FOR AN ACT ENTITLED, An Act to revise the provisions under which the Bureau of Administration may enter into contracts for insurance and reinsurance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
    Section 1. That § 3-22-5 be amended to read as follows:
    3-22-5. The bureau may:

            (1)    Select a director who shall serve at the pleasure of the bureau;

            (2)    Enter contracts for actuarial determinations, claims adjustment and investigation, loss control and risk management, legal services, or other services the director determines to be necessary to carry out the purposes of this chapter;

            (3)    Enter contracts for insurance and reinsurance the director determines to be necessary to carry out the purposes of this chapter. Any such contract is not subject to the provisions of chapter 5-23 chapters 5-18A and 5-18-D;

            (4)    Develop a coverage document, agreed to by the director and the Governor, to establish the type and scope of covered claims, limits of coverage, terms and conditions of coverage, and costs of coverage; and

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            (5)    Based on annual actuarial calculations, impose and collect contributions from covered state entities for the estimated amount necessary to extend coverage and maintain appropriate reserves for covered claims.