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You are here: Home . rules . 2007 . 1119-059

SUBCHAPTER J. RULES TO IMPLEMENT THE AMUSEMENT RIDE SAFETY INSPECTION AND INSURANCE ACT

28 TAC §§5.9001, 5.9002, and 5.9004

1. INTRODUCTION. The Texas Department of Insurance proposes amendments to §§5.9001, 5.9002 and 5.9004, concerning the Amusement Ride Safety Inspection and Insurance Act, Occupations Code §§2151.001 - 2151.153. The proposed amendments are necessary to implement HB 1070, enacted by the 80th Legislature, Regular Session, effective June 15, 2007. Prior to the enactment of HB 1070, there were only two classes of amusement rides regulated under the Occupations Code: Class A rides primarily for children under thirteen, and Class B rides defined as all amusement rides other than Class A rides. This meant that low-risk Class B amusement rides were regulated for purposes of liability insurance in the same class as higher risk rides, like roller coasters. Thus, the owners and operators of low-risk Class B rides were required to purchase the same high-cost insurance coverage as owners and operators of the high-speed or high-risk amusement rides.

HB 1070 establishes new minimum liability insurance requirements for a certain defined Class B amusement ride that operates similar to a five-mile-an-hour train and authorizes a local government to obtain liability insurance required under existing §2151.101 or under new §2151.1011 of the Occupations Code through an interlocal agreement. Specifically, HB 1070 amends Occupations Code §2151.101(a) to exclude a Class B amusement ride that meets the definition in new §2151.1011 from the §2151.101 minimum insurance requirements. The §2151.101 minimum insurance requirements for a Class B amusement ride are that an owner/operator must maintain a liability insurance policy for each ride in the amount of not less than $1,000,000 bodily injury and $500,000 property damage per occurrence or not less than $1,500,000 per occurrence combined single limit. New §2151.1011 requires certain defined Class B amusement rides to obtain liability insurance in the amount of not less than $1 million in aggregate for all liability claims occurring in a policy year. New §2151.101 only applies to a Class B amusement ride that consists of a motorized vehicle that tows one or more separate non-rotating passenger cars in a manner similar to a train but without regard to whether the vehicle and cars operate on a fixed course, as long as the vehicle does not run on an elevated track, nor travel under its own power more than five miles per hour, has safety belts for all passengers, and passenger seating areas enclosed by guardrails or doors. HB 1070 also adds subsection (c) to Occupations Code §2151.101 to provide that a local government may meet the §2151.101 amusement ride insurance requirements through an interlocal agreement. New §2151.1011 also authorizes a local government to satisfy the new §2151.1011 insurance requirements by obtaining liability coverage through an interlocal agreement.

