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S.B. No. 1282
AN ACT
relating to insurance and regulatory requirements for certain
amusement rides.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsection (a), Section 2151.101, 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) has a combined single limit or split limit [an]
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 [for Class A
amusement rides]; 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 [for Class B amusement rides];
(4) files with the commissioner, as required by this
chapter, the inspection certificate and the insurance policy or a
photocopy of the certificate or policy authorized by the
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 2. Subdivision (1), Section 2151.002, Occupations
Code, is amended to read as follows:
(1) "Amusement ride" means a mechanical device that
carries passengers along, around, or over a fixed or restricted
course or within a defined area for the purpose of giving the
passengers amusement, pleasure, or excitement. The term does not
include:
(A) a coin-operated ride that:
(i) is manually, mechanically, or
electrically operated;
(ii) is customarily placed in a public
location; and
(iii) does not normally require the
supervision or services of an operator; [or]
(B) nonmechanized playground equipment,
including a swing, seesaw, stationary spring-mounted animal
feature, rider-propelled merry-go-round, climber, playground
slide, trampoline, and physical fitness device; or
(C) a challenge course or any part of a challenge
course if the person who operates the challenge course has an
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 operator against liability for injury to persons
arising out of the use of the challenge course, in an amount not
less than:
(i) for facilities with a fixed location:
(a) $100,000 bodily injury and
$50,000 property damage per occurrence, with a $300,000 annual
aggregate; or
(b) a $150,000 per occurrence
combined single limit, with a $300,000 annual aggregate; and
(ii) for facilities other than those with a
fixed location:
(a) $1,000,000 bodily injury and
$500,000 property damage per occurrence; or
(b) $1,500,000 per occurrence
combined single limit.
SECTION 3. This Act applies only to an insurance policy,
certificate, or contract delivered, issued for delivery, or renewed
on or after January 1, 2006. A policy, certificate, or contract
delivered, issued for delivery, or renewed before January 1, 2006,
is governed by the law as it existed immediately before the
effective date of this Act, and that law is continued in effect for
that purpose.
SECTION 4. This Act takes effect September 1, 2005.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1282 passed the Senate on
April 22, 2005, by the following vote: Yeas 28, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1282 passed the House on
May 25, 2005, by a non-record vote.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor