This bill mandates that contracts for public improvements in South Dakota must include a provision requiring contractors and their subcontractors to provide proof of workers' compensation insurance. This requirement applies to any public improvement project that receives government funding, such as grants or tax increment financing, regardless of whether the government entity is directly involved in the contract.

Additionally, the bill grants the Department of Labor and Regulation, along with the purchasing agency, the authority to investigate and monitor the workers' compensation insurance coverage of contractors and subcontractors. Contractors are required to provide a list of all subcontractors, payroll records, and any other necessary information to ensure compliance with the law and to prevent workers' compensation fraud related to the public improvement projects.