Rhode Island 2025 Regular Session

Rhode Island House Bill H5184 Compare Versions

Only one version of the bill is available at this time.

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5	5	2025 -- H 5184
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7	7	LC000727
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9	9	S T A T E O F R H O D E I S L A N D
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2025
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO COMMERCI AL LAW -- GENERAL REGULATORY PROVISION S --
16	16	DECEPTIVE TRADE PRACTICES
17	17	Introduced By: Representatives Shallcross Smith, Chippendale, Casimiro, Craven,
18	18	Nardone, Fogarty, Ajello, Fellela, Hull, and Alzate
19	19	Date Introduced: January 24, 2025
20	20	Referred To: House Judiciary
21	21
22	22
23	23	It is enacted by the General Assembly as follows:
24	24	SECTION 1. Section 6-13.1-20 of the General Laws in Chapter 6-13.1 entitled "Deceptive 1
25	25	Trade Practices" is hereby amended to read as follows: 2
26	26	6-13.1-20. Credit reports — Definitions. 3
27	27	As used in this chapter: 4
28	28	(1) “Credit bureau” means any entity or person who or that, for monetary fees, dues, or on 5
29	29	a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or 6
30	30	evaluating consumer credit information or other information on consumers for the purpose of 7
31	31	furnishing credit reports to third parties; 8
32	32	(2)(i) “Credit report” means any written, oral, or other communication of any information 9
33	33	by a credit bureau bearing on a consumer’s credit worthiness, credit standing, or credit capacity, 10
34	34	that is used or expected to be used or collected in whole or in part for the purpose of serving as a 11
35	35	factor in establishing the consumer’s eligibility for: 12
36	36	(A) Credit or insurance to be used primarily for personal, family, or household purposes; 13
37	37	(B) Employment purposes; or 14
38	38	(C) Other purposes authorized under the federal Fair Credit Reporting Act, 15 U.S.C. § 15
39	39	1681 et seq. 16
40	40	(ii) “Credit report” does not include: 17
41	41	(A) Any report containing information solely as to transactions or experiences between the 18
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45	45	consumer and the person making the report; 1
46	46	(B) Any authorization or approval of a specific extension of credit directly or indirectly by 2
47	47	the issuer of a credit card or similar device; 3
48	48	(C) Any report in which a person who has been requested by a third party to make a specific 4
49	49	extension of credit directly or indirectly to a consumer conveys his or her decision with respect to 5
50	50	that request if the third party advises the consumer of the name and address of the person to whom 6
51	51	the request was made and the person makes the disclosures to the consumer required under the 7
52	52	federal Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.; or 8
53	53	(D) Any report containing information solely on a consumer’s character, general 9
54	54	reputation, personal characteristics, or mode of living that is obtained through personal interviews 10
55	55	with neighbors, friends, or associates of the consumer reported on, or with others with whom he or 11
56	56	she is acquainted or who may have knowledge concerning those items of information, only if the 12
57	57	report is not used in granting, extending, or decreasing credit; and 13
58	58	(E) Any report containing information solely as to transactions or experiences between the 14
59	59	consumer and a healthcare provider for medical debt. 15
60	60	(3) “Medical debt” means an obligation of a consumer to pay an amount for the receipt of 16
61	61	healthcare services as defined by § 27-81-3, products, or devices, owed to a healthcare facility or a 17
62	62	healthcare professional as defined by § 27-81-3. Medicaid reimbursement and child support orders 18
63	63	are excluded from this definition. 19
64	64	SECTION 2. Section 9-25-3 of the General Laws in Chapter 9-25 entitled "Execution" is 20
65	65	hereby amended to read as follows: 21
66	66	9-25-3. Limitation on issuance. Limitation on issuance and filing. 22
67	67	Executions, original or alias, may be issued by any court at any time within six (6) years 23
68	68	from the rendition of the judgment originally or from the return day of the last execution; provided 24
69	69	that, no execution shall be filed against a defendant's principal residence for a judgment in any 25
70	70	action where the plaintiff’s claim against the defendant was based on medical debt. “Medical debt” 26
71	71	shall have the same meaning as defined in § 6-13.1-20. 27
72	72	SECTION 3. Sections 10-5-2, 10-5-7 and 10-5-8 of the General Laws in Chapter 10-5 28
73	73	entitled "Attachment" are hereby amended to read as follows: 29
74	74	10-5-2. Procedure. 30
75	75	(a) A court having jurisdiction over a defendant or his or her assets, including his or her 31
76	76	personal estate or real estate, may authorize a plaintiff to attach the defendant’s assets, or any part 32
77	77	thereof, after hearing on a motion to attach, notice of which has been given to the defendant as 33
78	78	provided in this section. At the time of the commencement of the action, or at any time thereafter, 34
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82	82	a plaintiff must file a motion in the court having jurisdiction for authority to attach the defendant’s 1
83	83	assets, including his or her personal or real estate, and the attachment motion must state the day, 2
84	84	time and place of hearing and a copy must be served by the process server on the defendant or by 3
85	85	leaving it at his or her last and usual place of abode with some person there at least five (5) days 4
86	86	before the fixed date of hearing; provided that, no attachment shall be filed against a defendant’s 5
87	87	principal residence, for a judgment in any action where the plaintiff’s claim against the defendant 6
88	88	was based on medical debt. “Medical debt” shall have the same meaning as defined in § 6-13.1-20. 7
89	89	(b) If the defendant does not reside in the state, service of the attachment motion shall be 8
