By Turner of Harris                                   H.B. No. 1114
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the requirement that a licensed child care facility
    1-3  have certain liability insurance coverage.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subchapter C, Chapter 42, Human Resources Code,
    1-6  is amended by adding Section 42.0491 to read as follows:
    1-7        Sec. 42.0491.  LIABILITY INSURANCE REQUIRED.  (a)  A license
    1-8  holder shall maintain liability insurance coverage in the amount of
    1-9  $300,000 for each occurrence of negligence.  An insurance policy or
   1-10  contract required under this section must cover injury to a child
   1-11  that occurs while the child is on the premises of the license
   1-12  holder or in the care of the license holder.
   1-13        (b)  A license holder shall file with the division a
   1-14  certificate or other evidence from an insurance company showing
   1-15  that the license holder has an unexpired and uncancelled insurance
   1-16  policy or contract that meets the requirements of this section.
   1-17        (c)  Should the license holder for financial reasons or for
   1-18  lack of availability of an underwriter willing to issue a policy be
   1-19  unable to secure the insurance required under Subsection (a) or
   1-20  should the policy limits be exhausted, the license holder shall
   1-21  notify the parent or a person standing in parental relationship to
   1-22  each child for whom the license holder provides care a written
   1-23  notice that the liability coverage is not provided and there will
   1-24  not be a ground for suspension or revocation of the license
    2-1  holder's license under this chapter.  The license holder shall also
    2-2  notify the department that the coverage is not provided and provide
    2-3  the reason for same.  In no case shall the inability to secure
    2-4  coverage serve to indemnify the license holder for damages due to
    2-5  negligence.
    2-6        (d)  The insurance policy or contract shall be maintained at
    2-7  all times in an amount as required by this section.  Failure by a
    2-8  license holder to renew the policy or contract or to maintain the
    2-9  policy or contract in the required amount is a ground for
   2-10  suspension or revocation of the license holder's license under this
   2-11  chapter.
   2-12        (e)  This section does not apply to a group or registered day
   2-13  care home.
   2-14        SECTION 2.  This Act takes effect September 1, 1993, and
   2-15  applies only to an application for the issuance or renewal of a
   2-16  license by a child care facility filed on or after that date.
   2-17        SECTION 3.  The importance of this legislation and the
   2-18  crowded condition of the calendars in both houses create an
   2-19  emergency and an imperative public necessity that the
   2-20  constitutional rule requiring bills to be read on three several
   2-21  days in each house be suspended, and this rule is hereby suspended.