86R9974 ADM-F
By: Paxton S.B. No. 1495
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of amusement rides by the Texas
Department of Licensing and Regulation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2151.002, Occupations Code, is amended
by amending Subdivisions (4) and (5) and adding Subdivision (5-a)
to read as follows:
(4) "Commission" ["Commissioner"] means the Texas
Commission of Licensing and Regulation [commissioner of
insurance].
(5) "Department" means the Texas Department of
Licensing and Regulation [Insurance].
(5-a) "Executive director" means the executive
director of the department.
SECTION 2. Section 2151.051, Occupations Code, is amended
to read as follows:
Sec. 2151.051. GENERAL POWERS AND DUTIES. The executive
director [commissioner] shall administer and enforce this chapter.
SECTION 3. Section 2151.052(a), Occupations Code, is
amended to read as follows:
(a) The commission [commissioner] shall establish
reasonable and necessary fees, in an amount not to exceed $40 per
year, for each amusement ride covered by this chapter.
SECTION 4. Section 2151.101(a), Occupations Code, is
amended to read as follows:
(a) A person may not operate an amusement ride unless the
person:
(1) has had the amusement ride inspected at least once
a year by an insurer or a person with whom the insurer has
contracted;
(2) obtains a written certificate from the insurer or
person with whom the insurer has contracted stating that the
amusement ride:
(A) has been inspected;
(B) meets the standards for insurance coverage;
and
(C) is covered by the insurance required by
Subdivision (3);
(3) except as provided by Sections 2151.1011 and
2151.1012, has a combined single limit or split limit insurance
policy currently in effect written by an insurance company
authorized to do business in this state or by a surplus lines
insurer, as defined by Chapter 981, Insurance Code, or has an
independently procured policy subject to Chapter 101, Insurance
Code, insuring the owner or operator against liability for injury
to persons arising out of the use of the amusement ride in an amount
of not less than:
(A) for Class A amusement rides:
(i) $100,000 bodily injury and $50,000
property damage per occurrence with a $300,000 annual aggregate; or
(ii) a $150,000 per occurrence combined
single limit with a $300,000 annual aggregate; and
(B) for Class B amusement rides:
(i) $1,000,000 bodily injury and $500,000
property damage per occurrence; or
(ii) $1,500,000 per occurrence combined
single limit;
(4) files with the department [commissioner], as
required by this chapter, the inspection certificate and the
insurance policy or a photocopy of the certificate or policy
authorized by the executive director [commissioner]; and
(5) files with each sponsor, lessor, landowner, or
other person responsible for the amusement ride being offered for
use by the public a photocopy of the inspection certificate and the
insurance policy required by this subsection.
SECTION 5. Sections 2151.1021(a) and (c), Occupations Code,
are amended to read as follows:
(a) The commission [commissioner] shall adopt rules
requiring operators of mobile amusement rides to perform
inspections of mobile amusement rides, including rules requiring
daily inspections of safety restraints.
(c) The executive director [commissioner] shall prescribe
forms for inspections required under this section and shall require
records of the inspections to be made available for inspection by
any municipality, county, or state law enforcement officials at any
location at which an amusement ride is operated.
SECTION 6. Sections 2151.1022(b) and (c), Occupations Code,
are amended to read as follows:
(b) The operator shall file with the department
[commissioner] quarterly a report, on a form designed by the
executive director [commissioner], describing each governmental
action taken in the quarter covered by the report for which the
operator is required by Subsection (a) to maintain records. A
report is not required in any quarter in which no reportable
governmental action was taken in any state in which the person
operated the amusement ride.
(c) A person who operates an amusement ride shall maintain
for not less than two years at any location where the ride is
operated, for inspection by a municipal, county, or state law
enforcement official, a photocopy of any quarterly report required
under this section or Section 2151.103 to be filed with the
department [commissioner].
SECTION 7. Section 2151.103(c), Occupations Code, is
amended to read as follows:
(c) The operator shall file an injury report with the
department [commissioner] on a quarterly basis. The report shall
be made on a form prescribed by the executive director
[commissioner] and shall include a description of each injury
caused by a ride that results in death or requires medical
treatment.
SECTION 8. Section 2151.105(a), Occupations Code, is
amended to read as follows:
(a) The commission [commissioner] shall adopt rules
requiring that a sign be posted to inform the public how to report
an amusement ride that appears to be unsafe or to report an
amusement ride operator who appears to be violating the law.
SECTION 9. Section 2151.151, Occupations Code, is amended
to read as follows:
Sec. 2151.151. INJUNCTION. The district attorney of a
county in which an amusement ride is operated or, on request of the
executive director [commissioner of insurance], the attorney
general or an agent of the attorney general, may seek an injunction
against a person operating an amusement ride in violation of this
chapter or in violation of a rule adopted by the commission
[commissioner] under Section 2151.1021 or 2151.105.
SECTION 10. Sections 2151.152(a), (b), and (c), Occupations
Code, are amended to read as follows:
(a) The executive director or a [A] municipal, county, or
state law enforcement official, in conjunction with the executive
director, may determine compliance with a provision of Subchapter
C, other than Section 2151.104, [in conjunction with the
commissioner] and may institute an action in a court of competent
jurisdiction to enforce this chapter.
