authorize purchasing agency verification and monitoring of workers' compensation insurance coverage obtained by public improvement contractors.

SB 86 requires South Dakota state agencies to verify that public construction contractors have valid workers' compensation insurance before work begins on state-funded projects. During the project, agencies can request proof of insurance payments, subcontractor lists, and payroll records to prevent fraud. This directly affects contractors working on public improvements and state agencies managing those contracts, with the key mechanism being mandatory pre-contract verification and ongoing monitoring of insurance coverage.