SB 108-INSURANCE  CHAIR CON BUNDE announced SB 108 to be up for consideration. SENATOR SEEKINS moved to adopt CSSB 108(L&C), version \F. CHAIR BUNDE objected for discussion purposes and asked Ms. Hall to explain new language LINDA HALL, Director, Division of Insurance, explained that new section 22 on page 13 adds language that deals with owner- controlled insurance programs and contractor controlled insurance programs. Today most of this concept is in already in the Worker's Compensation manual, but it's not part of statute. Owner-controlled Insurance Programs (OCIP) have been standard in industry for some time as a way to put all of the costs together - to provide the safety programs for the project and have that reflected in the rate. For large construction projects it means either the owner of the project or a general contractor will buy the casual insurance - the general liability, workers' compensation for the entire project. The oil pipeline is an example of that kind of process. Subcontractors who work on that type of program have to take out of their own insurance and therefore they don't have as much of a payroll with which to be able to negotiate as good a deal for themselves. Most of the subs support this for large construction projects, which have a cap of $50 million. This concept has expanded since 1995 into general maintenance and projects and operations, but she sees a detrimental potential affect on the marketplace. "As we contract further the amount of premium that's available for insurance companies, I think that has an overall negative affect on our marketplace in general." 2:09:01 PM MS. HALL said this particular section was sponsored by the independent insurance agents who worked directly with the consumer who are concerned about markets. The subs are concerned about their own insurance program. If they have to put $300,000 worth of payroll someplace else, then their own programs suffer on an on-going basis - as opposed to a one-time project. 2:10:57 PM CHAIR BUNDE asked if the $15 million is a floor or a cap. MS. HALL answered a floor. CHAIR BUNDE added that sections 28 and 29 remain in the bill after study, although they are acknowledged to be controversial. 2:12:31 PM At ease 2:12:58 PM CHAIR BUNDE said he would hold the bill until Thursday for a potential amendment.