SB 414: CONSUMERS: Provides for the Louisiana Medical Debt Protection Act. (gov sig) - Louisiana

SB414 Original → SB414 Act 897 · 6 edits

MODERATE

The enrolled version of SB 414 significantly narrowed the scope of the Louisiana Medical Debt Protection Act by removing three of its seven original sections, including all garnishment restrictions, lien and foreclosure prohibitions, and contractual requirements for debt collectors. The interest rate cap was raised from 2% to 3% per annum, and the private right of action with statutory damages was eliminated, leaving only attorney general enforcement.

SCOPE

Three sections were removed entirely: garnishment restrictions (former Section 1504), prohibition of liens and foreclosure on primary residences or vehicles (former Section 1505), and contractual requirements for medical debt collectors (former Section 1506). The bill now covers only R.S. 51:1501 through 1504 instead of 1501 through 1507.

REQUIREMENT

The interest rate cap on medical debt arising from medically necessary care was increased from two percent per annum to three percent per annum.

ENFORCEMENT

The private right of action provision was removed. Consumers can no longer sue directly for actual damages, statutory damages of up to $2,000 per violation, attorney fees, or injunctive relief. Only the attorney general retains enforcement authority.

The complaint process provision now explicitly states that personal identifying information shall be considered confidential and redacted from the complaint, rather than simply noting it is an exception to public records treatment.

DEFINITION

The exclusion from the definition of 'medical debt' for extensions of credit was narrowed: it now excludes only credit made by a federally insured financial institution, its subsidiaries, or affiliates, rather than any financial institution.

The definition of 'Federal Poverty Level' was removed, consistent with the removal of the garnishment section that referenced the 400% FPL threshold.

SB414 Reengrossed → SB414 Enrolled · 5 edits · Jun 1, 2026

MODERATE

SB 414 transitioned from its Reengrossed form to its Enrolled (final) form with no substantive policy changes. The enrolled version adds House co-sponsors, reflects minor formatting and wording corrections, removes the digest and amendment summary, and includes signature blocks indicating gubernatorial approval.

TECHNICAL

Added House co-sponsors (Carver, Chassion, Fisher, Freeman, Jackson, Kerner, Mandie Landry, Marcelle, Martinez, Riser, and Stagni), reflecting that the bill passed both chambers.

Changed 'shall have' to 'have' in the definitions section, 'health care provider' to 'healthcare provider,' and added quotation marks around the short title. All are minor wording corrections with no policy impact.

Removed the digest, amendment summary, and legislative services notes that appear in reengrossed versions but are not part of the enrolled bill text.

Added signature blocks for the President of the Senate, Speaker of the House, and Governor with 'APPROVED,' confirming the bill was signed into law.

DEFINITION

Reorganized the 'medical debt' definition numbering from a single item (2) with sub-items (a) and (b) to separate items (2)(a) and (2)(b). No change in substance.

SB414 Reengrossed → SB414 Act 897 · 3 edits

MINOR

This bill was formally enrolled into law as Act 897, adding several new co-sponsors to the original Senate bill. The text of the law itself remains substantively identical to the previous reengrossed version, maintaining the 3% interest cap on medical debt and defining key terms like 'medical debt' and 'medical debt collector'. No new policy provisions, funding, or eligibility criteria were introduced in this specific update.

TECHNICAL

The bill's title was updated from 'REENGROSSED' to 'ENROLLED' and assigned Act Number 897, indicating it is now the final version ready for signing.

Six new Representatives (Carver, Chassion, Fisher, Freeman, Jackson, Kerner, Mandie Landry, Marcelle, Martinez, Riser, and Stagni) were added as co-sponsors to the legislation.

Page numbering and footer formatting were updated to reflect the final enrolled status, changing the page count from 4 to 3.

SB414 Engrossed → SB414 Reengrossed · 6 edits · May 31, 2026

MODERATE

This bill reorganizes the chapter title and updates key definitions to exclude debts from federally insured financial institutions and credit cards. It raises the maximum interest rate on medically necessary care from 2% to 3% per annum and removes specific prohibitions on wage garnishment, liens, and foreclosure for such debts. Additionally, the bill removes a private right of action for consumers to sue directly and deletes the definition of 'Federal Poverty Level' from the text.

