| 1 | A bill to be entitled |
| 2 | An act relating to owner-controlled insurance programs for |
| 3 | public construction projects; amending s. 255.0517, F.S.; |
| 4 | revising definitions; revising conditions precedent to the |
| 5 | purchase by specified state agencies or entities of an |
| 6 | owner-controlled insurance program in connection with a |
| 7 | public construction project; reenacting s. 627.441(2), |
| 8 | F.S., relating to a requirement that liability insurers |
| 9 | offer coverage for a specified period for liability |
| 10 | arising out of current or completed operations under an |
| 11 | owner-controlled insurance program, for the purpose of |
| 12 | incorporating the amendment to s. 255.0517, F.S., in a |
| 13 | reference thereto; providing an effective date. |
| 14 |
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| 15 | Be It Enacted by the Legislature of the State of Florida: |
| 16 |
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| 17 | Section 1. Subsection (1) and paragraphs (a) and (b) of |
| 18 | subsection (2) of section 255.0517, Florida Statutes, are |
| 19 | amended to read: |
| 20 | 255.0517 Owner-controlled insurance programs for public |
| 21 | construction projects.-- |
| 22 | (1) DEFINITIONS.--As used in this section, the term: |
| 23 | (a) "Owner-controlled insurance program" means a |
| 24 | consolidated insurance program or series of insurance policies |
| 25 | issued to a public agency that may provide one or more of the |
| 26 | following types of insurance coverage for any contractor or |
| 27 | subcontractor working at a specified or multiple contracted work |
| 28 | site sites of a public construction project: general liability, |
| 29 | property damage excluding coverage for damage to real property, |
| 30 | workers' compensation, employer's liability, or pollution |
| 31 | liability coverage. |
| 32 | (b) "Specified contracted work site" means construction |
| 33 | being performed during one or more fiscal years at one site or a |
| 34 | series of contiguous sites separated only by a street, roadway, |
| 35 | waterway, or railroad right-of-way. A work site will not be |
| 36 | deemed to be contiguous for purposes of this section solely |
| 37 | because the work involves infrastructure improvements to related |
| 38 | delivery systems or along a continuous system for the provision |
| 39 | for water and power. |
| 40 | (c) "Multiple contracted work site" means construction |
| 41 | being performed at multiple sites during one or more fiscal |
| 42 | years that is part of an ongoing capital infrastructure |
| 43 | improvement program or involves the construction of one or more |
| 44 | public schools. |
| 45 | (2) PURCHASE REQUIREMENTS.--A state agency, political |
| 46 | subdivision, state university, community college, airport |
| 47 | authority, or other public agency in this state, or any |
| 48 | instrumentality thereof, may only purchase an owner-controlled |
| 49 | insurance program in connection with a public construction |
| 50 | project if it is determined necessary and in the best interest |
| 51 | of the public agency and if all of the following conditions are |
| 52 | met: |
| 53 | (a) The construction work will be performed under a single |
| 54 | prime contract and the estimated total amount of the prime |
| 55 | contract cost of the project is: |
| 56 | 1. Seventy-five million dollars or more; |
| 57 | 2. Thirty million dollars or more, if the project is for |
| 58 | the construction or renovation of two or more public schools |
| 59 | during a fiscal year; or |
| 60 | 3. Ten million dollars or more, if the project is for the |
| 61 | construction or renovation of one public school, regardless of |
| 62 | whether the project's duration extends beyond a fiscal year. |
| 63 | (b) The program maintains completed operations insurance |
| 64 | coverage for the period of time provided in s. 95.11(3)(c) for |
| 65 | actions founded on construction defects a term during which the |
| 66 | coverage is reasonably commercially available, as determined by |
| 67 | the public agency, but for no less than 5 years. |
| 68 | Section 2. For the purpose of incorporating the amendment |
| 69 | made by this act to section 255.0517, Florida Statutes, in a |
| 70 | reference thereto, subsection (2) of section 627.441, Florida |
| 71 | Statutes, is reenacted to read: |
| 72 | 627.441 Commercial general liability policies; coverage to |
| 73 | contractors for completed operations.-- |
| 74 | (2) A liability insurer must offer coverage at an |
| 75 | appropriate additional premium for liability arising out of |
| 76 | current or completed operations under an owner-controlled |
| 77 | insurance program for any period beyond the period for which the |
| 78 | program provides liability coverage, as specified in s. |
| 79 | 255.0517(2)(b). The period of such coverage must be sufficient |
| 80 | to protect against liability arising out of an action brought |
| 81 | within the time limits provided in s. 95.11(3)(c). |
| 82 | Section 3. This act shall take effect July 1, 2007. |