SRC-BWC S.B. 1622 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1622
77R5996 GJH-FBy: Barrientos
Business & Commerce
4/2/2001
As Filed


DIGEST AND PURPOSE 

Currently, all amusement rides in Texas are regulated under the Amusement
Ride Safety Inspection and Insurance Act.  That Act requires operators to
annually obtain a certificate from an insurer stating that each ride has
been inspected and meets standards for insurance coverage.  Texas does not
require independent state inspections for mobile amusement rides.  As
proposed, S.B. 1622 sets up a licensing and inspection system under the
Texas Department of Licensing and Regulation.  S.B. 1622 also creates an
advisory board, grants rulemaking authority to the commissioner of
licensing and regulation, sets out insurance requirements, provides for the
registration of inspectors, and authorizes inspections by law enforcement
personnel. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the commissioner of licensing
and regulation in SECTION 1 (Sections 761.004, 761.005, 761.007, 761.013,
761.015, Health and Safety Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Title 9A, Health and Safety Code, by adding Chapter 761,
as follows: 

CHAPTER 761.  MOBILE AMUSEMENT RIDES

Sec. 761.001.  DEFINITIONS.  Defines "advisory board," "amusement ride,"
"ASTM standards," "commission," "commissioner," "department," "mobile
amusement ride," and "operator."   

Sec. 761.002.  ADVISORY BOARD.  Requires the commissioner of licensing and
regulation (commissioner) to appoint the mobile amusement ride advisory
board.  Provides that the advisory board is composed of six certain
members.  Requires the office of public insurance counsel to appoint one
representative of that office to the advisory board to serve ex officio.
Provides that the advisory board members serve at the will of the
commissioner.  Requires the commissioner to appoint a presiding officer of
the advisory board.  Requires the advisory board to meet at least twice
each calendar year.  Prohibits an advisory board member from receiving
compensation for service on the advisory board, but provides that the
member is entitled to reimbursement for the travel expenses incurred by the
member while conducting the business of the advisory board, as provided by
the General Appropriations Act.  Provides that Chapter 2110 (State Agency
Advisory Committees), Government Code, does not apply to the advisory
board. 

Sec. 761.003.  ADVISORY BOARD DUTIES.  Requires the advisory board, to
protect public safety and to identify and correct potential hazards, to
advise the commissioner on:  the development and adoption of rules for
mobile amusement rides, the safety of mobile amusement rides and related
equipment used in this state by the public, and any other matter considered
by the commissioner to be relevant to the safety of mobile amusement rides
in this state. 

 Sec. 761.004.  COMMISSIONER POWERS AND DUTIES.  Requires the commissioner,
with the advice of the advisory board, to adopt rules to administer and
enforce this chapter. Authorizes the commissioner to employ staff in the
Texas Department of Licensing and Regulation (department) as necessary to
administer and enforce this chapter. 

Sec. 761.005.  RULES.  Requires the commissioner to adopt rules to ensure
the safe and uniform maintenance by operators of amusement rides in this
state.  Requires rules adopted under this subsection to meet or exceed ASTM
standards for mobile amusement rides and devices.  Provides that the rules
adopted under this section are minimum standards.  Requires the rules to be
comprehensive and set certain guidelines.  Authorizes the rules to include
requirements for the examination, testing, and licensing of operators.
Requires  rules adopted under this section to include methods to test and
identify stress-damaged and wear-damaged components of a ride that could
result in a failure likely to cause serious injury or death to a passenger
or bystander.  Authorizes rules adopted under this chapter to apply to
mobile amusement rides that are sold in this state. 

Sec. 761.006.  FEES.  Requires the commissioner to establish reasonable and
necessary annual registration and inspection fees for mobile amusement
rides operated in this state. 
Requires all fees collected under this chapter to be deposited to the
credit of an account in the general revenue fund that may be used only by
the commissioner to administer and enforce this chapter. 

