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 | |
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Introduced By: Senators McKenney, and Pearson | |
Date Introduced: March 05, 2024 | |
Referred To: Senate Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Chapter 35-4 of the General Laws entitled "State Funds" is hereby amended |
2 | by adding thereto the following section: |
3 | 35-4-21.1. Medical debt relief program. |
4 | (a) There is hereby established a medical debt relief program to be administered by the |
5 | general treasurer, who has the authority to enter into a contract for the purchase, cancellation and |
6 | forgiveness of medical debts, based upon the following conditions: |
7 | (1) That the debt was incurred in order to obtain medical services, products, and/or devices; |
8 | (2) That the debts are in collection or have been sold or assigned by the original provider; |
9 | and |
10 | (3) That the debt is owed by a citizen of the state, whose federal adjusted gross income is |
11 | four hundred percent (400%) or less than the federal poverty line or whose debt is more than five |
12 | percent (5%) of the citizen's adjusted gross income, as measured by the prior tax return or the |
13 | estimated return in the current year. |
14 | (b) Any citizen of this state whose debt is discharged, cancelled or forgiven under this |
15 | section, shall be provided notice of the cancellation of the debt, but shall not have the amount |
16 | cancelled included in the computation of taxable income, for the purpose of state income taxes. |
17 | (c) For the purposes of this section, the definition of medical debts shall be liberally |
18 | construed, so as to not reduce the types of debt that may be subject to cancellation, so long as they |
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1 | arise from medical transport, evaluation, diagnosis, treatment and/or rehabilitation. |
2 | (d) The general treasurer shall provide quarterly updates on the program to the chairpersons |
3 | of the house and senate committees on finance beginning January 1, 2025. |
4 | (e) The general treasurer may promulgate regulations as necessary to effectuate the |
5 | provisions of this section. |
6 | SECTION 2. This act shall take effect upon passage. |
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LC005631/SUB A | |
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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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1 | This act would establish a medical debt relief program, to be administered by the general |
2 | treasurer for the purchase, cancellation and forgiveness of medical debts, based upon certain |
3 | conditions. |
4 | This act would take effect upon passage. |
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LC005631/SUB A | |
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