SDCL § 24-11-40: Contract for placement of inmates or prisoners--Certain private entities excepted.

The governing body of any compact, municipality, or county may contract with a private entity to place inmates or prisoners in a detention facility, jail, correctional facility, work camp, or related facility operated by a private entity. The governing body of the compact, municipality, or county may not contract with a private entity in which a member of the governing body of the compact, municipality, or county or an elected or appointed peace officer who serves in the municipality or county has a financial interest.