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
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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
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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
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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
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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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