SRC-PNG H.B. 1059 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 1059
By: Keel (Barrientos)
Economic Development
5/13/1999
Engrossed


DIGEST 

Currently, amusement rides cannot legally operate in Texas until insurance
coverage is obtained and filed with the Texas Department of Insurance with
an approved safety inspection certificate. An annual inspection is required
under the Amusement Ride Safety Inspection and Insurance Act (Article
21.60, Insurance Code). The statute places responsibility on the operator
to have insurance before the rides can be used by the public and on the
insurance companies to ascertain that the amusement ride is in good
operating condition before they issue the insurance and inspection
certificate. However, if safety concerns are present or if there is a
failure to comply with statutory insurance or inspection requirements, the
only option available to law enforcement officials is to institute action
in a court in order to shut down the ride. H.B. 1059 authorizes state and
local law enforcement officials to conduct spot inspections and immediately
shut down an amusement ride if safety concerns are present or for failure
to comply with statutory insurance or inspection requirements.  This bill
also  increases penalties and enforcement measures for noncompliance with
safety and insurance regulations and increases mandated insurance coverage
to be consistent for all types of rides. 

PURPOSE

As proposed, H.B. 1059regulates amusement rides, and provides a penalty.
RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 2(3), Article 21.60, Insurance Code, to redefine
"Class A amusement ride."  

SECTION 2. Amends Section 3(a), Article 21.60, Insurance Code, to raise the
maximum annual fee for each amusement ride covered by this Act from $20 to
$40.  

SECTION 3. Amends Section 4, Article 21.60, Insurance Code, by amending
Subsections (a) and (b) and adding Subsection (d), as follows: 

(a) Prohibits a person from operating an amusement ride unless the person
has filed with certain people a photocopy of the inspection certificate and
the insurance policy required by this section, rather than a certificate of
insurance. Makes nonsubstantive changes. 

(b) Requires the inspection required by this section to include a method to
test the stress and wear related damage of critical parts of the ride that
the manufacturer of the amusement ride, rather than the board (Texas
Department of Insurance or commissioner of insurance), determines are
reasonably subject to failure. Makes a nonsubstantive changes.  


(d) Requires a person who operates an amusement ride in this state to
maintain accurate records of any governmental action taken in any state
relating to the amusement ride. Requires the operator to file with the
board on a quarterly basis a report on a board designed form providing
certain information.  Provides that a report is not required under this
section  in any quarter in which no reportable governmental action was
taken in any state in which the person operated the amusement ride. 

SECTION 4. Amends the heading of Section 9, Article 21.60, Insurance Code,
as follows:  

Sec. 9. New heading: PENALTIES.

 SECTION 5. Amends Section 9, Article 21.60, Insurance Code, by amending
Subsections (a) and (c), and adding Subsection (f), as follows:  

(a) Includes a person's failure to comply with any requirement under
Sections 4, 5, 10(e), 10(f), or 10(g), of this article, as a commission of
an offense. Makes a conforming and a nonsubstantive change.  

(c) Provides that an offense under this section is a Class B, rather than a
Class C, misdemeanor.  

(f) Requires the prosecuting attorney in a case in which a person is
convicted of an offense under this section to report the offense to the
department of insurance (TDI) by a certain date. 

SECTION 6. Amends Article 21.60, Insurance Code, by adding Section 10, as
follows:  

Sec. 10. ENFORCEMENT. (a) Authorizes a municipal, county, or state law
enforcement official (official) to determine compliance with Section 4
(Amusement Ride Operation Requirements) or 5 (Filing Affidavit) of this
article in conjunction with the State Board of Insurance (board) and
institute an action in a court of competent jurisdiction to enforce this
article.  

(b) Authorizes an official to enter and inspect without notice any
amusement ride at any time to ensure public safety.  

(c) Requires the operator of an amusement ride to immediately provide the
inspection certificate and the insurance policy required by Section 4 of
this article to an official requesting the information. Authorizes a
photocopy of the inspection certificate or insurance policy to be provided
instead of the certificate or policy.  

(d) Authorizes an official, except as provided by Subsection (i), to
immediately prohibit operation of an amusement ride if: (1) the operator of
the amusement ride is unable to provide the documents or a photocopy of the
documents required by Subsection (c); (2) the law enforcement official
reasonably believes the amusement ride is not in compliance with Section 4;
or (3) operation of the amusement ride, conduct of the operator, or any
other circumstance causes the official to reasonably believe that the
amusement ride is unsafe or the safety of a passenger on the amusement ride
is threatened.  

(e) Prohibits a person, if the operation of an amusement ride is prohibited
under Subsection (d)(1) or (2), from operating the amusement ride unless:
(1) the operator presents to the appropriate municipal, county, or state
law enforcement agency proof of compliance with Section 4; or (2) the
commissioner of insurance or the commissioner's designee determines that on
the date the amusement ride's operation was prohibited the operator had on
file with the board the documents required by Section 4 and issues a
written statement permitting the amusement ride to resume operation.  

(f) Prohibits a person, if on the date an amusement ride's operation is
prohibited under Subsection (d)(3) the amusement ride is not in compliance
with Section 4, from operating the amusement ride until after a person
subsequently complies with Section 4.  

(g) Prohibits a person, if on the date an amusement ride's operation is
prohibited under Subsection (d)(3) the amusement ride is in compliance with
Section 4, from operating the amusement ride until: (1) on-site corrections
are made to the satisfaction of the appropriate  official; (2) an order
from a district judge, county judge, judge of county court at law, justice
of the peace, or municipal judge permits the amusement ride to resume
operation; or (3) an insurance company insuring the amusement ride
re-inspects the amusement ride in the same manner required under Section 4
on the date the amusement ride's operation was prohibited and delivers to
the board and the appropriate officer a reinspection certificate containing
the enumerated information.  

(h) Authorizes the owner or operator of the amusement ride to file suit for
relief from an action taken under Subsection (d) of this section in a
district court in the county in which the amusement ride was located when
the prohibition against operation was enforced.  

(i) Provides that Subsection (d) does not apply to an amusement ride with a
fixed location and operated at an amusement park that was attended by more
than 200,000 customers in the year preceding the inspection under
Subsection (b).  

SECTION 7. Repealer: Section 9(e), Article 21.60, Insurance Code (authority
of a municipal or law enforcement official to determine compliance and
institute an action in court to enforce this article).  

SECTION 8.  Effective date: immediately. 
  Makes application of this Act prospective. 

SECTION 9. Emergency clause. 
  Effective date: upon passage.