SB 444

As Introduced
136th General Assembly
   Regular Session  S. B. No. 444
       2025-2026
  Senator Patton
  To amend sections 1343.01, 1343.03, 2716.02,  1
  2716.03, and 4712.01 of the Revised Code  2
  regarding medical debt and to name this act the  3
  Ohio Medical Debt Fairness Act.  4
 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
     Section 1. That sections 1343.01, 1343.03, 2716.02,  5
2716.03, and 4712.01 of the Revised Code be amended to read as  6
follows:  7
     Sec. 1343.01. (A) The parties to a bond, bill, promissory  8
note, or other instrument of writing for the forbearance or  9
payment of money at any future time, may stipulate therein for  10
the payment of interest upon the amount thereof at any rate not  11
exceeding eight per cent per annum payable annually, except as  12
authorized in division (B) of this section or limited by  13
division (C) of this section.  14
     (B) Any Subject to division (C) of this section, any party  15
may agree to pay a rate of interest in excess of the maximum  16
rate provided in division (A) of this section when:  17
     (1) The original amount of the principal indebtedness  18
stipulated in the bond, bill, promissory note, or other  19
instrument of writing exceeds one hundred thousand dollars;  20
S. B. No. 444  Page 2
As Introduced
       (2) The payment is to a broker or dealer registered under  21
the "Securities Exchange Act of 1934," 48 Stat. 881, 15 U.S.C.  22
78A, as amended, for carrying a debit balance in an account for  23
a customer if such debit balance is payable on demand and  24
secured by stocks, bonds or other securities;  25
       (3) The instrument evidences a loan secured by a mortgage  26
or deed of trust on real estate where the loan has been  27
approved, insured, guaranteed, purchased, or for which an offer  28
or commitment to insure, guarantee, or purchase has been  29
received, in whole or in part, by the federal government or any  30
agency or instrumentality thereof, the federal national mortgage  31
association, the federal home loan mortgage corporation, or the  32
farmers home administration, all of which is authorized pursuant  33
to the "National Housing Act," 12. U.S.C. 1701; the  34
"Serviceman's Readjustment Act," 38 U.S.C. 1801; the "Federal  35
Home Loan Bank Act," 12 U.S.C. 1421; and the "Rural Housing  36
Act," 42 U.S.C. 1471, amendments thereto, reenactments thereof,  37
enactments parallel thereto, or in substitution therefor, or  38
regulations issued thereunder; or by the state or any agency or  39
instrumentality thereof authorized pursuant to Chapter 122. of  40
the Revised Code, or rules issued thereunder.  41
       (4) The instrument evidences a loan secured by a mortgage,  42
deed of trust, or land installment contract on real estate which  43
does not otherwise qualify for exemption from the provisions of  44
this section, except that such rate of interest shall not exceed  45
eight per cent in excess of the discount rate on ninety-day  46
commercial paper in effect at the federal reserve bank in the  47
fourth federal reserve district at the time the mortgage, deed  48
of trust, or land installment contract is executed.  49
       (5) The instrument is payable on demand or in one  50
S. B. No. 444  Page 3
As Introduced
installment and is not secured by household furnishings or other  51
goods used for personal, family, or household purposes.  52
       (6)(a) The loan is a business loan to a business  53
association or partnership, a person owning and operating a  54
business as a sole proprietor; any persons owning and operating  55
a business as joint venturers, joint tenants, or tenants in  56
common; any limited partnership; or any trustee owning or  57
operating a business or whose beneficiaries own or operate a  58
business, except that:  59
       (i) Any loan which is secured by an assignment of an  60
individual obligor's salary, wages, commissions, or other  61
compensation for services or by his the individual obligor's  62
household furniture or other goods used for his the individual  63
obligor's personal, family, or household purposes shall be  64
deemed not a loan within the meaning of division (B)(6) of this  65
section;  66
       (ii) Any loan which otherwise qualifies as a business loan  67
within the meaning of division (B)(6) of this section shall not  68
be deemed disqualified because of the inclusion, with other  69
security consisting of business assets of any such obligor, of  70
real estate occupied by an individual obligor solely as his the  71
