| 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 | providing and revising definitions; extending the time for |
| 5 | which an owner-controlled insurance program must maintain |
| 6 | completed operations insurance coverage as a condition |
| 7 | precedent to the purchase by specified state agencies or |
| 8 | entities of an owner-controlled insurance program in |
| 9 | connection with a public construction project; exempting |
| 10 | certain contractors and subcontractors from eligibility |
| 11 | requirements for certain workers' compensation rating |
| 12 | plans; authorizing certain contractors and subcontractors |
| 13 | to combine payrolls for workers' compensation coverage |
| 14 | under certain circumstances; prohibiting the combining of |
| 15 | construction of public agency services, systems, |
| 16 | facilities, and other public works for certain purposes; |
| 17 | providing exceptions for certain capital infrastructure |
| 18 | improvement programs; specifying additional projects |
| 19 | exempt from application of program requirements; providing |
| 20 | an effective date. |
| 21 |
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| 22 | Be It Enacted by the Legislature of the State of Florida: |
| 23 |
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| 24 | Section 1. Subsection (1) and paragraphs (b) and (f) of |
| 25 | subsection (2) of section 255.0517, Florida Statutes, are |
| 26 | amended, present subsection (3) is renumbered as subsection (4) |
| 27 | and amended, and a new subsection (3) is added to that section, |
| 28 | to read: |
| 29 | 255.0517 Owner-controlled insurance programs for public |
| 30 | construction projects.-- |
| 31 | (1) DEFINITIONS.--As used in this section, the term: |
| 32 | (a) "Capital infrastructure improvement program" means a |
| 33 | public agency program involving the construction of a public |
| 34 | service, system, facility, or other public work, including, but |
| 35 | not limited to, potable water, wastewater, reclaimed water, |
| 36 | stormwater, drainage, streets or roads, intermodal |
| 37 | transportation, electric service, gas service, airport services, |
| 38 | or seaport services, and services, systems, facilities, or other |
| 39 | public works incidental thereto. |
| 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) CAPITAL INFRASTRUCTURE IMPROVEMENT PROGRAM.--The |
| 86 | construction of a single public agency service, system, |
| 87 | facility, or other public work may not be combined with the |
| 88 | construction of another public agency service, system, facility, |
| 89 | or public work to satisfy the amount specified in subparagraph |
| 90 | (2)(a)1. unless the multiple services, systems, facilities, or |
| 91 | other public works are part of: |
| 92 | (a) A capital infrastructure improvement program that will |
| 93 | be performed under a single prime contract; or |
| 94 | (b) An interrelated capital infrastructure improvement |
| 95 | program that interconnects the housing or transportation of |
| 96 | persons or cargo arriving via an airport or seaport, and the |
| 97 | combined estimated costs of the construction projects exceed |
| 98 | $125 million. |
| 99 | (4)(3) EXEMPTIONS.--This section does not apply to the |
| 100 | following projects: |
| 101 | (a) Any project of the Department of Transportation which |
| 102 | is authorized under s. 337.11; |
| 103 | (b) Any existing project or projects of a public agency |
| 104 | which are the subject of an ongoing, owner-controlled insurance |
| 105 | program issued before October 1, 2004; or |
| 106 | (c) Any project of a public agency which is advertised by |
| 107 | the public agency before October 1, 2004, for the purpose of |
| 108 | receiving bids or proposals for the project; or. |
| 109 | (d) Any project or projects of a public agency which is |
| 110 | committed to an ongoing, owner-controlled insurance program |
| 111 | issued before October 1, 2007. |
| 112 | Section 2. This act shall take effect October 1, 2007. |