An Act to prohibit certain state officers or employees from being employed by an organization that was the recipient of a contract awarded on behalf of a state agency for a period of time.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That § 5-18A-17 be AMENDED:

5-18A-17. No state officer or employee who approves, awards, or administers a contract on behalf of a state agency, may have an interest in a contract or derive a direct benefit from a contract that is within the scope of the officer's or employee's official duties, nor for a one-year period following the end of their employment or position as a state officer may the officer or employee derive a direct benefit as a result of such contract except as provided in § 5-18A-17.2. In addition, no such officer or employee may enter into any contract, other than a contract of employment, with any state agency for a period of one year following their leaving office or employment except as provided in § 5-18A-17.3.This prohibition includes any state officer or employee who, in his or her official capacity, recommends the approval or award of the contract or who supervises a person who approves, awards, or administers the contract. This prohibition does not include any state officer who serves without compensation or who may be paid per diem pursuant to § 4-7-10.4. If an officer or employee of this state has responsibility, on behalf of a state agency, for approving, awarding, or administering a contract, that officer or employee may not:

(1) Except as otherwise provided in § 5-18A-17.2:

(a) Have an interest in a contract or derive a direct benefit from a contract that is within the scope of the officer's or employee's official duties; or

(b) Derive a direct benefit from any contract that the officer or employee approved, awarded, or administered on behalf of a state agency for at least one year following the end of the individual's term of office or employment with the state;

(2) Except as otherwise provided in § 5-18A-17.3, enter into any contract with a state agency, other than an employment contract, for at least one year following the end of the individual's term of office or employment with the state; or

(3) Be employed by any organization that was the beneficiary of a contract approved, awarded, or administered by the officer or employee, for a period of:

(a) One year, if the value of the contract was not more than one million dollars; or

(b) Two years, if the value of the contract was more than one million dollars.

Nothing in this section may be construed to apply to an officer or employee who serves without compensation or who is only compensated per diem pursuant to § 4-7-10.4.

For purposes of this section, the responsibility for approving, awarding, or administering a contract on behalf of a state agency includes supervising the approval, award, or administration of a contract or recommending the approval or award of a contract.

Section 2. That § 5-18A-17.2 be AMENDED:

5-18A-17.2. A governing body may authorize an officer or employee whose responsibilities include approving, awarding, or administering a contract on behalf of a state agency or; supervising any employee who has these responsibilities approves, awards, or administers a contract on behalf of a state agency; or recommending to any employee the approval or award of a contract on behalf of a state agency, to be a party to or derive a direct benefit from a contract if:

(1) The officer or employee has provided full written disclosure to the governing body;

(2) The governing body has reviewed the:

(a) The essential terms of the transaction or contract and the state officer's or employee's; and

(b) The role of the officer or employee in the contract or transaction; and

(3) The transaction and the terms of the contract are fair, reasonable, and not contrary to the public interest.

The authorization shall be in writing. If a governing body authorizes an officer or employee to be a party to or derive a direct benefit from a contract, the governing body must provide the authorization in writing. Any authorization given pursuant to this section is a public record. Each authorization shall must be filed with the commissioner of human resources and administration, who. The commissioner shall annually compile the authorizations and present them annually for review by to the Government Operations and Audit Committee for review.