Commuter Rail Bill Goes to Governor With Extensive Insurance Liability Component

House Bill 1B, the Florida commuter rail legislation that was approved by both chambers of the Florida Legislature yesterday, December 8, 2009, was sent to Florida Governor Charlie Crist for consideration today, December 9.  The Governor has until December 24, 2009 to act on this bill.

Liability issues surrounding Florida’s proposed operation of a commuter rail system were the subject of extensive debate during the now-concluded Special Session, which was convened exclusively for the purpose of considering HB 1B. 

The final version of HB 1B, which can be viewed by clicking here, comprises extensive insurance-related provisions, including the following:

• Parameters within which the Florida Department of Transportation (“DOT”) may indemnify a freight rail operator from whom it has acquired interest in a rail corridor;
• DOT authorization to purchase liability insurance (not to exceed $200 million without Legislative approval), including coverage for itself, any freight rail operator, commuter rail service providers, governmental entities, or any ancillary development and establish a self-insurance retention fund;
• Operations governance, including the authority to limit the amount of the insurance and self-insurance retention funds, to set the scope of coverage for all damages and to maintain and provide a fund to cover liabilities arising from rail corridor ownership and operations; and
• Establishing that indemnification by contract, the purchase of insurance, or the creation of a self-insurance retention fund does not waive any defense of sovereign immunity for torts or increase liability limits for the DOT or liability of certain governmental entities.

Should you have any questions or comments, please contact Colodny Fass.

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