2025 -- H 5235

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LC000986

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2025

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A N   A C T

RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS --

INTEREST AND USURY

     Introduced By: Representatives Shallcross Smith, Handy, Furtado, Read, Speakman,
Noret, Casimiro, Finkelman, Baginski, and Corvese

     Date Introduced: January 29, 2025

     Referred To: House Corporations

     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 an obligation of a consumer to pay

an amount for the receipt of healthcare services as defined by § 27-81-3, products, or devices, owed

to a healthcare facility or a healthcare professional as defined by § 27-81-3

     (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 effective date of this section.

     SECTION 2. This act shall take effect upon passage.

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LC000986

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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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LC000986

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