Bill Text: IA HF107 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act to require owners or operators of certain child care facilities and child care homes to provide evidence of financial responsibility, providing a penalty, and including applicability provisions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2015-01-28 - Subcommittee, Fry, Dawson, and Salmon. H.J. 171. [HF107 Detail]
Download: Iowa-2015-HF107-Introduced.html
House File 107 - Introduced HOUSE FILE BY DAWSON A BILL FOR 1 An Act to require owners or operators of certain child care 2 facilities and child care homes to provide evidence of 3 financial responsibility, providing a penalty, and including 4 applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1885YH (1) 86 av/sc PAG LIN 1 1 Section 1. NEW SECTION. 237A.9 Evidence of financial 1 2 responsibility. 1 3 1. A person shall not establish or operate a child care 1 4 facility or child care home unless the person furnishes 1 5 evidence acceptable to the department of the person's ability 1 6 to respond in damages for liability on account of accidents or 1 7 wrongdoings occurring subsequent to the effective date of the 1 8 evidence of financial responsibility in the amount of at least 1 9 five hundred thousand dollars because of bodily injury to or 1 10 the death of one person in any one accident or incident arising 1 11 out of the ownership or operation of a child care facility or 1 12 child care home. 1 13 2. The evidence of financial responsibility shall 1 14 consist of a surety bond, a liability insurance policy, or an 1 15 irrevocable letter of credit issued by a financial institution. 1 16 The evidence of financial responsibility shall be maintained 1 17 at not less than the required amount at all times during the 1 18 period of ownership or operation of the child care facility or 1 19 child care home. The department may accept a certification 1 20 of the evidence of financial responsibility. The evidence 1 21 of financial responsibility shall pay the amount that the 1 22 beneficiary is legally obligated to pay as damages caused by 1 23 the operations of the person's child care facility or child 1 24 care home. A liability insurance policy shall be subject to 1 25 the insurer's policy provisions filed with and approved by the 1 26 commissioner of insurance. 1 27 3. The department shall be notified ten days prior to any 1 28 reduction in the surety bond or liability insurance made at the 1 29 request of the person or of cancellation of the surety bond by 1 30 the surety or of cancellation of the liability insurance by the 1 31 insurer. The department shall be notified ninety days prior 1 32 to any reduction of the amount of the irrevocable letter of 1 33 credit at the request of the person or of the cancellation of 1 34 the irrevocable letter of credit by the financial institution. 1 35 The total and aggregate liability of the surety, insurer, 2 1 or financial institution for all claims shall be limited to 2 2 the face of the surety bond, liability insurance policy, or 2 3 irrevocable letter of credit. However, the surety, insurer, 2 4 or issuer remains liable for damages arising from accidents or 2 5 other wrongdoings that occurred during the effective period of 2 6 the evidence of financial responsibility. 2 7 4. A license or certificate of registration shall not be 2 8 issued to a child care facility under this chapter unless the 2 9 applicant furnishes evidence acceptable to the department of 2 10 compliance with this section. 2 11 5. A person shall not establish or operate a child care 2 12 home unless the applicant furnishes evidence acceptable to the 2 13 department of compliance with this section. 2 14 6. The department shall adopt rules pursuant to chapter 17A 2 15 to administer the provisions of this section. 2 16 Sec. 2. Section 237A.19, Code 2015, is amended by adding the 2 17 following new subsection: 2 18 NEW SUBSECTION. 4. A person who establishes or operates a 2 19 child care facility or child care home in violation of section 2 20 237A.9 commits a simple misdemeanor. Each day of continuing 2 21 violation after conviction, or notice from the department by 2 22 certified mail of the violation, is a separate offense. A 2 23 single charge alleging a continuing violation may be made in 2 24 lieu of filing charges for each day of violation. 2 25 Sec. 3. APPLICABILITY. This Act applies to initial 2 26 applications and applications for renewal of licenses or 2 27 certificates of registration of child care facilities filed on 2 28 or after January 1, 2016, and to child care homes established 2 29 or in operation on or after January 1, 2016. 2 30 EXPLANATION 2 31 The inclusion of this explanation does not constitute agreement with 2 32 the explanation's substance by the members of the general assembly. 2 33 This bill requires that a person shall not establish or 2 34 operate a child care facility or child care home unless the 2 35 person furnishes evidence to the department of human services 3 1 of the person's ability to respond in damages for accidents or 3 2 wrongdoings that arise out of the ownership or operation of the 3 3 child care facility or child care home. 3 4 The evidence of financial responsibility must consist of a 3 5 surety bond, a liability insurance policy, or an irrevocable 3 6 letter of credit issued by a financial institution in the 3 7 amount of at least $500,000 for damages because of bodily 3 8 injury to or the death of one person in any one accident or 3 9 incident arising out of the ownership or operation of a child 3 10 care facility or child care home. 3 11 The bill requires notice to the department of human services 3 12 if a surety bond, liability insurance, or irrevocable letter 3 13 of credit is reduced or canceled. The department is required 3 14 to adopt rules to administer the provisions of the bill. A 3 15 violation of the provisions of the bill is punishable as a 3 16 simple misdemeanor and can result in suspension or revocation 3 17 of the license or certificate of registration of a child care 3 18 facility. A simple misdemeanor is punishable by confinement 3 19 for no more than 30 days or a fine of at least $65 but not more 3 20 than $625 or by both. 3 21 Under Code chapter 237A, a child care facility includes a 3 22 child care center, which is a facility that provides child care 3 23 or preschool services for seven or more children and cannot 3 24 be established or operated without obtaining a license, and 3 25 includes a child development home, which is a person or program 3 26 that provides child care for six or more children and cannot 3 27 be established or operated without obtaining a certificate 3 28 of registration. A child care home is a person or program 3 29 providing child care to five or fewer children that is not 3 30 required to obtain a certificate of registration. 3 31 The bill is applicable to initial applications and 3 32 applications for renewal of licenses or certificates of 3 33 registration of child care facilities filed on or after January 3 34 1, 2016, and to child care homes established or in operation on 3 35 or after January 1, 2016. LSB 1885YH (1) 86 av/sc
