This bill introduces a new section to chapter 5-18B of South Dakota law, mandating that any contract for public improvement between a contractor and a purchasing agency must include a provision that allows the purchasing agency to verify and monitor the contractor's workers' compensation insurance coverage. Specifically, the purchasing agency is authorized to confirm that the contractor has obtained the necessary workers' compensation insurance before starting any contracted services.

Additionally, the purchasing agency is empowered to monitor the contractor's insurance status throughout the duration of the contract. This includes the right to request documentation of premium payments, a list of subcontractors involved, payroll records for all employees working on the project, and any other information deemed necessary to prevent workers' compensation fraud related to the public improvement.