The use of interlocal agreements by local governments is governed by the Texas Interlocal Cooperation Act (Act), Government Code §§791.001 - 791.033, which allows political subdivisions to contract with one another to efficiently share resources and responsibilities. Government Code §791.011(a) provides that a local government may contract with another local government to perform governmental functions and services. Under §791.003(4) of the Act, local governments include counties, municipalities, and special districts; junior college districts or other political subdivisions of this state or another state; local government corporations, political subdivision corporations; local workforce development boards; as well as combinations of such entities. As provided by §791.003(3)(N) of the Act, governmental functions and services means, in addition to statutorily specified functions and services, governmental functions in which the contracting parties are mutually interested. The proposed amendments relating to interlocal agreements to satisfy insurance requirements for amusement rides are consistent with the Texas Interlocal Cooperation Act. The proposed amendments to §5.9001(4) and (5) are necessary to update an obsolete statutory citation. Insurance Code Article 1.14-2, referenced in both paragraphs, was re-adopted without substantive change as Chapter 981 in the nonsubstantive Insurance Code revision, Acts 2001, 77th Legislature, Chapter 1419, §1, effective June 1, 2003. Proposed amendments to §5.9002 are necessary to add three new definitions: Class B motorized train amusement ride, interlocal agreement, and local government. In proposed new §5.9002(6), a Class B motorized train amusement ride is defined as a Class B amusement ride that consists of a motorized vehicle that tows one or more separate passenger cars in a manner similar to a train but without regard to whether the vehicle and cars operate on a fixed track or course, does not travel under its own power in excess of five miles per hour, has safety belts for all passengers, does not run on an elevated track, has passenger seating areas enclosed by guardrails or doors, and does not have passenger cars that rotate independently from the motorized vehicle. This proposed definition conforms to the definition enacted in Occupations Code §2151.1011 for rides that qualify for the exemption from the insurance requirements of Occupations Code §2151.101 for Class B amusement rides. Existing §5.9002(6) - §5.9002(8) are proposed to be renumbered because of the addition of the new definition. In proposed new §5.9002(10), the definition for an interlocal agreement references the definition for interlocal contract in Government Code §791.003(2), which is defined as a contract or agreement under the Government Code, Chapter 791, the Texas Interlocal Cooperation Act. In proposed new §5.9002(11), the term l ocal government is defined consistent with the Texas Interlocal Cooperation Act, Government Code §791.003(4). The remaining definitions are proposed to be renumbered because of the addition of the two new definitions. Section 5.9004 is proposed to be amended to re-format the rule structure for purposes of clarity in amending the existing rule to include the HB 1070 amendments. The re-formatting of the rule structure results in designation of existing paragraphs as subsections, existing subparagraphs as paragraphs, and existing clauses as subparagraphs. Minor, non-substantive amendments are proposed for purposes of organization and readability, including the addition of subheadings. Punctuation has been changed where necessary. Other minor, nonsubstantive amendments include: (i) revision of citations to the Insurance Code to conform with agency style; (ii) correction of verb tense; (iii) correction of errors and inconsistency in capitalization; and (iv) correction of internal cross-references. None of the re-formatting or editorial revisions results in any substantive change to §5.9004. In proposed redesignated §5.9004(b)(1), which is existing §5.9004(1), language relating to "insuring the owner or operator against liability for injury to persons arising out of use of the amusement ride" is proposed for deletion for purposes of accuracy and clarity. In proposed redesignated §5.9004(d)(2)(A), which is existing §5.9004(3)(B)(i), language relating to "for injury to persons" is proposed for deletion for the same purposes. Proposed new §5.9004(b)(1)(B) exempts a Class B motorized train amusement ride from the Occupations Code §2151.101 insurance requirements for a Class B amusement ride. Proposed new §5.9004(b)(2) is necessary to require, consistent with new §2151.1011 of the Occupations Code, that a Class B motorized train amusement ride maintain liability insurance of not less than $1 million in aggregate for all liability claims occurring in a policy year. Proposed new §5.9004(b)(3) provides that a local government that owns or operates an amusement ride may satisfy the prescribed insurance requirements through an interlocal agreement. This section is added to implement Occupations Code §§2151.101(c) and 2151.1011(c) enacted by HB 1070. Proposed redesignated §5.9004(d), which is existing §5.9004(3), governs the yearly renewal of the inspection certificate for an amusement ride. Under the existing rules, in the process of renewing an inspection certificate for an amusement ride, an owner or operator must show proof of continuing liability insurance for the ride. This requirement may be satisfied by the submission of a certificate of insurance reflecting insurance in the required amount for the particular classification of the ride. The necessary amount of insurance to be shown on the certificate is specified in proposed redesignated §5.9004(d)(2)(A)(i), which is existing §5.9004(3)(B)(ii). Therefore, new §5.9004(d)(2)(A)(iii) is proposed to be added to include the new §2151.1011 liability insurance requirements for Class B motorized train amusement rides.

