SESSION OF 1999



SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2040



As Amended by Senate on Final Action





Brief(1)



As amended by the Senate on Final Action, H.B. 2040 would require owners of amusement rides, as defined in the bill, to carry liability insurance in order to operate the rides in Kansas. The insurance policy would have to provide for coverage of at least $500,000 ($250,000 in the case of nonprofit organizations) and name as an additional insured any person contracting with the owner for the amusement ride's operation. The term "owner" may include the state or any of its political subdivisions. The governing body of any city or county is authorized to establish and enforce safety standards for amusement rides and may require additional insurance or may allow the owner to be self-insured. Certain types of games, concessions, coin-operated rides, and non-mechanized playground equipment are excluded from the definition of amusement ride.





Background



As passed by the House, H.B. 2040 would have required the owners of amusement rides, as defined in the bill, to carry liability insurance, to have annual safety inspections of each ride, to provide minimum training levels for operators of the rides, and to post all safety instructions near each ride. The bill would have established duties for patrons of the rides, procedures to be followed when a serious injury occurs, and penalties for violations of the law. H.B. 2040 would have authorized the Attorney General and the county or district attorney to seek injunctions against the operation of rides when violations of the law occur and would have authorized cities and counties to establish and enforce their own safety standards. The bill would have required that liability insurance policies be carried in an amount of not less than $1 million per occurrence and not less than $2 million in annual aggregate. No amusement ride could have been operated unless the ride had a valid annual certificate of inspection by a person with at least a level l certification by the National Association of Amusement Ride Officials.



The introduced version of the bill was supported by the Haas and Wilkerson Insurance Company, a representative of the Johnson County Old Settlers' Association, the general manager of the Kansas State Fair Association, and the Kansas Trial Lawyers Association. The bill was opposed by amusement ride operators from Lebanon and Garden City who objected to the added costs for annual inspections which would make it harder for small amusement ride operators to stay in business.



The House Committee deleted the inspection requirements and all responsibilities for the Department of Human Resources under the bill and required inspections by persons certified by the National Association. Other amendments were clarifying in nature. The House Committee of the Whole amendment excluded from the bill's requirements nonprofit amusement rides owned by a political subdivision and rides owned and operated by a not-for-profit organization.



The Senate Committee amended the bill to delete the House-passed provisions and establish the liability insurance requirement.



The Senate on Final Action amendment reduced the liability insurance requirement for nonprofit organizations from $500,000 to $250,000.



The fiscal note on the introduced version of the bill is not relevant to the bill as amended.



1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html.