This bill establishes pooled risk management programs specifically designed for child care centers and foster family homes in the state. It introduces a new chapter, Chapter 5-E, into the existing law, which outlines the purpose, definitions, and operational standards for these programs. The bill emphasizes that pooled risk management can alleviate the financial burden of securing insurance through traditional carriers and asserts that such programs, once established, will not be subject to state insurance regulation or taxation. The bill also mandates that these programs must meet specific organizational and operational standards, including annual audits and actuarial evaluations.

Key provisions of the bill include the requirement for at least ten child care facilities or foster family homes to agree in writing to form a liability pool, the types of coverage that can be provided, and the establishment of governance structures for the pooled programs. Additionally, the bill ensures confidentiality regarding claims information and clarifies that participation in these programs does not expose child care centers or foster family homes to liability for the actions of the pooled program or other participants. The act will take effect 60 days after its passage.