| 1 | Representative(s) Ross offered the following: |
| 2 |
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| 3 | Amendment (with title amendment) |
| 4 | Remove everything after the enacting clause, and insert: |
| 5 | Section 1. Section 627.442, Florida Statutes, is created |
| 6 | to read: |
| 7 | 627.442 Construction contract insurance provisions; |
| 8 | acceptance, rejection, or application.-- |
| 9 | (1) If a written construction contract requires a |
| 10 | subcontractor, sub-subcontractor, or materialman to provide an |
| 11 | insurance policy or certificate of insurance to the general |
| 12 | contractor or another subcontractor for work performed or |
| 13 | materials provided, which extends coverage rights to an |
| 14 | additional insured, the general contractor or subcontractor is |
| 15 | deemed to have accepted the insurance policy or certificate of |
| 16 | insurance as conforming to the written construction contract |
| 17 | unless the general contractor or subcontractor rejects the |
| 18 | insurance policy or certificate of insurance in writing within |
| 19 | 30 business days for commercial construction projects and 7 |
| 20 | business days for residential construction projects after |
| 21 | receipt of the insurance policy or certificate of insurance. The |
| 22 | written rejection must specify the reason for rejection. |
| 23 | However, the general contractor or subcontractor may not be |
| 24 | deemed to have accepted an insurance policy or certificate of |
| 25 | insurance that does not comply with the insurance coverage |
| 26 | limits specified in the construction contract, that was |
| 27 | knowingly and fraudulently altered, or does not accurately |
| 28 | reflect the coverages contained in the policy in force. |
| 29 | (2) After a general contractor or subcontractor accepts an |
| 30 | insurance policy or certificate of insurance or is deemed to |
| 31 | have accepted the insurance policy or certificate of insurance, |
| 32 | an owner, general contractor, or subcontractor may not use the |
| 33 | lack of conforming insurance as a reason to reject work |
| 34 | previously completed by a subcontractor or sub-subcontractor, |
| 35 | reject materials previously supplied by a materialman, or |
| 36 | withhold payment for work previously completed or materials |
| 37 | previously supplied. However, the general contractor or |
| 38 | subcontractor may reject work previously completed or materials |
| 39 | previously supplied or withhold payment for such work or |
| 40 | materials if the policy or certificate provided by the |
| 41 | subcontractor, sub-subcontractor, or materialman: |
| 42 | (a) Does not comply with the insurance coverage limits |
| 43 | specified in the construction contract; |
| 44 | (b) Was knowingly and fraudulently altered or does not |
| 45 | accurately reflect the coverages contained in the policy in |
| 46 | force; or |
| 47 | (c) Is canceled, nonrenewed, or materially and adversely |
| 48 | altered such that the policy or certificate no longer satisfies |
| 49 | contract requirements. |
| 50 | (3) Subsection (1) does not preclude a general contractor |
| 51 | or subcontractor from rejecting as nonconforming an insurance |
| 52 | policy or certificate of insurance previously accepted or deemed |
| 53 | to have been accepted; however, such a rejection shall be in |
| 54 | writing and shall specify the reason for rejection. A general |
| 55 | contractor or subcontractor who rejects in writing an insurance |
| 56 | policy or certificate of insurance as nonconforming and states |
| 57 | the specific reason for such rejection may withhold payment for |
| 58 | the work performed or materials supplied after the date of the |
| 59 | rejection of the policy or certificate. |
| 60 | (4) This section shall not apply if at the time of the |
| 61 | request for proposals or bids, or prior to the subcontractor, |
| 62 | sub-subcontractor, or materialman commencing work or supplying |
| 63 | materials under the construction contract, the general |
| 64 | contractor or subcontractor provides a sample of an acceptable |
| 65 | certificate of insurance or a one-page schedule accurately |
| 66 | reflecting all insurance requirements which extend coverage |
| 67 | rights to an additional insured for that contract to the |
| 68 | subcontractor, sub-subcontractor, or materialman and the |
| 69 | insurance provided by the subcontractor, sub-subcontractor, or |
| 70 | materialman does not comply with the construction contract. A |
| 71 | schedule or sample certificate of insurance issued under this |
| 72 | subsection shall not be deemed to amend or modify the contract |
| 73 | between the parties in any way or to waive any requirement of |
| 74 | the contract unless the schedule or certificate expressly states |
| 75 | that such an amendment, modification, or waiver is intended. |
| 76 | (5) For purposes of this section, term: |
| 77 | (a) "Residential construction project" means the |
| 78 | construction, remodeling, repair, or improvement of a one- |
| 79 | family, two-family, or three-family residence not exceeding two |
| 80 | habitable stories above no more than one uninhabitable story, |
| 81 | and accessory-use structures in connection therewith. |
| 82 | (b) "Commercial construction project" means any |
| 83 | construction, remodeling, repair, or improvement that does not |
| 84 | constitute a residential construction project. |
| 85 | (6) This section shall apply to contracts entered into on |
| 86 | or after October 1, 2006. |
| 87 | Section 2. Effective July 1, 2006, section 627.443, |
| 88 | Florida Statutes, is created to read: |
| 89 | 627.443 Workers' compensation policy |
| 90 | limitations.--Notwithstanding any other provision in this |
| 91 | chapter, any person requiring a workers' compensation policy |
| 92 | pursuant to a construction contract shall not require such |
| 93 | policy to be issued by an insurer or self-insurance fund that is |
| 94 | rated by a nationally recognized insurance rating service, |
| 95 | provided the issuing insurer or self-insurance fund is subject |
| 96 | to part V of chapter 631. |
| 97 | Section 3. Except as otherwise expressly provided in this |
| 98 | act, this act shall take effect October 1, 2006. |
| 99 |
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| 100 | ======= T I T L E A M E N D M E N T ======= |
| 101 | Remove the entire title, and insert: |
| 102 | A bill to be entitled |
| 103 | An act relating to construction contracts; creating s. |
| 104 | 627.442, F.S.; specifying acceptance of certain insurance |
| 105 | provisions of a construction contract under certain |
| 106 | circumstances; providing exceptions; prohibiting certain |
| 107 | actions after acceptance of such provisions; providing an |
| 108 | exception authorizing such actions under certain |
| 109 | circumstances; authorizing contractors or subcontractors |
| 110 | to reject certain accepted construction contract insurance |
| 111 | provisions as nonconforming under certain circumstances; |
| 112 | authorizing such contractors and subcontractors to |
| 113 | withhold payment for work performed or materials supplied |
| 114 | under certain circumstances; prohibiting rejecting certain |
| 115 | policies of insurance on certain grounds; specifying |
| 116 | nonapplication of construction contract insurance |
| 117 | provisions under certain circumstances; providing |
| 118 | construction; providing definitions; providing for |
| 119 | application to certain contracts; creating s. 627.443, |
| 120 | F.S.; prohibiting certain persons from requiring workers' |
| 121 | compensation policies to be issued by certain entities |
| 122 | under certain circumstances; providing effective dates. |