2019 Session Laws

CHAPTER 13

(HB 1039)

Postsecondary technical institutes
may use the Obligation Recovery Center.


        ENTITLED, An Act to provide for the use of the Obligation Recovery Center by certain postsecondary technical institutes.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

    Section 1. That § 1-55-1 be amended to read:

    1-55-1. Terms used in this chapter mean:

            (1)    "Account receivable cycle," the period of time, not to exceed one hundred eighty days, during which the center may attempt to collect on a debt before the debt is forwarded to a any collection agency or agencies pursuant to in accordance with § 1-55-14;

            (2)    "Center," the obligation recovery center;

            (3)    "Debt," a legal obligation to pay money, including any principal, any interest that has accrued or will accrue until the debt is paid, any penalties, any costs, and any other charges permitted by law. The term, debt, also includes any obligation of any kind referred to the obligation recovery center for collection by any agency of the state government agency, by the Unified Judicial System, by the Board of Regents, a postsecondary technical institute supported by the state under § 13-39A-42, or by a constitutional office;

            (4)    "Debtor," a person who is indebted to the state or a state agency for any delinquent accounts, charges, fees, loans, taxes, or other indebtedness due the state, or any person that owes any obligation being collected by the obligation recovery center;

            (5)    "Bad debt," any debt due a state executive branch an agency of the state, the Board of Regent's system, any postsecondary technical institute supported by the state under § 13-39A-42, or a constitutional office that is no longer subject to an administrative appeal or judicial review following an administrative appeal, or any costs, fines, fees, or restitution ordered in any adult criminal proceeding through the Unified Judicial System no longer subject to direct appeal pursuant to under § 23A-32-2;

            (6)    "Final notification," the notification provided by § 1-55-7; and

            (7)    "Referring entity," the entity referring the debt to the state obligation recovery center for collection.

    Section 2. That § 1-55-2 be amended to read:

    1-55-2. There is hereby created the obligation recovery center. The obligation recovery center is, which is attached to the Bureau of Administration for budgeting and reporting purposes. The purpose of the obligation recovery center is to be a central repository for identification, registration, oversight, and collection of debts owed to any agency or department of the State of South Dakota the state or to any postsecondary technical institute supported by the state under § 13-39A-42.

    Section 3. That § 1-55-6 be amended to read:

    1-55-6. The center may be used as follows during the account receivable cycle by:

            (1)    Any executive branch agency may use the center agency of the state to collect bad debt owed to an executive branch the agency;

            (2)    The Unified Judicial System may use the center to collect any costs, fines, fees, or restitution, constituting final debt, ordered in any adult criminal proceeding;

            (3)    The Board of Regents may use the center to collect any final debt owed within the South Dakota Board of Regents' system; and

            (4)    Any postsecondary technical institute supported by the state under § 13-39A-42 to collect any final debt owed within the postsecondary technical institute system; and

            (5)    Any constitutional office may use the center to collect final debt owed to the constitutional office.

     Signed March 1, 2019
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