South Dakota Senate Approves Longer Wait for Officials Turning State Jobs into Private Employment

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The South Dakota Senate has approved a bill that would extend the waiting period from one year to two years for state officials involved in awarding or overseeing a contract worth more than $5 million before they can accept a job with that company. The bill, sponsored by Sen. Tim Reed, is in response to a previous case involving the former state economic development commissioner taking a job with a company a year after leaving the state government.

Why it matters

This bill aims to address potential conflicts of interest and the 'revolving door' between government and private industry by imposing a longer cooling-off period for state officials involved in large state contracts. The goal is to prevent officials from leveraging their government positions to secure lucrative private sector jobs.

The details

The bill, which passed the Senate in a 34-0 vote, would extend the waiting period from one year to two years for state officers and employees involved in awarding or overseeing a contract worth more than $5 million before they can take a job with that company. The original bill had proposed a two-year wait for contracts over $1 million, but was amended to focus on larger contracts. The bill also includes a waiver process that would allow a governing body to authorize earlier employment in limited cases.

• The South Dakota Senate approved the bill on January 29, 2026.
• The bill will now move to the state House of Representatives for consideration.

What they’re saying

What’s next

The bill will now move to the South Dakota House of Representatives for consideration and a vote.