1-1  By:  Turner of Harris (Senate Sponsor - Shapiro)      H.B. No. 1114
    1-2        (In the Senate - Received from the House May 13, 1993;
    1-3  May 14, 1993, read first time and referred to Committee on Health
    1-4  and Human Services; May 23, 1993, reported favorably by the
    1-5  following vote:  Yeas 7, Nays 0; May 23, 1993, sent to printer.)
    1-6                            COMMITTEE VOTE
    1-7                          Yea     Nay      PNV      Absent 
    1-8        Zaffirini          x                               
    1-9        Ellis              x                               
   1-10        Madla              x                               
   1-11        Moncrief           x                               
   1-12        Nelson                                        x    
   1-13        Patterson          x                               
   1-14        Shelley            x                               
   1-15        Truan              x                               
   1-16        Wentworth                                     x    
   1-17                         A BILL TO BE ENTITLED
   1-18                                AN ACT
   1-19  relating to the requirement that a licensed child care facility
   1-20  have certain liability insurance coverage.
   1-21        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-22        SECTION 1.  Subchapter C, Chapter 42, Human Resources Code,
   1-23  is amended by adding Section 42.0491 to read as follows:
   1-24        Sec. 42.0491.  LIABILITY INSURANCE REQUIRED.  (a)  A license
   1-25  holder shall maintain liability insurance coverage in the amount of
   1-26  $300,000 for each occurrence of negligence.  An insurance policy or
   1-27  contract required under this section must cover injury to a child
   1-28  that occurs while the child is on the premises of the license
   1-29  holder or in the care of the license holder.
   1-30        (b)  A license holder shall file with the division a
   1-31  certificate or other evidence from an insurance company showing
   1-32  that the license holder has an unexpired and uncancelled insurance
   1-33  policy or contract that meets the requirements of this section.
   1-34        (c)  Should the license holder for financial reasons or for
   1-35  lack of availability of an underwriter willing to issue a policy be
   1-36  unable to secure the insurance required under Subsection (a) or
   1-37  should the policy limits be exhausted, the license holder shall
   1-38  notify the parent or a person standing in parental relationship to
   1-39  each child for whom the license holder provides care a written
   1-40  notice that the liability coverage is not provided and there will
   1-41  not be a ground for suspension or revocation of the license
   1-42  holder's license under this chapter.  The license holder shall also
   1-43  notify the department that the coverage is not provided and provide
   1-44  the reason for same.  In no case shall the inability to secure
   1-45  coverage serve to indemnify the license holder for damages due to
   1-46  negligence.
   1-47        (d)  The insurance policy or contract shall be maintained at
   1-48  all times in an amount as required by this section.  Failure by a
   1-49  license holder to renew the policy or contract or to maintain the
   1-50  policy or contract in the required amount is a ground for
   1-51  suspension or revocation of the license holder's license under this
   1-52  chapter.
   1-53        (e)  This section does not apply to a group or registered day
   1-54  care home.
   1-55        SECTION 2.  This Act takes effect September 1, 1993, and
   1-56  applies only to an application for the issuance or renewal of a
   1-57  license by a child care facility filed on or after that date.
   1-58        SECTION 3.  The importance of this legislation and the
   1-59  crowded condition of the calendars in both houses create an
   1-60  emergency and an imperative public necessity that the
   1-61  constitutional rule requiring bills to be read on three several
   1-62  days in each house be suspended, and this rule is hereby suspended.
   1-63                               * * * * *
   1-64                                                         Austin,
   1-65  Texas
   1-66                                                         May 23, 1993
   1-67  Hon. Bob Bullock
   1-68  President of the Senate
    2-1  Sir:
    2-2  We, your Committee on Health and Human Services to which was
    2-3  referred H.B. No. 1114, have had the same under consideration, and
    2-4  I am instructed to report it back to the Senate with the
    2-5  recommendation that it do pass and be printed.
    2-6                                                         Zaffirini,
    2-7  Chair
    2-8                               * * * * *
    2-9                               WITNESSES
   2-10  No witnesses appeared on H.B. No. 1114.