44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

RELATING TO TRADE PRACTICES AND REGULATION; REDUCING REQUIRED INSURANCE COVERAGE FOR CERTAIN CARNIVAL RIDE OWNERS OR OPERATORS; AMENDING AND ENACTING SECTIONS OF THE CARNIVAL RIDE INSURANCE ACT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 57-25-1 NMSA 1978 (being Laws 1993, Chapter 284, Section 1) is amended to read:

"57-25-1. SHORT TITLE.--[This act] Chapter 57, Article 25 NMSA 1978 may be cited as the "Carnival Ride Safety and Insurance Act"."

Section 2. Section 57-25-2 NMSA 1978 (being Laws 1993, Chapter 284, Section 2, as amended) is amended to read:

"57-25-2. DEFINITIONS.--As used in the Carnival Ride Safety and Insurance Act:

A. "carnival ride" means any mechanical device, air or inflatable device, amusement device, aquatic device or combination of devices that carries or conveys passengers on, along, around, through or over a fixed or restricted route or course or within a defined area for the purpose of giving its passengers amusement, pleasure, thrills or excitement, including bungee jumping facilities and state fair rides, but does not include [playground equipment, a single-passenger, coin-operated device secured by a stationary foundation or a small promotional event or operation consisting of fewer than six kiddie rides designed for children twelve years of age or younger, including merry-go-rounds] a ski lift, or a coin-operated device meant for use by children below eight years of age that is permanently affixed at a retail commercial business;

B. "department" means the regulation and licensing department;

C. "inspection" means a physical examination of a carnival ride by an inspector of the regulation and licensing department prior to issuing a certificate of inspection, including reinspection to verify a correction of any deficiency noted by the inspector;

D. "local jurisdiction" means a county or municipality in which a carnival ride is operating;

[D.] E. "operator" means a person actually engaged in or directly controlling the operation of a carnival ride, including a person who contracts with an owner to operate a carnival ride; and

[E.] F. "owner" means a person, including the state or any political subdivision of the state, who owns or leases a carnival ride."

Section 3. Section 57-25-3 NMSA 1978 (being Laws 1993, Chapter 284, Section 3, as amended) is amended to read:

"57-25-3. LIABILITY INSURANCE REQUIRED--CERTIFICATE OF INSPECTION REQUIRED--CARNIVAL RIDE INSURANCE FUND CREATED.--

A. No person shall operate a carnival ride without a policy of liability insurance in an amount not less than [three million dollars ($3,000,000) against liability for injury to persons arising out of the operation of the carnival ride]:

(1) one million dollars ($1,000,000) if there have been no claims resulting in a settlement exceeding one hundred thousand dollars ($100,000) against the owner or operator within the previous three years and the certification was maintained continuously during that time; or

(2) three million dollars ($3,000,000) if the certification of the carnival ride was issued by the department after July 1, 1996 or if the department has revoked or suspended the certification of the carnival ride.

B. Either a copy of the policy furnished to the insured or a certificate stating that the insurance required by this section is in effect shall be filed with the department and [a] the local [government entity] jurisdiction. The owner or operator shall provide a copy of an amended insurance policy to the department within five working days of effecting the amendment.

C. The policy shall contain a schedule listing by name and serial number of each carnival ride insured by the policy. In the event of additions or deletions of carnival rides during the policy terms, such changes shall be shown on a change endorsement, a copy of which shall be submitted to the department and the local [government entity] jurisdiction.

D. In the event of policy cancellation or expiration by either the insured owner or operator or the insurance company, the insured shall furnish notice of the cancellation to the department and the local [government entity] jurisdiction not later than ten days prior to cancellation.

E. No person or owner or operator of a carnival ride shall operate any carnival ride without obtaining a certificate of inspection for each ride by an inspector of the department or its designee and filing the certificate of inspection with the local [government] jurisdiction. The owner or operator shall annually have each carnival ride inspected and annually file the certificate of inspection. The certificate of inspection shall state that the carnival ride operator or owner has had the rides independently inspected by a national amusement ride safety official class 1, 2 or 3 inspector within the previous twelve months of the operation of the ride within the state and whether any deficiencies noted by the [engineer] inspector have been corrected. The department may not certify a carnival ride for which the inspector has noted a deficiency until the deficiency is corrected and reinspected. In addition, the owner or operator of the ride shall inspect the ride each day the ride is operated before any member of the public is permitted to board the ride. The owner or operator shall keep a current log of such inspections, which shall be available for review by local enforcement officials during operating hours.

F. The insured shall pay a [fifty dollar ($50.00)] seventy-five-dollar ($75.00) per carnival ride per inspection filing fee with the department.

