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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of amusement rides by the Texas |
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Department of Licensing and Regulation. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2151.002, Occupations Code, is amended |
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by amending Subdivisions (4) and (5) and adding Subdivision (5-a) |
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to read as follows: |
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(4) "Commission" ["Commissioner"] means the Texas |
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Commission of Licensing and Regulation [commissioner of
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insurance]. |
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(5) "Department" means the Texas Department of |
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Licensing and Regulation [Insurance]. |
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(5-a) "Executive director" means the executive |
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director of the department. |
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SECTION 2. Section 2151.051, Occupations Code, is amended |
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to read as follows: |
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Sec. 2151.051. GENERAL POWERS AND DUTIES. The executive |
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director [commissioner] shall administer and enforce this chapter. |
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SECTION 3. Section 2151.052(a), Occupations Code, is |
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amended to read as follows: |
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(a) The commission [commissioner] shall establish |
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reasonable and necessary fees, in an amount not to exceed $40 per |
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year, for each amusement ride covered by this chapter. |
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SECTION 4. Section 2151.101(a), Occupations Code, is |
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amended to read as follows: |
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(a) A person may not operate an amusement ride unless the |
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person: |
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(1) has had the amusement ride inspected at least once |
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a year by an insurer or a person with whom the insurer has |
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contracted; |
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(2) obtains a written certificate from the insurer or |
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person with whom the insurer has contracted stating that the |
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amusement ride: |
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(A) has been inspected; |
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(B) meets the standards for insurance coverage; |
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and |
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(C) is covered by the insurance required by |
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Subdivision (3); |
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(3) except as provided by Sections 2151.1011 and |
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2151.1012, has a combined single limit or split limit insurance |
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policy currently in effect written by an insurance company |
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authorized to do business in this state or by a surplus lines |
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insurer, as defined by Chapter 981, Insurance Code, or has an |
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independently procured policy subject to Chapter 101, Insurance |
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Code, insuring the owner or operator against liability for injury |
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to persons arising out of the use of the amusement ride in an amount |
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of not less than: |
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(A) for Class A amusement rides: |
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(i) $100,000 bodily injury and $50,000 |
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property damage per occurrence with a $300,000 annual aggregate; or |
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(ii) a $150,000 per occurrence combined |
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single limit with a $300,000 annual aggregate; and |
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(B) for Class B amusement rides: |
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(i) $1,000,000 bodily injury and $500,000 |
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property damage per occurrence; or |
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(ii) $1,500,000 per occurrence combined |
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single limit; |
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(4) files with the department [commissioner], as |
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required by this chapter, the inspection certificate and the |
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insurance policy or a photocopy of the certificate or policy |
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authorized by the executive director [commissioner]; and |
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(5) files with each sponsor, lessor, landowner, or |
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other person responsible for the amusement ride being offered for |
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use by the public a photocopy of the inspection certificate and the |
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insurance policy required by this subsection. |
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SECTION 5. Sections 2151.1021(a) and (c), Occupations Code, |
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are amended to read as follows: |
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(a) The commission [commissioner] shall adopt rules |
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requiring operators of mobile amusement rides to perform |
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inspections of mobile amusement rides, including rules requiring |
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daily inspections of safety restraints. |
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(c) The executive director [commissioner] shall prescribe |
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forms for inspections required under this section and shall require |
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records of the inspections to be made available for inspection by |
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any municipality, county, or state law enforcement officials at any |
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location at which an amusement ride is operated. |
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SECTION 6. Sections 2151.1022(b) and (c), Occupations Code, |
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are amended to read as follows: |
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(b) The operator shall file with the department |
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[commissioner] quarterly a report, on a form designed by the |
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executive director [commissioner], describing each governmental |
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action taken in the quarter covered by the report for which the |
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operator is required by Subsection (a) to maintain records. A |
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report is not required in any quarter in which no reportable |
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governmental action was taken in any state in which the person |
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operated the amusement ride. |
