SB1803 104TH GENERAL ASSEMBLY

LRB104 11865 JDS 21955 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB1803

Introduced 2/5/2025, by Sen. Ram Villivalam

SYNOPSIS AS INTRODUCED:

New Act

Creates the Liability Insurance for Child Care Providers Act. Directs the Department of Children and Family Services, in consultation with stakeholders, including licensed child care providers, business owners, insurance providers, and others, to conduct a study to investigate (1) the existing regulations under the Child Care Licensing Act; (2) the availability and affordability of liability insurance for licensed child care providers; (3) the impact of regulatory actions and citations issued by licensing representatives on the ability of child care providers to obtain or maintain adequate liability insurance coverage; and (4) best practices in other states for balancing regulation and insurance requirements to promote safe and sustainable child care programs. Requires the Department to conduct a systematic review of its administrative rules and procedures as necessary to reform the child care licensing regulatory system to prioritize collaboration and educational support over punitive measures. Directs the Department to investigate specified actions that could be taken to improve the affordability of insurance for child care providers. Effective immediately.

A BILL FOR

AN ACT concerning child care.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Liability Insurance for Child Care Providers Act.

Section 5. Findings and purpose.

(a) The General Assembly finds that there is an ongoing concern regarding the availability and affordability of liability insurance for licensed child care providers within the State of Illinois.

(b) The purpose of this Act is to establish a framework for examining the Child Care Licensing Act and to assess the availability and affordability of liability insurance for licensed child care providers, with particular focus on identifying and addressing the regulatory barriers affecting child care operations, safety standards, and insurance coverage.

Section 10. Interim study on child care licensing and liability insurance.

(a) The Department of Children and Family Services, in consultation with stakeholders, including licensed child care providers, business owners, insurance providers, and others, shall conduct a study to investigate:

(1) the existing rules adopted by the Department of Children and Family Services under the Child Care Licensing Act;

(2) the availability and affordability of liability insurance for licensed child care providers;

(3) the impact of regulatory actions and citations issued by licensing representatives on child care providers' ability to obtain or maintain adequate liability insurance coverage; and

(4) best practices in other states for balancing regulation and insurance requirements to promote safe and sustainable child care programs.

(b) The study shall include recommendations for improving coordination between insurance and licensing agencies, and how such cooperation can enhance clarity, consistency, and safety in the child care sector.

Section 15. Reform of child care licensing regulatory system.

(a) Following completion of the interim study required under Section 10, the Department of Children and Family Services shall conduct a systematic review of its administrative rules and procedures as necessary to reform the child care licensing regulatory system to prioritize collaboration and educational support over punitive measures. This reform shall focus on:

(1) shifting the approach of Department of Children and Family Services licensing representatives from a punitive system to a cooperative one that is characterized by collaboration and the enhancement of safety and operational practices rather than solely punitive measures;

(2) training licensing representatives of the Department of Children and Family Services to recognize the impact of citations on child care programs, particularly on the ability to maintain insurance coverage; and

(3) implementing a licensing monitoring point system that is weighted based on the severity of violations and the potential harm or risk to children or program staff.

(b) To ensure that child care providers are not unfairly penalized, the reforms implemented by the Department of Children and Family Services under this Section shall ensure that:

(1) no licensing violation are posted within 100 days of a program monitoring visit, unless the violation is uncorrected after that time period; and

(2) child care providers are permitted up to 90 days from the date of a program monitoring visit to submit evidence showing that a violation cited during the visit was not, in fact, a violation at the time of the visit.

Section 20. Support for insurance affordability. To further address the rising costs of liability insurance for child care providers, the Department of Children and Family Services shall assess and report to the General Assembly within one year after the effective date of this Act on the feasibility of the following measures:

(1) the development of insurance subsidies or discounts to reduce the cost of liability insurance for licensed child care providers; and

(2) the creation of reinsurance pools, allowing private providers to join the State Insurance Pool, caps on premiums, policy adjustments, or other mechanisms designed to control and stabilize insurance costs for child care programs.

Section 25. Implementation and oversight.

(a) The Department of Children and Family Services is responsible for implementation and oversight of the provisions of this Act.

(b) The Department of Children and Family Services shall review progress on the implementation of this Act annually and provide regular reports on the outcomes of the study, reforms, and any actions taken to address the issues identified.

Section 99. Effective date. This Act takes effect upon becoming law.