CHAPTER 34

(HB 1056)

Employee to sign contract on behalf of the city
as permitted by ordinance or resolution.


         ENTITLED, An Act to  permit municipalities to delegate to employees the authority to enter into certain contracts on behalf of the municipality.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

     Section  1.  That § 9-1-5 be amended to read as follows:

     9-1-5.   Contracts No contract of a municipality shall not be is valid unless the contract has been authorized by a vote of the governing body at a duly assembled meeting thereof.

     All written contracts of and conveyances by the municipality Each written contract shall be executed in the name of the municipality by the mayor or president of the board of trustees, be countersigned by the auditor or clerk, and have the corporate seal attached. However, the governing body of a municipality may, by ordinance or resolution, delegate to any employee of the municipality the authority to enter into a contract on behalf of the municipality and to execute the contract and any other instrument necessary or convenient for the performance of the contract subject to the limitations delegated by the governing body.

     Signed February 7, 2006
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