2024 -- S 2712 SUBSTITUTE A AS AMENDED

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LC005631/SUB A

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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 PUBLIC FINANCE STATE FUNDS -- MEDICAL DEBT RELIEF

PROGRAM

     

     Introduced By: Senators McKenney, and Pearson

     Date Introduced: March 05, 2024

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 35-4 of the General Laws entitled "State Funds" is hereby amended

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by adding thereto the following section:

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     35-4-21.1. Medical debt relief program.

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     (a) There is hereby established a medical debt relief program to be administered by the

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general treasurer, who has the authority to enter into a contract for the purchase, cancellation and

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forgiveness of medical debts, based upon the following conditions:

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     (1) That the debt was incurred in order to obtain medical services, products, and/or devices;

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     (2) That the debts are in collection or have been sold or assigned by the original provider;

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and

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     (3) That the debt is owed by a citizen of the state, whose federal adjusted gross income is

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four hundred percent (400%) or less than the federal poverty line or whose debt is more than five

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percent (5%) of the citizen's adjusted gross income, as measured by the prior tax return or the

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estimated return in the current year.

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     (b) Any citizen of this state whose debt is discharged, cancelled or forgiven under this

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section, shall be provided notice of the cancellation of the debt, but shall not have the amount

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cancelled included in the computation of taxable income, for the purpose of state income taxes.

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     (c) For the purposes of this section, the definition of medical debts shall be liberally

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construed, so as to not reduce the types of debt that may be subject to cancellation, so long as they

 

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arise from medical transport, evaluation, diagnosis, treatment and/or rehabilitation.

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     (d) The general treasurer shall provide quarterly updates on the program to the chairpersons

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of the house and senate committees on finance beginning January 1, 2025.

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     (e) The general treasurer may promulgate regulations as necessary to effectuate the

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provisions of this section.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC FINANCE STATE FUNDS -- MEDICAL DEBT RELIEF

PROGRAM

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     This act would establish a medical debt relief program, to be administered by the general

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treasurer for the purchase, cancellation and forgiveness of medical debts, based upon certain

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conditions.

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     This act would take effect upon passage.

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