HB 1087 2003
1	CHAMBER ACTION
2
3
4
5
6	The Committee on State Administration recommends the following:
7
8	Committee Substitute
9	Remove the entire bill and insert:
10	A bill to be entitled
11	An act relating to insurance; creating s. 255.0517, F.S.;
12	defining terms; limiting the authority of certain public
13	agencies to purchase owner-controlled insurance programs
14	for public construction projects; establishing purchase
15	requirements; providing exemptions; creating s. 627.441,
16	F.S.; requiring insurers issuing commercial general
17	liability policies to offer coverage for completed
18	operations liability for certain contractors to the extent
19	that coverage is not provided under an owner-controlled
20	insurance program; providing an effective date.
21
22	Be It Enacted by the Legislature of the State of Florida:
23
24	Section 1. Section 255.0517, Florida Statutes, is created
25	to read:
26	255.0517 Owner-controlled insurance programs for public
27	construction projects.--
28	(1) DEFINITIONS.--As used in this section, the term:
29	(a) “Owner-controlled insurance program” means a
30	consolidated insurance program or series of insurance policies
31	issued to a public agency that may provide one or more of the
32	following types of insurance coverage for all of the
33	contractors, subcontractors, architects, and engineers working
34	at specified or multiple contracted work sites of a public
35	construction project: general liability, property damage,
36	workers’ compensation, employer’s liability, builder’s risk, or
37	pollution liability coverage.
38	(b) “Specified contracted work site” means construction
39	being performed during one or more fiscal years at one site or a
40	series of contiguous sites separated only by a street, roadway,
41	waterway, or railroad right-of-way or along a continuous system
42	for the provision for water and power.
43	(c) “Multiple contracted work site” means construction
44	being performed at multiple sites during one or more fiscal
45	years that is part of a ongoing capital infrastructure
46	improvement program, or involves the construction of one or more
47	public schools.
48	(2) PURCHASE REQUIREMENTS.--A state agency, political
49	subdivision, state university, community college, airport
50	authority, or other public agency in this state, or any
51	instrumentality thereof, may only purchase an owner-controlled
52	insurance program in connection with a public construction
53	project if it is determined necessary and in the best interest
54	of the public agency and if each of the following conditions is
55	met:
56	(a) The estimated total cost of the project is:
57	1. Seventy-five million dollars or more;
58	2. Thirty million dollars or more, if the project is for
59	the construction or renovation of two or more public schools
60	during a fiscal year; or
61	3. Ten million dollars or more, if the project is for the
62	construction or renovation of one public school, regardless of
63	whether the project’s duration extends beyond a fiscal year.
64	(b) The program maintains completed operations insurance
65	coverage for a term during which the coverage is reasonably
66	commercially available, as determined by the public agency, but
67	for no less than 5 years.
68	(c) The bid or proposal specifications for the project
69	clearly specify, for all bidders or proposers, the insurance
70	coverage provided under the program and the minimum safety
71	requirements that must be met.
72	(d) The program does not prohibit a contractor or
73	subcontractor from purchasing any additional insurance coverage
74	that the contractor or subcontractor believes is necessary for
75	protection against any liability arising out of the contract.
76	The cost of the additional insurance must be disclosed to the
77	public agency.
78	(e) The program does not include surety insurance.
79	(f) The public agency may only purchase an owner-
80	controlled insurance policy that has a deductible or self-
81	insured retention if the deductible or self-insured retention
82	does not exceed $1 million per occurrence.
83	(g) The public agency is responsible for payment of the
84	applicable deductibles of all claims.
85	(3) EXEMPTIONS.--This section does not apply to the
86	following projects:
87	(a) Any project of the Department of Transportation that
88	is authorized under s. 337.11;
89	(b) Any existing project or projects of a public agency
90	that are the subject of an ongoing, owner-controlled insurance
91	program issued before October 1, 2003; or
92	(c) Any project of a public agency that is advertised by
93	the public agency before October 1, 2003, for the purpose of
94	receiving bids or proposals for the project.
95	Section 2. Section 627.441, Florida Statutes, is created
96	to read:
97	627.441 Commercial general liability policies; coverage to
98	contractors for completed operations.--
99	(1) As used in this section, the term:
100	(a) “Contractor” means a contractor, subcontractor,
101	architect, or engineer performing work on a public construction
102	project under contract with a public agency, as described in s.
103	255.0517(2).
104	(b) “Liability insurer” means an insurer issuing a
105	commercial general liability insurance policy in this state to a
106	contractor that provides coverage for liability arising out of
107	completed operations performed by the contractor or on the
108	contractor’s behalf.
109	(2) A liability insurer must offer coverage at an
110	appropriate additional premium for liability arising out of
111	current or completed operations under an owner-controlled
112	insurance program for any period beyond the period for which the
113	program provides liability coverage, as specified in s.
114	255.0517(2)(b). The period of such coverage must be sufficient
115	to protect against liability arising out of an action brought
116	within the time limits provided in s. 95.11(3)(c).
117	Section 3. This act shall take effect October 1, 2003.