This bill amends South Dakota law regarding the employment of state officers or employees in relation to contracts awarded by state agencies. It establishes that if a state officer or employee is responsible for approving, awarding, or administering a contract, they are prohibited from having an interest in that contract or deriving a direct benefit from it for at least one year after their term ends. Additionally, they cannot enter into any contract with a state agency, other than an employment contract, for at least one year following their departure. The bill also introduces a new provision that prohibits these individuals from being employed by any organization that benefited from a contract they were involved with, for a period of one to two years, depending on the contract's value.

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 the individual's role in it, ensuring that the transaction is fair and reasonable. The governing body must document this authorization in writing, which will be considered a public record and submitted to the commissioner of human resources and administration for annual review by the Government Operations and Audit Committee.

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