SB 248 — Revises provisions relating to the collection of medical debt. (BDR 54-576)

(ReprintedSenate withBill amendmentsNo. adopted on May 20, 2021) FIRST REPRINT S.B.

248248–Senator SENATEDondero BLoop ILLNCHAPTER.......... O.

248–SENATOR D ONDERO L OOP M ARCH 15, 2021 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions relating to the collection of medical debt.

(BDR 54-576) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

No.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

(1) requires any person who operates a collection agency or otherwise engages in the collection of claims for others to obtain a license from the Commissioner of Financial Institutions;

and (2) prohibits a collection agency or itseits manager,649.375) agentsSection or2 employeesof fromthis engagingbill: in certain practices.

(NRS 649.075, 649.375) Section 2 of this bill:

Sections makes3-6 a conforming change to indicate the placement of sections 2-6 of this bill indefine theother Nevadaterms Revisedrelated Statutes.to medical debt.

Section 79 of this bill requiresmakes a collectionconforming agencychange to sendindicate bythe registeredplacement orof certifiedsections mail2-6 writtenof noticethis tobill ain person who owes a medical debt at least 60 days before taking any action to collect the medicalNevada debtRevised andStatutes. requires the notice to contain certain information.

Section 7 of this bill requires a collection agency to debt at least 60 days before taking any action to collect the medical debt andical requires the notice to contain certain information.

(1) a collection agency may, under certain circumstances, accept a voluntary payment from a medical debtor during the 60-day notification period specified in section 7;

Section 8 of this bill prohibits a collection agency, or its - *SB248_R1* – 2 – manager, agents or employees, from engaging in certain practices relating to the collection of a medical debt.

Section 8.5 of this bill provides that the protections set waived.nforth in sections 7, 7.5 and 8 are for the benefit of medical debtors and cannot be THEwaived. PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

- 81st Session (2021) – 2 – 2.

Except as otherwise provided in subsection 3, the term includes the financing or an extension of credit by a third party for the sole purpose of purchasing goods or services provided by a medical facility, a provider of health care or a provider of eme3.encThe term does not include an open-end or closed-end extension of credit made by a financial institution to a borrower that may be used by the borrower, at his or her own discretion, for any purpose other than the purchase of goods or services provided by a medical facility, a provider of health care or a provider of emergency medical services.

3.

The term does not include an open-end or closed-end extension of credit made by a financial institution to a borrower that may be used by the borrower, at his or her own discretion, for any purpose other than the purchase of goods or services provided by a medical facility, a provider of health care or a provider of emergency medical services.

(a) The name of the medical facility, provider of health care or provider of emergency medical services that provided the goods or servicesser(b) forThe date on which thethose medicalgoods debtor isservices owed;were provided;

(b) The date on which those goods or services were provided;

- *SB248_R1* – 3 – 2.

- 81st Session (2021) – 3 – (a) The medical debtor initiates the contact with the collection agency;

and (2) The medical debt will not be reported to any credit reporting agency during the 60-day notification period specified in subsection 1 of section 7 of this act.

Commence a civil action to collect the medical debt if the amount of the medical debt, excluding interest, late fees, collection costs, attorney’s fees and any other fees or costs, is less than the maximum jurisdictional amount set forth in subsection 1 of NRS 73.010.

Charge or collect a fee of more than 5 percent of the amount of the medical debt, excluding interest, late fees, collection - *SB248_R1* – 4 – costs, attorney’s fees and any other fees or costs, as a collection fee or as an attorney’s fee for the collection of the medical debt.

- 81st Session (2021) – 4 – Sec.

H~~~~~ 21 - *SB248_R1*81st Session (2021)