76R9675 GJH-F                           
         By Keel, Siebert, Dukes, Greenberg,                   H.B. No. 1059
            Naishtat
         Substitute the following for H.B. No. 1059:
         By King of Parker                                 C.S.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.  Sections 4(a) and (b), Article 21.60, Insurance
1-16     Code, are amended to read as follows:
1-17           (a)  A person may not operate an amusement ride unless the
1-18     person [he]:
1-19                 (1)  has the amusement ride inspected at least once
1-20     annually by an insurer or a person with whom the insurer has
1-21     contracted and obtains from that insurer or person a written
1-22     certificate that the inspection has been made and that the
1-23     amusement ride meets the standards for coverage and is covered by
1-24     the insurance required by Subsection (2) of this section.  If at
 2-1     any time the inspection reveals that an amusement ride does not
 2-2     meet the insurer's underwriting standards, the insurer shall so
 2-3     notify the owner or operator and in the event repair or replacement
 2-4     of equipment is required it shall be the responsibility of the
 2-5     owner or operator to make such repair or replacement before the
 2-6     amusement ride is offered for public use;
 2-7                 (2)  has an insurance policy currently in force written
 2-8     by an insurance company authorized to do business in this state, a
 2-9     surplus lines insurer as defined by Article 1.14-2 of this code, or
2-10     an independently procured policy subject to Article 1.14-1 of this
2-11     code, in an amount of not less than $100,000 per occurrence with a
2-12     $300,000 annual aggregate for Class A amusement rides and an amount
2-13     of not less than $1,000,000 per occurrence for Class B amusement
2-14     rides insuring the owner or operator against liability for injury
2-15     to persons arising out of the use of the amusement ride;
2-16                 (3)  files with the board, in the manner required by
2-17     this article, the inspection certificate and the insurance policy
2-18     required by this section or a photocopy of such a certificate or
2-19     policy authorized by the board; and
2-20                 (4)  files with each sponsor, lessor, landowner, or
2-21     other person responsible for an amusement ride being offered for
2-22     use by the public a photocopy of the inspection certificate and the
2-23     insurance policy required by this section [certificate stating that
2-24     the insurance required by Subdivision (2) of this section is in
2-25     effect].
2-26           (b)  The inspection required under Subsection (a)(1) of this
2-27     section must include a method to test the stress- and wear-related
 3-1     damage of critical parts of a ride that the manufacturer of the
 3-2     amusement ride [board] determines are reasonably subject to failure
 3-3     as the result of stress and wear and could cause injury to a member
 3-4     of the general public as a result of a failure.
 3-5           SECTION 4.  The heading of Section 9,  Article 21.60,
 3-6     Insurance Code, is amended to read as follows:
 3-7           Sec. 9.  PENALTIES[; LOCAL ENFORCEMENT].
 3-8           SECTION 5.  Section 9, Article 21.60, Insurance Code, is
 3-9     amended by amending Subsections (a) and (c) to read as follows:
3-10           (a)  A person commits an offense if the person [he] fails to
3-11     comply with any requirement under Section 4, [or] 5, 10(e), 10(f),
3-12     or 10(g) of this article.
3-13           (c)  An offense under this section is a Class B [C]
3-14     misdemeanor.
3-15           SECTION 6.  Article 21.60, Insurance Code, is amended by
3-16     adding Section 10 to read as follows:
3-17           Sec. 10.  ENFORCEMENT.  (a) A municipal, county, or state law
3-18     enforcement official may determine compliance with Section 4 or 5
3-19     of this article in conjunction with the board and may institute an
3-20     action in a court of competent jurisdiction to enforce this
3-21     article.
3-22           (b)  A municipal, county, or state law enforcement official
3-23     may enter and inspect without notice any amusement ride at any time
3-24     to ensure public safety.
3-25           (c)  The operator of an amusement ride shall immediately
3-26     provide the inspection certificate and the insurance policy
3-27     required by  Section 4 of this article to a municipal, county, or
 4-1     state law enforcement official requesting the information.  A
 4-2     photocopy of the inspection certificate or insurance policy may be
 4-3     provided instead of the certificate or policy.
