HBA-TYH C.S.H.B. 1059 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 1059
By: Keel
Public Safety
3/26/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Currently, amusement rides cannot legally operate in Texas until insurance
coverage is obtained and filed with the Texas Department of Insurance with
an approved safety inspection certificate.  An annual inspection is
required under the Amusement Ride Safety Inspection and Insurance Act
(Article 21.60, Insurance Code).  The statute places responsibility on the
operator to have insurance before the rides can be used by the public and
on the insurance companies to ascertain that the amusement ride is in good
operating condition before they issue the insurance and inspection
certificate.  However, if safety concerns are present or if there is a
failure to comply with statutory insurance or inspection requirements, the
only option available to law enforcement officials is to institute action
in a court in order to shut down the ride. 

C.S.H.B. 1059 gives state and local law enforcement officials authority to
conduct spot inspections and immediately shut down an amusement ride if
safety concerns are present or for failure to comply with statutory
insurance or inspection requirements.  It increases penalties and
enforcement measures for noncompliance with safety and insurance
regulations and increases mandated insurance coverage to be consistent for
all types of rides. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 2(3), Article 21.60, Insurance Code, to extend
the definition of "Class A amusement ride" to mean an amusement ride with a
fixed location and designed primarily for use by children 12 years of age
and younger. 

SECTION 2.  Amends Section 3(a), Article 21.60, Insurance Code, to raise
the maximum annual fee for each amusement ride covered by this Act from $20
to $40. 

SECTION 3.  Amends Sections 4(a) and (b), Article 21.60, Insurance Code,
to prohibit a person from operating an amusement ride unless the person
files a photocopy of the inspection certificate and the insurance policy,
rather than a certificate stating that the insurance required is in effect,
to each sponsor, lessor, landowner, or other person responsible for an
amusement ride being offered for use by the public.  This requirement is
listed among other enumerated requirements.  Provides that the inspection
must include a method to test the stress- and wear-related damage of
critical parts of a ride that the manufacturer of the amusement ride,
rather than the board (Texas Department of Insurance or commissioner of
insurance), determines are reasonably subject to failure.  Makes a
nonsubstantive changes. 

SECTION 4.  Amends the heading of  Section 9, Article 21.60, Insurance
Code, as follows: 

Sec. 9. New title: PENALTIES.  Deletes "; Local Enforcement" from existing
title. 

SECTION 5.  Amends Section 9, Article 21.60, Insurance Code, by amending
Subsections (a) and (c), as follows: 
 
(a)  Includes a person's failure to comply with any requirement under
Section 4, 5, 10(e), 10(f), or 10(g) as a commission of an offense.  Makes
a conforming and a nonsubstantive change. 

(c)  Provides that an offense under this section is a Class B, rather than
a Class C, misdemeanor. 

SECTION 6.  Amends Article 21.60, Insurance Code, by adding Section 10, as
follows: 

Sec. 10.  ENFORCEMENT.  (a) Authorizes a municipal, county, or state law
enforcement official (official) to determine compliance with Section 4
(Amusement Ride Operation Requirements) or 5 (Filing Affidavit) of this
article in conjunction with the State Board of Insurance (board) and
institute an action in a court of competent jurisdiction to enforce this
article.  
 
(b)  Authorizes an official to enter and inspect without notice any
amusement ride at any time to ensure public safety.  
 
(c)  Requires the operator of an amusement ride to immediately provide the
inspection certificate and the insurance policy required by Section 4 of
this article to an official requesting the information.  Authorizes a
photocopy of the inspection certificate or insurance policy to be provided
instead of the certificate or policy.  
 
(d)  Authorizes an official, except as provided by Subsection (i), to
immediately prohibit operation of an amusement ride if: 
  
(1)  the operator of the amusement ride is unable to provide the documents
or a photocopy of the documents required by Subsection (c); 
  
(2)  the law enforcement official reasonably believes the amusement ride is
not in compliance with Section 4; or 
  
(3)  operation of the amusement ride, conduct of the operator, or any other
circumstance causes the official to reasonably believe that the amusement
ride is unsafe or the safety of a passenger on the amusement ride is
threatened.  
 
