Senate Bill sb1624

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    Florida Senate - 2007                                  SB 1624

    By Senator Bennett





    21-914A-07

  1                      A bill to be entitled

  2         An act relating to owner-controlled insurance

  3         programs for public construction projects;

  4         amending s. 255.0517, F.S.; redefining the term

  5         "owner-controlled insurance program" to exclude

  6         an insurance program that may provide coverage

  7         for a contractor or subcontractor working at

  8         multiple contracted sites; providing that work

  9         sites will not be deemed contiguous solely

10         because the work involves infrastructure

11         improvements to related delivery systems;

12         deleting the definition of "multiple contracted

13         work site"; requiring that certain contracts

14         for construction work be performed under a

15         single prime contract; revising a condition

16         precedent to the purchase by specified state

17         agencies or entities of an owner-controlled

18         insurance program in connection with a public

19         construction project; reenacting s. 627.441(2),

20         F.S., relating to a requirement that liability

21         insurers offer coverage for a specified period

22         for liability arising out of current or

23         completed operations under an owner-controlled

24         insurance program, for the purpose of

25         incorporating the amendment to s. 255.0517,

26         F.S., in a reference thereto; providing an

27         effective date.

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29  Be It Enacted by the Legislature of the State of Florida:

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    Florida Senate - 2007                                  SB 1624
    21-914A-07




 1         Section 1.  Subsections (1) and (2) of section

 2  255.0517, Florida Statutes, are amended to read:

 3         255.0517  Owner-controlled insurance programs for

 4  public construction projects.--

 5         (1)  DEFINITIONS.--As used in this section, the term:

 6         (a)  "Owner-controlled insurance program" means a

 7  consolidated insurance program or series of insurance policies

 8  issued to a public agency that may provide one or more of the

 9  following types of insurance coverage for any contractor or

10  subcontractor working at a specified or multiple contracted

11  work site sites of a public construction project: general

12  liability, property damage excluding coverage for damage to

13  real property, workers' compensation, employer's liability, or

14  pollution liability coverage.

15         (b)  "Specified contracted work site" means

16  construction being performed during one or more fiscal years

17  at one site or a series of contiguous sites separated only by

18  a street, roadway, waterway, or railroad right-of-way or along

19  a continuous system for the provision for water and power.

20  Work sites will not be deemed to be contiguous for purposes of

21  this section solely because the work involves infrastructure

22  improvements to related delivery systems.

23         (c)  "Multiple contracted work site" means construction

24  being performed at multiple sites during one or more fiscal

25  years that is part of an ongoing capital infrastructure

26  improvement program or involves the construction of one or

27  more public schools.

28         (2)  PURCHASE REQUIREMENTS.--A state agency, political

29  subdivision, state university, community college, airport

30  authority, or other public agency in this state, or any

31  instrumentality thereof, may only purchase an owner-controlled

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    Florida Senate - 2007                                  SB 1624
    21-914A-07




 1  insurance program in connection with a public construction

 2  project if it is determined necessary and in the best interest

 3  of the public agency and if all of the following conditions

 4  are met:

 5         (a)  The construction work will be performed under a

 6  single prime contract and the estimated total amount of the

 7  prime contract cost of the project is:

 8         1.  Seventy-five million dollars or more;

 9         2.  Thirty million dollars or more, if the project is

10  for the construction or renovation of two or more public

11  schools during a fiscal year; or

12         3.  Ten million dollars or more, if the project is for

13  the construction or renovation of one public school,

14  regardless of whether the project's duration extends beyond a

15  fiscal year.

16         (b)  The program maintains completed operations

17  insurance coverage for the period of time provided in s.

18  95.11(3)(c) for actions founded on construction defects a term

19  during which the coverage is reasonably commercially

20  available, as determined by the public agency, but for no less

21  than 5 years.

22         (c)  The bid or proposal specifications for the project

23  clearly specify, for all bidders or proposers, the insurance

24  coverage provided under the program and the minimum safety

25  requirements that must be met.

26         (d)  The program does not prohibit a contractor or

27  subcontractor from purchasing any additional insurance

28  coverage that the contractor or subcontractor believes is

29  necessary for protection against any liability arising out of

30  the contract. The cost of the additional insurance must be

31  disclosed to the public agency.

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    Florida Senate - 2007                                  SB 1624
    21-914A-07




 1         (e)  The program does not include surety insurance.

 2         (f)  The public agency may only purchase an

 3  owner-controlled insurance policy that has a deductible or

 4  self-insured retention if the deductible or self-insured

 5  retention does not exceed $1 million per occurrence.

 6         (g)  The public agency is responsible for payment of

 7  the applicable deductibles of all claims.

 8         Section 2.  For the purpose of incorporating the

 9  amendment made by this act to section 255.0517, Florida

10  Statutes, in a reference thereto, subsection (2) of section

11  627.441, Florida Statutes, is reenacted to read:

12         627.441  Commercial general liability policies;

13  coverage to contractors for completed operations.--

14         (2)  A liability insurer must offer coverage at an

15  appropriate additional premium for liability arising out of

16  current or completed operations under an owner-controlled

17  insurance program for any period beyond the period for which

18  the program provides liability coverage, as specified in s.

19  255.0517(2)(b). The period of such coverage must be sufficient

20  to protect against liability arising out of an action brought

21  within the time limits provided in s. 95.11(3)(c).

22         Section 3.  This act shall take effect July 1, 2007.

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    Florida Senate - 2007                                  SB 1624
    21-914A-07




 1            *****************************************

 2                          SENATE SUMMARY

 3    Redefines the term "owner-controlled insurance program"
      to exclude an insurance program that may provide coverage
 4    for a contractor or subcontractor working at multiple
      contracted sites. Provides that work sites will not be
 5    deemed contiguous solely because the work involves
      infrastructure improvements to related delivery systems.
 6    Deletes the definition of "multiple contracted work
      site." Provides a condition precedent for purchase by a
 7    state agency that construction work will be performed
      under a single prime contract. Revises a condition
 8    precedent to the purchase by specified state agencies or
      entities of an owner-controlled insurance program in
 9    connection with a public construction project.

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