individual obligor's residence.  72
       (b) As used in division (B)(6)(a) of this section,  73
"business" means a commercial, agricultural, or industrial  74
enterprise which is carried on for the purpose of investment or  75
profit. "Business" does not mean the ownership or maintenance of  76
real estate occupied by an individual obligor solely as his the  77
individual obligor's residence.  78
       (C)(1) As used in division (C) of this section:  79
S. B. No. 444  Page 4
As Introduced
       (a) "Health care provider" has the same meaning as in  80
section 3701.74 of the Revised Code.  81
       (b) "Incur" means, with respect to medical debt, the date  82
a health care provider or its designee first sends the consumer,  83
patient guarantor, or third-party payer a bill for health care  84
services, products, or devices.  85
       (c) "Medical debt" means debt arising from health care  86
services or health care goods, including products, devices,  87
durable medical equipment, and prescription drugs. "Medical  88
debt" does not include any of the following:  89
       (i) Debt arising from services provided by a veterinarian;  90
       (ii) Debt charged to a credit card, unless the credit card  91
is issued under an open-end or closed-end credit plan offered  92
solely for the payment of health care services;  93
       (iii) Debt charged to a home equity or general purpose  94
line of credit;  95
       (iv) Secured debt.  96
       (2) Notwithstanding any contrary provision of the Revised  97
Code, the rate of interest drawn upon medical debt incurred on  98
or after the effective date of this amendment shall not exceed  99
three per cent per annum.  100
       Sec. 1343.03. (A) In cases other than those provided for  101
in sections 1343.01 and 1343.02 of the Revised Code, when money  102
becomes due and payable upon any bond, bill, note, or other  103
instrument of writing, upon any book account, upon any  104
settlement between parties, upon all verbal contracts entered  105
into, and upon all judgments, decrees, and orders of any  106
judicial tribunal for the payment of money arising out of  107
S. B. No. 444  Page 5
As Introduced
tortious conduct or a contract or other transaction, the  108
creditor is entitled to interest at the rate per annum  109
determined pursuant to section 5703.47 of the Revised Code,  110
unless a written contract provides a different rate of interest  111
in relation to the money that becomes due and payable, in which  112
case the creditor is entitled to interest at the rate provided  113
in that contract.  114
       (B) Except as provided in divisions (C) and , (D), and (E)  115
of this section and subject to section 2325.18 of the Revised  116
Code, interest on a judgment, decree, or order for the payment  117
of money rendered in a civil action based on tortious conduct or  118
a contract or other transaction, including, but not limited to a  119
civil action based on tortious conduct or a contract or other  120
transaction that has been settled by agreement of the parties,  121
shall be computed from the date the judgment, decree, or order  122
is rendered to the date on which the money is paid and shall be  123
at the rate determined pursuant to section 5703.47 of the  124
Revised Code that is in effect on the date the judgment, decree,  125
or order is rendered. That rate shall remain in effect until the  126
judgment, decree, or order is satisfied.  127
       (C)(1) If, upon motion of any party to a civil action that  128
is based on tortious conduct, that has not been settled by  129
agreement of the parties, and in which the court has rendered a  130
judgment, decree, or order for the payment of money, the court  131
determines at a hearing held subsequent to the verdict or  132
decision in the action that the party required to pay the money  133
failed to make a good faith effort to settle the case and that  134
the party to whom the money is to be paid did not fail to make a  135
good faith effort to settle the case, interest on the judgment,  136
decree, or order shall be computed as follows:  137
S. B. No. 444  Page 6
As Introduced
       (a) In an action in which the party required to pay the  138
money has admitted liability in a pleading, from the date the  139
cause of action accrued to the date on which the order,  140
judgment, or decree was rendered;  141
       (b) In an action in which the party required to pay the  142
money engaged in the conduct resulting in liability with the  143