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(c) A person who operates an amusement ride shall maintain |
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for not less than two years at any location where the ride is |
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operated, for inspection by a municipal, county, or state law |
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enforcement official, a photocopy of any quarterly report required |
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under this section or Section 2151.103 to be filed with the |
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department [commissioner]. |
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SECTION 7. Section 2151.103(c), Occupations Code, is |
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amended to read as follows: |
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(c) The operator shall file an injury report with the |
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department [commissioner] on a quarterly basis. The report shall |
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be made on a form prescribed by the executive director |
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[commissioner] and shall include a description of each injury |
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caused by a ride that results in death or requires medical |
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treatment. |
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SECTION 8. Section 2151.105(a), Occupations Code, is |
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amended to read as follows: |
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(a) The commission [commissioner] shall adopt rules |
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requiring that a sign be posted to inform the public how to report |
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an amusement ride that appears to be unsafe or to report an |
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amusement ride operator who appears to be violating the law. |
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SECTION 9. Section 2151.151, Occupations Code, is amended |
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to read as follows: |
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Sec. 2151.151. INJUNCTION. The district attorney of a |
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county in which an amusement ride is operated or, on request of the |
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executive director [commissioner of insurance], the attorney |
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general or an agent of the attorney general, may seek an injunction |
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against a person operating an amusement ride in violation of this |
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chapter or in violation of a rule adopted by the commission |
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[commissioner] under Section 2151.1021 or 2151.105. |
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SECTION 10. Sections 2151.152(a), (b), and (c), Occupations |
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Code, are amended to read as follows: |
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(a) The executive director or a [A] municipal, county, or |
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state law enforcement official, in conjunction with the executive |
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director, may determine compliance with a provision of Subchapter |
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C, other than Section 2151.104, [in conjunction with the
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commissioner] and may institute an action in a court of competent |
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jurisdiction to enforce this chapter. |
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(b) The executive director or a [A] municipal, county, or |
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state law enforcement official may enter and inspect without notice |
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any amusement ride at any time to ensure public safety. |
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(c) The operator of an amusement ride shall immediately |
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provide the inspection certificate and the insurance policy |
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required by Section 2151.101 to the executive director or a |
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municipal, county, or state law enforcement official requesting the |
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information. A photocopy of the inspection certificate or |
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insurance policy may be provided instead of the certificate or |
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policy. |
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SECTION 11. Sections 2151.1525(a), (b), and (d), |
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Occupations Code, are amended to read as follows: |
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(a) Except as provided by Subsection (e), the executive |
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director or a municipal, county, or state law enforcement official |
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may immediately prohibit operation of an amusement ride if: |
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(1) the operator of the amusement ride is unable to |
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provide the documents or a photocopy of the documents required by |
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Section 2151.152(c); |
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(2) the executive director or law enforcement official |
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reasonably believes the amusement ride is not in compliance with |
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Section 2151.101; or |
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(3) the operation of the amusement ride, conduct of a |
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person operating the amusement ride, conduct of a person assembling |
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the amusement ride if it is a mobile amusement ride, or any other |
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circumstance causes the executive director or law enforcement |
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official to reasonably believe that the amusement ride is unsafe or |
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the safety of a passenger on the amusement ride is threatened. |
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(b) If the operation of an amusement ride is prohibited |
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under Subsection (a)(1) or (2), a person may not operate the |
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amusement ride unless: |
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(1) the operator presents to the executive director or |
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the appropriate municipal, county, or state law enforcement |
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official proof of compliance with Section 2151.101; or |
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(2) the executive director [commissioner] or the |
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executive director's [commissioner's] designee determines that on |
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the date the amusement ride's operation was prohibited the operator |
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had on file with the department [board] the documents required by |
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Section 2151.101 and issues a written statement permitting the |
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amusement ride to resume operation. |
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(d) If on the date an amusement ride's operation is |
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prohibited under Subsection (a)(3) the amusement ride is in |
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compliance with Section 2151.101, a person may not operate the |
