By Sims                                                S.B. No. 948
       74R6153 CLG-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to liability insurance required for certain licensed
    1-3  facilities that provide care for children 24 hours a day.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 42.0491(a), Human Resources Code, is
    1-6  amended to read as follows:
    1-7        (a)  A license holder shall maintain liability insurance
    1-8  coverage in the amount of $300,000 for each occurrence of
    1-9  negligence.  An insurance policy or contract required under this
   1-10  section must cover injury to a child that occurs while the child is
   1-11  on the premises of the license holder or in the care of the license
   1-12  holder.  For a facility that provides or will provide care 24 hours
   1-13  a day, an insurance policy or contract required under this section
   1-14  must also cover bodily injury, death, or property damage arising
   1-15  from the conduct of a child on the premises of the facility or in
   1-16  the care of the facility without regard to whether the facility may
   1-17  be held liable for the conduct under law.
   1-18        SECTION 2.  Section 3(b), Article 21.49-18, Insurance Code,
   1-19  is amended to read as follows:
   1-20        (b)  The pool may provide primary liability coverage to a
   1-21  child-care facility in an amount not to exceed $300,000.  The
   1-22  primary liability coverage shall provide the additional coverage
   1-23  required under Section 42.0491(a), Human Resources Code, for a
   1-24  facility that provides or will provide care 24 hours a day.  The
    2-1  pool may provide excess liability coverage to a child-care facility
    2-2  only in an amount determined by the board to be actuarially sound.
    2-3  The pool is liable on any claim only to the limit provided by the
    2-4  coverage of the child-care facility against which the claim is
    2-5  made.
    2-6        SECTION 3.  This Act takes effect September 1, 1995, and
    2-7  applies only to an insurance policy that is delivered, issued for
    2-8  delivery, or renewed on or after September 1, 1995.  A policy that
    2-9  is delivered, issued for delivery, or renewed before September 1,
   2-10  1995, is governed by the law as it existed immediately before the
   2-11  effective date of this Act, and that law is continued in effect for
   2-12  that purpose.
   2-13        SECTION 4.  The importance of this legislation and the
   2-14  crowded condition of the calendars in both houses create an
   2-15  emergency and an imperative public necessity that the
   2-16  constitutional rule requiring bills to be read on three several
   2-17  days in each house be suspended, and this rule is hereby suspended.