deliberate purpose of causing harm to the party to whom the  144
money is to be paid, from the date the cause of action accrued  145
to the date on which the order, judgment, or decree was  146
rendered;  147
       (c) In all other actions, for the longer of the following  148
periods:  149
       (i) From the date on which the party to whom the money is  150
to be paid gave the first notice described in division (C)(1)(c)  151
(i) of this section to the date on which the judgment, order, or  152
decree was rendered. The period described in division (C)(1)(c)  153
(i) of this section shall apply only if the party to whom the  154
money is to be paid made a reasonable attempt to determine if  155
the party required to pay had insurance coverage for liability  156
for the tortious conduct and gave to the party required to pay  157
and to any identified insurer, as nearly simultaneously as  158
practicable, written notice in person or by certified mail that  159
the cause of action had accrued.  160
       (ii) From the date on which the party to whom the money is  161
to be paid filed the pleading on which the judgment, decree, or  162
order was based to the date on which the judgment, decree, or  163
order was rendered.  164
       (2) No court shall award interest under division (C)(1) of  165
this section on future damages, as defined in section 2323.56 of  166
S. B. No. 444  Page 7
As Introduced
the Revised Code, that are found by the trier of fact.  167
       (D) Division (B) of this section does not apply to a  168
judgment, decree, or order rendered in a civil action based on  169
tortious conduct or a contract or other transaction, and  170
division (C) of this section does not apply to a judgment,  171
decree, or order rendered in a civil action based on tortious  172
conduct, if a different period for computing interest on it is  173
specified by law, or if it is rendered in an action against the  174
state in the court of claims, or in an action under Chapter  175
4123. of the Revised Code.  176
       (E)(1) As used in division (E) of this section, "incur"  177
and "medical debt" have the same meanings as in section 1343.01  178
of the Revised Code.  179
       (2) The rate of interest on a judgment, decree, or order  180
for the payment of a medical debt incurred on or after the  181
effective date of this amendment shall not exceed three per cent  182
per annum.  183
       Sec. 2716.02. (A) Any person seeking an order of  184
garnishment of personal earnings, after obtaining a judgment,  185
shall make the following demand in writing for the excess of the  186
amount of the judgment over the amount of personal earnings that  187
may be exempt from execution, garnishment, attachment, or sale  188
to satisfy a judgment or order, or for so much of the excess as  189
will satisfy the judgment. The demand shall be made after the  190
judgment is obtained and at least fifteen days and not more than  191
forty-five days before the order is sought by delivering it to  192
the judgment debtor by personal service by the court, by sending  193
it to the judgment debtor by certified mail, return receipt  194
requested, or by sending it to the judgment debtor by regular  195
mail evidenced by a properly completed and stamped certificate  196
S. B. No. 444  Page 8
As Introduced
of mailing by regular mail, addressed to the judgment debtor's  197
last known place of residence.  198
       The demand shall be in substantially the following form:  199
  "NOTICE OF COURT PROCEEDING TO COLLECT DEBT  200
Date of mailing or date of service by the court ______________  201
  To: ______________________________  202
  (Name of Judgment Debtor)  203
  __________________________________  204
  (Last Known Residence Address of Judgment Debtor)  205
       You owe the undersigned _______________________ (Name of  206
Judgment Creditor) $__________, including interest and court  207
costs, for which a judgment was obtained against you or  208
certified in the __________ court on __________, payment of  209
which is hereby demanded.  210
       If you do not do one of the three things listed below  211
within fifteen days of the date of the mailing of this notice or  212
of its service by the court, we will go to court, unless we are  213
otherwise precluded by law from doing so, and ask that your  214
employer be ordered to withhold money from your earnings until  215
the judgment is paid in full or, if applicable, is paid to a  216
certain extent and to pay the withheld money to the court in  217
