Changes to Existing Law

The center shall work to collect each bad debt referred to the center during the5 account receivable cycle. The character of the debt in the hands of the referring entity does not6 change by the referral of the debt to the center for collection. Among other powers granted by7 this chapter, the center may: (1)Sue; (2)File liens; (3)Enter into payment agreements with debtors; (4)Impose a cost recovery fee on debts referred to the center with the exception of any debts owed within the Board of Regents' system; (5)Collect data for debt collection purposes; (6)Establish and maintain a centralized electronic debt management system; 100 copies were printed on recycled paper by the South DakotaLegislative Research Council at a cost of $.167 per page.v Insertions into existing statutes are indicated by underscores.Deletions from existing statutes are indicated by overstrikes. - 2 -HB 1166 (7)Exercise settlement authority granted by the referring entity; (8)Setoff against any moneys to be paid by the State of South Dakota or any referring2 entity to a debtor; (9)Contract with multiple collection agencies for the collection of debt on behalf of the4 center; (10)Except for the debt collection powers vested in the Unified Judicial System, the6 center may use the referring entity's statutory collection authority to collect the bad7 debt owed to the referring entity; and8 (11)Utilize all debt collection methods authorized by state law. The office may determine which method or combination is most suitable to collect the debt.

For any bad debt referred to the center for collection after July 1, 2015, with the exception of any debt owed within the Board of Regents' system, the center shall collect a cost13 recovery fee in addition to the debt referred to the center for collection. The cost recovery fee14 is calculated by multiplying the principal amount of the debt referred to the center by twenty15 percent. All debt collection methods available to collect any bad debt referred to the center may16 be used by the center to collect the cost recovery fee. The cost recovery fee shall be deposited17 into the general fund and the operations of the center and shall be subject to the annual18 budgeting process specified in chapter 4-7.19