This bill mandates that contracts for public improvements in South Dakota include a provision requiring contractors and their subcontractors to verify that they have obtained workers' compensation insurance. This requirement applies to any public improvement subsidized by a government entity, such as through grants or tax increment financing, regardless of whether the government entity is directly involved in the contracting process.

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 and premium payments of contractors and subcontractors involved in public improvements. Contractors are required to provide a list of subcontractors, payroll records, and any other necessary information to ensure compliance with the law and to prevent workers' compensation fraud.