BILL NUMBER: SB 548	CHAPTERED  07/21/05

	CHAPTER  106
	FILED WITH SECRETARY OF STATE  JULY 21, 2005
	APPROVED BY GOVERNOR  JULY 21, 2005
	PASSED THE ASSEMBLY  JULY 7, 2005
	PASSED THE SENATE  MAY 16, 2005
	AMENDED IN SENATE  MAY 12, 2005

INTRODUCED BY   Senator Morrow

                        FEBRUARY 18, 2005

   An act to amend Section 11007 of the Government Code, relating to
state construction projects.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 548, Morrow  State construction projects: insurance.
   Existing law generally prohibits property belonging to the state
from being insured against risk of damage or destruction by fire,
with specified exceptions.
   This bill would, notwithstanding this general prohibition,
authorize the Director of General Services to establish a master
builders' risk insurance program for all state construction projects
during construction and would require that program to provide that if
a master policy is issued, that policy would require a deductible of
at least $25,000 from the contractor.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 11007 of the Government Code is amended to
read:
   11007.  (a) Except as expressly authorized by law or as
specifically authorized by the Director of General Services, property
belonging to the state shall not be insured against risk of damage
or destruction by fire, and the policies of fire insurance upon any
property belonging to the state shall not be renewed. This section is
not applicable to the State Compensation Insurance Fund nor to
property owned by it.
   (b) Notwithstanding the provisions of subdivision (a), the
Director of General Services may establish a master builders' risk
insurance program for all state construction projects during
construction.
   (c) Insurance authorized by this section shall be procured
utilizing insurance procurement procedures approved by the Director
of General Services.
   (d) The master builders' risk insurance program established
pursuant to subdivision (b) shall provide that if a master policy is
issued, that policy shall require a deductible from the contractor of
at least twenty-five thousand dollars ($25,000).