 4-4           (d)  Except as provided by Subsection (i) of this section, a
 4-5     municipal, county, or state law enforcement official may
 4-6     immediately prohibit operation of an amusement ride if:
 4-7                 (1)  the operator of the amusement ride is unable to
 4-8     provide the documents or a photocopy of the documents required by
 4-9     Subsection (c) of this section;
4-10                 (2)  the law enforcement official reasonably believes
4-11     the amusement ride is not in compliance with Section 4 of this
4-12     article; or
4-13                 (3)  operation of the amusement ride, conduct of the
4-14     operator, or any other circumstance causes the law enforcement
4-15     official to reasonably believe that the amusement ride is unsafe or
4-16     the safety of a passenger on the amusement ride is threatened.
4-17           (e)  If the operation of an amusement ride is prohibited
4-18     under Subsection (d)(1) or (2) of this section, a person may not
4-19     operate the amusement ride unless:
4-20                 (1)  the operator presents to the appropriate
4-21     municipal, county, or state law enforcement agency proof of
4-22     compliance with Section 4 of this article; or
4-23                 (2)  the commissioner of insurance or the
4-24     commissioner's designee determines that on the date the amusement
4-25     ride's operation was prohibited the operator had on file with the
4-26     board the documents required by Section 4 of this article and
4-27     issues a written statement permitting the amusement ride to resume
 5-1     operation.
 5-2           (f)  If on the date an amusement ride's operation is
 5-3     prohibited  under Subsection (d)(3) of this section the amusement
 5-4     ride is not in compliance with Section 4 of this article, a person
 5-5     may not operate the amusement ride until after a person
 5-6     subsequently complies with Section 4 of this article.
 5-7           (g)  If on the date an amusement ride's operation is
 5-8     prohibited under Subsection (d)(3) of this section the amusement
 5-9     ride is in compliance with Section 4 of this article, a person may
5-10     not operate the amusement ride until:
5-11                 (1)  on-site corrections are made to the satisfaction
5-12     of the appropriate law enforcement official;
5-13                 (2)  an order from a district judge, county judge,
5-14     judge of county court at law, justice of the peace, or municipal
5-15     judge permits the amusement ride to resume operation; or
5-16                 (3)  an insurance company insuring the amusement ride
5-17     on the date the amusement ride's operation was prohibited:
5-18                       (A)  re-inspects the amusement ride in the same
5-19     manner required under Section 4 of this article; and
5-20                       (B)  delivers to the board and the appropriate
5-21     law enforcement officer a re-inspection certificate:
5-22                             (i)  stating that the required
5-23     re-inspection has occurred;
5-24                             (ii)  stating that the amusement ride meets
5-25     coverage standards and is covered by insurance in compliance with
5-26     Section 4 of this article; and
5-27                             (iii)  explaining the necessary repairs, if
 6-1     any, that have been made to the amusement ride after its operation
 6-2     was prohibited.
 6-3           (h)  The owner or operator of the amusement ride may file
 6-4     suit for relief from an action taken under Subsection (d) of this
 6-5     section in a district court in the county in which the amusement
 6-6     ride was located when the prohibition against operation was
 6-7     enforced.
 6-8           (i)  Subsection (d) of this section does not apply to an
 6-9     amusement ride with a fixed location and operated at an amusement
6-10     park that was attended by more than 200,000 customers in the year
6-11     preceding the inspection under Subsection (b) of this section.
6-12           SECTION 7.  Section 9(e), Article 21.60, Insurance Code, is
6-13     repealed.
6-14           SECTION 8.  (a) This Act takes effect immediately.
6-15           (b)  The change in law made by this Act to Section 9, Article
6-16     21.60, Insurance Code, applies only to an offense committed on or
6-17     after the effective date of this Act.
6-18           (c)  An offense committed before the effective date of this
6-19     Act is covered by the law in effect when the offense was committed,
6-20     and the former law is continued in effect for that purpose.  For
6-21     purposes of this section, an offense is committed before the
6-22     effective date of this Act if any element of the offense occurs
6-23     before that date.
6-24           SECTION 9.  The importance of this legislation and the
6-25     crowded condition of the calendars in both houses create an
6-26     emergency and an imperative public necessity that the
6-27     constitutional rule requiring bills to be read on three several
 7-1     days in each house be suspended, and this rule is hereby suspended,
 7-2     and that this Act take effect and be in force from and after its
 7-3     passage, and it is so enacted.