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                                  * * * * *