1-1 By: Keel, et al. (Senate Sponsor - Barrientos) H.B. No. 1059
1-2 (In the Senate - Received from the House April 30, 1999;
1-3 May 3, 1999, read first time and referred to Committee on Economic
1-4 Development; May 14, 1999, reported favorably by the following
1-5 vote: Yeas 5, Nays 0; May 14, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the regulation of amusement rides; providing a penalty.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. Section 2(3), Article 21.60, Insurance Code, is
1-11 amended to read as follows:
1-12 (3) "Class A amusement ride" means an amusement ride
1-13 with a fixed location and designed primarily for use by children 12
1-14 years of age or younger.
1-15 SECTION 2. Section 3(a), Article 21.60, Insurance Code, is
1-16 amended to read as follows:
1-17 (a) The board shall administer and enforce this article.
1-18 The board shall establish reasonable and necessary fees in an
1-19 amount not to exceed $40 [$20] per year for each amusement ride
1-20 covered by this Act.
1-21 SECTION 3. Section 4, Article 21.60, Insurance Code, is
1-22 amended by amending Subsections (a) and (b) and adding Subsection
1-23 (d) to read as follows:
1-24 (a) A person may not operate an amusement ride unless the
1-25 person [he]:
1-26 (1) has the amusement ride inspected at least once
1-27 annually by an insurer or a person with whom the insurer has
1-28 contracted and obtains from that insurer or person a written
1-29 certificate that the inspection has been made and that the
1-30 amusement ride meets the standards for coverage and is covered by
1-31 the insurance required by Subsection (2) of this section. If at
1-32 any time the inspection reveals that an amusement ride does not
1-33 meet the insurer's underwriting standards, the insurer shall so
1-34 notify the owner or operator and in the event repair or replacement
1-35 of equipment is required it shall be the responsibility of the
1-36 owner or operator to make such repair or replacement before the
1-37 amusement ride is offered for public use;
1-38 (2) has an insurance policy currently in force written
1-39 by an insurance company authorized to do business in this state, a
1-40 surplus lines insurer as defined by Article 1.14-2 of this code, or
1-41 an independently procured policy subject to Article 1.14-1 of this
1-42 code, in an amount of not less than $100,000 per occurrence with a
1-43 $300,000 annual aggregate for Class A amusement rides and an amount
1-44 of not less than $1,000,000 per occurrence for Class B amusement
1-45 rides insuring the owner or operator against liability for injury
1-46 to persons arising out of the use of the amusement ride;
1-47 (3) files with the board, in the manner required by
1-48 this article, the inspection certificate and the insurance policy
1-49 required by this section or a photocopy of such a certificate or
1-50 policy authorized by the board; and
1-51 (4) files with each sponsor, lessor, landowner, or
1-52 other person responsible for an amusement ride being offered for
1-53 use by the public a photocopy of the inspection certificate and the
1-54 insurance policy required by this section [certificate stating that
1-55 the insurance required by Subdivision (2) of this section is in
1-56 effect].
1-57 (b) The inspection required under Subsection (a)(1) of this
1-58 section must include a method to test the stress- and wear-related
1-59 damage of critical parts of a ride that the manufacturer of the
1-60 amusement ride [board] determines are reasonably subject to failure
1-61 as the result of stress and wear and could cause injury to a member
1-62 of the general public as a result of a failure.
1-63 (d) A person who operates an amusement ride in this state
1-64 shall maintain accurate records of any governmental action taken in
2-1 any state relating to the amusement ride, including an inspection
2-2 resulting in the repair or replacement of equipment used in the
2-3 operation of the amusement ride. The operator shall file with the
2-4 board on a quarterly basis a report on a form designed by the board
2-5 describing each governmental action taken in the quarter covered by
2-6 the report for which the operator is required by this subsection to
2-7 maintain records. A report is not required under this section in
2-8 any quarter in which no reportable governmental action was taken in
2-9 any state in which the person operated the amusement ride.
2-10 SECTION 4. The heading of Section 9, Article 21.60,
2-11 Insurance Code, is amended to read as follows:
2-12 Sec. 9. PENALTIES[; LOCAL ENFORCEMENT].
2-13 SECTION 5. Section 9, Article 21.60, Insurance Code, is
2-14 amended by amending Subsections (a) and (c) and adding Subsection
2-15 (f) to read as follows:
2-16 (a) A person commits an offense if the person [he] fails to
2-17 comply with any requirement under Section 4, [or] 5, 10(e), 10(f),
2-18 or 10(g) of this article.
2-19 (c) An offense under this section is a Class B [C]
2-20 misdemeanor.
2-21 (f) The prosecuting attorney in a case in which a person is
2-22 convicted of an offense under this section shall report the offense
2-23 to the department not later than the 90th day after the date of the
2-24 conviction.
2-25 SECTION 6. Article 21.60, Insurance Code, is amended by
2-26 adding Section 10 to read as follows:
2-27 Sec. 10. ENFORCEMENT. (a) A municipal, county, or state law
2-28 enforcement official may determine compliance with Section 4 or 5
2-29 of this article in conjunction with the board and may institute an
2-30 action in a court of competent jurisdiction to enforce this
2-31 article.