(b) The executive director or a [A] municipal, county, or
state law enforcement official may enter and inspect without notice
any amusement ride at any time to ensure public safety.
(c) The operator of an amusement ride shall immediately
provide the inspection certificate and the insurance policy
required by Section 2151.101 to the executive director or a
municipal, county, or state law enforcement official requesting the
information. A photocopy of the inspection certificate or
insurance policy may be provided instead of the certificate or
policy.
SECTION 11. Sections 2151.1525(a), (b), and (d),
Occupations Code, are amended to read as follows:
(a) Except as provided by Subsection (e), the executive
director or a municipal, county, or state law enforcement official
may 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
Section 2151.152(c);
(2) the executive director or law enforcement official
reasonably believes the amusement ride is not in compliance with
Section 2151.101; or
(3) the operation of the amusement ride, conduct of a
person operating the amusement ride, conduct of a person assembling
the amusement ride if it is a mobile amusement ride, or any other
circumstance causes the executive director or law enforcement
official to reasonably believe that the amusement ride is unsafe or
the safety of a passenger on the amusement ride is threatened.
(b) If the operation of an amusement ride is prohibited
under Subsection (a)(1) or (2), a person may not operate the
amusement ride unless:
(1) the operator presents to the executive director or
the appropriate municipal, county, or state law enforcement
official proof of compliance with Section 2151.101; or
(2) the executive director [commissioner] or the
executive director's [commissioner's] designee determines that on
the date the amusement ride's operation was prohibited the operator
had on file with the department [board] the documents required by
Section 2151.101 and issues a written statement permitting the
amusement ride to resume operation.
(d) If on the date an amusement ride's operation is
prohibited under Subsection (a)(3) the amusement ride is in
compliance with Section 2151.101, a person may not operate the
amusement ride until:
(1) on-site corrections are made;
(2) an order from a district judge, county judge,
judge of a 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
on the date the amusement ride's operation was prohibited:
(A) reinspects the amusement ride in the same
manner required by Section 2151.101; and
(B) delivers to the executive director
[commissioner] or the executive director's [commissioner's]
designee and the appropriate law enforcement official a
reinspection certificate:
(i) stating that the required reinspection
has occurred;
(ii) stating that the amusement ride meets
coverage standards and is covered by insurance in compliance with
Section 2151.101; and
(iii) explaining the necessary repairs, if
any, that have been made to the amusement ride after its operation
was prohibited.
SECTION 12. Section 2151.1526(b), Occupations Code, is
amended to read as follows:
(b) If a mobile amusement ride was in compliance with
Section 2151.101 when its operation was initially prohibited under
Subsection (a), a person may resume operating the mobile amusement
ride only after an insurance company insuring the amusement ride on
the date its operation was prohibited:
(1) reinspects the amusement ride in the same manner
required under Section 2151.101; and
(2) delivers to the executive director [commissioner]
or the executive director's [commissioner's] designee a
reinspection certificate:
(A) stating that the required reinspection has
occurred;
(B) stating that the amusement ride meets
coverage standards and is covered by insurance in compliance with
Section 2151.101; and
(C) explaining the necessary repairs, if any,
that have been made to the amusement ride after its operation was
prohibited.
SECTION 13. Section 2151.153(a), Occupations Code, is
amended to read as follows:
(a) A person commits an offense if the person fails to
comply with any requirement of:
(1) Section 2151.101, 2151.102, 2151.103,
2151.1525(b), (c), or (d), or 2151.1526(a); or
(2) a rule adopted by the commission [commissioner]
under Section 2151.1021 or 2151.105.
SECTION 14. The Texas Department of Insurance and the Texas
Department of Licensing and Regulation may enter into a memorandum
of understanding that:
(1) identifies in detail the applicable powers and
duties that are transferred between the two agencies by this Act;
and
(2) establishes a plan for the identification and
transfer of the records, personnel, property, and unspent
appropriations of the Texas Department of Insurance that are
related to the regulation of amusement rides under Chapter 2151,
Occupations Code.
SECTION 15. (a) On January 1, 2020, the following are
transferred from the Texas Department of Insurance to the Texas
Department of Licensing and Regulation:
(1) the powers, duties, functions, programs, and
activities of the Texas Department of Insurance relating to the
licensing and regulation of amusement rides under Chapter 2151,
Occupations Code;
(2) any obligations and contracts of the Texas
Department of Insurance that are directly related to implementing a
power, duty, function, program, or activity transferred under this
Act; and
(3) all property and records in the custody of the
Texas Department of Insurance that are related to a power, duty,
function, program, or activity transferred under this Act and all
funds appropriated by the legislature for that power, duty,
function, program, or activity.
(b) The rules, policies, procedures, and decisions of the
commissioner of insurance under Chapter 2151, Occupations Code, are
continued in effect as rules, policies, procedures, and decisions
of the Texas Commission of Licensing and Regulation until
superseded by a rule or other appropriate action of the Texas
Commission of Licensing and Regulation.
SECTION 16. (a) Except as provided by Subsection (b) of
this section, this Act takes effect January 1, 2020.
(b) Section 14 of this Act takes effect September 1, 2019.