| Reciprocal Preference Law |
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| South Dakota (SD) |
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Preference (%)
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Conditions
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5% to Grade A milk processors only.
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Reciprocal law applies to state and political subdivisions for commodities, services and construction.
Tie bid goes to resident bidder.
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5-23-21.2 of the Statute: Preference for resident bidders.
The Bureau of Administration, and each other agency of the state, and each political subdivision of the state shall in every case give preference to any person, firm, or corporation who has his or its principal place of business in the state. However, a resident bidder may be allowed a prefrence on a contract against the bid of any bidder from any other state which enforces or has a preference for resident bidders. The amount of the preference given to the resident bidder of this state shall be equal to the preference in the other state. Resident bidders of this state shall be given preferences on a contract against the bid of any bidder from any other state which enforces or has a preference for resident bidders in an amount equal to the preference in the other state on contracts involving funds obtained from the federal government unless expressly prohibited by the laws of the United States.
Source: SL 1989, ch 58, & 2; SL 1992, Ch 49.
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5-23-21.2 of the statute is saying we will give preference to any company whose "principal place of business" is in the state.
5-19-3 of the Statute says we will give preference to a "resident bidder".
The difference is that a "resident bidder" in 5-19 can be a company that has it's principal place of business outside of South Dakota, but is a registered corporation in South Dakota. If they were in a tie bid situation with a non-resident bidder, they would win the bid based on our resident bidder (tie-bid) preference. In addition, they would be entitled to reciprocal preference against a company not considered a resident bidder, if the other company got a preference in their home state.
If a "resident bidder" that did not have it's principal place of business in South Dakota was in a tie bid with a company that had it's principal place of business in South Dakota, the company with the principal place of business in the state would win.
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