Scope change

The bill's scope regarding debt collection enforcement has narrowed by removing protections against wage garnishment, liens, and foreclosure for medically necessary care, while simultaneously excluding financial institution loans and credit card debt from the definition of 'medical debt' entirely.

DEFINITION

Added 'medical creditor' and 'medical debt collector' definitions while removing the 'Federal Poverty Level' definition.

Excluded open-end or closed-end credit from federally insured financial institutions and debts charged to credit cards from the definition of 'medical debt'.

REQUIREMENT

Increased the maximum interest rate cap on medical debt arising from medically necessary care from 2% to 3% per annum.

Removed provisions that prohibited wage garnishment, placing liens on primary residences or vehicles, or foreclosure for collecting medical debt arising from medically necessary care.

ENFORCEMENT

Removed the private right of action, eliminating the ability for consumers to file private lawsuits directly against medical debt collectors.

TECHNICAL

Changed the chapter title from 'CHAPTER 13-C' to 'CHAPTER 15' and updated section headers from 'Short Title' to 'Short title'.

SB414 Original → SB414 Engrossed · 6 edits · May 31, 2026

MODERATE

The bill was significantly rewritten to remove strict protections against wage garnishment, bank account seizures, and property liens for medical debt. Instead of banning these collection methods, the new version limits interest rates to 3% per annum and establishes a public complaint process for consumers to report violations.

Scope change

The bill's scope shifted from providing broad exemptions for collecting medically necessary care to focusing primarily on interest rate caps and consumer complaint mechanisms, while explicitly excluding credit card debt and loans from federally insured banks.

REQUIREMENT

Removed the ban on garnishing wages or seizing bank accounts for medical debt arising from medically necessary care.

Removed the prohibition on placing liens on or foreclosing a person's primary residence or vehicle for medical debt.

Increased the maximum interest rate allowed on medical debt from 2% to 3% per annum.

Removed the requirement for healthcare providers to sign contracts with debt collectors prohibiting wage garnishment and liens.

DEFINITION

Added exemptions for debt owed to credit cards and loans issued by federally insured financial institutions, which are no longer covered by the bill.

ENFORCEMENT

Added a specific provision allowing the public to file complaints against collectors, with personal identifying information kept confidential.

SB414 Enrolled → SB414 Original · 7 edits

MODERATE

The bill was reorganized from an enrolled version to an original draft, expanding the scope from four to seven new sections. The most significant policy change is the addition of a private right of action, allowing individuals to sue for damages and attorney fees if their rights are violated. Additionally, the bill now includes specific garnishment restrictions and prohibits liens or foreclosures on primary residences and vehicles for medical debt.

Scope change

The bill's scope expanded from a basic framework to include detailed enforcement mechanisms, specific financial protections like wage garnishment limits, and a prohibition on liens and foreclosures.

ENFORCEMENT

Added a private right of action allowing aggrieved consumers to sue for actual damages, statutory damages up to $2,000 per violation, and attorney fees.

REQUIREMENT

Added a requirement for healthcare providers to include a clause in contracts with third-party collectors prohibiting wage garnishment and liens.

Added restrictions on wage garnishment, allowing it only if the debtor's income exceeds 400% of the federal poverty level and post-garnishment income remains above that threshold.

Added a prohibition on placing liens or foreclosing on a person's primary residence or vehicle for medical debt.

DEFINITION

Added a specific definition for 'Federal Poverty Level' to establish income thresholds for garnishment.

TECHNICAL

Changed the chapter title from 'Medical Debt Protections' to 'Medical Debt Protection Act' and renumbered sections to accommodate new content.

Removed the list of sponsoring representatives from the bill header, leaving only the primary sponsor.

CONSUMERS: Provides for the Louisiana Medical Debt Protection Act. (gov sig)

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