Sec. 761.007.  INSURANCE REQUIREMENTS.  Prohibits a person, except as
provided by this section, from operating a mobile amusement ride unless the
ride is covered by an insurance policy that insures the operator against
liability in an amount not less than $1 million per occurrence and that is
written by an insurance company authorized to do business in this state, or
by an eligible surplus lines insurer under Article 1.14-2 (Surplus Lines
Insurance), Insurance Code, or by an independently procured policy subject
to Chapter 101 (Unauthorized Insurance), Insurance Code.  Prohibits a
person from operating a mobile amusement ride designed primarily for
children younger than 12 years of age unless the ride is covered by a
$500,000 per occurrence liability insurance policy.  Requires an insurance
company issuing a policy under this section to issue an insurance
certificate to the operator and mail a copy of the certificate to the
department.  Requires the certificate to indicate the dates the insurance
policy is in effect and the amount and type of coverage.  Authorizes the
commissioner by rule to establish more stringent insurance requirements
than those imposed by this section. 

Sec. 761.008.  REGISTERED INSPECTORS.  Requires the department to register
inspectors of mobile amusement rides under this chapter.  Requires a
person, to be eligible to register, to at least meet ASTM standards for
certification as an inspector. Provides that a person who assists a
registered inspector is not required to be registered. 
Authorizes the commissioner to set a fee for registering inspectors in an
amount reasonable and necessary to administer the registration program and
set an annual renewal fee for registered inspectors in an amount not less
than $25.  Prohibits the commissioner from prohibiting a registered
inspector from inspecting  a mobile amusement ride or related equipment.
Requires the commissioner to compile a list of registered inspectors. 
Authorizes the commissioner to deny, suspend, or revoke the registration of
any certified inspector under certain circumstances. 

Sec. 761.009.  LAW ENFORCEMENT INSPECTIONS. Authorizes a municipal, county,
or state law enforcement officer at any time without notice to inspect a
mobile amusement ride and request proof of compliance with the requirements
of this chapter to ensure public safety. Requires the operator of a mobile
amusement ride, on request by a law enforcement officer, to immediately
provide the insurance certificate and inspection reports required by this
chapter. Requires a law enforcement officer acting under this section to
prohibit the operation of a mobile amusement ride under certain
circumstances.  Prohibits the operation, if the operation of  a mobile
amusement ride is prohibited under  this section, from resuming until the
operator is able to show a law enforcement officer a current insurance
certificate and inspection report for that specific mobile amusement ride.
Prohibits the operation, if the operation of a mobile amusement ride is
terminated under this section, from resuming until the matter is
investigated by a registered inspector and the commissioner determines that
the mobile amusement ride is in compliance with applicable standards and
regulations.  Provides that unless a law enforcement officer's act or
omission involves intentional conduct, gross negligence, or malice, the
officer is not liable for terminating or failing to terminate the operation
of a mobile amusement ride. 

Sec. 761.010.  CONDITION OF OPERATORS.  Prohibits a person from operating a
mobile amusement ride under the influence of illegal drugs, while
intoxicated, or while the person's physical or mental condition does not
allow the person to operate the ride safely. 

Sec. 761.011.  DISPLAY OF RIDE RESTRICTIONS.  Requires all restrictions for
passengers, including height and physical restrictions, required by this
chapter or by rules adopted under this chapter to be displayed prominently
on the ride and to be visible from all boarding areas. 

Sec. 761.012.  RIDE OPERATION REQUIREMENTS.  Requires the operator of a
mobile amusement ride who obtains the insurance coverage required under
this chapter to deliver a copy of the current insurance certificate to each
operator of the ride.  Prohibits a mobile amusement ride from being
operated unless each operator possesses a current inspection report and
insurance certificate. 

Sec. 761.013.  INSPECTIONS.  Requires a mobile amusement ride to be
inspected by a registered inspector at least once every 180 days. Requires
the registered inspector, after each inspection, to issue a completed
report to the mobile amusement ride operator and file a copy with the
department.  Requires the fee for an inspection of a mobile amusement ride
to be $50 unless the commissioner by rule increases the fee.  Requires an
inspection report to be made on a form prescribed by the commissioner and
be signed and dated by the registered inspector. Requires the department to
maintain inspection reports filed under this section for at least 10 years.
Requires the inspection report, if an inspection produces evidence of a
violation of this chapter or rules adopted under this chapter or indicates
a need for corrective action on the part of an operator, to include a
detailed description of each violation, discrepancy, or item in need of
attention.  Requires the inspector, if an inspection finds no violation or
need for corrective action, to provide the operator with a weather-proof,
adhesive sticker, signed by the inspector, and showing the date of the
inspection, that the inspector shall affix to the mobile amusement ride in
a visible location. Authorizes the requirements of this section, if
multiple mobile amusement rides are being operated at the same location, to
be satisfied with a single inspection report and inspection certificate
relating to all mobile amusement rides being operated at that location.
Requires a report issued under this subsection to include certain
information.  