2. FISCAL NOTE. Alexis Dick, Deputy Commissioner, Inspections Division, has determined that for each year of the first five years the proposed amendments will be in effect, there will be no fiscal impact to state government as a result of the enforcement or administration of the proposal. A local government that owns or operates an amusement ride that complies with the statutorily specified standards will be able to insure such a ride through an interlocal agreement which may present a fiscal advantage. There will be no measurable effect on local employment or the local economy as a result of the proposal.

3. PUBLIC BENEFIT/COST NOTE. Ms. Dick also has determined that for each year of the first five years the proposed amendments are in effect, the anticipated public benefit will be Department rules that are consistent with the statutory definition and requirements for liability insurance for Class B motorized train amusement rides and rules that are re-formatted in a new structure for ease of understanding and compliance. Any costs required to comply with the proposed amendments result from the legislative enactment of HB 1070 and not as a result of the adoption, enforcement, or administration of this proposal. The new liability insurance requirements in proposed §5.9004 simply conform the rule to the new statutory requirements in the Occupations Code §§2151.101 and 2151.1011 enacted in HB 1070. The new option in proposed §5.9004(b)(3) for local governments that own or operate amusement rides to satisfy the statutory liability insurance requirements through interlocal agreements also simply conforms the rule to the provisions in the Occupations Code §§2151.101(c) and 2151.1011(c) enacted in HB 1070.

The Department anticipates that all businesses, regardless of size, that own or operate low-risk Class B motorized train amusement rides will be able to satisfy the lesser insurance requirements in §2151.1011 of the Occupations Code and the proposed amendments in §5.9004(b)(1)(B)(2) for such amusement rides at less cost than the cost for the higher coverage mandated under the former statutory requirements. Before the enactment of HB 1070 by the 80th Legislature, owners and operators of low-risk Class B motorized train amusement rides were required by Occupations Code §2151.101 to purchase the same amount of liability insurance coverage as required for owners and operators of higher risk rides, like roller coasters. Section 2151.101 required that owners/operators of all Class B rides maintain a liability insurance policy for each ride in the amount of not less than $1,000,000 bodily injury and $500,000 property damage per occurrence or not less than $1,500,000 per occurrence combined single limit. With the enactment of HB 1070, the liability insurance requirements for owners/operators of low-risk Class B motorized train amusement rides are less. Under the new §2151.1011 requirements, such owners/operators are required to maintain liability insurance in the amount of not less than $1 million in aggregate for all liability claims for each ride occurring in a policy year. For owners/operators of all other Class B amusement rides and Class A amusement rides, the insurance requirements remain the same.

Additionally, the Department anticipates that any local governments that are owners or operators of all types of amusements rides, including Class A amusement rides, low-risk Class B motorized train amusement rides, and other Class B amusement rides may also realize a cost savings by purchasing liability insurance coverage through interlocal agreements. The use of interlocal agreements present potential costs savings for two reasons. First, a local government may increase its bargaining power to obtain more competitively priced liability insurance through a purchasing agreement with other local governments or the state as authorized by Government Code §791.025. Second, through an interlocal agreement a local government may become a member of a lower-cost self-insurance fund authorized by Government Code Chapter 2259.

4. ECONOMIC IMPACT STATEMENT AND REGULATORY FLEXIBILITY ANALYSIS FOR SMALL AND MICRO BUSINESSES. In accordance with the Government Code §2006.002(c), the Department has determined that the proposed amendments in §5.9004(b)(1)(B)(2), relating to new liability insurance requirements for low risk Class B motorized train amusement rides, and in proposed §5.9004(a)(3), relating to authorization for local governments that own or operate amusement rides to satisfy the statutory liability insurance requirements through interlocal agreements, will not have an adverse economic effect on small and micro businesses. The proposed amendments will, for the same reasons previously detailed in the Public Benefits/Cost Note part of this proposal for businesses other than small and micro businesses, enable small and micro business owners/operators of low risk Class B motorized train amusement rides to purchase the statutorily required liability insurance at less cost than the cost for the higher coverage mandated under the former statutory requirements in Occupations Code §2151.101. Under new §2151.1011, the liability insurance requirements must be in an amount of not less than $1 million in aggregate for all liability claims for each ride occurring in a policy year. The liability insurance requirements in the Occupations Code §2151.101 for all other Class B amusement rides and Class A amusement rides remain the same, including for small and micro business owners/operators.

