P rovider bylaws or other legal documents. Each provider must adopt bylaws or other legal documents which state its purpose. The bylaws or other legal documents shall:

1. (1) Provide for a rotating board of directors;
2. (2) Establish term limits for members of the board of directors;
3. (3) Provide opportunity for participants and family members to be members of the board of directors or a voting board or a voting member of an active board committee;
4. (4) Provide that the members of the governing board serve without pay; and

5. (5) Provide that no financial benefit accrue as a result of membership of the board.

   A provider that is an education cooperative is exempt from this section provided the provider complies with the provisions in SDCL chapter 13-8. A provider that is legally organized in a different state may meet the requirements of this section through the use of an advisory board that complies with provisions of this section instead of the board of directors.

Source: 22 SDR 104, effective February 13, 1996; 27 SDR 63, effective December 31, 2000; 40 SDR 102, effective December 3, 2013; 43 SDR 9, effective August 2, 2016.

General Authority: SDCL 27B-2-26(2).

Law Implemented: SDCL 27B-2-26.

Prior versions effective: 2013-12-03.