Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 1624
Barcode 670182
CHAMBER ACTION
Senate House
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04/16/2007 04:34 PM .
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11 The Committee on Banking and Insurance (Bennett) recommended
12 the following amendment:
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14 Senate Amendment (with title amendment)
15 Delete everything after the enacting clause
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17 and insert:
18 Section 1. Section 255.0517, Florida Statutes, is
19 amended to read:
20 255.0517 Owner-controlled insurance programs for
21 public construction projects.--
22 (1) DEFINITIONS.--As used in this section, the term:
23 (a) "Owner-controlled insurance program" means a
24 consolidated insurance program or series of insurance policies
25 issued to a public agency that may provide one or more of the
26 following types of insurance coverage for any contractor or
27 subcontractor working at specified or multiple contracted work
28 sites of a public construction project: general liability,
29 property damage excluding coverage for damage to real
30 property, workers' compensation, employer's liability, or
31 pollution liability coverage.
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 1624
Barcode 670182
1 (b) "Specified contracted work site" means
2 construction being performed during one or more fiscal years
3 at one site or a series of contiguous sites separated only by
4 a street, roadway, waterway, or railroad right-of-way or along
5 a single continuous system for the provision for water and
6 power.
7 (c) "Multiple contracted work site" means construction
8 being performed at multiple sites during one or more fiscal
9 years that is part of an ongoing capital infrastructure
10 improvement program or involves the construction of one or
11 more public schools.
12 (d) "Capital infrastructure improvement program" means
13 a public agency program involving the construction of a public
14 service, system, facility, or other public work, including,
15 but not limited to, potable water, wastewater, reclaimed
16 water, stormwater, drainage, streets or roads, intermodal
17 transportation, electric service, gas service, airport
18 services or seaport services, and services, systems,
19 facilities, or other public works incidental thereto.
20 (2) PURCHASE REQUIREMENTS.--A state agency, political
21 subdivision, state university, community college, airport
22 authority, or other public agency in this state, or any
23 instrumentality thereof, may only purchase an owner-controlled
24 insurance program in connection with a public construction
25 project if it is determined necessary and in the best interest
26 of the public agency and if all of the following conditions
27 are met:
28 (a) The estimated total cost of the project is:
29 1. Seventy-five million dollars or more;
30 2. Thirty million dollars or more, if the project is
31 for the construction or renovation of two or more public
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 1624
Barcode 670182
1 schools during a fiscal year; or
2 3. Ten million dollars or more, if the project is for
3 the construction or renovation of one public school,
4 regardless of whether the project's duration extends beyond a
5 fiscal year.
6 (b) The program maintains completed operations
7 insurance coverage for a term during which the coverage is
8 reasonably commercially available, as determined by the public
9 agency, but for no less than 10 5 years.
10 (c) The bid or proposal specifications for the project
11 clearly specify, for all bidders or proposers, the insurance
12 coverage provided under the program and the minimum safety
13 requirements that must be met.
14 (d) The program does not prohibit a contractor or
15 subcontractor from purchasing any additional insurance
16 coverage that the contractor or subcontractor believes is
17 necessary for protection against any liability arising out of
18 the contract. The cost of the additional insurance must be
19 disclosed to the public agency.
20 (e) The program does not include surety insurance.
21 (f) The public agency may only purchase an
22 owner-controlled insurance policy that has a deductible or
23 self-insured retention if the deductible or self-insured
24 retention does not exceed $1 million per occurrence.
25 Contractors, including any owner or principal acting as a
26 general contractor, and subcontractors performing work under a
27 construction project insured by an owner-controlled insurance
28 program are not required to individually satisfy eligibility
29 requirements for large deductible workers' compensation rating
30 plans. Such contractors and subcontractors may combine their
31 payrolls under the owner-controlled insurance program for
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 1624
Barcode 670182
1 workers' compensation coverage as long as the minimum
2 deductible for the construction project is $100,000 or more
3 and the standard estimated premium for the construction
4 project is $500,000 or more.
5 (g) The public agency is responsible for payment of
6 the applicable deductibles of all claims.
7 (3) CAPITAL INFRASTRUCTURE IMPROVEMENT PROGRAM.--The
8 construction of a single public agency service, system,
9 facility, or other public work may not be combined with the
10 construction of another public agency service, system,
11 facility, or other public work to satisfy the amount specified
12 in subparagraph (2)(a)1. unless the multiple services,
13 systems, facilities, or other public works are part of:
14 (a) A capital infrastructure improvement program that
15 will be performed under a single prime contract; or
16 (b) An interrelated capital infrastructure improvement
17 program that interconnects the housing or transportation of
18 persons or cargo arriving via an airport or seaport, and the
19 combined estimated costs of the construction projects exceed
20 $125 million.
21 (4)(3) EXEMPTIONS.--This section does not apply to the
22 following projects:
23 (a) Any project of the Department of Transportation
24 which is authorized under s. 337.11;
25 (b) Any existing project or projects of a public
26 agency which are the subject of an ongoing, owner-controlled
27 insurance program issued before October 1, 2004; or
28 (c) Any project of a public agency which is advertised
29 by the public agency before October 1, 2004, for the purpose
30 of receiving bids or proposals for the project; or.
31 (d) Any project or projects of a public agency which
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 1624
Barcode 670182
1 are committed to an ongoing, owner-controlled insurance
2 program issued before October 1, 2007.
3 Section 2. This act shall take effect October 1, 2007.
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7 And the title is amended as follows:
8 Delete everything before the enacting clause
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10 and insert:
11 A bill to be entitled
12 An act relating to owner-controlled insurance
13 programs for public construction projects;
14 amending s. 255.0517, F.S.; redefining the term
15 "specified contracted work site"; defining the
16 term "capital infrastructure improvement
17 program"; requiring purchase of
18 owner-controlled insurance in connection with a
19 public construction project if the program
20 maintains completed operations insurance
21 coverage for no less than 10 years; exempting
22 contractors and subcontractors working under a
23 construction project insured by an
24 owner-controlled insurance program from
25 individually satisfying eligibility
26 requirements for large deductible workers'
27 compensation rating plans; authorizing such
28 contractors and subcontractors to combine their
29 payrolls under the owner-controlled insurance
30 program for workers' compensation coverage as
31 long as the minimum deductible for the project
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Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 1624
Barcode 670182
1 is $100,000 or more and the standard estimated
2 premium is $500,000 or more; providing for a
3 capital infrastructure improvement program;
4 providing limitations concerning when the
5 construction of a single public agency service,
6 system, facility, or other public work may be
7 combined with the construction of another
8 public agency service, system, facility, or
9 other public work to satisfy the amount
10 specified for the purchase requirements;
11 providing an exemption for any project of a
12 public agency which is committed to an ongoing
13 owner-controlled insurance program issued
14 before October 1, 2007; providing an effective
15 date.
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