G. The "carnival ride insurance fund" is created in the state treasury. The fund shall consist of all filing fees received by the department pursuant to the Carnival Ride Safety and Insurance Act. Money in the carnival ride insurance fund is appropriated to the department for the purpose of carrying out the provisions of the Carnival Ride Safety and Insurance Act. [The fund shall not be expended for any purpose other than carrying out the provisions of the Carnival Ride Insurance Act] Disbursement of the fund shall be made upon a warrant drawn by the secretary of finance and administration pursuant to vouchers signed by the superintendent of regulation and licensing. Balances in the fund at the end of any fiscal year shall not revert to the general fund."

Section 4. Section 57-25-4 NMSA 1978 (being Laws 1993, Chapter 284, Section 4) is amended to read:

"57-25-4. PENALTY.--

A. The department or its authorized representative may issue a written order for the temporary cessation of operation of a carnival ride if it has been determined that the owner or operator [has not acquired a policy of insurance or has not maintained inspections of his carnival rides] is not in compliance with the Carnival Ride Safety and Insurance Act. The operation of the ride shall not resume until the [requisite insurance is in effect, inspections have been made and the requisite certificates have been filed with the department and the local government entity] owner or operator complies with all provisions of the Carnival Ride Safety and Insurance Act and rules adopted pursuant to that act.

B. The department may appear in its own name in the district court of Santa Fe county or any other county having jurisdiction to prevent violations or to enforce the provisions of the Carnival Ride Safety and Insurance Act, the orders, rules and regulations, codes and minimum standards made pursuant to [this] that act by injunction, mandamus or any other proper legal proceeding without bond, including an order not to move the carnival ride.

C. The local law enforcement agency shall have the authority to [enforce the provisions of the Carnival Ride Insurance Act] prohibit the operation of a carnival ride that does not display a decal. Any person who [does not maintain liability insurance on a carnival ride, operates a carnival ride or authorizes the operation of a carnival ride that does not have insurance, does not annually have his carnival rides inspected or does not file the proper certificates as set forth in the Carnival Ride Insurance Act] is found to be in violation of any provision of or rule adopted pursuant to the Carnival Ride Safety and Insurance Act is guilty of a misdemeanor, and upon conviction the court shall impose a fine of up to one thousand dollars ($1,000) a day for the operation of each ride.

D. The department may revoke or suspend the certification for a carnival ride operated in violation of the Carnival Ride Safety and Insurance Act."

Section 5. Section 57-25-5 NMSA 1978 (being Laws 1993, Chapter 284, Section 5) is amended to read:

"57-25-5. LIABILITY--LIMITATIONS.--No provision of the Carnival Ride Safety and Insurance Act shall be construed to place any liability on the state or on the department with respect to any claim by any person, firm or corporation relating to a carnival ride or to any injury or damages arising from a carnival ride."

Section 6. Section 57-25-6 NMSA 1978 (being Laws 1993, Chapter 284, Section 6) is amended to read:

"57-25-6. EXEMPTIONS.--The provisions of the Carnival Ride Safety and Insurance Act shall not apply to nonprofit organizations that own and operate a carnival ride ten days or less each year."

Section 7. A new section of the Carnival Ride Safety and Insurance Act is enacted to read:

"[NEW MATERIAL] DECAL REQUIRED--LOCAL JURISDICTION LAW ENFORCEMENT.--

A. The department shall annually issue a decal of certification for each carnival ride certified by the department. No carnival ride may be operated without the current decal posted conspicuously on the ride. The department shall revoke or suspend the certification of all carnival rides operated by the owner or operator of a carnival ride on which a decal has been falsely placed. Decals shall include:

(1) the name of the carnival ride;

(2) the serial number of the ride;

(3) the date of the inspection of the carnival ride;

(4) the date of certification; and

(5) the telephone number of the department.

B. A law enforcement officer employed by local jurisdiction may inspect a carnival ride and order the closure of any ride operating without a decal. The local jurisdiction shall immediately notify the department of the closure of the carnival ride. Upon receiving the notification from a local law enforcement office, the department shall conduct a review of the certification of the carnival ride.

C. A carnival ride owner or operator shall provide conspicuous notification at the entrance of a carnival ride operation that the Carnival Ride Safety and Insurance Act requires certification of carnival rides, and certified carnival rides have a decal of certification conspicuously posted.

D. The department shall adopt rules to carry out the provisions of the Carnival Ride Safety and Insurance Act."

Section 8. DELAYED REPEAL.--The Carnival Ride Safety and Insurance Act is repealed effective July 1, 2004.