| 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; extending the time for which an |
| 5 | owner-controlled insurance program must maintain completed |
| 6 | operations insurance coverage as a condition precedent to |
| 7 | the purchase by specified state agencies or entities of an |
| 8 | owner-controlled insurance program in connection with a |
| 9 | public construction project; exempting certain contractors |
| 10 | and subcontractors from eligibility requirements for |
| 11 | certain workers' compensation rating plans; authorizing |
| 12 | certain contractors and subcontractors to combine payrolls |
| 13 | for workers' compensation coverage under certain |
| 14 | circumstances; specifying additional projects exempt from |
| 15 | application of program requirements; providing an |
| 16 | effective date. |
| 17 |
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| 18 | Be It Enacted by the Legislature of the State of Florida: |
| 19 |
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| 20 | Section 1. Subsection (1) and paragraphs (b) and (f) of |
| 21 | subsection (2) of section 255.0517, Florida Statutes, are |
| 22 | amended, and paragraph (d) is added to subsection (3) of that |
| 23 | section, to read: |
| 24 | 255.0517 Owner-controlled insurance programs for public |
| 25 | construction projects.-- |
| 26 | (1) DEFINITIONS.--As used in this section, the term: |
| 27 | (a) "Capital infrastructure improvement program" means a |
| 28 | construction program with respect to a single public agency |
| 29 | provided service, system, or facility, including, but not |
| 30 | limited to, potable water, wastewater, reclaimed water, |
| 31 | stormwater, drainage, streets or roads, intermodal |
| 32 | transportation, electric service, gas service, airport services, |
| 33 | or seaport services, and services, systems, or facilities |
| 34 | incidental to such services, systems, and facilities. A single |
| 35 | public agency service, system, or facility shall not be combined |
| 36 | with another public agency service, system, or facility to |
| 37 | satisfy the amount specified in subparagraph (2)(a)1. unless the |
| 38 | construction of such services, systems, or facilities are |
| 39 | performed under a single prime contract. |
| 40 | (b)(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 | (c)(a) "Owner-controlled insurance program" means a |
| 46 | consolidated insurance program or series of insurance policies |
| 47 | issued to a public agency that may provide one or more of the |
| 48 | following types of insurance coverage for any contractor or |
| 49 | subcontractor working at specified or multiple contracted work |
| 50 | sites of a public construction project: general liability, |
| 51 | property damage excluding coverage for damage to real property, |
| 52 | workers' compensation, employer's liability, or pollution |
| 53 | liability coverage. |
| 54 | (d)(b) "Specified contracted work site" means construction |
| 55 | being performed during one or more fiscal years at one site or a |
| 56 | series of contiguous sites separated only by a street, roadway, |
| 57 | waterway, or railroad right-of-way or along a single continuous |
| 58 | system for the provision for water and power. |
| 59 | (2) PURCHASE REQUIREMENTS.--A state agency, political |
| 60 | subdivision, state university, community college, airport |
| 61 | authority, or other public agency in this state, or any |
| 62 | instrumentality thereof, may only purchase an owner-controlled |
| 63 | insurance program in connection with a public construction |
| 64 | project if it is determined necessary and in the best interest |
| 65 | of the public agency and if all of the following conditions are |
| 66 | met: |
| 67 | (b) The program maintains completed operations insurance |
| 68 | coverage for a term during which the coverage is reasonably |
| 69 | commercially available, as determined by the public agency, but |
| 70 | for no less than 10 5 years. |
| 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. Contractors, |
| 75 | including any owner or principal acting as a general contractor, |
| 76 | and subcontractors performing work under a construction project |
| 77 | insured by an owner-controlled insurance program are not |
| 78 | required to individually satisfy eligibility requirements for |
| 79 | large deductible workers' compensation rating plans. Such |
| 80 | contractors and subcontractors may combine their payrolls under |
| 81 | the owner-controlled insurance program for workers' compensation |
| 82 | coverage so long as the minimum deductible for the construction |
| 83 | project is $100,000 or more and the standard estimated premium |
| 84 | for the construction project is $500,000 or more. |
| 85 | (3) EXEMPTIONS.--This section does not apply to the |
| 86 | following projects: |
| 87 | (d) Any project of a public agency which is committed to |
| 88 | an ongoing, owner-controlled insurance program issued before |
| 89 | October 1, 2007. |
| 90 | Section 2. This act shall take effect October 1, 2007. |