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Legislature Passes Bill To Create Debt Collection Center

Associated Press0

PIERRE, S.D. (AP) — A bill that would create a collection center to recover debts owed to the state is headed to the governor’s desk.

The measure that passed the Senate by a 19-15 vote on Friday would create the Obligation Recovery Center. The bill has been contentious throughout the session.

Proponents of creating the center say the state is owed tens of millions of dollars in debt and that the current system of contracting out collections to the private sector is not working.

Republican Sen. Brock Greenfield says the measure is a “bad bill” and says it dramatically changes how the state addresses public collections. Other opponents say the center is an unnecessary growth in government.

Gov. Dennis Daugaard’s spokeswoman says he supports the measure.

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