Before adopting a rule that may have an adverse economic effect on small or micro businesses, an agency is required by Government Code §2006.002(c) to prepare in addition to an economic impact statement a regulatory flexibility analysis that includes the agency's consideration of alternative methods of achieving the purpose of the proposed rule. Because the Department has determined that this proposal will not have an adverse economic effect on small or micro businesses, the Department is not required to consider alternative methods of achieving the purpose of the proposed rule.

5. TAKINGS IMPACT ASSESSMENT. The Department has determined that no private real property interests are affected by this proposal and that this proposal does not restrict or limit an owner's right to property that would otherwise exist in the absence of government action, and therefore, does not constitute a taking or require a takings impact assessment under the Government Code §2007.043.

6. REQUEST FOR PUBLIC COMMENT. To be considered, written comments on the proposal must be submitted no later than 5:00 p.m. on December 31, 2007, to Gene C. Jarmon, General Counsel and Chief Clerk, Mail Code 113-2A, Texas Department of Insurance, P.O. Box 149104, Austin, Texas 78714-9104. An additional copy of the comment must be simultaneously submitted to Alexis Dick, Deputy Commissioner, Inspections Division, Mail Code 103-1A, Texas Department of Insurance, P.O. Box 149104, Austin, Texas 78714-9104. Any request for a public hearing should be submitted separately to the Office of Chief Clerk prior to the close of the public comment period. If a hearing is held, written and oral comments presented at the hearing will be considered.

7. STATUTORY AUTHORITY. The amendments are proposed under Occupations Code §§2151.101, 2151.1011, and 2151.051, and Insurance Code §36.001. Occupations Code §2151.101 exempts a Class B amusement ride that meets the definition in Occupations Code §2151.1011 from the §2151.101 minimum insurance requirements for Class B amusement rides. Occupations Code §2151.1011 establishes new minimum liability insurance requirements for a certain statutorily defined Class B amusement ride that operates similar to a five-mile-an-hour train. Occupations Code §§2151.101 and 2151.1011 authorize a local government to satisfy liability insurance requirements through interlocal agreements. Occupations Code §2151.051 provides that the Commissioner of Insurance shall administer and enforce Chapter 2151 of the Occupations Code. Insurance Code §36.001 provides that the Commissioner of Insurance may adopt any rules necessary and appropriate to implement the powers and duties of the Texas Department of Insurance under the Insurance Code and other laws of this state.

8. CROSS REFERENCE TO STATUTE.

Rule Statute

§§5.9001, 5.9002, and 5.9004 Occupations Code Chapter 2151

9. TEXT.

§5.9001. Purpose and Scope. It is the purpose of this subchapter to aid in implementing the Amusement Ride Safety Inspection and Insurance Act (hereinafter referred to as the Act). The provisions of this subchapter are in addition to, and not in lieu of, the provisions of the Act (Title 13, Occupations Code, Chapter 2151). This subchapter applies to:

(1) - (3) (No change.)

(4) any insurer, including any surplus lines insurer, as defined in the Insurance Code Chapter 981 [ , Article 1.14-2,] and any other nonadmitted company;

(5) any agent or representative of any insurer, including surplus lines agents, as defined in the Insurance Code Chapter 981 [ , Article 1.14-2,] and agents of any nonadmitted company;

(6) - (7) (No change.)

§5.9002. Definitions. The following words and terms, when used in this subchapter, shall have the following meanings.

(1) - (5) (No change.)

