By Barrientos                                          S.B. No. 312
         76R4099 GJH-F                           
                                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 3(a), Article 21.60, Insurance Code, is
 1-5     amended to read as follows:
 1-6           (a)  The board shall administer and enforce this article.
 1-7     The board shall establish reasonable and necessary fees in an
 1-8     amount not to exceed $40 [$20] per year for each amusement ride
 1-9     covered by this Act.
1-10           SECTION 2.  Section 4(a), Article 21.60, Insurance Code, is
1-11     amended to read as follows:
1-12           (a)  A person may not operate an amusement ride unless the
1-13     person [he]:
1-14                 (1)  has the amusement ride inspected at least once
1-15     annually by an insurer or a person with whom the insurer has
1-16     contracted and obtains from that insurer or person a written
1-17     certificate that the inspection has been made and that the
1-18     amusement ride meets the standards for coverage and is covered by
1-19     the insurance required by Subsection (2) of this section.  If at
1-20     any time the inspection reveals that an amusement ride does not
1-21     meet the insurer's underwriting standards, the insurer shall so
1-22     notify the owner or operator and in the event repair or replacement
1-23     of equipment is required it shall be the responsibility of the
1-24     owner or operator to make such repair or replacement before the
 2-1     amusement ride is offered for public use;
 2-2                 (2)  has an insurance policy currently in force written
 2-3     by an insurance company authorized to do business in this state, a
 2-4     surplus lines insurer as defined by Article 1.14-2 of this code, or
 2-5     an independently procured policy subject to Article 1.14-1 of this
 2-6     code, in an amount of not less than [$100,000 per occurrence with a
 2-7     $300,000 annual aggregate for Class A amusement rides and an amount
 2-8     of not less than] $1,000,000 per occurrence for each [Class B]
 2-9     amusement ride that insures [rides insuring] the owner or operator
2-10     against liability for injury to persons arising out of the use of
2-11     the amusement ride;
2-12                 (3)  files with the board, in the manner required by
2-13     this article, the inspection certificate and the insurance policy
2-14     required by this section or a photocopy of such a certificate or
2-15     policy authorized by the board; and
2-16                 (4)  files with each sponsor, lessor, landowner, or
2-17     other person responsible for an amusement ride being offered for
2-18     use by the public a photocopy of the inspection certificate and the
2-19     insurance policy required by this section [certificate stating that
2-20     the insurance required by Subdivision (2) of this section is in
2-21     effect].
2-22           SECTION 3.  The heading of Section 9,  Article 21.60,
2-23     Insurance Code, is amended to read as follows:
2-24           Sec. 9.  PENALTIES[; LOCAL ENFORCEMENT].
2-25           SECTION 4.  Section 9, Article 21.60, Insurance Code, is
2-26     amended by amending Subsections (a) and (c) to read as follows:
2-27           (a)  A person commits an offense if the person [he] fails to
 3-1     comply with any requirement under Section 4, [or] 5, 10(e), 10(f),
 3-2     or 10(g) of this article.
 3-3           (c)  An offense under this section is a Class B [C]
 3-4     misdemeanor.
 3-5           SECTION 5.  Article 21.60, Insurance Code, is amended by
 3-6     adding Section 10 to read as follows:
 3-7           Sec. 10.  ENFORCEMENT.  (a) A municipal, county, or state law
 3-8     enforcement official may determine compliance with Section 4 or 5
 3-9     of this article in conjunction with the board and may institute an
3-10     action in a court of competent jurisdiction to enforce this
3-11     article.
3-12           (b)  A municipal, county, or state law enforcement official
3-13     may enter and inspect without notice any amusement ride at any time
3-14     to ensure public safety.
3-15           (c)  The operator of an amusement ride shall immediately
3-16     provide the inspection certificate and the insurance policy
3-17     required by  Section 4 of this article to a municipal, county, or
3-18     state law enforcement official requesting the information.  A
3-19     photocopy of the inspection certificate or insurance policy may be
3-20     provided instead of the certificate or policy.
