REPORT TITLE:
Family Child Care


DESCRIPTION:
(1)  Includes condominiums, apartments, and townhouses as types
   of residences eligible to be used as child care homes.
   Clarifies duties and rights between child care home and
   associations of apartment owners.  Mandates that persons
   providing child care in condominiums, apartments, and
   townhouses provide care for at least 2 children whose
   parents or guardians reside in the building if caring for 5
   or 6 children, and 1 child or more whose parents or
   guardians reside in the building if caring for 4 children or
   less.  Sunsets in 2 years.
(2)  Establishes a child care facilities grant fund to provide
   start-up or expansion capital to family child care homes and
   centers that are licensed or are seeking a license.  Makes
   an appropriation to the child care facilities grant fund.
   (SB513 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        513
THE SENATE                              S.B. NO.           S.D. 2
TWENTIETH LEGISLATURE, 1999                                H.D. 1
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO FAMILY CHILD CARE.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1                              PART I
 
 2      SECTION 1.  Chapter 663, Hawaii Revised Statutes, is amended
 
 3 by adding a new section to be appropriately designated and to
 
 4 read as follows:
 
 5      "§663-    Liability for operation of a family child care
 
 6 home.  (a)  No association of apartment owners shall prohibit the
 
 7 operation of a family child care home that complies with
 
 8 subsection (b) by an owner-occupant in a condominium, apartment,
 
 9 or townhouse; except that an association may establish the number
 
10 of units used as a family child care home to no less than one and
 
11 no more than three per cent in any condominium, apartment, or
 
12 townhouse complex.
 
13      (b)  A family child care home under subsection (a) shall be
 
14 in compliance with the Equal Opportunity for Individuals With
 
15 Disabilities (Americans With Disabilities Act of 1990, Title 42
 
16 United States Code section 12101, et seq., as amended); provided
 
17 that any improvements or remodeling made to the particular unit
 
18 of the family child care home or to the common elements to comply
 
19 with the Americans With Disabilities Act as it applies to the
 
20 family child care home shall be made and paid for by the operator
 
21 of the family child care home.
 
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 1      If the American with Disabilities Act requires that
 
 2 modifications or improvements be made to the common elements for
 
 3 the establishment of a family child care home, the operator of
 
 4 the family child care home shall obtain the approval of the
 
 5 association of apartment owners to make the modifications or
 
 6 improvements before undertaking any construction.
 
 7      (c)  No association of apartment owners shall be liable for
 
 8 any claims or causes of actions for injury to a child being cared
 
 9 for, or to any of the child's relatives, guardians, or caretakers
 
10 that occur within the family child care home or on the common
 
11 elements under subsection (a).
 
12      (d)  An association of apartment owners may require a family
 
13 child care home, as a condition precedent to operating a child
 
14 care business, to:
 
15      (1)  Indemnify, hold harmless, and defend the association of
 
16           apartment owners from all claims, including costs and
 
17           attorneys' fees, whether brought by an action or
 
18           administratively, relating to the operation of a family
 
19           child care home, including common elements that are
 
20           traversed by persons going to and from the family child
 
21           care home;
 
22      (2)  Reimburse the association of apartment owners for the
 
23           amount of any increase in insurance premiums incurred
 

 
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 1           by the association in the association's liability
 
 2           insurance attributable by the insurer to the operation
 
 3           of the family child care home;
 
 4      (3)  Require the parent, guardian, and caretaker of the
 
 5           child being cared for in the family child care home to
 
 6           sign a waiver of liability against the association of
 
 7           apartment owners; and
 
 8      (4)  Obtain liability insurance to cover the family child
 
 9           care home and the common elements that meets the
 
10           approval of the association of apartment owners and
 
11           that names the association of apartment owners as an
 
12           additional named insured, for liability claims arising
 
13           solely from the operation of the child care business;
 
14           provided that:
 
15           (A)  The policy limits shall be determined in
 
16                accordance with the declaration; and
 
17           (B)  The liability policy of the family child care home
 
18                shall be primary.
 
19      (e)  This section shall not apply to an association of
 
20 apartment owners that:
 
21      (1)  Allows a family child care home that is:
 
22           (A)  Not operated by an owner-occupant;
 
23           (B)  Above the fourth floor; or
 

 
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 1           (C)  Not in compliance with the Americans With
 
 2                Disabilities Act;
 
 3           or
 
 4      (2)  Allows more than three per cent of the total number of
 
 5           units subject to the association of apartment owners to
 
 6           be used as a family child care home.
 