(6) Class B motorized train amusement ride--A Class B amusement ride that:

(A) consists of a motorized vehicle that tows one or more separate passenger cars in a manner similar to a train but without regard to whether the vehicle and cars operate on a fixed track or course;

(B) does not travel under its own power in excess of five miles per hour;

(C) has safety belts for all passengers;

(D) does not run on an elevated track;

(E) has passenger seating areas enclosed by guardrails or doors; and

(F) does not have passenger cars that rotate independently from the motorized vehicle.

(7)[( 6)] Commissioner--The Commissioner of Insurance.

(8)[ (7)] Inspector--A person qualified by training, education, or experience to conduct safety inspections of amusement rides or devices on behalf of an insurance company and in accordance with the American Society for Testing and Materials (ASTM), the manufacturer's standards and criteria, or standards established by the insurance company.

(9)[ (8)] Inspection--A procedure to be conducted by an inspector to determine whether an amusement ride or device is being assembled, maintained, tested, operated, and inspected in accordance with the current ASTM standards, the manufacturer's, or insurer's standards, whichever is the most stringent, and that determines the current operational safety of the ride or device.

(10) Interlocal agreement--An interlocal contract as defined in Government Code §791.003(2).

(11) Local government--A county, municipality, or special district; a junior college district, or other political subdivision of this state or another state; a local government corporation created under Transportation Code Subchapter D, Chapter 431; a political subdivision corporation created under Local Government Code Chapter 304; a local workforce development board created under Government Code §2308.253; or a combination of two or more of such entities.

(12)[ (9)] Mobile amusement ride--An amusement ride that is designed or adapted to be moved from one location to another and is not fixed at a single location.

(13)[ (10)] Owner/operator--The person or entity responsible for an amusement ride and his or its agents or representatives. A separate reference to owner or operator shall be deemed to include owner/operator.

(14)[ (11)] TDI--The Texas Department of Insurance.

§5.9004. Amusement Ride Operation Requirements.

(a) Operation Requirements. An owner/operator may not operate an amusement ride unless the owner/operator has satisfied and is continuing to satisfy the [ following] requirements in subsections (a) - (f) of this section.

(b)[ (1)] Insurance. The owner/operator must file with the Texas Department of Insurance (TDI) the insurance policy or a photocopy of the insurance policy certifying that the policy is a true copy of the insurance policy provided to the insured as required by the Act, Chapter 2151 [ §2151.101].

(1) The Act, §2151.101, requires that any person who operates an amusement ride must have currently in force a combined single limit or split limit insurance policy written by an insurance company authorized to do business in this state or by a surplus lines insurer, as defined by the Insurance Code, Chapter 981, or have an independently procured policy subject to the Insurance Code, Chapter 101 [ §101.001 et seq.], insuring the owner or operator against liability for injury to persons arising out of 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) $150,000 per occurrence combined single limit with a $300,000 annual aggregate [ for Class A amusement rides and an amount of not less than] .

(B) for Class B amusement rides, except for Class B motorized train 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 insuring the owner or operator against liability for injury to persons arising out of the use of the amusement ride. The following requirements must also be met].

(2) The Act, §2151.1011, requires that any person who operates a Class B motorized train amusement ride must have an insurance policy currently in effect written by an insurance company authorized to conduct business in this state or by a surplus line insurer, as defined by Insurance Code Chapter 981, or have an independently procured policy subject to Insurance Code Chapter 101, 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 $1 million in aggregate for all liability claims occurring in a policy year.

(3) A local government may satisfy the insurance requirements prescribed by paragraphs (1) and (2) of this subsection by obtaining liability coverage through an interlocal agreement.

(4)[ (A)] The policy or certified photocopy of the policy must be complete, including all applicable coverage forms and endorsements. Certificates of insurance will not be acceptable for this purpose.

