Section 29D. Notwithstanding any law to the contrary, the officer having charge of any state agency may retain the services of 1 or more private persons, companies, associations or corporations for the purpose of collection of debts owed to the commonwealth, other than those covered by section 3A of chapter 14, under agreements between the comptroller and said private persons, companies, associations or corporations. No state agency shall assign the account of any debtor to a private collection agency until such debtor has been sent a notice, at least 30 days prior thereto, of the intention of the agency to so assign the collection of such unpaid account of such debtor.

The comptroller shall from time to time, competitively procure agreements with 1 or more private persons, companies, associations or corporations for the provision of debt collection services on behalf of state agencies. No such agreement shall be entered into unless proposals for the same have been invited by public notice published in the central register under section 20A of chapter 9, within the COMMBUYS system, and in at least newspaper once a week for at least 2 consecutive weeks and the last publication to be at least 1 week prior to the time specified for the opening of said proposals. All such proposals shall be opened in public. The comptroller may reject any or all of such proposals. Any such agreement shall provide, in the discretion of the comptroller, the manner in which the compensation for such services will be paid. Under standards established by the comptroller, such compensation may be added to the amount of the debt and collected as part thereof by the contractor; deducted and retained by the contractor from the amount of debt collected; or paid by the commonwealth from the amount of debt collected without further appropriation therefor.

The comptroller shall, as part of the comptroller's annual report under section 12 of chapter 7A, list all private persons, companies, associations or corporations with whom the comptroller has agreements for collection services during the fiscal year and the amount of debts collected by and the compensation paid to each such person, company, association or corporation.