HOUSE AMENDMENT Bill No. HB 1169 CS
1	CHAMBER ACTION
2	Senate House
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12	Representative Brown offered the following:
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14	Amendment (with title amendment)
15	Between line(s) 527 and 528, insert:
16	Section 14. Section 255.0517, Florida Statutes, is created
17	to read:
18	255.0517 Owner-controlled insurance programs for public
19	construction projects.--
20	(1) DEFINITIONS.--As used in this section, the term:
21	(a) “Owner-controlled insurance program” means a
22	consolidated insurance program or series of insurance policies
23	issued to a public agency that may provide one or more of the
24	following types of insurance coverage for all of the
25	contractors, subcontractors, architects, and engineers working
26	at specified or multiple contracted work sites of a public
27	construction project: general liability, property damage,
28	workers’ compensation, employer’s liability, builder’s risk, or
29	pollution liability coverage.
30	(b) “Specified contracted work site” means construction
31	being performed during one or more fiscal years at one site or a
32	series of contiguous sites separated only by a street, roadway,
33	waterway, or railroad right-of-way or along a continuous system
34	for the provision for water and power.
35	(c) “Multiple contracted work site” means construction
36	being performed at multiple sites during one or more fiscal
37	years that is part of a ongoing capital infrastructure
38	improvement program, or involves the construction of one or more
39	public schools.
40	(2) PURCHASE REQUIREMENTS.--A state agency, political
41	subdivision, state university, community college, airport
42	authority, or other public agency in this state, or any
43	instrumentality thereof, may only purchase an owner-controlled
44	insurance program in connection with a public construction
45	project if it is determined necessary and in the best interest
46	of the public agency and if each of the following conditions is
47	met:
48	(a) The estimated total cost of the project is:
49	1. Seventy-five million dollars or more;
50	2. Thirty million dollars or more, if the project is for
51	the construction or renovation of two or more public schools
52	during a fiscal year; or
53	3. Ten million dollars or more, if the project is for the
54	construction or renovation of one public school, regardless of
55	whether the project’s duration extends beyond a fiscal year.
56	(b) The program maintains completed operations insurance
57	coverage for a term during which the coverage is reasonably
58	commercially available, as determined by the public agency, but
59	for no less than 5 years.
60	(c) The bid or proposal specifications for the project
61	clearly specify, for all bidders or proposers, the insurance
62	coverage provided under the program and the minimum safety
63	requirements that must be met.
64	(d) The program does not prohibit a contractor or
65	subcontractor from purchasing any additional insurance coverage
66	that the contractor or subcontractor believes is necessary for
67	protection against any liability arising out of the contract.
68	The cost of the additional insurance must be disclosed to the
69	public agency.
70	(e) The program does not include surety insurance.
71	(f) The public agency may only purchase an owner-
72	controlled insurance policy that has a deductible or self-
73	insured retention if the deductible or self-insured retention
74	does not exceed $1 million per occurrence.
75	(g) The public agency is responsible for payment of the
76	applicable deductibles of all claims.
77	(3) EXEMPTIONS.--This section does not apply to the
78	following projects:
79	(a) Any project of the Department of Transportation that
80	is authorized under s. 337.11;
81	(b) Any existing project or projects of a public agency
82	that are the subject of an ongoing, owner-controlled insurance
83	program issued before October 1, 2003; or
84	(c) Any project of a public agency that is advertised by
85	the public agency before October 1, 2003, for the purpose of
86	receiving bids or proposals for the project.
87	Section 15. Section 627.441, Florida Statutes, is created
88	to read:
89	627.441 Commercial general liability policies; coverage to
90	contractors for completed operations.--
91	(1) As used in this section, the term:
92	(a) “Contractor” means a contractor, subcontractor,
93	architect, or engineer performing work on a public construction
94	project under contract with a public agency, as described in s.
95	255.0517(2).
96	(b) “Liability insurer” means an insurer issuing a
97	commercial general liability insurance policy in this state to a
98	contractor that provides coverage for liability arising out of
99	completed operations performed by the contractor or on the
100	contractor’s behalf.
101	(2) A liability insurer must offer coverage at an
102	appropriate additional premium for liability arising out of
103	current or completed operations under an owner-controlled
104	insurance program for any period beyond the period for which the
105	program provides liability coverage, as specified in s.
106	255.0517(2)(b). The period of such coverage must be sufficient
107	to protect against liability arising out of an action brought
108	within the time limits provided in s. 95.11(3)(c).
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111	================= T I T L E A M E N D M E N T =================
112	Remove line(s) 42 and 43, and insert:
113	contractor or surety; providing for liability; creating s.
114	255.0517, F.S.; defining terms; limiting the authority of
115	certain public agencies to purchase owner-controlled insurance
116	programs for public construction projects; establishing purchase
117	requirements; providing exemptions; creating s. 627.441, F.S.;
118	requiring insurers issuing commercial general liability policies
119	to offer coverage for completed operations liability for certain
120	contractors to the extent that coverage is not provided under an
121	owner-controlled insurance program; providing an effective date.