(5)[ (B)] The policy must contain a schedule listing by name and serial number if applicable of each amusement ride insured by the policy. In the event of additions or deletions of amusement rides during the policy term, such changes shall be shown on a change endorsement, a copy of which must be submitted to TDI. Additions will also require an inspection certificate (TDI Form AR-100, Amusement Ride Certificate of Inspection/Re-Inspection, Revised Effective October, 2005) and a $40 fee for each amusement ride to be submitted to TDI prior to any operation of the added amusement ride. Additions or deletions shall be filed no later than 10 days after the change.

(6)[ (C)] In the event of policy cancellation by either the insured owner/operator or the insurance company, the company shall furnish notice of such cancellation to TDI as soon as possible, but not later than 10 days prior to cancellation.

(7)[ (D)] The owner/operator will provide to any sponsor, lessor, landowner, or other person responsible for an amusement ride offered for use by the public, a photocopy of the inspection certificate and the insurance policy required by this section.

(8)[ (E)] If the owner/operator obtains an additional amusement ride device, the ride shall be added to the insurance policy and a copy of the endorsement submitted to TDI along with the required inspection certificate (TDI Form AR-100, Amusement Ride Certificate of Inspection/Re-Inspection, Revised Effective October, 2005) and the $40 fee prior to operation in Texas.

(c)[ (2)] Inspection/Reinspection Certificate. The owner/operator must also file the original amusement ride inspection certificate (TDI Form AR-100, Amusement Ride Certificate of Inspection/Re-Inspection, Revised Effective October, 2005) certifying with respect to each amusement ride the matters required by the Act. A separate inspection certificate is required for each amusement ride showing the name, serial number, manufacturer of the ride, the inspector's name, the owner/operator, a picture of the ride in an operable state taken at the time of the inspection, and other information as requested. The serial number and name/description of the amusement ride shall coincide with the same information identified on the insurance policy. If major components of the ride, i.e., the crane used in a bungee operation, are interchangeable, the name, serial number, and manufacturer of the inspected component shall be included on the inspection certificate. The inspection certificate is valid for a period of one year, and for expedience in processing, should if possible coincide with the effective date of the insurance policy. The inspection shall be conducted by the insurer or a person with whom the insurer has contracted. The inspector shall provide both the insurer and owner/operator with a written certificate that the inspection has been made and that the amusement ride meets the standards for coverage.

(1)[ (A)] The inspection certificate shall not be submitted to TDI until all discrepancies have been resolved and all necessary repair(s) or replacement(s) required for the amusement ride to meet the standards for coverage have been made.

(2)[ (B)] The inspection required by §2151.101(a) of the Act 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 determines are reasonably subject to failure as the result of stress and wear and could cause injury to a member of the general public as a result of a failure. The inspection shall include a review of the owner/operator's daily inspection records and inspection and maintenance program in accordance with ASTM practice or the manufacturer's guidelines/inspection criteria. The inspection shall be conducted with the amusement ride or device in an operable state and include an evaluation of the device for a minimum of one complete operating cycle.

(3)[ (C)] If the amusement ride or device consists of interchangeable major components, such as cranes used in bungee jumping operations, the crane or major component used during the inspection shall be considered an integral part of the amusement ride and the inspection certificate shall include the manufacturer and serial number of the crane or major component inspected with the amusement ride. If the inspected crane or major component is replaced by another unit, a new inspection is required to include the new identification and serial number of the replacement unit.

(4)[ (D)] Any bungee jumping amusement device shall include a safety net or air bag as an integral part of the ride. The safety net or air bag shall be of sufficient size to cover the jump zone. The safety net or air bag shall be rated for the maximum free fall height possible from the jump platform used. If the jump area is over water, the water must be of sufficient depth to provide an adequate safety cushion. The safety net or air bag shall be inspected as an integral part of the amusement ride.

(5)[ (E)] The inspection certificate shall be signed by a representative of the insurer.

(6)[ (F)] If the amusement ride or device does not meet the inspection standards, the amusement ride shall not be operated until all necessary repair(s) and/or replacement(s) have been made and the ride reinspected and an inspection/re-inspection certificate issued.

