HB 0093A 2003
1	A bill to be entitled
2	An act relating to owner-controlled insurance programs
3	for public construction projects; creating s. 255.0517,
4	F.S.; defining terms; limiting the authority of certain
5	public agencies to purchase owner-controlled insurance
6	programs for public construction projects; establishing
7	purchase requirements; providing exemptions; creating s.
8	627.441, F.S.; requiring insurers issuing commercial
9	general liability policies to offer coverage for
10	completed operations liability for certain contractors to
11	the extent that coverage is not provided under an owner-
12	controlled insurance program; providing for construction
13	of the act in pari materia with laws enacted during the
14	2003 Regular Session of the Legislature; providing an
15	effective date.
16
17	Be It Enacted by the Legislature of the State of Florida:
18
19	Section 1. Section 255.0517, Florida Statutes, is created
20	to read:
21	255.0517 Owner-controlled insurance programs for public
22	construction projects.--
23	(1) DEFINITIONS.--As used in this section, the term:
24	(a) “Owner-controlled insurance program” means a
25	consolidated insurance program or series of insurance policies
26	issued to a public agency that may provide one or more of the
27	following types of insurance coverage for all of the
28	contractors, subcontractors, architects, and engineers working
29	at specified or multiple contracted work sites of a public
30	construction project: general liability, property damage,
31	workers’ compensation, employer’s liability, builder’s risk, or
32	pollution liability coverage.
33	(b) “Specified contracted work site” means construction
34	being performed during one or more fiscal years at one site or a
35	series of contiguous sites separated only by a street, roadway,
36	waterway, or railroad right-of-way or along a continuous system
37	for the provision for water and power.
38	(c) “Multiple contracted work site” means construction
39	being performed at multiple sites during one or more fiscal
40	years that is part of an ongoing capital infrastructure
41	improvement program or involves the construction of one or more
42	public schools.
43	(2) PURCHASE REQUIREMENTS.--A state agency, political
44	subdivision, state university, community college, airport
45	authority, or other public agency in this state, or any
46	instrumentality thereof, may only purchase an owner-controlled
47	insurance program in connection with a public construction
48	project if it is determined necessary and in the best interest
49	of the public agency and if each of the following conditions is
50	met:
51	(a) The estimated total cost of the project is:
52	1. Seventy-five million dollars or more;
53	2. Thirty million dollars or more, if the project is for
54	the construction or renovation of two or more public schools
55	during a fiscal year; or
56	3. Ten million dollars or more, if the project is for the
57	construction or renovation of one public school, regardless of
58	whether the project’s duration extends beyond a fiscal year.
59	(b) The program maintains completed operations insurance
60	coverage for a term during which the coverage is reasonably
61	commercially available, as determined by the public agency, but
62	for no less than 5 years.
63	(c) The bid or proposal specifications for the project
64	clearly specify, for all bidders or proposers, the insurance
65	coverage provided under the program and the minimum safety
66	requirements that must be met.
67	(d) The program does not prohibit a contractor or
68	subcontractor from purchasing any additional insurance coverage
69	that the contractor or subcontractor believes is necessary for
70	protection against any liability arising out of the contract.
71	The cost of the additional insurance must be disclosed to the
72	public agency.
73	(e) The program does not include surety insurance.
74	(f) The public agency may only purchase an owner-
75	controlled insurance policy that has a deductible or self-
76	insured retention if the deductible or self-insured retention
77	does not exceed $1 million per occurrence.
78	(g) The public agency is responsible for payment of the
79	applicable deductibles of all claims.
80	(3) EXEMPTIONS.--This section does not apply to the
81	following projects:
82	(a) Any project of the Department of Transportation that
83	is authorized under s. 337.11;
84	(b) Any existing project or projects of a public agency
85	that are the subject of an ongoing, owner-controlled insurance
86	program issued before October 1, 2003; or
87	(c) Any project of a public agency that is advertised by
88	the public agency before October 1, 2003, for the purpose of
89	receiving bids or proposals for the project.
90	Section 2. Section 627.441, Florida Statutes, is created
91	to read:
92	627.441 Commercial general liability policies; coverage to
93	contractors for completed operations.--
94	(1) As used in this section, the term:
95	(a) “Contractor” means a contractor, subcontractor,
96	architect, or engineer performing work on a public construction
97	project under contract with a public agency, as described in s.
98	255.0517(2).
99	(b) “Liability insurer” means an insurer issuing a
100	commercial general liability insurance policy in this state to a
101	contractor that provides coverage for liability arising out of
102	completed operations performed by the contractor or on the
103	contractor’s behalf.
104	(2) A liability insurer must offer coverage at an
105	appropriate additional premium for liability arising out of
106	current or completed operations under an owner-controlled
107	insurance program for any period beyond the period for which the
108	program provides liability coverage, as specified in s.
109	255.0517(2)(b). The period of such coverage must be sufficient
110	to protect against liability arising out of an action brought
111	within the time limits provided in s. 95.11(3)(c).
112	Section 3. If any law amended by this act was also amended
113	by a law enacted at the 2003 Regular Session of the Legislature,
114	such laws shall be construed as if they had been enacted at the
115	same session of the Legislature, and full effect shall be given
116	to each if possible.
117	Section 4. This act shall take effect October 1, 2003.
118