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.