
debt or to obtain information about a consumer in relation to an attempt to collect
medical debt; or
Sec. 6. 32 MRSA §11013, sub-§2, ^S is enacted to read:
S. The false, deceptive or misleadine representation or implication that the debt
collector or collection agency will pursue litieation to compel oavment of the debt
when attempting to collect debt that the debt collector or collection agency knows is
medical debt or to obtain mfonnation about a consumer in relation to an attempt to
collect medical debt.
Sec. 7. 32 MRSA §11013, sub-§3, ^[M, as enacted by PL 1985, c. 702, §2, is
amended to read:
M. Engaging in the business of lending money to any person or contacting any person
for the purpose of securing a loan for any person with which to pay any claim left with
it for collection, or recommending any person or persons as a source of funds to pay
any such claim; or
Sec. 8. 32 MRSA §11013, sub-§3, ^N, as repealed and replaced by PL 2009, c.
245, §8, is amended to read:
N. Threatening to brmg legal action in the debt collector's own name or instituting a
suit on behalf of others or furnishing legal advice, except that a debt collector who is
also an attorney may bring an action under this paragraph in the name of the creditor
in any division or county permitted by 15 United States Code, Section 16921 and may
furnish legal advice to the creditor with respect to a debt-i
Sec. 9. 32 MRSA §11013, sub-§3, ^O is enacted to read:
0. Notwithstandine paraeraph A. chareing any interest^n_debtthat th^debt collector
knows is medical debt;
Sec. 10. 32 MRSA §11013, sub-§3, ^ is enacted to read:
P. Notwithstandine paragraph A, charging any fee in connection with the collection of
debt that the debt collector knows is medical debt; or
Sec. 11. 32 MRSA §11013, sub-§3, ^Q is enacted to read:
0. Pursuing litieation to comuel payment of medical debt without providing proof that
the consumer was sent a written notice indicatine that litieation may not be pursued
7 when the debt collector or collection agency knows the consumer's household income
is not more than 400% of the federal poverty euidelines. as defined by the federal
Office of Management and Budget and revised annually, and the debt collector or
collection agency provided the consumer with at least 30 days to provide evidence that
COMMITTEE AMENDMENT
^
^ COMMITTEE AMENDMENT " ^' to S.P. 908, L.D. 2115
the consumer's household income is not more than 400% of the federal poverty
guidelines.'
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section
number to read consecutively.
SUMMARY
This amendment, which is the minority report of the committee, replaces the bill and
changes the title. The amendment does the following.
1. It prohibits debt collectors from charging any interest on debt or fees in connection
with the collection of debt that the debt collector knows is medical debt.
2. It prohibits debt collectors from pursuing litigation to compel payment of medical
debt without providing proof that the consumer was sent a written notice indicating that
litigation may not be pursued when the debt collector or collection agency knows the
consumer's household income is not more than 400% of the federal poverty guidelines, as
defined by the federal Office of Management and Budget and revised annually, and the
debt collector or collection agency provided the consumer with at least 30 days to provide
evidence that the consumer's household income is not more than 400% of the federal
poverty guidelines. The majority report of the committee sets the limit on a consumer's
household mcome at 3 00% of the federal poverty guidelines, instead of 400%.
3. It prohibits debt collectors from making false, deceptive or misleading
representations when attempting to collect debt that the debt collector or collection agency
knows is medical debt or to obtain information about a consumer in relation to an attempt
to collect medical debt that interest will accumulate on the debt prmcipal, that a fee will be
charged in connection with the debt or that the debt collector will pursue litigation to
compel payment of the debt.
FISCAL NOTE REQmRED
(See attached)
COMMITTEE AMENDMENT
Approved: 03/29/24 ^K?c*-
LD 2115 LR 2795(03)
An Act Requiring Health Care Providers to Engage in Fair Practices When Selling Medical Debt
Fiscal Note for Bill as Amended by Committee Amendment "^C^'(
Committee: Health Coverage, Insurance and Financial Services
Fiscal Note Required: Yes
Fiscal Note
Minor cost increase - General Fund
Minor revenue increase - General Fund
Fiscal Detail and Notes
Any additional costs and increased revenue to the Department of Professional and Financial Regulation from the
provisions of this bill are expected to be minor and can be absorbed within existing budgeted resources.
LR2795(03) - Fiscal Note - Page 1 of 1