 7      (f)  As used in this section:
 
 8      "Apartment" shall have the same meaning as in
 
 9 section 514A-3.
 
10      "Association of apartment owners" shall have the same
 
11 meaning as in section 514A-3, and includes a homeowners
 
12 association.
 
13      "Common elements" shall have the same meaning as in section
 
14 514A-3.
 
15      "Condominium" shall have the same meaning as in section
 
16 514A-3.
 
17      "Declaration" shall have the same meaning as in section
 
18 514A-3.
 
19      "Family child care home" shall have the same meaning as in
 
20 sections 46-15.35, 346-151, 501-231, and 502-111.
 
21      "Townhouse" shall have the same meaning as in
 
22 section 196-2."
 

 
 
 
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 1      SECTION 2.  Section 46-15.35, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (b) to read as follows:
 
 3      "(b)  For the purposes of this section, "family child care
 
 4 home" means a private [home where six or fewer children are cared
 
 5 for.] residence, including a home, condominium, apartment, or
 
 6 townhouse at which care may be provided for three to no more than
 
 7 six children, who are unrelated to the caregiver by blood,
 
 8 marriage, or adoption at any given time; provided that persons
 
 9 providing child care in a condominium, apartment, or townhouse
 
10 shall care for:
 
11      (1)  Two or more children whose parents or guardians reside
 
12           within the condominium, apartment, or townhouse when
 
13           there are five or six children receiving care in a
 
14           family child care home; and
 
15      (2)  One or more children whose parents or guardians reside
 
16           within the condominium, apartment, or townhouse when
 
17           there are four children or fewer receiving care in a
 
18           family child care home."
 
19      SECTION 3.  Section 346-151, Hawaii Revised Statutes, is
 
20 amended by amending the definition of "family child care home" to
 
21 read as follows:
 
22      ""Family child care home" means a private [home] residence,
 
23 including a home, condominium, apartment, or townhouse at which
 

 
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 1 care may be provided for three to no more than six children, who
 
 2 are unrelated to the caregiver by blood, marriage, or adoption,
 
 3 at any given time[.]; provided that persons providing child care
 
 4 in a condominium, apartment, or townhouse shall care for:
 
 5      (1)  Two or more children whose parents or guardians reside
 
 6           within the condominium, apartment, or townhouse when
 
 7           there are five or six children receiving care in a
 
 8           family child care home; and
 
 9      (2)  One or more children whose parents or guardians reside
 
10           within the condominium, apartment, or townhouse when
 
11           there are four children or fewer receiving care in a
 
12           family child care home."
 
13      SECTION 4.  Section 501-231, Hawaii Revised Statutes, is
 
14 amended by amending subsections (b) and (c) to read as follows:
 
15      "(b)  This provision shall not apply to:
 
16      (1)  Housing for older persons as defined by 42 United
 
17           States Code section 3607(b)(2);
 
18      (2)  Limited-equity housing cooperatives created pursuant to
 
19           chapter 421H; or
 
20      (3)  Cooperative housing corporations created pursuant to
 
21           chapter 421I[;
 
22      (4)  Condominium property regimes created pursuant to
 
23           Chapter 514A; or
 

 
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 1      (5)  Townhouse projects that consist of a series of three or
 
 2           more individual dwelling units having architectural
 
 3           unity and a common wall between each adjacent unit and
 
 4           in which the owners of the units are members of an
 
 5           association which is responsible for common areas
 
 6           available for use by the members of the association].
 
 7      (c)  For the purposes of this section "family child care
 
 8 home" means a private [home where six or fewer children are cared
 
 9 for.] residence, including a home, condominium, apartment, or
 
10 townhouse at which care may be provided for three to no more than
 
11 six children, who are unrelated to the caregiver by blood,
 
12 marriage, or adoption at any given time; provided that persons
 
13 providing child care in a condominium, apartment, or townhouse
 
14 shall care for:
 
15      (1)  Two or more children whose parents or guardians reside
 
16           within the condominium, apartment, or townhouse when
 
17           there are five or six children receiving care in a
 
18           family child care home; and
 
19      (2)  One or more children whose parents or guardians reside
 
20           within the condominium, apartment, or townhouse when
 
21           there are four children or fewer receiving care in a
 
22           family child care home."
 

