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