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





                                                   HOUSE AMENDMENT

                                    Bill No. CS/HB 311 & CS/HB 243

    Amendment No. 1 (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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 5                                           ORIGINAL STAMP BELOW

 6

 7

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 9

10                                                                

11  The Committee on Transportation & Economic Development

12  Appropriations offered the following:

13

14         Amendment (with title amendment) 

15         On page 1, line 24,

16

17  insert:

18         Section 1.  Subsection (16) of section 337.11, Florida

19  Statutes, is amended to read:

20         337.11  Contracting authority of department; bids;

21  emergency repairs, supplemental agreements, and change orders;

22  combined design and construction contracts; progress payments;

23  records; requirements of vehicle registration.--

24         (16)  The department is authorized to undertake and

25  contract to provide an owner controlled insurance plan (OCIP)

26  on any construction project or group of related construction

27  projects if the head of the department determines that an OCIP

28  will be both cost-effective for the department and otherwise

29  in its best interests.  Such OCIP may provide insurance

30  coverage for the department and for worker's compensation and

31  employers liability and general liability and builders risk

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                                                   HOUSE AMENDMENT

                                    Bill No. CS/HB 311 & CS/HB 243

    Amendment No. 1 (for drafter's use only)





 1  for contractors and subcontractors, for and in conjunction

 2  with any or all work performed on such projects.  The

 3  department may directly purchase such coverage in the manner

 4  provided for the purchase of commodities pursuant to s.

 5  287.057, or self-insure, or use a combination thereof, any

 6  other statutory provisions or limitations on self-insurance or

 7  purchase of insurance notwithstanding.  The department's

 8  authority hereunder includes the purchase of risk management,

 9  risk and loss control, safety management, investigative and

10  claims adjustment services, advancement of funds for payment

11  of claims, and other services reasonably necessary to process

12  and pay claims under and administer the OCIP.  In addition to

13  any prequalification required under s. 337.14, no contractor

14  shall be prequalified to bid on an OCIP project unless the

15  contractor's casualty and loss experience and safety record

16  meets the minimum requirements for OCIP coverage issuance on

17  the project, were the contractor to be awarded the project.

18  Exercise of the department's authority under this subsection

19  shall not be deemed a waiver of sovereign immunity.

20         Section 2.  Subsections (1), (2), (3), (7), and (8) of

21  section 337.185, Florida Statutes, are amended to read:

22         337.185  State Arbitration Board.--

23         (1)  To facilitate the prompt settlement of claims for

24  additional compensation arising out of construction contracts

25  between the department and the various contractors with whom

26  it transacts business, the Legislature does hereby establish

27  the State Arbitration Board, referred to in this section as

28  the "board." For the purpose of this section, "claim" shall

29  mean the aggregate of all outstanding claims by a party

30  arising out of a construction contract.  Every contractual

31  claim in an amount up to $250,000 $100,000 per contract or, at

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                                                   HOUSE AMENDMENT

                                    Bill No. CS/HB 311 & CS/HB 243

    Amendment No. 1 (for drafter's use only)





 1  the claimant's option, up to $500,000 $250,000 per contract

 2  or, upon agreement of the parties, up to $1,000,000 per

 3  contract that cannot be resolved by negotiation between the

 4  department and the contractor shall be arbitrated by the board

 5  after acceptance of the project by the department.  As an

 6  exception, either party to the dispute may request that the

 7  claim be submitted to binding private arbitration.  A court of

 8  law may not consider the settlement of such a claim until the

 9  process established by this section has been exhausted.

10         (2)  The board shall be composed of three members.  One

11  member shall be appointed by the head of the department, and

12  one member shall be elected by those construction companies

13  who are under contract with the department.  The third member

14  shall be chosen by agreement of the other two members.

15  Whenever the third member has a conflict of interest regarding

16  affiliation with one of the parties, the other two members

17  shall select an alternate member for that hearing. The head of

18  the department may select an alternative or substitute to

19  serve as the department member for any hearing or term. Each

20  member shall serve a 2-year term. The board shall elect a

21  chair, each term, who shall be the administrator of the board

22  and custodian of its records.

23         (3)  A hearing may be requested by the department or by

24  a contractor who has a dispute with the department which,

25  under the rules of the board, may be the subject of

26  arbitration.  The board shall conduct the hearing within 45

27  days of the request.  The party requesting the board's

28  consideration shall give notice of the hearing to each member.

29  If the board finds that a third party is necessary to resolve

30  the dispute, the board may vote to dismiss the claim, which

31  may thereafter be pursued in accordance with the laws of the

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                                                   HOUSE AMENDMENT

                                    Bill No. CS/HB 311 & CS/HB 243

    Amendment No. 1 (for drafter's use only)





 1  State of Florida a court of law.

 2         (7)  The members member of the board elected by

 3  construction companies and the third member of the board may

 4  receive compensation for the performance of their duties

 5  hereunder, from administrative fees received by the board,

 6  except that no employee of the department may receive

 7  compensation from the board. The compensation amount shall be

 8  determined by the board, but shall not exceed $125 per hour,

 9  up to a maximum of $1,000 $750 per day for each member

10  authorized to receive compensation.  Nothing in this section

11  shall prevent the member elected by construction companies

12  from being an employee of an association affiliated with the

13  industry, even if the sole responsibility of that member is

14  service on the board. Travel expenses for the industry member

15  may be paid by an industry association, if necessary. The

16  board may allocate funds annually for clerical and other

17  administrative services.

18         (8)  The party requesting arbitration shall pay a fee

19  to the board in accordance with a schedule established by it,

20  not to exceed $500 per claim which is $25,000 or less, not to

21  exceed $1,000 per claim which is in excess of $25,000 but not

22  exceeding $50,000, not to exceed $1,500 per claim which is in

23  excess of $50,000 but not exceeding $100,000, not to exceed

24  $2,000 per claim which is in excess of $100,000 but not

25  exceeding $200,000, and not to exceed $3,000 $2,500 per claim

26  which is in excess of $200,000 but not exceeding $300,000

27  $250,000, not to exceed $4,000 per claim which is in excess of

28  $300,000 but not exceeding $400,000, and not to exceed $5,000

29  per claim which is in excess of $400,000, to cover the cost of

30  administration and compensation of the board.

31

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                                                   HOUSE AMENDMENT

                                    Bill No. CS/HB 311 & CS/HB 243

    Amendment No. 1 (for drafter's use only)





 1  ================ T I T L E   A M E N D M E N T ===============

 2  And the title is amended as follows:

 3         On page 1, line 4, after "authorities;"

 4

 5  insert:

 6         amending s. 337.11, F.S.; repealing authority

 7         for owner controlled insurance plans in the

 8         Department of Transportation; amending s.

 9         337.185, F.S.; increasing claim limits with

10         respect to certain contractual claims governed

11         by the State Arbitration Board; revising

12         language with respect to hearings on certain

13         disputes; increasing certain fees;

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