2-32 (b) A municipal, county, or state law enforcement official
2-33 may enter and inspect without notice any amusement ride at any time
2-34 to ensure public safety.
2-35 (c) The operator of an amusement ride shall immediately
2-36 provide the inspection certificate and the insurance policy
2-37 required by Section 4 of this article to a municipal, county, or
2-38 state law enforcement official requesting the information. A
2-39 photocopy of the inspection certificate or insurance policy may be
2-40 provided instead of the certificate or policy.
2-41 (d) Except as provided by Subsection (i) of this section, a
2-42 municipal, county, or state law enforcement official may
2-43 immediately prohibit operation of an amusement ride if:
2-44 (1) the operator of the amusement ride is unable to
2-45 provide the documents or a photocopy of the documents required by
2-46 Subsection (c) of this section;
2-47 (2) the law enforcement official reasonably believes
2-48 the amusement ride is not in compliance with Section 4 of this
2-49 article; or
2-50 (3) operation of the amusement ride, conduct of the
2-51 operator, or any other circumstance causes the law enforcement
2-52 official to reasonably believe that the amusement ride is unsafe or
2-53 the safety of a passenger on the amusement ride is threatened.
2-54 (e) If the operation of an amusement ride is prohibited
2-55 under Subsection (d)(1) or (2) of this section, a person may not
2-56 operate the amusement ride unless:
2-57 (1) the operator presents to the appropriate
2-58 municipal, county, or state law enforcement agency proof of
2-59 compliance with Section 4 of this article; or
2-60 (2) the commissioner of insurance or the
2-61 commissioner's designee determines that on the date the amusement
2-62 ride's operation was prohibited the operator had on file with the
2-63 board the documents required by Section 4 of this article and
2-64 issues a written statement permitting the amusement ride to resume
2-65 operation.
2-66 (f) If on the date an amusement ride's operation is
2-67 prohibited under Subsection (d)(3) of this section the amusement
2-68 ride is not in compliance with Section 4 of this article, a person
2-69 may not operate the amusement ride until after a person
3-1 subsequently complies with Section 4 of this article.
3-2 (g) If on the date an amusement ride's operation is
3-3 prohibited under Subsection (d)(3) of this section the amusement
3-4 ride is in compliance with Section 4 of this article, a person may
3-5 not operate the amusement ride until:
3-6 (1) on-site corrections are made;
3-7 (2) an order from a district judge, county judge,
3-8 judge of county court at law, justice of the peace, or municipal
3-9 judge permits the amusement ride to resume operation; or
3-10 (3) an insurance company insuring the amusement ride
3-11 on the date the amusement ride's operation was prohibited:
3-12 (A) re-inspects the amusement ride in the same
3-13 manner required under Section 4 of this article; and
3-14 (B) delivers to the board and the appropriate
3-15 law enforcement officer a re-inspection certificate:
3-16 (i) stating that the required
3-17 re-inspection has occurred;
3-18 (ii) stating that the amusement ride meets
3-19 coverage standards and is covered by insurance in compliance with
3-20 Section 4 of this article; and
3-21 (iii) explaining the necessary repairs, if
3-22 any, that have been made to the amusement ride after its operation
3-23 was prohibited.
3-24 (h) The owner or operator of the amusement ride may file
3-25 suit for relief from an action taken under Subsection (d) of this
3-26 section in a district court in the county in which the amusement
3-27 ride was located when the prohibition against operation was
3-28 enforced.
3-29 (i) Subsection (d) of this section does not apply to an
3-30 amusement ride with a fixed location and operated at an amusement
3-31 park that was attended by more than 200,000 customers in the year
3-32 preceding the inspection under Subsection (b) of this section.
3-33 (j) Performance or nonperformance by a municipal, county, or
3-34 state law enforcement official of any action authorized by this
3-35 article is a discretionary function of the governmental unit and of
3-36 the official.
3-37 SECTION 7. Section 9(e), Article 21.60, Insurance Code, is
3-38 repealed.
3-39 SECTION 8. (a) This Act takes effect immediately.
3-40 (b) The change in law made by this Act to Section 9, Article
3-41 21.60, Insurance Code, applies only to an offense committed on or
3-42 after the effective date of this Act.
3-43 (c) An offense committed before the effective date of this
3-44 Act is covered by the law in effect when the offense was committed,
3-45 and the former law is continued in effect for that purpose. For
3-46 purposes of this section, an offense is committed before the
3-47 effective date of this Act if any element of the offense occurs
3-48 before that date.
3-49 SECTION 9. The importance of this legislation and the
3-50 crowded condition of the calendars in both houses create an
3-51 emergency and an imperative public necessity that the
3-52 constitutional rule requiring bills to be read on three several
3-53 days in each house be suspended, and this rule is hereby suspended,
3-54 and that this Act take effect and be in force from and after its
3-55 passage, and it is so enacted.
3-56 * * * * *