HB331 Summary

• Requires the risk manager, with Finance Director approval, to develop gap coverage and gap plus coverage programs for public school buildings under the Department of Postsecondary Education's jurisdiction.

• Gap coverage allows reconstruction of school buildings with superior materials (improved construction type from ISO 1-3 to ISO 4) and increased square footage when damages exceed 80 percent of insured value, based on current construction standards and occupancy.

• Gap plus coverage permits selection of insurance for normally uncovered expenses including site preparation, underground utilities, and paving, with maximum coverage limited to 10 percent of destroyed building's insured value and requiring 80 percent or greater damage threshold.

• Makes gap and gap plus coverage mandatory for K-12 systems and public two-year postsecondary institutions with qualifying buildings, with additional premiums paid annually from the Public School Fund to the Division of Risk Management.

• Effective date is the first day of the third month following passage and approval by the Governor.