By Keel, Siebert, Dukes, Greenberg, Naishtat          H.B. No. 1059
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the regulation of amusement rides; providing a penalty.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 2(3), Article 21.60, Insurance Code, is
 1-5     amended to read as follows:
 1-6                 (3)  "Class A amusement ride" means an amusement ride
 1-7     with a fixed location and designed primarily for use by children 12
 1-8     years of age or younger.
 1-9           SECTION 2.  Section 3(a), Article 21.60, Insurance Code, is
1-10     amended to read as follows:
1-11           (a)  The board shall administer and enforce this article.
1-12     The board shall establish reasonable and necessary fees in an
1-13     amount not to exceed $40 [$20] per year for each amusement ride
1-14     covered by this Act.
1-15           SECTION 3.  Section 4, Article 21.60, Insurance Code, is
1-16     amended by amending Subsections (a) and (b) and adding Subsection
1-17     (d) to read as follows:
1-18           (a)  A person may not operate an amusement ride unless the
1-19     person [he]:
1-20                 (1)  has the amusement ride inspected at least once
1-21     annually by an insurer or a person with whom the insurer has
1-22     contracted and obtains from that insurer or person a written
1-23     certificate that the inspection has been made and that the
1-24     amusement ride meets the standards for coverage and is covered by
 2-1     the insurance required by Subsection (2) of this section.  If at
 2-2     any time the inspection reveals that an amusement ride does not
 2-3     meet the insurer's underwriting standards, the insurer shall so
 2-4     notify the owner or operator and in the event repair or replacement
 2-5     of equipment is required it shall be the responsibility of the
 2-6     owner or operator to make such repair or replacement before the
 2-7     amusement ride is offered for public use;
 2-8                 (2)  has an insurance policy currently in force written
 2-9     by an insurance company authorized to do business in this state, a
2-10     surplus lines insurer as defined by Article 1.14-2 of this code, or
2-11     an independently procured policy subject to Article 1.14-1 of this
2-12     code, in an amount of not less than $100,000 per occurrence with a
2-13     $300,000 annual aggregate for Class A amusement rides and an amount
2-14     of not less than $1,000,000 per occurrence for Class B amusement
2-15     rides insuring the owner or operator against liability for injury
2-16     to persons arising out of the use of the amusement ride;
2-17                 (3)  files with the board, in the manner required by
2-18     this article, the inspection certificate and the insurance policy
2-19     required by this section or a photocopy of such a certificate or
2-20     policy authorized by the board; and
2-21                 (4)  files with each sponsor, lessor, landowner, or
2-22     other person responsible for an amusement ride being offered for
2-23     use by the public a photocopy of the inspection certificate and the
2-24     insurance policy required by this section [certificate stating that
2-25     the insurance required by Subdivision (2) of this section is in
2-26     effect].
2-27           (b)  The inspection required under Subsection (a)(1) of this
 3-1     section must include a method to test the stress- and wear-related
 3-2     damage of critical parts of a ride that the manufacturer of the
 3-3     amusement ride [board] determines are reasonably subject to failure
 3-4     as the result of stress and wear and could cause injury to a member
 3-5     of the general public as a result of a failure.
 3-6           (d)  A person who operates an amusement ride in this state
 3-7     shall maintain accurate records of any governmental action taken in
 3-8     any state relating to the amusement ride, including an inspection
 3-9     resulting in the repair or replacement of equipment used in the
3-10     operation of the amusement ride. The operator shall file with the
3-11     board on a quarterly basis a report on a form designed by the board
3-12     describing each governmental action taken in the quarter covered by
3-13     the report for which the operator is required by this subsection to
3-14     maintain records. A report is not required under this section in
3-15     any quarter in which no reportable governmental action was taken in
3-16     any state in which the person operated the amusement ride.
3-17           SECTION 4.  The heading of Section 9,  Article 21.60,
3-18     Insurance Code, is amended to read as follows:
3-19           Sec. 9.  PENALTIES[; LOCAL ENFORCEMENT].
3-20           SECTION 5.  Section 9, Article 21.60, Insurance Code, is
3-21     amended by amending Subsections (a) and (c) and adding Subsection
3-22     (f) to read as follows:
3-23           (a)  A person commits an offense if the person [he] fails to
3-24     comply with any requirement under Section 4, [or] 5, 10(e), 10(f),
3-25     or 10(g) of this article.
3-26           (c)  An offense under this section is a Class B [C]
3-27     misdemeanor.
 4-1           (f)  The prosecuting attorney in a case in which a person is
 4-2     convicted of an offense under this section shall report the offense
 4-3     to the department not later than the 90th day after the date of the
 4-4     conviction.
 4-5           SECTION 6.  Article 21.60, Insurance Code, is amended by
 4-6     adding Section 10 to read as follows:
 4-7           Sec. 10.  ENFORCEMENT.  (a) A municipal, county, or state law
 4-8     enforcement official may determine compliance with Section 4 or 5
 4-9     of this article in conjunction with the board and may institute an
4-10     action in a court of competent jurisdiction to enforce this
4-11     article.
