SB 93

 26.581.11  101st Legislative Session  93
                                      2026 South Dakota Legislature
                                                 Senate Bill 93
                                              HOUSE STATE AFFAIRS ENGROSSED
 Introduced by: Senator Reed
1 An Act to prohibit certain state officers or employees from being employed by an
2organization that was the recipient of a contract awarded on behalf of a state
3agency for a period of time.
4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
5 Section 1. That § 5-18A-17 be AMENDED:
65-18A-17. No state officer or employee who approves, awards, or administers a
7     contract on behalf of a state agency, may have an interest in a contract or derive a direct
8     benefit from a contract that is within the scope of the officer's or employee's official duties,
9     nor for a one-year period following the end of their employment or position as a state
10     officer may the officer or employee derive a direct benefit as a result of such contract
11     except as provided in § 5-18A-17.2. In addition, no such officer or employee may enter
12     into any contract, other than a contract of employment, with any state agency for a period
13     of one year following their leaving office or employment except as provided in § 5-18A-
14     17.3.This prohibition includes any state officer or employee who, in his or her official
15     capacity, recommends the approval or award of the contract or who supervises a person
16     who approves, awards, or administers the contract. This prohibition does not include any
17     state officer who serves without compensation or who may be paid per diem pursuant to
18     § 4-7-10.4. If an officer or employee of this state has responsibility, on behalf of a state
19     agency, for approving, awarding, or administering a contract, that officer or employee
20     may not:
21     (1)      Except as otherwise provided in § 5-18A-17.2:
22(a)    Have an interest in a contract or derive a direct benefit from a contract that
23is within the scope of the officer's or employee's official duties; or
24(b)    Derive a direct benefit from any contract that the officer or employee
25approved, awarded, or administered on behalf of a state agency for at least
                                                                                  Underscores indicate new language.
                                                                                Overstrikes indicate deleted language.
 26.581.11  2  93
1one year following the end of the individual's term of office or employment
2with the state;
3    (2)      Except as otherwise provided in § 5-18A-17.3, enter into any contract with a state
4agency, other than an employment contract, for at least one year following the end
5of the individual's term of office or employment with the state; or
6    (3)      Be employed by any organization that was the beneficiary of a contract approved,
7awarded, or administered by the officer or employee, for a period of:
8(a)    One year, if the value of the contract was not more than one million dollars;
9or
10(b)    Two years, if the value of the contract was more than one million dollars.
11Nothing in this section may be construed to apply to an officer or employee who
12    serves without compensation or who is only compensated per diem pursuant to § 4-7-
13    10.4.
14For purposes of this section, the responsibility for approving, awarding, or
15    administering a contract on behalf of a state agency includes supervising the approval,
16    award, or administration of a contract or recommending the approval or award of a
17    contract.
18 Section 2. That § 5-18A-17.2 be AMENDED:
195-18A-17.2. A governing body may authorize an officer or employee whose
20    responsibilities include approving, awarding, or administering a contract on behalf of a
21    state agency or; supervising any employee who has these responsibilities approves,
22    awards, or administers a contract on behalf of a state agency; or recommending to any
23    employee the approval or award of a contract on behalf of a state agency, to be a party
24    to or derive a direct benefit from a contract if:
25    (1)      The officer or employee has provided full written disclosure to the governing body;
26    (2)      The governing body has reviewed the:
27(a)    The essential terms of the transaction or contract and the state officer's or
28employee's; and
29(b)    The role of the officer or employee in the contract or transaction; and
30    (3)      The transaction and the terms of the contract are fair, reasonable, and not contrary
31to the public interest.
32The authorization shall be in writing. If a governing body authorizes an officer or
33    employee to be a party to or derive a direct benefit from a contract, the governing body
34    must provide the authorization in writing. Any authorization given pursuant to this section
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                                                                             Overstrikes indicate deleted language.
26.581.11  3  93
1    is a public record. Each authorization shall must be filed with the commissioner of human
2    resources and administration, who. The commissioner shall annually compile the
3    authorizations and present them annually for review by to the Government Operations
4    and Audit Committee for review.
                                                                          Underscores indicate new language.
                                                                        Overstrikes indicate deleted language.