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Committee reports out engrossed substitute Senate Bill 5,480 after debate on medical-debt reporting and consumer protections (9–6)
Summary
The Consumer Protection & Business Committee voted 9–6 to report out "engrossed substitute Senate Bill 5,480" with a due-pass recommendation after debate over removing medical debt from consumer credit reports, possible effects on bankruptcy reporting and creation of a per se consumer-protection violation. Supporters said the bill removes medical
The Consumer Protection & Business Committee voted March 25 to report out engrossed substitute Senate Bill 5,480 with a due-pass recommendation by a roll-call vote of 9 ayes and 6 nays.
Representative Tom Reeves (committee member) moved the motion. Reeves framed the bill as a measure to prevent medical debt from ‘‘preventing [people] from being able to build resiliency’’ and said the proposal does not erase medical debt or stop collection, but limits how medical debt appears on consumer credit reports so it does not bar access to housing, transportation or other opportunities.
Representative Faux opposed the measure, urging members to vote no. Faux said the bill ‘‘takes out the accountability’’ and warned it could remove incentives to pay debt. He raised concerns about interaction with federal bankruptcy law and criticized language that creates a per se consumer-protection-act violation that, in his view, lowers the burden of proof for a statutory remedy.
The chair urged members to support the bill and indicated staff would follow up on bankruptcy impacts and other technical questions raised during debate.
Voting record (as recorded at the roll call): Ayes — Wallen; Barry; Donaghy; Fosse; Kloba; Morgan; Reeves; Rio; Santos (9). Nays — McClintock; Dufo; Abarneau; Corey; Steele; Volz (6). The committee clerk announced the tally as 9 ayes, 6 nays; the bill was reported out with a due-pass recommendation.
Committee debate focused on two core themes: (1) the bill’s intent to prevent medical-debt entries from creating long-term barriers to housing and credit access, and (2) concerns from some members that removing such entries or creating statutory consumer-protection remedies without customary proof elements could reduce debtor accountability or raise preemption/ bankruptcy questions. The transcript records members asking the chair and staff to provide follow-up detail on bankruptcy interactions and the implications of the consumer-protection provisions.
Motion details: Representative Reeves moved that "engrossed substitute Senate Bill 5,480 be reported out of committee with a due pass recommendation." A seconder was not recorded in the transcript. The committee report form and roll-call vote were completed in the hearing record.