3-21           (d)  A municipal, county, or state law enforcement official
3-22     may immediately prohibit operation of an amusement ride if:
3-23                 (1)  the operator of the amusement ride is unable to
3-24     provide the documents or a photocopy of the documents required by
3-25     Subsection (c) of this section;
3-26                 (2)  the law enforcement official reasonably believes
3-27     the amusement ride is not in compliance with Section 4 of this
 4-1     article; or
 4-2                 (3)  operation of the amusement ride, conduct of the
 4-3     operator, or any other circumstance causes the law enforcement
 4-4     official to reasonably believe that the amusement ride is unsafe or
 4-5     the safety of a passenger on the amusement ride is threatened.
 4-6           (e)  If the operation of an amusement ride is prohibited
 4-7     under Subsection (d)(1) or (2) of this section, a person may not
 4-8     operate the amusement ride unless:
 4-9                 (1)  the operator presents to the appropriate
4-10     municipal, county, or state law enforcement agency proof of
4-11     compliance with Section 4 of this article; or
4-12                 (2)  the commissioner of insurance or the
4-13     commissioner's designee determines that on the date the amusement
4-14     ride's operation was prohibited the operator had on file with the
4-15     board the documents required by Section 4 of this article and
4-16     issues a written statement permitting the amusement ride to resume
4-17     operation.
4-18           (f)  If on the date an amusement ride's operation is
4-19     prohibited  under Subsection (d)(3) of this section the amusement
4-20     ride is not in compliance with Section 4 of this article, a person
4-21     may not operate the amusement ride until after a person
4-22     subsequently complies with Section 4 of this article.
4-23           (g)  If on the date an amusement ride's operation is
4-24     prohibited under Subsection (d)(3) of this section the amusement
4-25     ride is in compliance with Section 4 of this article, a person may
4-26     not operate the amusement ride until:
4-27                 (1)  on-site corrections are made to the satisfaction
 5-1     of the appropriate law enforcement official;
 5-2                 (2)  an order from a district judge, county judge,
 5-3     judge of county court at law, justice of the peace, or municipal
 5-4     judge permits the amusement ride to resume operation; or
 5-5                 (3)  an insurance company insuring the amusement ride
 5-6     on the date the amusement ride's operation was prohibited:
 5-7                       (A)  re-inspects the amusement ride in the same
 5-8     manner required under Section 4 of this article; and
 5-9                       (B)  delivers to the board and the appropriate
5-10     law enforcement officer a re-inspection certificate:
5-11                             (i)  stating that the required
5-12     re-inspection has occurred;
5-13                             (ii)  stating that the amusement ride meets
5-14     coverage standards and is covered by insurance in compliance with
5-15     Section 4 of this article; and
5-16                             (iii)  explaining the necessary repairs, if
5-17     any, that have been made to the amusement ride after its operation
5-18     was prohibited.
5-19           (h)  The owner or operator of the amusement ride may file
5-20     suit for relief from an action taken under Subsection (d) of this
5-21     section in a district court in the county in which the amusement
5-22     ride was located when the prohibition against operation was
5-23     enforced.
5-24           SECTION 6.  Sections 2(3), 2(4), and 9(e), Article 21.60,
5-25     Insurance Code, are repealed.
5-26           SECTION 7.  (a) This Act takes effect immediately.
5-27           (b)  The change in law made by this Act to Section 9, Article
 6-1     21.60, Insurance Code, applies only to an offense committed on or
 6-2     after the effective date of this Act.
 6-3           (c)  An offense committed before the effective date of this
 6-4     Act is covered by the law in effect when the offense was committed,
 6-5     and the former law is continued in effect for that purpose.  For
 6-6     purposes of this section, an offense is committed before the
 6-7     effective date of this Act if any element of the offense occurs
 6-8     before that date.
 6-9           SECTION 8.  The importance of this legislation and the
6-10     crowded condition of the calendars in both houses create an
6-11     emergency and an imperative public necessity that the
6-12     constitutional rule requiring bills to be read on three several
6-13     days in each house be suspended, and this rule is hereby suspended,
6-14     and that this Act take effect and be in force from and after its
6-15     passage, and it is so enacted.