Sec. 761.014.  INSPECTION BY OPERATOR.  Prohibits a mobile amusement ride
from being operated until an operator of the ride has inspected it to
determine whether the ride is in safe working condition after the ride has
been assembled at a location where rides are offered, and before operating
the ride each day that rides are offered to the public at the location. 

Sec. 761.015.  RIDE REGISTRATION.  Prohibits a  mobile amusement ride from
being operated in this state unless the ride is registered with the
department.    Provides that the annual mobile amusement ride registration
fee is $50 unless the commissioner by rule sets a higher fee. Requires a
person registering a mobile amusement ride to provide to the department the
name, address, and telephone number of the mobile amusement ride owner, and
the make, model, and serial number of the mobile amusement ride being
registered. 

Sec. 761.016.  INJURY OR DEATH INVOLVING A RIDE.  Requires the operator, if
an  injury or death occurs during the installation, maintenance, operation,
or inspection of a mobile amusement ride, to file with the department a
report on a form prescribed by the commissioner, providing the name of any
injured party, a description of how the incident occurred, the name of each
operator, and the make, model, and manufacturer of the mobile amusement
ride. Provides that this section applies to an injury or death that occurs
outside the state if the operator is authorized to operate mobile amusement
rides in this state.  Requires the operation of the mobile amusement ride,
if an incident that is required to be reported under this section results
in the death of any person, to be terminated immediately and prohibits it
from being resumed until the commissioner determines, after a department
investigation, that operation of the mobile amusement ride does not pose a
significant risk of serious injury.  Authorizes the commissioner to impose
reasonable conditions as necessary for the safe operation of a ride before
the resumption of the operation of a ride under this subsection.
Authorizes the commissioner, in the event of a death involving a mobile
amusement ride, to suspend or terminate operation of similar mobile
amusement rides operating in this state that the commissioner determines
may cause injury or death. 

Sec. 761.017.  INVESTIGATION; LICENSE PROCEEDINGS; INJUNCTION. Authorizes
the commissioner or the commissioner's designated representative to enter
the property during regular business hours without prior notice to inspect
the mobile amusement ride or related equipment or to generally investigate
any incident that resulted in serious injury or death, if the commissioner
has good cause to believe that a mobile amusement ride is dangerous or that
an incident involving a mobile amusement ride caused death, serious bodily
injury, or property damage or that an operator is not in compliance with
this chapter.  Authorizes the commissioner to bring suit in a district
court in Travis County or in the county in which a violation or threatened
violation of this chapter or a rule adopted under this chapter occurs.
Requires the attorney general to represent the commissioner in the suit.
Provides that the commissioner is entitled to appropriate injunctive relief
to prevent a violation or threatened violation of this chapter or a rule
adopted under this chapter. 

Sec. 761.018.  CRIMINAL PENALTIES.  Provides that a person commits an
offense if the person violates or fails to comply with this chapter.
Provides that except as provided by this section, an offense under this
section is a Class B misdemeanor.  Provides that an offense under Section
761.010 is a Class A misdemeanor, unless the offense is a repeat offense or
involves injury or death, in which case it is a third degree felony. 
 

SECTION 2.  Amends the heading to Chapter 2151, Occupations Code, to read
as follows: 

 CHAPTER 2151.  REGULATION OF AMUSEMENT PARK RIDES

SECTION 3.  Amends Section 2151.001, Occupations Code, to authorize this
chapter to be cited as the Amusement Park Ride Safety Inspection and
Insurance Act. 

SECTION 4.  Amends Section 2151.002, Occupations Code,  to define
"amusement park" and redefine "Class A amusement ride."    

SECTION 5.  Amends Chapter 2151A, Occupations Code, by adding Section
2151.003, to provide that this chapter applies only to amusement rides
operated at an amusement park. 

