<html xmlns="http://www.w3.org/1999/xhtml" lang="en-US"><head><meta charset="UTF-8"><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 46A-9-86 - Director or employee benefit from contract authorized--Direct benefit described.</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.sc2f649ea78ce4f9d875f7e3a496bc0f2Normal { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.sc2f649ea78ce4f9d875f7e3a496bc0f2SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sc2f649ea78ce4f9d875f7e3a496bc0f2CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.sc2f649ea78ce4f9d875f7e3a496bc0f2Statute { text-indent: 0.50in; text-align: justify; 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text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.sc2f649ea78ce4f9d875f7e3a496bc0f2DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sc2f649ea78ce4f9d875f7e3a496bc0f2SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 46A-9-86 - Director or employee benefit from contract authorized--Direct benefit described."><meta property="og:description" content="SDLRC Codified Law 46A-9-86 - Director or employee benefit from contract authorized--Direct benefit described."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes?Statute=46A-9-86"><meta property="og:image" content="https://lawmakerdocuments.blob.core.usgovcloudapi.net/photos/logoshape.webp"><meta property="og:site_name" content="South Dakota Legislature"></head><body><div><p dir="ltr" class="sc2f649ea78ce4f9d875f7e3a496bc0f2Normal"><a href="https://sdlegislature.gov/Statutes?Statute=46A-9-86" rel="noopener"><span class="sc2f649ea78ce4f9d875f7e3a496bc0f2SENU">46A-9-86</span></a><span xml:space="preserve" class="sc2f649ea78ce4f9d875f7e3a496bc0f2SENU">. </span><span class="sc2f649ea78ce4f9d875f7e3a496bc0f2CL">Director or employee benefit from contract authorized--Direct benefit described.</span></p><p dir="ltr" class="sc2f649ea78ce4f9d875f7e3a496bc0f2Statute"><span xml:space="preserve" class="sc2f649ea78ce4f9d875f7e3a496bc0f2DefaultParagraphFont">For purposes of § </span><a href="https://sdlegislature.gov/Statutes?Statute=46A-9-85" rel="noopener"><span class="sc2f649ea78ce4f9d875f7e3a496bc0f2DefaultParagraphFont">46A-9-85</span></a><span class="sc2f649ea78ce4f9d875f7e3a496bc0f2DefaultParagraphFont">, a direct benefit from a contract is derived if the director or employee, the spouse of the director or employee, or any other person with whom the director or employee lives and commingles assets:</span></p><p dir="ltr" class="sc2f649ea78ce4f9d875f7e3a496bc0f2StatuteNumber1"><span class="sc2f649ea78ce4f9d875f7e3a496bc0f2DefaultParagraphFont">(1)    Has more than a five percent ownership interest in an entity that is a party to the contract;</span></p><p dir="ltr" class="sc2f649ea78ce4f9d875f7e3a496bc0f2StatuteNumber1"><span class="sc2f649ea78ce4f9d875f7e3a496bc0f2DefaultParagraphFont">(2)    Derives income, compensation, or commission directly from the contract or from an entity that is a party to the contract;</span></p><p dir="ltr" class="sc2f649ea78ce4f9d875f7e3a496bc0f2StatuteNumber1"><span class="sc2f649ea78ce4f9d875f7e3a496bc0f2DefaultParagraphFont">(3)    Acquires real or personal property under the contract; or</span></p><p dir="ltr" class="sc2f649ea78ce4f9d875f7e3a496bc0f2StatuteNumber1"><span class="sc2f649ea78ce4f9d875f7e3a496bc0f2DefaultParagraphFont">(4)    Serves as a director on the board of a for-profit entity that:</span></p><p dir="ltr" class="sc2f649ea78ce4f9d875f7e3a496bc0f2StatuteNumber2"><span class="sc2f649ea78ce4f9d875f7e3a496bc0f2DefaultParagraphFont">(a)    Derives income or a commission from the contract; or</span></p><p dir="ltr" class="sc2f649ea78ce4f9d875f7e3a496bc0f2StatuteNumber2"><span class="sc2f649ea78ce4f9d875f7e3a496bc0f2DefaultParagraphFont">(b)    Acquires real or personal property under the contract.</span></p><p dir="ltr" class="sc2f649ea78ce4f9d875f7e3a496bc0f2Statute"><span class="sc2f649ea78ce4f9d875f7e3a496bc0f2DefaultParagraphFont">A direct benefit is not derived solely from the value associated with any investment or holdings by a director or employee, the spouse of the director or employee, or any other person with whom the director or employee lives and commingles assets.</span></p><p dir="ltr" class="sc2f649ea78ce4f9d875f7e3a496bc0f2Normal"><span xml:space="preserve" class="sc2f649ea78ce4f9d875f7e3a496bc0f2000000"> </span></p><p dir="ltr" class="sc2f649ea78ce4f9d875f7e3a496bc0f2NoIndent"><span xml:space="preserve" class="sc2f649ea78ce4f9d875f7e3a496bc0f2DefaultParagraphFont-000001">Source: </span><span class="sc2f649ea78ce4f9d875f7e3a496bc0f2SCL">SL 2023, ch 152, § 2.</span></p></div></body></html>