25.368.25 100th Legislative Session 157
2025 South Dakota Legislature
Senate Bill 157
SENATE ENGROSSED
Introduced by: Senator Peterson (Sue)
Underscores indicate new language.
Overstrikes indicate deleted language.
An Act to require proof of workers' compensation insurance for contractors of public 1
improvements . 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3
Section 1. That a NEW SECTION be added to chapter 5-18B: 4
A contract for a public improvement, as defined in § 5-18A-1, between a contractor 5
and a purchasing agency, as defined in § 5-18A-1, must contain a provision requiring 6
verification that the contractor and all subcontractors on the project have obtained 7
workers' compensation insurance. Any public improvement that is subsidized by a 8
government entity, including through a grant or tax increment financing, is subject to the 9
requirements of this Act, regardless of whether the government entity directly contracts 10
for the public improvement. 11
Section 2. That a NEW SECTION be added to chapter 5-18B: 12
The Department of Labor and Regulation and the purchasing agency have authority 13
to investigate and monitor the status of workers' compensation insurance coverage and 14
payment of premiums by any contractor or subcontractor for a public improvement. The 15
contractor must provide, at the request of the department or purchasing agency: 16
(1) A list of all subcontractors involved with the public improvement; 17
(2) Payroll records of employees of the contractor and any subcontractors involved 18
with the public improvement; and 19
(3) Any other information necessary to ensure compliance with the requirements of 20
this Act or to prevent the occurrence of workers' compensation fraud in connection 21
with the public improvement. 22