This bill modifies the definition of "debt buyer" in Minnesota Statutes 2024, section 332.31, subdivision 8, by specifying that a debt buyer does not include nonprofit organizations that purchase charged-off accounts or other indebtedness for charitable purposes. This change aims to clarify the role of nonprofit organizations in the context of debt collection.

Additionally, the bill appropriates $5,000,000 from the general fund for fiscal year 2026 to the commissioner of commerce for a grant to Undue Medical Debt. This funding is intended to relieve medical debt for eligible residents who have struggled to pay their medical bills after reasonable collection efforts by hospital providers. The appropriation is a one-time allocation available until June 30, 2028, and requires Undue Medical Debt to report to the commissioner of commerce and the attorney general on the characteristics of residents benefiting from the debt relief. The provisions of this bill will take effect the day after final enactment.

Statutes affected:
Introduction: 332.31