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