73R3342 JMM-D
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 not less than $15,000 in liability insurance
1-9 coverage for each child for whom the license holder provides care.
1-10 An insurance policy or contract required under this section must
1-11 cover injury to a child that occurs while the child is on the
1-12 premises of the license holder or in the care of the license
1-13 holder.
1-14 (b) A license holder shall file with the division a
1-15 certificate or other evidence from an insurance company showing
1-16 that the license holder has an unexpired and uncancelled insurance
1-17 policy or contract that meets the requirements of this section.
1-18 (c) The insurance policy or contract shall be maintained at
1-19 all times in an amount as required by this section. Failure by a
1-20 license holder to renew the policy or contract or to maintain the
1-21 policy or contract in the required amount is a ground for
1-22 suspension or revocation of the license holder's license under this
1-23 chapter.
1-24 SECTION 2. This Act takes effect September 1, 1993, and
2-1 applies only to an application for the issuance or renewal of a
2-2 license by a child care facility filed on or after that date.
2-3 SECTION 3. The importance of this legislation and the
2-4 crowded condition of the calendars in both houses create an
2-5 emergency and an imperative public necessity that the
2-6 constitutional rule requiring bills to be read on three several
2-7 days in each house be suspended, and this rule is hereby suspended.
2-8 COMMITTEE AMENDMENT NO. 1
2-9 Amend H.B. 1114 as follows:
2-10 On page 1, line 8, delete "not less than $15,000 in."
2-11 On page 1, line 9, delete the remainder of the sentence after
2-12 "coverage."
2-13 On page 1, line 9, after the word "coverage," insert:
2-14 in the amount of $300,000 for each occurence of negligence.
2-15 On page 1, line 18, insert a new paragraph (c), as follows, and
2-16 renumber as (d) the paragraph presently designated as (c):
2-17 (c) Should the license holder for financial reasons or for
2-18 lack of availability of an underwriter willing to issue a policy be
2-19 unable to secure the insurance required under (a) above or should
2-20 the policy limits be exhausted, the license holder shall notify the
2-21 parent or a person standing in parental relationship to each child
2-22 for whom the license holder provides care a written notice that the
2-23 liability coverage is not provided. The license holder shall also
2-24 notify the department that the coverage is not provided and provide
2-25 the reason for same. In no case shall the inability to secure
2-26 coverage serve to indemnify the license holder for damages due to
2-27 negligence.
3-1 McCall