<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 5-18A-17.2 - Authorization of officer or employee to be a party to or derive direct benefit from contract.</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s4d322736f01b4c3c92f1760257617806Normal { 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.s4d322736f01b4c3c92f1760257617806SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s4d322736f01b4c3c92f1760257617806CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s4d322736f01b4c3c92f1760257617806Normal-000000 { 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.s4d322736f01b4c3c92f1760257617806DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s4d322736f01b4c3c92f1760257617806Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } p.s4d322736f01b4c3c92f1760257617806Normal-000002 { text-indent: 0.25in; 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.s4d322736f01b4c3c92f1760257617806000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s4d322736f01b4c3c92f1760257617806DefaultParagraphFont-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s4d322736f01b4c3c92f1760257617806SCL { 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 5-18A-17.2 - Authorization of officer or employee to be a party to or derive direct benefit from contract."><meta property="og:description" content="SDLRC Codified Law 5-18A-17.2 - Authorization of officer or employee to be a party to or derive direct benefit from contract."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes/5-18A-17.2"><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="s4d322736f01b4c3c92f1760257617806Normal"><a href="https://sdlegislature.gov/Statutes?Statute=5-18A-17.2" rel="noopener"><span class="s4d322736f01b4c3c92f1760257617806SENU">5-18A-17.2</span></a><span xml:space="preserve" class="s4d322736f01b4c3c92f1760257617806SENU">. </span><span class="s4d322736f01b4c3c92f1760257617806CL">Authorization of officer or employee to be a party to or derive direct benefit from contract.</span></p><p dir="ltr" class="s4d322736f01b4c3c92f1760257617806Normal-000000"><span class="s4d322736f01b4c3c92f1760257617806DefaultParagraphFont">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 to be a party to or derive a direct benefit from a contract if:</span></p><p dir="ltr" class="s4d322736f01b4c3c92f1760257617806Normal-000001"><span class="s4d322736f01b4c3c92f1760257617806DefaultParagraphFont">(1)    The officer or employee has provided full written disclosure to the governing body;</span></p><p dir="ltr" class="s4d322736f01b4c3c92f1760257617806Normal-000001"><span class="s4d322736f01b4c3c92f1760257617806DefaultParagraphFont">(2)    The governing body has reviewed the essential terms of the transaction or contract and the state officer's or employee's role in the contract or transaction; and</span></p><p dir="ltr" class="s4d322736f01b4c3c92f1760257617806Normal-000001"><span class="s4d322736f01b4c3c92f1760257617806DefaultParagraphFont">(3)    The transaction and the terms of the contract are fair, reasonable, and not contrary to the public interest.</span></p><p dir="ltr" class="s4d322736f01b4c3c92f1760257617806Normal-000002"><span class="s4d322736f01b4c3c92f1760257617806DefaultParagraphFont">The authorization shall be in writing. Any authorization given pursuant to this section is a public record. Each authorization shall be filed with the commissioner of human resources and administration, who shall compile the authorizations and present them annually for review by the Government Operations and Audit Committee.</span></p><p dir="ltr" class="s4d322736f01b4c3c92f1760257617806Normal"><span xml:space="preserve" class="s4d322736f01b4c3c92f1760257617806000003"> </span></p><p dir="ltr" class="s4d322736f01b4c3c92f1760257617806Normal"><span xml:space="preserve" class="s4d322736f01b4c3c92f1760257617806DefaultParagraphFont-000004">Source: </span><span class="s4d322736f01b4c3c92f1760257617806SCL">SL 2015, ch 30, § 4; SL 2024, ch 1 (Ex. Ord. 24-1), §§ 13, 35, eff. Apr. 8, 2024.</span></p></div></body></html>