BILL ANALYSIS



H.B. 1418
By: Sylvester Turner
04-24-95
Committee Report (Unamended)


BACKGROUND

     In response to accidents involving children at small child-care centers where no liability insurance coverage was carried by
the facility, lawmakers in 1993 enacted H.B. 1114, establishing a
requirement that licensed child-care facilities maintain liability
insurance coverage of $300,000 for each occurrence of negligence,
including coverage of injuries to children that occur on the
license holder's premises or in his/her care.  Group and registered
family homes were excepted in the legislation.

     The legislation provided an exemption for facilities unable to
meet the liability insurance requirement for financial reasons or
lack of available insurance, permitting license holders to notify
the parent or guardian of each child in care written notice that
such coverage is not provided.  In either case, the license holder
must also inform the Department of Protective & Regulatory Services
whether liability coverage has been secured.

     In implementing the statute, the Department applied the new
requirement to a wide range of child-care facilities, including
those providing 24-hour care.  These types of facilities already
meet other insurance requirements, causing duplication and
unnecessary expense to these operators.


PURPOSE

     H.B. 1418 would provide further exemptions from the liability
insurance requirement for certain categories of child-care
facilities which the statute was not intended to cover.


RULEMAKING AUTHORITY

     It is the committee's opinion that H.B. 1418 does not
expressly grant any additional rulemaking authority to a state
officer, department, agency or institution.


SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Sec. 42.0491(e), Human Resources Code, by adding
new subsections (2)-(7), providing an exemption from the liability
insurance requirement for the following types of child-care
facilities:  

     (2)  child-care institution;
     (3)  foster group home;
     (4)  foster family home;
     (5)  agency group home;
     (6)  agency home; or
     (7)  child-placing agency.

SECTION 2. Emergency clause, effective in 90 days.

SUMMARY OF COMMITTEE ACTION

     The Human Services Committee convened in a public hearing on
March 20, 1995, and the Chairman laid out H.B. 1418 and asked Rep.
Sylvester Turner to explain the bill.  The following witness
testified for the bill:  Rita Powell, TX Ass'n of Licensed
Children's Services.  No one testified against or on H.B. 1418 and
the bill was left pending.

     In a public hearing on April 24, 1995, the committee took up
H.B. 1418 which had been pending.  Rep. Maxey moved to report H.B.
1418 favorably without amendment and Rep. Davila seconded.  The
motion prevailed by a record vote of 8 Ayes, 0 Nays, 0 PNV and 1
Absent.