Require that taxpayer funded pool arrangements providing workers' compensation coverage demonstrate financial stability, reliable management, and fair pricing.
Impact
The implications of SB92 are significant for the regulation of workers' compensation pools in South Dakota. By enforcing stricter financial reporting and performance review criteria, the bill seeks to protect both the state and its citizens from the risks associated with poorly managed pool arrangements. Additionally, the creation of a management plan that describes governance and operational structures aims to ensure that each pool operates effectively and adheres to necessary best practices, benefiting potential pool members and taxpayers alike.
Summary
Senate Bill 92 aims to improve the oversight and management of taxpayer-funded pool arrangements that provide workers' compensation coverage. The bill requires these pools to demonstrate financial stability, reliable management, and fair pricing by mandating annual audits of their financial statements. It emphasizes public access to these audits, requiring that they be made available within five working days on the Department of Legislative Audit’s website, thereby enhancing transparency in the financial operations of these arrangements.
Contention
While the bill has garnered support for its objectives of accountability and transparency, debates may arise regarding the potential burden it places on smaller pool arrangements unable to meet the stringent requirements. Critics may argue that the cost of compliance and the rigorous oversight could disproportionately impact smaller entities, limiting their ability to compete with larger pools or private sector providers. This tension between necessary regulation and the operational flexibility of pool arrangements could be a focal point of discussion moving forward.