The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6275--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               April 3, 2023
                                ___________
 
 Introduced  by  M.  of  A. PAULIN, SEAWRIGHT, ARDILA, McDONALD, FORREST,
   SEPTIMO, GONZALEZ-ROJAS, SIMONE --  read  once  and  referred  to  the
   Committee  on Consumer Affairs and Protection -- committee discharged,
   bill amended, ordered reprinted as amended  and  recommitted  to  said
   committee

 AN  ACT  to amend the public health law and the general business law, in
   relation to prohibiting medical debt from being collected by a consum-
   er reporting agency or included in a consumer report
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "fair medical debt reporting act".
   § 2. The public health law is amended by adding a new article 49-A  to
 read as follows:
 
                               ARTICLE 49-A
                          MEDICAL DEBT REPORTING
 SECTION 4925. DEFINITIONS.
         4926. MEDICAL   DEBT  REPORTING  PROHIBITED  IN  CONTRACTS  WITH
                 COLLECTION ENTITIES.
         4927. ENFORCEMENT.
   § 4925. DEFINITIONS. AS USED IN  THIS  ARTICLE,  THE  FOLLOWING  TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1.  "MEDICAL  DEBT"  MEANS  AN  OBLIGATION  OR ALLEGED OBLIGATION OF A
 CONSUMER TO PAY ANY AMOUNT WHATSOEVER RELATED TO THE RECEIPT  OF  HEALTH
 CARE  SERVICES,  PRODUCTS, OR DEVICES PROVIDED TO A PERSON BY A HOSPITAL
 LICENSED UNDER ARTICLE TWENTY-EIGHT  OF  THIS  CHAPTER,  A  HEALTH  CARE
 PROFESSIONAL  AUTHORIZED  UNDER  TITLE  EIGHT OF THE EDUCATION LAW OR AN
 AMBULANCE SERVICE  CERTIFIED  UNDER  ARTICLE  THIRTY  OF  THIS  CHAPTER.
 MEDICAL  DEBT  DOES NOT INCLUDE DEBT CHARGED TO A CREDIT CARD UNLESS THE
 CREDIT CARD IS ISSUED UNDER AN OPEN-ENDED  OR  CLOSED-END  PLAN  OFFERED

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09626-04-3

 A. 6275--A                          2
 
 SPECIFICALLY  FOR  THE  PAYMENT  OF  HEALTH  CARE SERVICES, PRODUCTS, OR
 DEVICES PROVIDED TO A PERSON.
   2. "COLLECTION ENTITY" MEANS ANY INDIVIDUAL, PARTNERSHIP, CORPORATION,
 TRUST,  ESTATE,  CO-OPERATIVE,  ASSOCIATION,  GOVERNMENT  OR  GOVERNMENT
 SUBDIVISION, AGENCY OR OTHER ENTITY THAT EITHER PURCHASES  MEDICAL  DEBT
 OR COLLECTS MEDICAL DEBT ON BEHALF OF ANOTHER ENTITY.
   3.  "CONSUMER  REPORTING  AGENCY"  SHALL HAVE THE SAME MEANING AS SUCH
 TERM IS DEFINED IN SECTION THREE HUNDRED EIGHTY-A OF THE  GENERAL  BUSI-
 NESS LAW.
   § 4926. MEDICAL DEBT REPORTING PROHIBITED IN CONTRACTS WITH COLLECTION
 ENTITIES.  A  HOSPITAL LICENSED UNDER ARTICLE TWENTY-EIGHT OF THIS CHAP-
 TER, A HEALTH CARE PROFESSIONAL AUTHORIZED  UNDER  TITLE  EIGHT  OF  THE
 EDUCATION LAW, OR AN AMBULANCE SERVICE CERTIFIED UNDER ARTICLE THIRTY OF
 THIS CHAPTER:
   1.  SHALL  NOT  FURNISH  ANY  PORTION  OF A MEDICAL DEBT TO A CONSUMER
 REPORTING AGENCY; AND
   2. SHALL INCLUDE A PROVISION IN  ANY  CONTRACT  ENTERED  INTO  WITH  A
 COLLECTION  ENTITY  FOR  THE PURCHASE OR COLLECTION OF MEDICAL DEBT THAT
 PROHIBITS THE REPORTING OF ANY PORTION OF SUCH MEDICAL DEBT TO A CONSUM-
 ER REPORTING AGENCY.
   § 4927. ENFORCEMENT. ANY PORTION OF A MEDICAL DEBT THAT  IS  FURNISHED
 TO A CONSUMER REPORTING AGENCY SHALL BE VOID.
   §  3. Section 380-a of the general business law is amended by adding a
 new subdivision (v) to read as follows:
   (V) THE TERM "MEDICAL DEBT" MEANS ANY OBLIGATION OR ALLEGED OBLIGATION
 OF A CONSUMER TO PAY ANY AMOUNT WHATSOEVER RELATED  TO  THE  RECEIPT  OF
 HEALTH  CARE  SERVICES,  PRODUCTS,  OR  DEVICES  PROVIDED  BY A HOSPITAL
 LICENSED UNDER ARTICLE TWENTY-EIGHT OF THE PUBLIC HEALTH LAW,  A  HEALTH
 CARE  PROFESSIONAL AUTHORIZED UNDER TITLE EIGHT OF THE EDUCATION LAW, OR
 AN AMBULANCE SERVICE CERTIFIED UNDER ARTICLE THIRTY OF THE PUBLIC HEALTH
 LAW.
   § 4. Subdivision (a) of section 380-j of the general business law,  as
 added by chapter 867 of the laws of 1977, is amended to read as follows:
   (a)  No consumer reporting agency shall report or maintain in the file
 on a consumer, information:
   (1) relative to an arrest or a criminal charge unless there has been a
 criminal conviction for such offense, or unless such charges  are  still
 pending,
   (2) relative to a consumer's race, religion, color, ancestry or ethnic
 origin, [or]
   (3) RELATIVE TO A MEDICAL DEBT AS DEFINED IN THIS STATUTE; OR
   (4) which it has reason to know is inaccurate.
   §  5. Subparagraphs (vii) and (viii) of paragraph 1 of subdivision (f)
 of section 380-j of the general business law, as added by chapter 867 of
 the laws of 1977, are amended to read as follows:
   (vii) information relating to past confinement in a mental institution
 where the date of last confinement antedates the  report  by  more  than
 seven years; [or]
   (viii)  INFORMATION  RELATING TO A MEDICAL DEBT REGARDLESS OF THE DATE
 IT WAS INCURRED; OR
   (IX) any other adverse information which antedates the report by  more
 than seven years.
   § 6. This act shall take effect immediately.