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Committee advances insurance omnibus bill with owner/contractor-controlled programs for large multifamily projects
Summary
The committee reviewed version N of House Bill 148, an insurance omnibus, discussed changes including owner-controlled and contractor-controlled insurance for major multifamily projects, and reported the bill out of committee by voice without objection.
The House Labor and Commerce Committee reviewed version N of House Bill 148, the insurance omnibus, and reported the bill out of committee without objection.
Committee discussion focused on a range of technical changes in version N, including language that would allow owner-controlled insurance programs (OCIPs) and contractor-controlled insurance programs (CCIPs) for major multifamily residential projects with at least 50 units and a minimum project cost of $25,000,000. Laurie Winghire, director of the Division of Insurance, summarized the changes and advised the committee on regulatory considerations, including availability of insurance for contractors not participating in OCIPs/CCIPs.
Winghire told the committee that the division had previously received requests for a much lower threshold and that regulators had concerns about market capacity; she said the division thought $25 million was high and that the division would be "supportive of 15" (million) if the committee considered lowering the threshold. Winghire cautioned that lowering the threshold could increase the number of projects qualifying for OCIP/CCIP and affect insurance availability for contractors outside those programs.
Other amendments in version N that staff summarized for members included deleting a section on umbrella insurance for elected officials, clarifying coverage for biopsies and consultations following last year’s breast-cancer screening bill, aligning colorectal cancer screening language with national standards (sections 49–51), revising language prohibiting depreciation of labor (section 58), and clarifying that the federal agency referenced in one section is the Department of Health and Human Services (section 65).
Representative Paul moved to report HB 148 (work order 34-LS0792) out of committee with individual recommendations and accompanying fiscal notes; with no objection, the committee approved the motion and the bill was reported out. Committee members asked clarifying questions during the hearing but did not record a roll-call vote in the transcript.
Committee staff and Winghire noted that OCIP/CCIP thresholds are intended to support large-scale housing projects that may improve affordability in certain markets while regulators monitor market capacity and availability of commercial insurance for other contractors. Staff advised members that the bill had undergone multiple hearings and that version N reflected stakeholder suggestions in health-care and construction sectors.
The committee concluded business and requested members remain to sign paperwork related to the reported bill.
