Brief Description: Removing the deadline for regional transit authorities to acquire insurance by bid or by negotiation on certain projects.

Sponsors: By Representatives Simpson and Rodne.

House Committee on Transportation
Senate Committee on Transportation

Background:

Regional transit authorities (RTAs) may obtain insurance consistent with the risks, hazards, and liabilities of their projects. An RTA may also purchase insurance for the benefit of its board members, authority officers, and employees to insure against liability for omissions or acts that are performed in good faith and as part of their official duties.

For construction projects that cost over $100 million, RTAs were authorized to obtain owner-controlled insurance policies through the Owner Controlled Insurance Program (OCIP) until December 31, 2006. An OCIP policy permits a project owner to obtain a single insurance policy for all of its subcontractors, instead of each subcontractor purchasing separate policies.

Summary:

The authority for RTAs to obtain owner-controlled insurance for construction projects costing over $100 million is made permanent. The expiration date, December 31, 2006, on an RTA's authority to obtain such insurance is removed, and no new expiration date is imposed.

Votes on Final Passage:

House   94   0
Senate   48   0

Effective: July 22, 2007