CS/HB 843

1
A bill to be entitled
2An act relating to owner-controlled insurance programs for
3public construction projects; amending s. 255.0517, F.S.;
4revising definitions; extending the time for which an
5owner-controlled insurance program must maintain completed
6operations insurance coverage as a condition precedent to
7the purchase by specified state agencies or entities of an
8owner-controlled insurance program in connection with a
9public construction project; exempting certain contractors
10and subcontractors from eligibility requirements for
11certain workers' compensation rating plans; authorizing
12certain contractors and subcontractors to combine payrolls
13for workers' compensation coverage under certain
14circumstances; specifying additional projects exempt from
15application of program requirements; providing an
16effective date.
17
18Be It Enacted by the Legislature of the State of Florida:
19
20     Section 1.  Subsection (1) and paragraphs (b) and (f) of
21subsection (2) of section 255.0517, Florida Statutes, are
22amended, and paragraph (d) is added to subsection (3) of that
23section, to read:
24     255.0517  Owner-controlled insurance programs for public
25construction projects.--
26     (1)  DEFINITIONS.--As used in this section, the term:
27     (a)  "Capital infrastructure improvement program" means a
28construction program with respect to a single public agency
29provided service, system, or facility, including, but not
30limited to, potable water, wastewater, reclaimed water,
31stormwater, drainage, streets or roads, intermodal
32transportation, electric service, gas service, airport services,
33or seaport services, and services, systems, or facilities
34incidental to such services, systems, and facilities. A single
35public agency service, system, or facility shall not be combined
36with another public agency service, system, or facility to
37satisfy the amount specified in subparagraph (2)(a)1. unless the
38construction of such services, systems, or facilities are
39performed under a single prime contract.
40     (b)(c)  "Multiple contracted work site" means construction
41being performed at multiple sites during one or more fiscal
42years that is part of an ongoing capital infrastructure
43improvement program or involves the construction of one or more
44public schools.
45     (c)(a)  "Owner-controlled insurance program" means a
46consolidated insurance program or series of insurance policies
47issued to a public agency that may provide one or more of the
48following types of insurance coverage for any contractor or
49subcontractor working at specified or multiple contracted work
50sites of a public construction project: general liability,
51property damage excluding coverage for damage to real property,
52workers' compensation, employer's liability, or pollution
53liability coverage.
54     (d)(b)  "Specified contracted work site" means construction
55being performed during one or more fiscal years at one site or a
56series of contiguous sites separated only by a street, roadway,
57waterway, or railroad right-of-way or along a single continuous
58system for the provision for water and power.
59     (2)  PURCHASE REQUIREMENTS.--A state agency, political
60subdivision, state university, community college, airport
61authority, or other public agency in this state, or any
62instrumentality thereof, may only purchase an owner-controlled
63insurance program in connection with a public construction
64project if it is determined necessary and in the best interest
65of the public agency and if all of the following conditions are
66met:
67     (b)  The program maintains completed operations insurance
68coverage for a term during which the coverage is reasonably
69commercially available, as determined by the public agency, but
70for no less than 10 5 years.
71     (f)  The public agency may only purchase an owner-
72controlled insurance policy that has a deductible or self-
73insured retention if the deductible or self-insured retention
74does not exceed $1 million per occurrence. Contractors,
75including any owner or principal acting as a general contractor,
76and subcontractors performing work under a construction project
77insured by an owner-controlled insurance program are not
78required to individually satisfy eligibility requirements for
79large deductible workers' compensation rating plans. Such
80contractors and subcontractors may combine their payrolls under
81the owner-controlled insurance program for workers' compensation
82coverage so long as the minimum deductible for the construction
83project is $100,000 or more and the standard estimated premium
84for the construction project is $500,000 or more.
85     (3)  EXEMPTIONS.--This section does not apply to the
86following projects:
87     (d)  Any project of a public agency which is committed to
88an ongoing, owner-controlled insurance program issued before
89October 1, 2007.
90     Section 2.  This act shall take effect October 1, 2007.


CODING: Words stricken are deletions; words underlined are additions.