satisfaction of your debt. This is called garnishment of  218
personal earnings.  219
       It is to your advantage to avoid garnishment of personal  220
earnings because the placing of the extra burden on your  221
employer possibly could cause you to lose your job.  222
       YOU CAN AVOID THE GARNISHMENT BY DOING ONE OF THESE THREE  223
S. B. No. 444  Page 9
As Introduced
THINGS WITHIN THE FIFTEEN-DAY PERIOD:  224
       (1) Pay to us the amount due;  225
       (2) Complete the attached form entitled "Payment to Avoid  226
Garnishment" and return it to us with the payment, if any, shown  227
due on it; or  228
       (3) Apply to your local municipal or county court or, if  229
you are not a resident of Ohio, to the municipal or county court  230
in whose jurisdiction your place of employment is located, for  231
the appointment of a trustee to receive the part of your  232
earnings that is not exempt from garnishment, and notify us that  233
you have applied for the appointment of a trustee. You will be  234
required to list your creditors, the amounts of their claims,  235
and the amounts due on their claims, and the amount you then  236
will pay to your trustee each payday will be divided among them  237
until the debts are paid off. This can be to your advantage  238
because in the meantime none of those creditors can garnish your  239
wages.  240
       You also may contact a budget and debt counseling service  241
described in division (D)(E) of section 2716.03 of the Revised  242
Code for the purpose of entering into an agreement for debt  243
scheduling. There may not be enough time to set up an agreement  244
for debt scheduling in order to avoid a garnishment of your  245
wages based upon this demand for payment, but entering into an  246
agreement for debt scheduling might protect you from future  247
garnishments of your wages. Under an agreement for debt  248
scheduling, you will have to regularly pay a portion of your  249
income to the service until the debts subject to the agreement  250
are paid off. This portion of your income will be paid by the  251
service to your creditors who are owed debts subject to the  252
agreement. This can be to your advantage because these creditors  253
S. B. No. 444  Page 10
As Introduced
cannot garnish your wages while you make your payments to the  254
service on time.  255
  ______________________________  256
  (Name of Judgment Creditor)  257
  ______________________________  258
  (Signature of Judgment Creditor  259
-  or Judgment Creditor's Attorney)  260
  ________________________________  261
  ________________________________  262
  ________________________________  263
  (Address of Judgment Creditor)  264
  PAYMENT TO AVOID GARNISHMENT  265
  To: ______________________________  266
  (Name of Judgment Creditor)  267
  __________________________________  268
  __________________________________  269
  (Address of Judgment Creditor)  270
       To avoid the garnishment of personal earnings of which you  271
have given me notice, I enclose $ _______________ to apply  272
toward my indebtedness to you. The amount of the payment was  273
computed as follows:  274
1.    Total amount of indebtedness demanded:   (1) $__________  275
2.    Enter the amount of your personal earnings,  276
after deductions required by law, earned by you  277
S. B. No. 444  Page 11
As Introduced
during the current pay period (that is, the pay  278
period in which this demand is received  279
by you):  (2) $___________  280
3.    (A) Enter your pay period (weekly, biweekly,  281
semimonthly, monthly):  (3)(A) __________  282
      (B) Enter the date when your present pay  283
period ends:  (3)(B) __________  284
4.    Enter an amount equal to 25% of the amount on  285
line (2):  (4) ______________  286
5.    (A) The current federal minimum hourly wage is  287
__________ (to be filled in by Judgment Creditor) (You  288
should use the above figure to complete this portion of the  289
form.) If you are paid weekly, enter thirty times the current  290
federal minimum hourly wage; if paid biweekly, enter sixty times  291
the current federal minimum hourly wage; if paid semimonthly,  292
enter sixty-five times the current federal minimum hourly wage;  293
if paid monthly, enter one hundred thirty times the current  294
federal minimum hourly wage:  (5)(A) ________  295
-  296
      (B) Enter the amount by which the amount on line (2)  297
exceeds the amount on line 5(A):  (5)(B)__________  298
-  299
