STAND. COM. REP. NO. 2604

Honolulu, Hawaii

RE: S.B. No. 2875

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 2875, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CHILD CARE PROVIDERS,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Repeal language that requires the Department of Human Services to determine the amount of liability insurance coverage required to be obtained and maintained by child care providers;

(2) Repeal language that requires child care providers to disclose a summary of information for liability insurance coverage, including the insurer's name and contact information, coverage amounts, and effective dates; and

(3) Amend Act 161, Session Laws of Hawaii 2017 (Act 161), by extending the deadline for the Department of Human Services to submit a report to the Legislature, amending the information to be included in the report, and extending the implementation and enforcement deadline for the liability insurance requirements until July 1, 2019.

Your Committee received testimony in support of this measure from the Department of Human Services.

Your Committee finds that the intent of Act 161 was to strengthen minimum standards on child care and improve the health and safety of children by requiring child care providers subject to regulation by the Department of Human Services (Department) to obtain and maintain liability insurance coverage. Your Committee further finds that some child care providers have indicated to the Department that they were considering no longer registering with the Department or providing child care, as a result of Act 161's insurance requirements. The Department noted in testimony that there was a twelve percent decrease in the number of homes that were regulated by the Department between December 2016 and December 2017. The Department also noted that information from other states that require liability insurance coverage indicated most states only require child care providers to produce evidence of insurance, rather than establishing minimum coverage requirements within child care regulatory requirements.

Your Committee additionally finds that this measure therefore removes the requirement that the Department determine the amount of liability insurance coverage required for child care providers, as the Department is not the appropriate entity to determine the amount of such coverage, and removes the requirement for child care providers to disclose a summary of information for liability insurance coverage. This measure also provides the Department with additional time to submit a report to the Legislature regarding certain implementation and enforcement requirements under Act 161.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2875, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Health,

________________________________

ROSALYN H. BAKER, Chair