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Oklahoma Legislature· SB 519Second Reading referred to Business and Insurance

An act relating to hospitals, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
1                               STATE OF OKLAHOMA

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2                  1st Session of the 60th Legislature (2025)

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3 SENATE BILL 519               By: Boren
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6                               AS INTRODUCED

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7   An Act relating to hospitals; defining terms;

7   prohibiting hospitals from taking certain collection

8   actions against patients; providing exception;

8   providing for codification; and providing an

9   effective date.

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12 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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13  SECTION 1.         NEW LAW  A new section of law to be codified

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14 in the Oklahoma Statutes as Section 1-725.11 of Title 63, unless
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15 there is created a duplication in numbering, reads as follows:
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16  As used in this act:

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17  1. "Collection action" means any of the following actions taken

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18 with respect to a debt for items and services that were purchased
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19 from, or provided to a patient by, a hospital on a date during which
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20 the hospital was not in material compliance with hospital price
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21 transparency laws:
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22  a. attempting to collect a debt from a patient or patient

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23                 guarantor by referring the debt, directly or

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24                 indirectly, to a debt collector, collection agency, or

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    Req. No. 1071                                                Page 1
1                  other third party retained by or on behalf of the

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2                  hospital,

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3   b. suing the patient or patient guarantor or enforcing an

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4                  arbitration or mediation clause in any hospital

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5                  documents, including contracts, agreements,

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6                  statements, or bills, or

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7   c. directly or indirectly causing a report to be made to

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8                  a consumer reporting agency;

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9   2. a. "Collection agency" means any:

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10                 (1) person who engages in a business, the principal

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11                 purpose of which is the collection of debts, or

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12                 (2) person who:

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13                 (a) regularly collects or attempts to collect,

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14                            directly or indirectly, debts owed or due or

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15                            asserted to be owed or due to another,

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16                 (b) takes assignment of debts for collection

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17                            purposes, or

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18                 (c) directly or indirectly solicits for

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19                            collection debts owed or due or asserted to

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20                            be owed or due to another.

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21  b. Collection agency does not include:

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22                 (1) any officer or employee of a creditor while, in

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23                 the name of the creditor, collecting debts for

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24                 such creditor,

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    Req. No. 1071                                               Page 2
1                  (2) any person while acting as a collection agency

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2                  for another person, both of whom are related by

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3                  common ownership or affiliated by corporate

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4                  control, if the person acting as a collection

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5                  agency does so only for creditors to whom it is

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6                  so related or affiliated and if the principal

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7                  business of the person is not the collection of

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8                  debts,

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9                  (3) any officer or employee of the United States or

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10                 any state to the extent that collecting or

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11                 attempting to collect any debt is in the

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12                 performance of the officer's or employee's

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13                 official duties,

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14                 (4) any person while serving or attempting to serve

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15                 legal process on any other person in connection

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16                 with the judicial enforcement of any debt,

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17                 (5) any person collecting or attempting to collect

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18                 any debt owed or due or asserted to be owed or

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19                 due to another to the extent that:

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20                 (a) the activity is incidental to a bona fide

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21                 fiduciary obligation or a bona fide escrow

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22                 arrangement,

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23                 (b) the activity concerns a debt that was

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24                 extended by the person,

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    Req. No. 1071                                            Page 3
1                  (c) the activity concerns a debt that was not in

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2                             default at the time it was obtained by the

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3                             person, or

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4                  (d) the activity concerns a debt obtained by the

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5                             person as a secured party in a commercial

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6                             credit transaction involving the creditor,

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7                             or

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8                  (6) any person whose principal business is the making

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9                  of loans or the servicing of debt not in default

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10                 and who acts as a loan correspondent, seller and

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11                 servicer for the owner, or holder of a debt that

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12                 is secured by a deed of trust on real property,

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13                 whether or not the debt is also secured by an

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14                 interest in personal property.

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15  c. Notwithstanding the provisions of subparagraph b of

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16                 this paragraph, collection agency includes any person

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17                 who, in the process of collecting the person's own

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18                 debts, uses another name that would indicate that a

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19                 third person is collecting or attempting to collect

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20                 such debts;

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21  3. a. "Debt" means any obligation or alleged obligation of a

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22                 consumer to pay money arising out of a transaction,

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23                 whether or not the obligation has been reduced to

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24                 judgment.

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    Req. No. 1071                                  Page 4
1   b. Debt does not include a debt for business, investment,

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2                  commercial, or agricultural purposes or a debt

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3                  incurred by a business;

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4   4. "Debt collector" means any person employed or engaged by a

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5 collection agency to perform the collection of debts owed or due or
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6 asserted to be owed or due to another;
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7   5. "Hospital" means, consistent with 45 C.F.R., Section 180.20,

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8 a hospital licensed by the State Department of Health under Section
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9 1-702 of Title 63 of the Oklahoma Statutes; and
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10  6. "Items and services" or "items or services" means items and

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11 services as defined in 45 C.F.R., Section 180.20.
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12  SECTION 2.     NEW LAW   A new section of law to be codified

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13 in the Oklahoma Statutes as Section 1-725.12 of Title 63, unless
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14 there is created a duplication in numbering, reads as follows:
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15  A. On and after the effective date of this act, no debt

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16 collector shall initiate or pursue a collection action against the
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17 patient or patient guarantor for a debt owed for the items or
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18 services purchased from, or provided to a patient by, the hospital
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19 to a collection agency.
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20  B. Nothing in this act:

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21  1. Prohibits a hospital from billing a patient, patient

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22 guarantor, or third-party payer, including a health insurer, for
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23 items or services provided to the patient; or
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    Req. No. 1071                                     Page 5
1   2. Requires a hospital to refund any payment made to the

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2 hospital for items or services provided to the patient, so long as
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3 no collection action is taken in violation of this act.
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4   SECTION 3. This act shall become effective November 1, 2025.

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6   60-1-1071      CAD  1/19/2025 5:37:55 AM

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    Req. No. 1071                                          Page 6
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