(7)[ (G)] It shall be the responsibility of the amusement ride owner/operator to complete the following prior to any operation of the ride:

(A)[ (i)] to request the insurer to certify that the insurance policy and the inspection certificate are true copies by an official of the insurer;

(B)[ (ii)] to receive the completed policy and inspection certificate from the insurer if they elect to provide coverage;

(C)[ (iii)] to submit a certified copy of the insurance policy, the original inspection certificate, and the fee to TDI for review. A planning factor of 10 days should be allowed for TDI review and approval prior to any operation of the ride. Errors of omission or commission on either policy or inspection certificate may delay TDI approval.[ ;]

(8)[ (iv)] Immediately [ immediately] after any injury or death involving equipment failure, structural failure, or operator error, the amusement ride/device shall be closed for public use until a new inspection is performed and an inspection/re-inspection certificate is submitted to TDI.

(9)[ (v)] In [ in] addition to the requirements of paragraphs (7) and (8) of this subsection [ this paragraph], a mobile amusement ride on which a death occurs may not be operated until the requirements of §2151.1526 of the Act are met.

(10)[ (vi)] In [ in] addition to the requirements of this subsection [ paragraph], an amusement ride whose operation has been prohibited by a municipal, county, or state law enforcement official pursuant to §2151.152 or §2151.1525 of the Act may not be operated until the requirements of that section are met. Any on-site corrections that are made pursuant to the requirements of §2151.1525 of the Act must be presented to the appropriate municipal, county, or state law enforcement official.

(11)[ (H)] TDI Form AR-100, Amusement Ride Certificate of Inspection/Re-Inspection, Revised Effective October, 2005, is adopted by reference and shall be used for each filing of an amusement ride inspection certificate required by this section. This form (the Amusement Ride Certificate of Inspection/Re-Inspection) is published by the Texas Department of Insurance and copies of the form may be obtained from the Loss Control Regulation Division, Mail Code 103-9A, Texas Department of Insurance, P.O. Box 149104, Austin, Texas 78714-9104.

(12)[ (I)] The inspection/re-inspection certificate, insurance policy, and fee shall be submitted to TDI, Loss Control Regulation Division, for review. If the inspection/re-inspection certificate and insurance policy meet the requirements of this subchapter, the inspection/re-inspection certificate will be date-stamped and forwarded to the owner/operator with TDI Form AR-101 (Texas Amusement Ride Compliance Sticker), Effective May, 2000 and adopted herein by reference. TDI Form AR-101 will indicate the expiration date of the inspection certificate and shall be affixed to a major component of the amusement ride in a location visible to the ride participants.

(13)[ (J)] The records of the inspections required by this section shall be made available for inspection by any municipal, county, or state law enforcement official at the location at which the amusement ride is operated.

(d)[ (3)] Insurance Policy and Inspection Certificate Renewal. Renewal of the policy or inspection certificate shall be completed with sufficient lead time to provide these documents to TDI with a minimum of 10 working days to review and approve the documents prior to the expiration of either the policy or the inspection certificate.

(1)[ (A)] In the event of policy cancellation or expiration, the policy shall promptly be replaced or renewed without any lapse in coverage while the amusement ride is offered for use by the public. Any operation without a valid and current insurance policy and current inspection certificate constitutes an illegal operation and is subject to the enforcement provisions and penalties pursuant to §§2151.151, 2151.152, 2151.1525, 2151.1526, and 2151.153 of the Act. The sponsor, lessor, landowner, or other person responsible for an amusement ride offered for use by the public shall be notified by the owner/operator of the coverage discontinuance.

