2024 -- S 2710

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LC004284

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS --

INTEREST AND USURY

     Introduced By: Senator John P. Burke

     Date Introduced: March 05, 2024

     Referred To: Senate Commerce

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 6-26 of the General Laws entitled "Interest and Usury" is hereby

amended by adding thereto the following section:

     6-26-11. Medical debt interest cap.

     (a) For purposes of this section "medical debt" means a debt arising from health care

services or health related goods including, but not limited to, products, devices, services, durable

medical equipment, and prescription drugs.

     (b) Interest on medical debt shall be limited to the rate of interest equal to the weekly

average one-year constant maturity Treasury yield, but not less than one and a half percent per

annum (1.5% p.a.) nor more than four percent per annum (4% p.a.) as published by the Board of

Governors of the Federal Reserve System, for the calendar week preceding the date when the

consumer was first provided with a bill. Patients receiving financial assistance shall not be charged

any interest or late fees.

     (c) The rate of interest provided in subsection (b) of this section shall only be applied to

new debt incurred after the date of enactment of this section.

     SECTION 2. This act shall take effect upon passage.

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LC004284

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS --

INTEREST AND USURY

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     This act would provide an interest rate cap on medical debt.

     This act would take effect upon passage.

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LC004284

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