Committee approves SB 93 to extend cooling-off period for key state contract officials

The committee approved Senate Bill 93 (as amended to SB 93b), a measure that increases post-employment restrictions for officials with direct authority over high-value state contracts.

Sen. Tim Reid, the prime sponsor, said the bill targets high-value contracts and is narrowly tailored: "Specifically, when a state contract exceeds $5,000,000 the bill extends the post employment restriction to 2 years for an individual who has direct authority or meaningful influence over that contract." Reid said the change addresses public trust concerns while preserving case-by-case flexibility.

A Senate amendment inserted a waiver mechanism allowing the governing body to authorize employment by a winning contractor if the official provides full written disclosure and the governing body finds the arrangement "fair, reasonable, and not contrary to the public interest," with notice to the Government Operations and Audit Committee (GOAC). Opponents and some committee members pressed for clarity about who constitutes the "governing body," which the sponsor traced to SDCL provisions and enumerated entities such as the Legislature, Board of Regents, constitutional officers and the governor.

Representative Hansen offered a motion to restore the bill to the introduced version; sponsors opposed the change. After debate the committee adopted the amended SB 93b and voted to recommend the bill to the floor (11–1, 1 excused).

What happens next: SB 93b advances to the floor with a due-pass recommendation; sponsors and GOAC will be watching implementation details of the waiver and reporting requirements.