6.    Enter the smallest of the amounts on line (1), (4), or  300
5(B). Send this amount to the judgment creditor along with this  301
form after you have signed it:  (6) $___________  302
-  303
       I certify that the statements contained above are true to  304
the best of my knowledge and belief.  305
S. B. No. 444  Page 12
As Introduced
  ___________________________________  306
-  (Signature of Judgment Debtor)  307
  ___________________________________  308
  ___________________________________  309
  ___________________________________  310
-  (Print Name and Residence Address of  311
-  Judgment Debtor)  312
       (To verify that the amount shown on line (2) is a true  313
statement of your earnings, you must either have your employer  314
certify below that the amount shown on line (2) is a true  315
statement of your earnings or you may submit copies of your pay  316
stubs for the two pay periods immediately prior to your  317
receiving this notice.)  318
       I certify that the amount shown on line (2) is a true  319
statement of the judgment debtor's earnings.  320
  ___________________________________  321
-  (Print Name of Employer)  322
  ___________________________________  323
-  (Signature of Employer or Agent)  324
       I certify that I have attached copies of my pay stubs for  325
the two pay periods immediately prior to my receiving this  326
notice.  327
  ___________________________________  328
-  (Signature of Judgment Debtor)"  329
       (B) If a judgment debtor properly completes a payment to  330
avoid garnishment and returns it with the required funds to the  331
judgment creditor or the judgment creditor's attorney, the  332
S. B. No. 444  Page 13
As Introduced
judgment creditor or the judgment creditor's attorney who issued  333
the notice of court proceeding to collect debt may not issue  334
another notice of court proceeding to collect debt to the  335
judgment debtor until the expiration date of the judgment  336
debtor's present pay period that is set forth by the judgment  337
debtor and the judgment debtor's employer in the answer to (3)  338
(B) in the payment to avoid garnishment.  339
       (C) If an order of garnishment of personal earnings issued  340
pursuant to this chapter has not been paid in full when it  341
ceases to remain in effect because of the operation of division  342
(C)(1) of section 2716.041 of the Revised Code, the garnishee's  343
duties under the order of garnishment are complete with the  344
filing of the final report and answer of the garnishee. The  345
judgment creditor must institute new garnishment proceedings if  346
the judgment creditor wants an additional garnishment.  347
       Sec. 2716.03. (A) Subject to the limitation on the  348
commencement of proceedings contained in division (B) of section  349
124.10 of the Revised Code, a proceeding in garnishment of  350
personal earnings may be commenced after a judgment has been  351
obtained by a judgment creditor by the filing of an affidavit in  352
writing made by the judgment creditor or the judgment creditor's  353
attorney setting forth all of the following:  354
       (1) The name of the judgment debtor whose personal  355
earnings the judgment creditor seeks to garnish;  356
       (2) The name and address of the garnishee who may be an  357
employer of the judgment debtor and who may have personal  358
earnings of the judgment debtor;  359
       (3) That the demand in writing, as required by section  360
2716.02 of the Revised Code, has been made;  361
S. B. No. 444  Page 14
As Introduced
       (4) That the payment demanded in the notice required by  362
section 2716.02 of the Revised Code has not been made, and a  363
sufficient portion of the payment demanded has not been made to  364
prevent the garnishment of personal earnings as described in  365
section 2716.02 of the Revised Code;  366
       (5) That the affiant has no knowledge of any application  367
by the judgment debtor for the appointment of a trustee so as to  368
preclude the garnishment of the judgment debtor's personal  369
earnings;  370
       (6) That the affiant has no knowledge that the debt to  371
which the affidavit pertains is the subject of a debt scheduling  372
agreement of a nature that precludes the garnishment of the  373
personal earnings of the judgment debtor under division (B) of  374
this section.  375
       (B) No proceeding in garnishment of personal earnings  376
shall be brought against a judgment debtor for the collection of  377
a debt that is the subject of an agreement for debt scheduling  378
