This bill amends South Dakota law to impose stricter regulations on state officers and employees regarding their involvement with contracts awarded by state agencies. Specifically, it prohibits these individuals from having any interest in or deriving benefits from contracts related to their official duties, both during their term and for a specified period after leaving their position. The new provisions state that if a state officer or employee has responsibility for approving, awarding, or administering a contract, they cannot be employed by any organization that benefited from such a contract for one year if the contract value is under five million dollars, or for two years if it exceeds that amount. Additionally, the bill clarifies that the responsibility for contract management includes supervising or recommending contracts.

Furthermore, the bill allows for exceptions where a governing body can authorize a former officer or employee to be employed by an organization that benefited from a contract, provided that the governing body reviews the essential terms of the contract and determines that the transaction is fair and reasonable. This authorization must be documented in writing and is subject to public record requirements, with annual reporting to the Government Operations and Audit Committee. The amendments aim to enhance transparency and prevent conflicts of interest in state contracting processes.

Statutes affected:
Introduced, 01/15/2026: 5-18A-17, 5-18A-17.2
Senate Engrossed, 01/28/2026: 5-18A-17, 5-18A-17.2
House State Affairs Engrossed, 02/25/2026: 5-18A-17, 5-18A-17.2