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amusement ride until: |
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(1) on-site corrections are made; |
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(2) an order from a district judge, county judge, |
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judge of a county court at law, justice of the peace, or municipal |
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judge permits the amusement ride to resume operation; or |
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(3) an insurance company insuring the amusement ride |
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on the date the amusement ride's operation was prohibited: |
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(A) reinspects the amusement ride in the same |
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manner required by Section 2151.101; and |
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(B) delivers to the executive director |
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[commissioner] or the executive director's [commissioner's] |
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designee and the appropriate law enforcement official a |
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reinspection certificate: |
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(i) stating that the required reinspection |
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has occurred; |
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(ii) stating that the amusement ride meets |
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coverage standards and is covered by insurance in compliance with |
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Section 2151.101; and |
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(iii) explaining the necessary repairs, if |
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any, that have been made to the amusement ride after its operation |
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was prohibited. |
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SECTION 12. Section 2151.1526(b), Occupations Code, is |
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amended to read as follows: |
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(b) If a mobile amusement ride was in compliance with |
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Section 2151.101 when its operation was initially prohibited under |
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Subsection (a), a person may resume operating the mobile amusement |
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ride only after an insurance company insuring the amusement ride on |
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the date its operation was prohibited: |
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(1) reinspects the amusement ride in the same manner |
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required under Section 2151.101; and |
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(2) delivers to the executive director [commissioner] |
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or the executive director's [commissioner's] designee a |
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reinspection certificate: |
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(A) stating that the required reinspection has |
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occurred; |
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(B) stating that the amusement ride meets |
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coverage standards and is covered by insurance in compliance with |
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Section 2151.101; and |
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(C) explaining the necessary repairs, if any, |
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that have been made to the amusement ride after its operation was |
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prohibited. |
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SECTION 13. Section 2151.153(a), Occupations Code, is |
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amended to read as follows: |
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(a) A person commits an offense if the person fails to |
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comply with any requirement of: |
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(1) Section 2151.101, 2151.102, 2151.103, |
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2151.1525(b), (c), or (d), or 2151.1526(a); or |
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(2) a rule adopted by the commission [commissioner] |
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under Section 2151.1021 or 2151.105. |
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SECTION 14. The Texas Department of Insurance and the Texas |
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Department of Licensing and Regulation may enter into a memorandum |
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of understanding that: |
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(1) identifies in detail the applicable powers and |
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duties that are transferred between the two agencies by this Act; |
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and |
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(2) establishes a plan for the identification and |
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transfer of the records, personnel, property, and unspent |
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appropriations of the Texas Department of Insurance that are |
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related to the regulation of amusement rides under Chapter 2151, |
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Occupations Code. |
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SECTION 15. (a) On January 1, 2020, the following are |
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transferred from the Texas Department of Insurance to the Texas |
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Department of Licensing and Regulation: |
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(1) the powers, duties, functions, programs, and |
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activities of the Texas Department of Insurance relating to the |
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licensing and regulation of amusement rides under Chapter 2151, |
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Occupations Code; |
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(2) any obligations and contracts of the Texas |
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Department of Insurance that are directly related to implementing a |
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power, duty, function, program, or activity transferred under this |
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Act; and |
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(3) all property and records in the custody of the |
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Texas Department of Insurance that are related to a power, duty, |
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function, program, or activity transferred under this Act and all |
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funds appropriated by the legislature for that power, duty, |
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function, program, or activity. |
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(b) The rules, policies, procedures, and decisions of the |
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commissioner of insurance under Chapter 2151, Occupations Code, are |
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continued in effect as rules, policies, procedures, and decisions |
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of the Texas Commission of Licensing and Regulation until |
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superseded by a rule or other appropriate action of the Texas |
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Commission of Licensing and Regulation. |
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SECTION 16. (a) Except as provided by Subsection (b) of |
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this section, this Act takes effect January 1, 2020. |
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(b) Section 14 of this Act takes effect September 1, 2019. |