(e)  Prohibits a person, if the operation of an amusement ride is
prohibited under Subsection (d)(1) or (2), from operating the amusement
ride unless: 
  
(1)  the operator presents to the appropriate municipal, county, or state
law enforcement agency proof of compliance with Section 4; or  
  
(2)  the commissioner of insurance or the commissioner's designee
determines that on the date the amusement ride's operation was prohibited
the operator had on file with the board the documents required by Section 4
and issues a written statement permitting the amusement ride to resume
operation.  

(f)  Prohibits a person, if on the date an amusement ride's operation is
prohibited  under Subsection (d)(3) the amusement ride is not in compliance
with Section 4, from operating the amusement ride until after a person
subsequently complies with Section 4. 
 
(g)  Prohibits a person, if on the date an amusement ride's operation is
prohibited under Subsection (d)(3) the amusement ride is in compliance with
Section 4, from operating the amusement ride until: 
  
(1)  on-site corrections are made to the satisfaction of the appropriate
official; 
  
(2)  an order from a district judge, county judge, judge of county court at
law, justice of the peace, or municipal judge permits the amusement ride to
resume operation; or 
   
(3)  an insurance company insuring the amusement ride re-inspects the
amusement ride in the same manner required under Section 4 on the date the
amusement ride's operation was prohibited and delivers to the board and the
appropriate officer a reinspection certificate containing the enumerated
information. 
 
(h)  Authorizes the owner or operator of the amusement ride to file suit
for relief from an action taken under Subsection (d) of this section in a
district court in the county in which the amusement ride was located when
the prohibition against operation was enforced.  

(i)  Provides that Subsection (d) does not apply to an amusement ride with
a fixed location and operated at an amusement park that was attended by
more than 200,000 customers in the year preceding the inspection under
Subsection (b). 

SECTION 7.  Repealer: Section 9(e), Article 21.60, Insurance Code.  This
section pertains to the authority of a municipal or law enforcement
official to determine compliance and institute an action in court to
enforce this article. 

SECTION 7. Effective date: immediately.
  Makes application of this Act prospective.

SECTION 8.Emergency clause.
  Effective date: upon passage.

COMPARISON OF ORIGINAL TO SUBSTITUTE

In SECTION 1, C.S.H.B. 1059 differs from the original by redefining "Class
A amusement ride" to mean an amusement ride with a fixed location and
designed primarily for use by children 12 years of age and younger. 

In SECTION 2,  C.S.H.B. 1059 redesignates SECTION 1 of the original bill to
SECTION 2. 

In SECTION 3, C.S.H.B. 1059 differs from the original by keeping references
in Section 4(a), Article 21.60, Insurance Code, which were deleted in the
original bill, to Class A and Class B amusement rides. This substitute also
differs from the original by amending Section 4(b), Article 21.60,
Insurance Code, to provide that the inspection must include a method to
test the stress- and wear-related damage of critical parts of a ride that
the manufacturer of the amusement ride, rather than the board (Texas
Department of Insurance or commissioner of insurance), determines are
reasonably subject to failure. 

In SECTION 4, C.S.H.B. 1059 redesignates SECTION 3 of the original bill to
SECTION 4.   

In SECTION 5, C.S.H.B. 1059 redesignates SECTION 4 of the original bill to
SECTION 5. 

In SECTION 6, redesignated from SECTION 5 of the original bill, C.S.H.B.
1059 differs from the original by providing that Subsection (d) does not
apply to an amusement ride with a fixed location and operated at an
amusement park that was attended by more than 200,000 customers in the year
preceding the inspection under Subsection (b), and making a conforming
change. 

In SECTION 7, C.S.H.B. 1059 differs from the original by repealing Section
9(e), rather than Sections 2(3), 2(4), and 9(e), Article 21.60, Insurance
Code.  Sections 2(3) and 2(4) are definitions of Class A and Class B
amusement rides. 

In SECTION 8, C.S.H.B. 1059 redesignates SECTION 7 of the original bill to
SECTION 8. 

In SECTION 9, C.S.H.B. 1059 redesignates SECTION 8 of the original bill to
SECTION 9.