between the judgment debtor and a budget and debt counseling  379
service, unless any payment to be made by the judgment debtor,  380
or by a budget and debt counseling service to the judgment  381
creditor under the agreement for debt scheduling between the  382
judgment debtor and the budget and debt counseling service, is  383
due and unpaid for more than forty-five days after the date on  384
which the payment became due, or unless the judgment creditor  385
previously was notified by the service that the debt scheduling  386
agreement between the judgment debtor and the service was  387
terminated.  388
       (C) Upon a court's issuance of an order of garnishment of  389
personal earnings following a judgment creditor's filing of an  390
affidavit under this section and compliance with section 2716.04  391
S. B. No. 444  Page 15
As Introduced
of the Revised Code, the garnishee and the judgment debtor shall  392
be notified of the proceeding in garnishment of personal  393
earnings in accordance with sections 2716.05 and 2716.06 of the  394
Revised Code.  395
       (D)(D)(1) As used in division (D) of this section, "incur"  396
and "medical debt" have the same meanings as in section 1343.01  397
of the Revised Code.  398
       (2) Notwithstanding any provision of the Revised Code to  399
the contrary, no proceeding in garnishment of personal earnings  400
shall be brought against a judgment debtor for the collection of  401
a medical debt incurred on or after the effective date of this  402
amendment at any time during which both of the following apply:  403
       (a) The judgment debtor and the creditor have agreed to a  404
payment plan providing for installment payments toward  405
satisfaction of the medical debt.  406
       (b) The judgment debtor is making payments in accordance  407
with the terms of such payment plan.  408
       (3) A creditor may seek a proceeding in garnishment of  409
personal earnings for the collection of a medical debt only if  410
the judgment debtor has failed to make payments required under a  411
payment plan described in division (D)(2) of this section for a  412
period of one hundred twenty consecutive days.  413
       (4) If a proceeding in garnishment of personal earnings is  414
permitted under division (D)(3) of this section, the amount of  415
disposable earnings of the judgment debtor that may be subjected  416
to garnishment for any workweek shall not exceed ten per cent of  417
the judgment debtor's disposable earnings for that workweek.  418
       (5) Nothing in this section shall be construed as  419
eliminating or diminishing a patient's obligation to pay for  420
S. B. No. 444  Page 16
As Introduced
health care services.  421
       (E) As used in this chapter:  422
       (1) A "budget and debt counseling service" or "service"  423
means a corporation organized under Chapter 1702. of the Revised  424
Code for the purpose of counseling consumers with respect to  425
their financial obligations and assisting them in dealing with  426
their creditors.  427
       (2) "Debt scheduling" means counseling and assistance  428
provided to a consumer by a budget and debt counseling service  429
under all of the following circumstances:  430
       (a) The counseling and assistance is manifested in an  431
agreement between the consumer and the service under which the  432
consumer regularly pays that portion of the consumer's income to  433
the service that has been determined not to be required for the  434
maintenance of health or the essentials of life.  435
       (b) The payments are made to the service until the debts  436
of the consumer that are the subject of the agreement are fully  437
retired.  438
       (c) The service has sent written notice, by certified  439
mail, return receipt requested, or by regular mail evidenced by  440
a properly completed and stamped certificate of mailing by  441
regular mail, to the creditors of the consumer that are  442
disclosed by the consumer to the service. The notice shall  443
contain all of the following:  444
       (i) A statement of the consumer's intent to participate in  445
debt scheduling;  446
       (ii) A summary of the consumer's income, proposed itemized  447
budget, schedule of creditors, and proposed debt retirement  448
S. B. No. 444  Page 17
As Introduced
plan;  449
        (iii) A statement of the particular creditor's duty to  450
respond, in writing, to the service regarding the consumer's  451
