CS/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.;
4providing and revising definitions; extending the time for
5which an owner-controlled insurance program must maintain
6completed operations insurance coverage as a condition
7precedent to the purchase by specified state agencies or
8entities of an owner-controlled insurance program in
9connection with a public construction project; exempting
10certain contractors and subcontractors from eligibility
11requirements for certain workers' compensation rating
12plans; authorizing certain contractors and subcontractors
13to combine payrolls for workers' compensation coverage
14under certain circumstances; prohibiting the combining of
15construction of public agency services, systems,
16facilities, and other public works for certain purposes;
17providing exceptions for certain capital infrastructure
18improvement programs; specifying additional projects
19exempt from application of program requirements; providing
20an effective date.
21
22Be It Enacted by the Legislature of the State of Florida:
23
24     Section 1.  Subsection (1) and paragraphs (b) and (f) of
25subsection (2) of section 255.0517, Florida Statutes, are
26amended, present subsection (3) is renumbered as subsection (4)
27and amended, and a new subsection (3) is added to that section,
28to read:
29     255.0517  Owner-controlled insurance programs for public
30construction projects.--
31     (1)  DEFINITIONS.--As used in this section, the term:
32     (a)  "Capital infrastructure improvement program" means a
33public agency program involving the construction of a public
34service, system, facility, or other public work, including, but
35not limited to, potable water, wastewater, reclaimed water,
36stormwater, drainage, streets or roads, intermodal
37transportation, electric service, gas service, airport services,
38or seaport services, and services, systems, facilities, or other
39public works incidental thereto.
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)  CAPITAL INFRASTRUCTURE IMPROVEMENT PROGRAM.--The
86construction of a single public agency service, system,
87facility, or other public work may not be combined with the
88construction of another public agency service, system, facility,
89or public work to satisfy the amount specified in subparagraph
90(2)(a)1. unless the multiple services, systems, facilities, or
91other public works are part of:
92     (a)  A capital infrastructure improvement program that will
93be performed under a single prime contract; or
94     (b)  An interrelated capital infrastructure improvement
95program that interconnects the housing or transportation of
96persons or cargo arriving via an airport or seaport, and the
97combined estimated costs of the construction projects exceed
98$125 million.
99     (4)(3)  EXEMPTIONS.--This section does not apply to the
100following projects:
101     (a)  Any project of the Department of Transportation which
102is authorized under s. 337.11;
103     (b)  Any existing project or projects of a public agency
104which are the subject of an ongoing, owner-controlled insurance
105program issued before October 1, 2004; or
106     (c)  Any project of a public agency which is advertised by
107the public agency before October 1, 2004, for the purpose of
108receiving bids or proposals for the project; or.
109     (d)  Any project or projects of a public agency which is
110committed to an ongoing, owner-controlled insurance program
111issued before October 1, 2007.
112     Section 2.  This act shall take effect October 1, 2007.


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