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.