03/13/2023 03:15 PM House LABOR & COMMERCE

         HB  75-OWNER & CONTRACTOR CONTROLLED INSURANCE                                                                     
                                                                                                                                
3:16:10 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER announced that the  first order of business would be                                                               
HOUSE BILL  NO. 75, "An  Act relating to coverage  for additional                                                               
insureds   under  owner   and  contractor   controlled  insurance                                                               
programs; and providing for an effective date."                                                                                 
                                                                                                                                
3:16:35 PM                                                                                                                    
                                                                                                                                
LORI WING-HEIER,  Director, Division of Insurance,  Department of                                                               
Commerce, Community,  and Economic Development,  provided invited                                                               
testimony on Amendment  1 to HB 75.  She  stated that Amendment 1                                                               
would clarify the language in  the proposed legislation regarding                                                               
additional  insurance.   She explained  that the  amendment would                                                               
make it easier for large  projects to have an owner-controlled or                                                               
contractor-controlled insurance  program for every  contractor or                                                               
subcontractor type.   Anyone working on that site  would be named                                                               
on the owner-controlled or  contractor-controlled insurance.  The                                                               
amendment  would  clarify  that  there are  two  ways  additional                                                               
insurance could be required.                                                                                                    
                                                                                                                                
3:18:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   RUFFRIDGE  moved   Amendment   1,  labeled   33-                                                               
GH1009\A.1, Marx, 2/22/23 to HB 75, which read as follows:                                                                      
                                                                                                                                
     Page 1, line 9:                                                                                                            
          Delete "or"                                                                                                       
                                                                                                                                
     Page 1, lines 11 - 13:                                                                                                     
          Delete "[; OR                                                                                                         
               (4)  INSURANCE POLICIES ENDORSED TO NAME ONE                                                                     
     OR MORE PERSONS AS ADDITIONAL INSUREDS]"                                                                                   
          Insert "; or                                                                                                          
               (4)  insurance policies endorsed to name one                                                                     
     or  more persons  as additional  insureds, if  naming a                                                                
     person as an  additional insured is a  term required by                                                                
     a contract; this  paragraph does not apply  to an owner                                                                
     controlled or  contractor controlled  insurance program                                                                
     for a major construction project"                                                                                      
                                                                                                                                
                                                                                                                                
REPRESENTATIVE PRAX objected for the purpose of discussion.                                                                     
                                                                                                                                
3:19:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX  asked whether the  owner of the  project and                                                               
subcontractors can still be covered by additional insurance.                                                                    
                                                                                                                                
MS. WING-HEIER  responded in the  affirmative.  In response  to a                                                               
follow-up  question,   she  said   that  the  division   has  had                                                               
"numerous" conversations with insurance  companies in the process                                                               
of working on the proposed legislation.                                                                                         
                                                                                                                                
3:20:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX  withdrew his  objection.    There being  no                                                               
further objection, Amendment 1 to HB 75 was adopted.                                                                            
                                                                                                                                
CHAIR SUMNER announced that HB 75, as amended, was held over.