SECTION 6.  Amends Section 2151.151, Occupations Code, by deleting a
reference "Section 2151.1021" regarding rules adopted that allow for
certain individuals to seek an injunction against a person operating an
amusement ride.   

SECTION 7.  Amends Chapter 2151D, Occupations Code, by adding Section
2151.1525, as follows: 

 Sec. 2151.1525.  PROHIBITION OF AMUSEMENT RIDE OPERATION.  Authorizes a
municipal, county, or state law enforcement official, except as provided
this section, to immediately prohibit operation of an amusement ride under
certain circumstances.  Prohibits a person, if the operation of an
amusement ride is prohibited under this section, from operating the
amusement ride unless the operator presents official proof to certain law
enforcement official of compliance with Section 2151.101, or the
commissioner or commissioner's designee determines that the operator had
filed with the board the necessary documents required by Section 2151.101
on the date the operation was prohibited.  Prohibits a person, if on the
date an amusement ride's operation is prohibited under this section the
amusement ride is not in compliance with Section 2151, from operating the
amusement ride until the person complies with Section 2151.101.  Prohibits
a person, if on the date an amusement ride's operation is prohibited under
this section the amusement ride is in compliance with Section 2151.101,
from operating the amusement ride until certain requirements are met.
Provides that this section does not apply to an amusement ride operated at
an amusement park that was attended by more than 200,000 customers in the
year preceding the inspection under 2151.152(b). 

SECTION 8.  Amends Section 2151.153(a), Occupations Code, to delete Section
2151.1526 from the list of sections with which a person is required to
comply.  Makes a conforming change. 

SECTION 9.  Amends Section 49.01(6), Penal Code, to redefine "mobile
amusement ride." 

SECTION 10.  Repealers: Article 21.60, Section 2(6), Insurance Code;
Article 21.60, Section 4(f), Insurance Code; and Article 21.60, Sections
10(k), (l), and (m), Insurance Code.  {Note:  These three articles were
repealed by Acts 1999, 76th Legislature.} 

SECTION 11.  Provides that the following sections of the Occupations Code,
as added by the Act of the 77th Legislature, Regular Session, 2001,
relating to nonsubstantive additions to and corrections in enacted codes,
are repealed: 

 _Section 2151.002(6), Definitions;

 _Section 2151.1021, INSPECTION REQUIREMENTS FOR MOBILE AMUSEMENT RIDES;

 _2151.1526, PROHIBITION OF MOBILE AMUSEMENT RIDE OPERATION.

SECTION 12. Provides that on January 1, 2002, the regulation of mobile
amusement rides formerly administered by the Texas Department of Insurance
is transferred to the commissioner of licensing and regulation.  Provides
that all money, records, property, and equipment in the custody of the
Texas Department of Insurance on December 31, 2001, for the regulation of
mobile amusement rides shall be transferred to the custody of the
commissioner of licensing and regulation on January 1, 2002. 

SECTION 13.  Provides that in accordance with Section 311.031(c),
Government Code, which gives effect to a substantive amendment enacted by
the same legislature that codifies the amended statute, the text of
Sections 2151.002, 2151.151, and 2151.153, Occupations Code, as set out in
this Act, gives effect to changes made by Sections 1, 4, and 6, Chapter
1364, Acts of the 76th Legislature, Regular Session, 1999.  Provides that
to the extent of any conflict, this Act prevails over another Act of the
77th Legislature, Regular Session, 2001, relating to nonsubstantive
additions and corrections in enacted codes. 

SECTION 14.  Effective date:  January 1, 2002, except as provided by
Subsection (b). 

(b)  Provides that Sections 761.002, 761.003, 761.004, 761.005, and
761.008, Health and Safety Code, as added by this Act, take effect
September 1, 2001.  Makes application of this Act prospective. 
 
 (c)  Provides that an offense committed on or after January 1, 2002 is
covered by this Act. 

(d)  Provides that an offense committed before January 1, 2002, is covered
by the law in effect when the offense was committed, and the former law is
continued in effect for that purpose. For purposes of this section, an
offense is committed before the effective date of this Act if any element
of the offense occurs before that date.