 
 
 
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 1      SECTION 5.  Section 502-111, Hawaii Revised Statutes, is
 
 2 amended by amending subsections (b) and (c) to read as follows:
 
 3      "(b)  This provision shall not apply to:
 
 4      (1)  Housing for older persons as defined by 42 United
 
 5           States Code section 3607(b)(2);
 
 6      (2)  Limited-equity housing cooperatives created pursuant to
 
 7           chapter 421H; or
 
 8      (3)  Cooperative housing corporations created pursuant to
 
 9           chapter 421I[;
 
10      (4)  Condominium property regimes created pursuant to
 
11           chapter 514A; or
 
12      (5)  Townhouse projects that consist of a series of three or
 
13           more individual dwelling units having architectural
 
14           unity and a common wall between each adjacent unit and
 
15           in which the owners of the units are members of an
 
16           association which is responsible for common areas
 
17           available for use by the members of the association].
 
18      (c)  For the purposes of the section, "family child care
 
19 home" means a private [home where six or fewer children are cared
 
20 for.] residence, including a home, condominium, apartment, or
 
21 townhouse at which care may be provided for three to no more than
 
22 six children, who are unrelated to the caregiver by blood,
 
23 marriage, or adoption at any given time; provided that persons
 

 
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                                     S.B. NO.           S.D. 2
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 1 providing child care in a condominium, apartment, or townhouse
 
 2 shall care for:
 
 3      (1)  Two or more children whose parents or guardians reside
 
 4           within the condominium, apartment, or townhouse when
 
 5           there are five or six children receiving care in a
 
 6           family child care home; and
 
 7      (2)  One or more children whose parents or guardians reside
 
 8           within the condominium, apartment, or townhouse when
 
 9           there are four children or fewer receiving care in a
 
10           family child care home."
 
11                              PART II
 
12      SECTION 6.  The legislature finds that one way to improve
 
13 the quality of life of children is to increase the supply and
 
14 quality of child care.  One indicator of increased supply and
 
15 quality of care is an increase in the number of providers
 
16 receiving licenses or accreditation.  One strategy to increase
 
17 licensing and accreditation is to help providers overcome the
 
18 financial obstacles to starting or expanding their child care
 
19 business.
 
20      The purpose of this part is to establish a child care
 
21 facilities grant fund to provide start-up or expansion capital to
 
22 family child care homes and centers that are licensed or are
 
23 seeking a license.
 

 
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 1      SECTION 7.  Chapter 346, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to part VIII to be appropriately
 
 3 designated and to read as follows:
 
 4      "§346-    Child care facilities grant fund.  (a)  There is
 
 5 established the child care facilities grant fund to be
 
 6 administered by the department.  The purpose of the fund shall be
 
 7 to make grants for child care facilities.  Each grant shall not
 
 8 exceed $25,000, and shall be used as start-up capital or as
 
 9 expansion capital for family child care homes or centers that are
 
10 appropriately licensed or will become appropriately licensed.
 
11      (b)  All moneys appropriated by the legislature for purposes
 
12 of subsection (a) shall be deposited into the fund."
 
13      SECTION 8.  There is appropriated out of the general
 
14 revenues of the State of Hawaii the sum of $1 or so much thereof
 
15 as may be necessary for fiscal year 1999-2000 to be deposited
 
16 into the child care facilities grant fund for the purposes of
 
17 this part.
 
18      The sum appropriated shall be expended by the department of
 
19 human services for the purposes of this part.
 
20                             PART III
 
21      SECTION 9.  Statutory material to be repealed is bracketed.
 
22 New statutory material is underscored.
 

 
 
 
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 1      SECTION 10.  This Act shall take effect upon its approval;
 
 2 provided that:
 
 3      (1)  Section 1 shall apply to child care businesses, family
 
 4           child care homes, apartments, condominiums, and
 
 5           townhouses that are existing as of the effective date
 
 6           of this Act;
 
 7      (2)  Section 8 shall take effect on July 1, 1999; and
 
 8      (3)  Part I shall be repealed on June 30, 2001.