4-12           (b)  A municipal, county, or state law enforcement official
4-13     may enter and inspect without notice any amusement ride at any time
4-14     to ensure public safety.
4-15           (c)  The operator of an amusement ride shall immediately
4-16     provide the inspection certificate and the insurance policy
4-17     required by  Section 4 of this article to a municipal, county, or
4-18     state law enforcement official requesting the information.  A
4-19     photocopy of the inspection certificate or insurance policy may be
4-20     provided instead of the certificate or policy.
4-21           (d)  Except as provided by Subsection (i) of this section, a
4-22     municipal, county, or state law enforcement official may
4-23     immediately prohibit operation of an amusement ride if:
4-24                 (1)  the operator of the amusement ride is unable to
4-25     provide the documents or a photocopy of the documents required by
4-26     Subsection (c) of this section;
4-27                 (2)  the law enforcement official reasonably believes
 5-1     the amusement ride is not in compliance with Section 4 of this
 5-2     article; or
 5-3                 (3)  operation of the amusement ride, conduct of the
 5-4     operator, or any other circumstance causes the law enforcement
 5-5     official to reasonably believe that the amusement ride is unsafe or
 5-6     the safety of a passenger on the amusement ride is threatened.
 5-7           (e)  If the operation of an amusement ride is prohibited
 5-8     under Subsection (d)(1) or (2) of this section, a person may not
 5-9     operate the amusement ride unless:
5-10                 (1)  the operator presents to the appropriate
5-11     municipal, county, or state law enforcement agency proof of
5-12     compliance with Section 4 of this article; or
5-13                 (2)  the commissioner of insurance or the
5-14     commissioner's designee determines that on the date the amusement
5-15     ride's operation was prohibited the operator had on file with the
5-16     board the documents required by Section 4 of this article and
5-17     issues a written statement permitting the amusement ride to resume
5-18     operation.
5-19           (f)  If on the date an amusement ride's operation is
5-20     prohibited  under Subsection (d)(3) of this section the amusement
5-21     ride is not in compliance with Section 4 of this article, a person
5-22     may not operate the amusement ride until after a person
5-23     subsequently complies with Section 4 of this article.
5-24           (g)  If on the date an amusement ride's operation is
5-25     prohibited under Subsection (d)(3) of this section the amusement
5-26     ride is in compliance with Section 4 of this article, a person may
5-27     not operate the amusement ride until:
 6-1                 (1)  on-site corrections are made;
 6-2                 (2)  an order from a district judge, county judge,
 6-3     judge of county court at law, justice of the peace, or municipal
 6-4     judge permits the amusement ride to resume operation; or
 6-5                 (3)  an insurance company insuring the amusement ride
 6-6     on the date the amusement ride's operation was prohibited:
 6-7                       (A)  re-inspects the amusement ride in the same
 6-8     manner required under Section 4 of this article; and
 6-9                       (B)  delivers to the board and the appropriate
6-10     law enforcement officer a re-inspection certificate:
6-11                             (i)  stating that the required
6-12     re-inspection has occurred;
6-13                             (ii)  stating that the amusement ride meets
6-14     coverage standards and is covered by insurance in compliance with
6-15     Section 4 of this article; and
6-16                             (iii)  explaining the necessary repairs, if
6-17     any, that have been made to the amusement ride after its operation
6-18     was prohibited.
6-19           (h)  The owner or operator of the amusement ride may file
6-20     suit for relief from an action taken under Subsection (d) of this
6-21     section in a district court in the county in which the amusement
6-22     ride was located when the prohibition against operation was
6-23     enforced.
6-24           (i)  Subsection (d) of this section does not apply to an
6-25     amusement ride with a fixed location and operated at an amusement
6-26     park that was attended by more than 200,000 customers in the year
6-27     preceding the inspection under Subsection (b) of this section.
 7-1           (j)  Performance or nonperformance by a municipal, county, or
 7-2     state law enforcement official of any action authorized by this
 7-3     article is a discretionary function of the governmental unit and of
 7-4     the official.
 7-5           SECTION 7.  Section 9(e), Article 21.60, Insurance Code, is
 7-6     repealed.
 7-7           SECTION 8.  (a) This Act takes effect immediately.
 7-8           (b)  The change in law made by this Act to Section 9, Article
 7-9     21.60, Insurance Code, applies only to an offense committed on or
7-10     after the effective date of this Act.
7-11           (c)  An offense committed before the effective date of this
7-12     Act is covered by the law in effect when the offense was committed,
7-13     and the former law is continued in effect for that purpose.  For
7-14     purposes of this section, an offense is committed before the
7-15     effective date of this Act if any element of the offense occurs
7-16     before that date.
7-17           SECTION 9.  The importance of this legislation and the
7-18     crowded condition of the calendars in both houses create an
7-19     emergency and an imperative public necessity that the
7-20     constitutional rule requiring bills to be read on three several
7-21     days in each house be suspended, and this rule is hereby suspended,
7-22     and that this Act take effect and be in force from and after its
7-23     passage, and it is so enacted.