Amended in Assembly April 10, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 2376


Introduced by Assembly Member Weber

February 21, 2014


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

LEGISLATIVE COUNSEL’S DIGEST

AB 2376, as amended, Weber. 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.

Existing law, notwithstanding this general prohibition, authorizes the Director of General Services to establish a master builders’ risk insurance program for all state construction projects during construction. Existing law requires a deductible from a contractor of at least $25,000 for a master policy issued under the master builders’ risk insurance program.

This bill would instead require the contractor’s deductible under a master policy to bebegin delete at least $10,000.end deletebegin insert outlined in the request for bids or proposals.end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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SECTION 1.  

Section 11007 of the Government Code is
2amended to read:

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11007.  

(a) Except as expressly authorized by law or as
2specifically authorized by the Director of General Services,
3property belonging to the state shall not be insured against risk of
4damage or destruction by fire, and the policies of fire insurance
5upon any property belonging to the state shall not be renewed.
6This section is not applicable to the State Compensation Insurance
7Fund nor to property owned by it.

8(b) Notwithstanding the provisions of subdivision (a), the
9Director of General Services may establish a master builders’ risk
10insurance program for all state construction projects during
11construction.

12(c) Insurance authorized by this section shall be procured
13 utilizing insurance procurement procedures approved by the
14Director of General Services.

15(d) The master builders’ risk insurance program established
16pursuant to subdivision (b) shall provide that if a master policy is
17issued, that policy shall require a deductible from the contractor
18begin delete of at least ten thousand dollars ($10,000).end deletebegin insert, as outlined in the request
19for bids or proposals.end insert



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