participation in debt scheduling within fifteen days after  452
receiving the notice.  453
        (d) The debts of the consumer that are the subject of the  454
agreement for debt scheduling are determined as follows:  455
        (i) Any debt owed to a creditor that was notified of the  456
consumer's intent to participate is a subject of the agreement  457
if the creditor responds to the service and enters into an  458
agreement with the service, pursuant to which the creditor  459
agrees not to attempt to collect the debts of the consumer as  460
long as the consumer regularly pays to the service the amount  461
previously agreed upon by the service and the consumer, and no  462
payment to be made by the judgment debtor to the service or by  463
the service to the creditor is due and unpaid for more than  464
forty-five days after the date on which the payment became due,  465
as long as the debt scheduling agreement between the consumer  466
and the service has not been terminated, and as long as the  467
service regularly pays to the creditor a mutually acceptable  468
amount that is either the amount agreed upon by the service and  469
the creditor on the date they entered into their original  470
agreement or an amount agreed upon by both the service and the  471
creditor on a date after the date of the original agreement.  472
        (ii) Any debt owed to a creditor that was notified of the  473
consumer's intent to participate is a subject of the agreement  474
if the creditor does not respond to the service and state the  475
creditor's objection, in writing, to the consumer's  476
participation in debt scheduling within fifteen days after  477
receiving notice of the consumer's intention to do so; however,  478
S. B. No. 444  Page 18
As Introduced
no debt that is subject to a lien or security interest of any  479
type, other than a judgment lien or execution lien, shall be a  480
subject of the agreement unless the creditor specifically  481
assents, in writing, to the debt being a subject of the  482
agreement. The creditor shall be considered to have entered into  483
an agreement of the type described in division (D)(2)(d)(i)(E)  484
(2)(d)(i) of this section, and the amount to be regularly paid  485
by the service to the creditor shall be an amount determined to  486
be reasonable by the service or an amount agreed upon by both  487
the service and the creditor on a date after the expiration of  488
the fifteen-day period.  489
       (iii) Any debt owed to a creditor that was not notified of  490
the consumer's intent to participate, or a debt owed to a  491
creditor that was notified of the consumer's intent to  492
participate and that responded to the service and stated its  493
objection, in writing, to the consumer's participation in debt  494
scheduling within fifteen days after receiving notice of the  495
consumer's intention to do so, is not a subject of the  496
agreement.  497
       (e) The service agrees that, if the consumer fails to make  498
a payment under the agreement within forty-five days of its due  499
date or if the agreement is terminated, the service will notify  500
each creditor that is owed a debt that is subject to the  501
agreement of the failure or termination by regular mail within  502
two business days of the failure or termination, and the service  503
provides that notice in accordance with the agreement.  504
       Sec. 4712.01. As used in sections 4712.01 to 4712.14 of  505
the Revised Code:  506
       (A) "Buyer" means an individual who is solicited to  507
purchase or who purchases the services of a credit services  508
S. B. No. 444  Page 19
As Introduced
organization for purposes other than obtaining a business loan  509
as described in division (B)(6) of section 1343.01 of the  510
Revised Code.  511
       (B) "Consumer reporting agency" has the same meaning as in  512
the "Fair Credit Reporting Act," 84 Stat. 1128, 15 U.S.C.A.  513
1681a, as amended.  514
       (C)(1) "Credit services organization" means any person  515
that, in return for the payment of money or other valuable  516
consideration readily convertible into money for the following  517
services, sells, provides, or performs, or represents that the  518
person can or will sell, provide, or perform, one or more of the  519
following services:  520
       (a) Improving a buyer's credit record, history, or rating;  521
       (b) Obtaining an extension of credit by others for a  522
buyer;  523
       (c) Providing advice or assistance to a buyer in  524
