A person described in § 3-23-6 derives a direct benefit from a contract if the person, the person’s spouse, or any other person with whom the person lives and commingles assets:

(1) Is a party to or intended beneficiary of any contract held by the school district or cooperative education service unit;

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Terms Used In South Dakota Codified Laws 3-23-7

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Contract: A legal written agreement that becomes binding when signed.
  • Person: includes natural persons, partnerships, associations, cooperative corporations, limited liability companies, and corporations. See South Dakota Codified Laws 2-14-2
  • Property: includes property, real and personal. See South Dakota Codified Laws 2-14-2

(2) Has more than a five percent ownership interest in an entity that is a party to any contract held by the school district or cooperative education service unit;

(3) Acquires property under the contract; or

(4) Will receive compensation, commission, promotion, or other monetary benefit directly attributable to any contract with the school district or cooperative education service unit.

Source: SL 2016, ch 33, § 7; SL 2017, ch 31, § 11; SL 2021, ch 73, § 24.