PIERRE, S.D. July 12, 2016 – The Bureau of Administration has announced that the Obligation Recovery Center, established by HB1228 during the 2015 Legislative Session, will go live on July 15, 2016, and start collecting bad debts on behalf of the State of South Dakota. After a full and open Request For Information (RFI) and Request For Proposal (RFP) process, the State of South Dakota selected CGI Technologies and Solutions, Inc. to operate the Center on its behalf.
In addition, an RFP was issued and contracts have been signed to hire three third-party collection companies, including Progressive with offices in Aberdeen, S.D., to work with CGI to collect state debt.
“For the past year, members of the Obligation Recovery Center Advisory Group worked to fulfill the intention of the Legislature by soliciting advice and recommendations from the stakeholders regarding the implementation of the Center,” said state Sen. Terri Haverly, a member of the advisory group created by HB1228. “The fees collected on past due obligations will fund the center which means that South Dakota taxpayers that do pay their outstanding amounts owed will not have to subsidize those who don’t.”
The contract was awarded on Nov. 15, 2015, and work began immediately. The seven-month project is on track and everything is in place and ready for state agencies to begin the process. The Unified Judicial System will be the first agency of state government to refer bad debt associated with restitution payments and court fines to the Center. Over the next six months, the remaining state agencies will be referring their bad debt to the Center as well.
CGI will lead South Dakota’s recovery efforts by utilizing new customer service processes, expedited billing and self-service options.