connection with division (C)(1)(a) or (b) of this section;  525
       (d) Removing adverse credit information that is accurate  526
and not inaccurate or obsolete from the buyer's credit record,  527
history, or rating;  528
       (e) Altering the buyer's identification to prevent the  529
display of the buyer's credit record, history, or rating.  530
       (2) "Credit services organization" does not include any of  531
the following:  532
       (a) A person that makes or collects loans, to the extent  533
these activities are subject to licensure or registration by  534
this state;  535
S. B. No. 444  Page 20
As Introduced
        (b) A mortgage broker, as defined in section 1322.01 of  536
the Revised Code, that holds a valid certificate of registration  537
under Chapter 1322. of the Revised Code;  538
        (c) A lender approved by the United States secretary of  539
housing and urban development for participation in a mortgage  540
insurance program under the "National Housing Act," 48 Stat.  541
1246 (1934), 12 U.S.C.A. 1701, as amended;  542
        (d) A bank, savings bank, or savings and loan association,  543
or a subsidiary or an affiliate of a bank, savings bank, or  544
savings and loan association. For purposes of division (C)(2)(d)  545
of this section, "affiliate" has the same meaning as in division  546
(A) of section 1101.01 of the Revised Code and "bank," as used  547
in division (A) of section 1101.01 of the Revised Code, is  548
deemed to include a savings bank or savings and loan  549
association.  550
        (e) A credit union organized and qualified under Chapter  551
1733. of the Revised Code or the "Federal Credit Union Act," 84  552
Stat. 994 (1970), 12 U.S.C.A. 1751, as amended;  553
        (f) A budget and debt counseling service, as defined in  554
division (D)(E) of section 2716.03 of the Revised Code, provided  555
that the service is a nonprofit organization exempt from  556
taxation under section 501(c)(3) of the "Internal Revenue Code  557
of 1986," 100 Stat. 2085, 26 U.S.C.A. 501, as amended, and that  558
the service is in compliance with Chapter 4710. of the Revised  559
Code;  560
        (g) A consumer reporting agency that is in substantial  561
compliance with the "Fair Credit Reporting Act," 84 Stat. 1128,  562
15 U.S.C.A. 1681a, as amended.  563
        (h) A mortgage banker;  564
S. B. No. 444  Page 21
As Introduced
       (i) Any political subdivision, or any governmental or  565
other public entity, corporation, or agency, in or of the United  566
States or any state of the United States;  567
       (j) A college or university, or controlled entity of a  568
college or university, as defined in section 1713.05 of the  569
Revised Code;  570
       (k) A motor vehicle dealer licensed pursuant to Chapter  571
4517. of the Revised Code acting within the scope and authority  572
of that license or a motor vehicle auction owner licensed  573
pursuant to Chapters 4517. and 4707. of the Revised Code acting  574
within the scope and authority of that license;  575
       (l) An attorney at law admitted to the practice of law in  576
this state who offers, provides, or performs a legal service  577
that is privileged by reason of the attorney-client  578
relationship, provided that the service is not a service  579
described in division (C)(1)(b) or (e) of this section.  580
       (D) "Extension of credit" means the right to defer payment  581
of debt, or to incur debt and defer its payment, offered or  582
granted primarily for personal, family, or household purposes.  583
"Extension of credit" does not include a mortgage.  584
       (E) "Mortgage" means any indebtedness secured by a deed of  585
trust, security deed, or other lien on real property.  586
       (F) "Mortgage banker" means any person that makes,  587
services, or buys and sells mortgage loans and is approved by  588
the United States department of housing and urban development,  589
the United States department of veterans affairs, the federal  590
national mortgage association, or the federal home loan mortgage  591
corporation.  592
       (G) "Superintendent of financial institutions" includes  593
S. B. No. 444  Page 22
As Introduced
the deputy superintendent for consumer finance as provided in  594
section 1181.21 of the Revised Code.  595
       Section 2. That existing sections 1343.01, 1343.03,  596
2716.02, 2716.03, and 4712.01 of the Revised Code are hereby  597
repealed.  598
       Section 3. This act shall be known as the Ohio Medical  599
Debt Fairness Act.  600