(2)[ (B)] A renewal certificate of insurance will be acceptable for the purpose of this subsection [ paragraph], if the renewal certificate shows:

(A)[ (i)] insurance coverage insuring the owner or operator against liability [ for injury to persons] arising out of the use of the amusement ride/device in an amount of not less than:[ ;]

(i) for Class A amusement rides:

(I)[ (ii) an amount of insurance of not less than] $100,000 bodily injury and $50,000 property damage per occurrence with a $300,000 annual aggregate; or

(II) $150,000 per occurrence combined single limit with a $300,000 annual aggregate [ for Class A amusement rides and an amount of insurance of not less than].

(ii) for Class B amusement rides, except for Class B motorized train 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];

(iii) for Class B motorized train amusement rides, $1,000,000 in aggregate for all liability claims occurring in a policy year; and

(B)[ (iii)] a policy term that includes the period of time during which the amusement ride will be offered for public use.

(e)[ (4)] Daily Inspections. In addition to the inspection required under this section, the owner/operator who operates a mobile amusement ride must perform and record daily inspections of the mobile amusement ride including safety restraints on each mobile amusement ride.

(1)[ (A)] Records of the daily inspections must be available for inspection by any municipal, county, or state law enforcement official at the location at which the amusement ride is operated, and the records must be maintained with the amusement ride for a period of one year.

(2)[ (B)] The daily inspection record must include an inspection of the following:

(A)[ (i)] safety belts, bars, locks and other passenger restraints;

(B)[ (ii)] all automatic and manual safety devices;

(C)[ (iii)] signal systems, brakes and control devices;

(D)[ (iv)] safety pins and keys;

(E)[ (v)] fencing, guards, barricades, stairways and ramps;

(F)[ (vi)] ride structure and moving parts;

(G)[ (vii)] tightness of bolts and nuts;

(H)[ (viii)] blocking, support braces and jackstands;

(I)[ (ix)] electrical equipment;

(J)[ (x)] lubrication as per manufacturer's instructions;

(K)[ (xi)] hydraulic and/or pneumatic equipment;

(L)[ (xii) check] communication equipment necessary for operation (if applicable);

(M)[ (xiii)] operation of ride prior to opening[ , operate ride] through one complete cycle of proper functioning; and

(N)[ (xiv)] any other component that is included in the manufacturer's specific ride maintenance and safety checks or current ASTM standards, or that the operator or person performing the daily inspection deems necessary for inspection.

(3)[ (C)] The Texas Department of Insurance (TDI) adopts and incorporates herein by reference TDI Form AR-300 (Daily Inspection Record), Effective May, 2000. This form is published by TDI and copies of the form may be obtained from the Loss Control Regulation Division, Mail Code 103-9A, Texas Department of Insurance, P.O. Box 149104, Austin, Texas 78714-9104. This form sets forth the inspection requirements of this subsection and also includes the name of the device, location (city, state), date of the inspection, manufacturer and serial number, and owner/operator. The form must be signed by the person performing the daily inspection and his supervisor.

(4)[ (D)] Daily inspection record forms used by industry associations, individual operators, or individual manufacturers may be used to fulfill the requirements of this subsection [ paragraph] if the forms contain all of the inspection items and elements set forth in this subsection [ paragraph] and the TDI Form AR-300 (Daily Inspection Record).

(5)[ (E)] In addition to the requirements of this subsection, the owner/operator who operates a mobile amusement ride must also follow the manufacturer's specific checklist for specific ride maintenance and safety checks.

(f)[ (5)] Schedule of Operations. In addition to the inspection requirements of this section, TDI Form AR-102, Amusement Ride Schedule of Operations in Texas, Effective May, 2000, is adopted herein by reference and shall include a schedule of operating locations and dates for each six-month period for mobile operations. This information shall be provided by the owner/operator to TDI, Loss Control Regulation Division, Mail Code 103-9A, Texas Department of Insurance, P.O. Box 149104, Austin, Texas 78714-9104, a minimum of 10 days in advance of each six-month period. Any changes in the schedule must be submitted on an amended TDI Form AR-102 to TDI by the owner/operator within 10 days of such change.



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