This bill modifies the definition of "debt buyer" in Minnesota Statutes 2024, section 332.31, subdivision 8, by clarifying that a debt buyer does not include nonprofit organizations that purchase charged-off accounts, bills, or other indebtedness for charitable purposes. This change aims to distinguish between for-profit debt buyers and those acting in a nonprofit capacity to assist individuals in financial distress.

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 the medical debt of eligible residents who have struggled to pay their medical bills after reasonable collection efforts by hospital providers. The bill also requires Undue Medical Debt to report to the commissioner of commerce and the attorney general on the number and characteristics of residents who benefit from this debt relief. The appropriation is a one-time allocation available until June 30, 2028, and the provisions of this section will take effect the day after final enactment.

Statutes affected:
Introduction: 332.31