10:11:01:01.  Meaning of terms. Words and phrases defined in SDCL 1-55-1 have the same meanings when used in this article. In addition, terms used in this article mean:

          (1)  "Collection charge," the fee added by a debt collection agency to the total debt referred to it by the center, which is equal to 20 percent of the debt referred;

          (2)  "Cost recovery fee," the fee added by the center to the principal amount of debt referred for collection to the center by a referring entity;

          (3)  "Licensing agency," the Division of Motor Vehicles, Department of Public Safety, and Department of Game, Fish and Parks.

          Source: 43 SDR 79, effective December 5, 2016.

          General Authority: SDCL 1-55-15(1).

          Law Implemented: SDCL 1-55-4, 1-55-14, 1-55-15(8)(9)(11).

          10:11:02:01.  Imposition of recovery fee. The center shall impose a cost recovery fee, to be paid by the debtor, in addition to the debt referred for collection by a referring entity.

          Source: 43 SDR 79, effective December 5, 2016.

          General Authority: SDCL 1-55-15(4).

          Law Implemented: SDCL 1-55-3(4), 1-55-4.

          10:11:03:01.  Procedure for debt referral. Before any debt is referred to the center for collection, the referring entity shall:

          (1)  Make a determination that debt is a bad debt;

          (2)  Provide final notification to the debtor; and

          (3)  Ensure that 14 days have elapsed since final notification was sent to the debtor.

          Source: 43 SDR 79, effective December 5, 2016.

          General Authority: SDCL 1-55-15(5).

          Law Implemented: SDCL 1-55-1(5), 1-55-7.

          10:11:03:02.  Information provided by referring entity. When referring a debt to the center, the referring entity shall provide to the center the following known detailed debt information:

          (1)  The full name of the debtor, any former name, and any known alias;

          (2)  The nature of the debt;

          (3)  The principal amount of the debt;

          (4)  The total amount of the debt, setting forth any penalty, interest, costs, and fees;

          (5)  All mailing, residential, and email addresses and telephonic information regarding the debtor;

          (6)  Judgment amount;

          (7)  Social Security number of the debtor;

          (8)  Federal employee identification number of the debtor;

          (9)  Date of birth of the debtor;

          (10)  Date the debt was incurred;

          (11)  Any additional information that may assist the center in recovery of the debt.

          Source: 43 SDR 79, effective December 5, 2016.

          General Authority: SDCL 1-55-15(5).

          Law Implemented: SDCL 1-55-3(5), 1-55-9.

          10:11:03:03.  Change in status of debt or debtor circumstances. After referring debt to the center, the referring entity shall immediately notify the center of any updated or additional data of which the referring entity becomes aware that may aid the center in the handling or collection of the referred debt.

          Source: 43 SDR 79, effective December 5, 2016.

          General Authority: SDCL 1-55-15(5).

          Law Implemented: SDCL 1-55-3(5), 1-55-9.

          10:11:03:04.  Debt returned to referring entity. After the center has exhausted all avenues authorized by SDCL chapter 1-55 to collect a referring entity's debt, the center shall return any outstanding balance to the referring entity for final disposition.

          Source: 43 SDR 79, effective December 5, 2016.

          General Authority: SDCL 1-55-14.

          Law Implemented: SDCL 1-55-14.

          10:11:04:01.  Contracts with debt collection agencies. The center shall comply with the requirements of SDCL 5-18D-17 to 5-18D-21, inclusive, when entering into a contract with a debt collection agency. The center may enter into a contract with one or more debt collection agencies pursuant to the procedures specified in SDCL 5-18D-19.

          Source: 43 SDR 79, effective December 5, 2016.

          General Authority: SDCL 1-55-14.

          Law Implemented: SDCL 1-55-3(9), 1-55-14.

          10:11:04:02.  Referring debt to debt collection agencies. Any debt which meets one of the following criteria is considered unable to be collected by the center and shall be referred to a debt collection agency:

          (1)  The debtor resides in a state that requires funds collected from the debtor to be deposited into a trust bank account located within that state; or

          (2)  The debtor has a foreign address.

          Source: 43 SDR 79, effective December 5, 2016.

          General Authority: SDCL 1-55-14.

          Law Implemented: SDCL 1-55-3(9), 1-55-14.

          10:11:04:03.  Process of debt referred to debt collection agency. If the center forwards a debt to a debt collection agency, the amount of the debt forwarded may not include the cost recovery fee. The debt collection agency shall add a collection charge of 20 percent to the amount of the debt referred to it by the center.

          Source: 43 SDR 79, effective December 5, 2016.

          General Authority: SDCL 1-55-14, 1-55-15(4).

          Law Implemented: SDCL 1-55-3(4), 1-55-14.

          10:11:04:04.  Death of debtor. If the center determines that a debtor is deceased, the center shall suspend collection efforts and attempt to confirm the debtor's death. If confirmed, the center may not refer the debt to a collection agency, shall close the file, and return the debt to the referring entity for final disposition.

          Source: 43 SDR 79, effective December 5, 2016.

          General Authority: SDCL 1-55-14.

          Law Implemented: SDCL 1-55-14.

          10:11:05:01.  Settlement authority of the center. The center may only exercise settlement authority as granted to the center by a referring entity in writing.

          Source: 43 SDR 79, effective December 5, 2016.

          General Authority: SDCL 1-55-15(7).

          Law Implemented: SDCL 1-55-3(7), 1-55-15(7).

          10:11:06:01.  Procedures for sending information to licensing agencies. The center shall send information electronically to the licensing agency as notification that an applicant, registrant, or licensee has a debt assigned to the center for collection. Upon receipt of the information from the center, the licensing agency shall initiate its existing rules and procedures to prevent the applicant, registrant, or licensee from obtaining, renewing or maintaining any motor vehicle, motorcycle, or boat registration, driver license, hunting license, fishing license, state park permit, or camping permit as required by SDCL 1-55-11 and 1-55-12.

          Source: 43 SDR 79, effective December 5, 2016.

          General Authority: SDCL 1-55-15(8)(9)(10).

          Law Implemented: SDCL 1-55-12, 1-55-15(8)(9)(10).

          10:11:06:02.  Criteria for providing notification to licensing agencies concerning the nonrenewal and nonissuance of registrations, licenses and permits. The center shall provide notice to the licensing agency that an applicant, registrant, or licensee has a debt that is being collected by the center only if the following criteria are met:

          (1)  It has been at least 60 days since the debt was referred to the center;

          (2)  The center has made at least three attempts to contact the debtor, with at least one of those attempts made in writing to the debtor's last known address;

          (3)  The center has sent a notice to the debtor by regular mail to the debtor's last known address, to include a statement that an applicant, registrant, or licensee who disputes a determination by the center that the applicant, registrant, or licensee has a debt that has been referred to the center for collection will, upon request, be given a due process hearing by the center;

          (4)  The debtor has not requested a due process hearing;

          (5)  The debt and cost recovery fee have not been paid in full or the debtor has not entered into a payment plan with the center and payment pursuant to the plan is current; and

          (6)  The debt is equal to or greater than the following amount:

              (a)  $1,000 for any motor vehicle registration, motorcycle registration, boat registration or driver license; and

              (b)  $50 for any hunting license, fishing license, state park permit, or camping permit.

          Source: 43 SDR 79, effective December 5, 2016.

          General Authority: SDCL 1-55-15(8)(9)(10).

          Law Implemented: SDCL 1-55-12, 1-55-15(8)(9)(10).