South Dakota Lawmakers are considering a new system for the state to collect debts.
State officials say South Dakota writes off about $500,000 per year in debt. Currently the state contracts out to a private debt collection agency to track down those who owe the government money. But, South Dakota’s Chief Finical Officer Jason Dilges tells state Lawmakers that isn’t cost effective.
“We continue to aggregate millions of dollars every year in new debt. So, the clock keeps ticking and we keep collecting new debt. Again, I think because it has not been a high priority and that we have not had an organized, centralized process too analyze and go out and actually collect, that we have not done a good job. This bill is our attempt to put a process together to start to do that," says Dilges.
A lobbyist with a group called “Citizens for Liberty” spoke against the bill saying it gives the state government too much power and is unconstitutional. Lawmakers on the committee also expressed concern that creating this new state office is in effect growing state government-they questioned why private industry can’t complete this task.
The State Senate Appropriations committee went on to narrowly pass the bill by a vote of 5 to 4. It moves next to the Senate floor.