90	90	made upon him or her by mailing a copy of the motion to attach, by certified mail, to his or her last 9
91	91	known address and, if service is made in this manner, the plaintiff or his or her attorney must attach 10
92	92	the sender’s receipt to an affidavit of compliance with this section by the plaintiff or his or her 11
93	93	attorney and filing it with the case in the court. 12
94	94	(c) If the plaintiff after diligent search and by affidavit avers that he or she does not know 13
95	95	of the defendant’s address, service on the defendant of the motion to attach may after order of the 14
96	96	court be made by publication in some public newspaper, once, published in the town, city or county 15
97	97	where the defendant’s assets are situated. If there is no public newspaper published in the town, 16
98	98	city or county where the defendant’s assets are situated, then in some public newspaper published 17
99	99	in the city of Providence. Provided, however, that in all actions where the plaintiff’s claim against 18
100	100	the defendant has been reduced to a judgment, the defendant’s assets, including his or her personal 19
101	101	estate and real estate, may be attached and may be subject to trustee process as set out in chapter 20
102	102	17 of this title in the same action in which the judgment has been entered. 21
103	103	10-5-7. Classes of property named in writ. Classes of property named in writ --22
104	104	Limitation on filing execution. 23
105	105	(a) Whenever a writ of attachment can be issued by any court, it may command the 24
106	106	attachment of: 25
107	107	(1) the The goods and chattels of the defendant; and his or her 26
108	108	(2) The defendant's real estate; provided that, no attachment shall be filed against a 27
109	109	defendant’s principal residence, for a judgment in any action where the plaintiff’s claim against the 28
110	110	defendant was based on medical debt. “Medical debt” shall have the same meaning as defined in § 29
111	111	6-13.1-20; and 30
112	112	(3) The defendant's his or her personal estate in the hands or possession of any person, 31
113	113	copartnership or corporation, as his or her the trustee, except as provided in § 6A-7-602, and his or 32
114	114	her the stock or shares in any banking association or other incorporated company, and may be 33
115	115	varied so as to command the attachment of one or more of the classes of property of the defendant. 34
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119	119	(b) A violation of the prohibition provided in subsection (a)(2) of this section shall 1
120	120	constitute slander of title. 2
121	121	10-5-8. Garnishment of wages restricted to amounts not exempt — Child support to 3
122	122	have priority. 4
123	123	(a) Any writ of attachment, served as a writ of garnishment for the attachment of the 5
124	124	personal estate of the defendant in the hand and possession of any employer of the defendant, shall 6
125	125	be effective to attach so much only of such personal estate consisting of the salary or wages due 7
126	126	and payable to the defendant, or to become in the future due and payable to the defendant, as is in 8
127	127	excess of the amount of the defendant’s salary or wages exempt by law from attachment except, no 9
128	128	garnishment of salary or wages shall issue against a defendant for a judgment in all actions where 10
129	129	the plaintiff’s claim against the defendant was based on medical debt. “Medical debt” shall have 11
130	130	the same meaning as defined in § 6-13.1-20. And the The garnishee, being the defendant’s 12
131	131	employer, shall be required to make affidavit and shall be held liable for the defendant’s personal 13
132	132	estate consisting of the salary or wages due and payable to the defendant or to become in the future 14
133	133	due and payable to the defendant only in respect of the excess amount exempt from attachment. 15
134	134	Any writ of garnishment served under the provisions of this section shall state the judgment 16
135	135	amount, and the employer shall withhold sums not exempt by law until the amount of withholding 17
136	136	equals the amount of the judgment. The employer shall be entitled to the sum of five dollars ($5.00), 18
137	137	payable directly from the employee to the employer, for each writ of garnishment served upon the 19
138	138	employer regarding any employee. 20
139	139	(b) Subject to any federal or state law to the contrary, any garnishment of wages for child 21
140	140	support issued pursuant to § 15-5-25, and any wage assignment pursuant to § 15-5-24, or chapter 22
141	141	16 of title 15 shall take priority over any garnishment issued in accordance with this section. This 23
142	142	priority shall occur whether or not the garnishment or assignment pursuant to § 15-5-24 or 15-5-25 24
143	143	or chapter 16 of title 15 occurs before or after any garnishment pursuant to this section. In addition, 25
144	144	consistent with federal and state law, the state court system may develop a system for the collection 26
145	145	of court imposed or assessed fines, costs, fees or other assessments, including restitution, through 27
146	146	wage assignment procedures. 28
147	147	SECTION 4. This act shall take effect on January 1, 2026. 29
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154	154	EXPLANATION
155	155	BY THE LEGISLATIVE COUNCIL
156	156	OF
157	157	A N A C T
158	158	RELATING TO COMMERCI AL LAW -- GENERAL REGULATORY PROVISIONS --
159	159	DECEPTIVE TRADE PRACTICES
160	160	***
161	161	This act would prohibit credit bureau reporting of a consumer’s medical debt. This act 1
162	162	would further prohibit the filing of an execution and attachment against a consumer’s principal 2
163	163	residence for judgments based on medical debt. This act would further define medical debt as an 3
164	164	obligation of a consumer to pay an amount for the receipt of health care services, products, or 4
165	165	devices owed to a healthcare facility or a health care professional. 5
166	166	This act would take effect on January 1, 2026. 6
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