S.B. No. 4
                                        AN ACT
    1-1  relating to products liability.
    1-2        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-3        SECTION 1.  Title 4, Civil Practice and Remedies Code, is
    1-4  amended by adding Chapter 82 to read as follows:
    1-5                    CHAPTER 82.  PRODUCTS LIABILITY
    1-6        Sec. 82.001.  DEFINITIONS.  In this chapter:
    1-7              (1)  "Claimant" means a party seeking relief, including
    1-8  a plaintiff, counterclaimant, or cross-claimant.
    1-9              (2)  "Products liability action" means any action
   1-10  against a manufacturer or seller for recovery of damages arising
   1-11  out of personal injury, death, or property damage allegedly caused
   1-12  by a defective product whether the action is based in strict tort
   1-13  liability, strict products liability, negligence,
   1-14  misrepresentation, breach of express or implied warranty, or any
   1-15  other theory or combination of theories.
   1-16              (3)  "Seller" means a person who is engaged in the
   1-17  business of distributing or otherwise placing, for any commercial
   1-18  purpose, in the stream of commerce for use or consumption a product
   1-19  or any component part thereof.
   1-20              (4)  "Manufacturer" means a person who is a designer,
   1-21  formulator, constructor, rebuilder, fabricator, producer,
   1-22  compounder, processor, or assembler of any product or any component
   1-23  part thereof and who places the product or any component part
    2-1  thereof in the stream of commerce.
    2-2        Sec. 82.002.  MANUFACTURER'S DUTY TO INDEMNIFY.  (a)  A
    2-3  manufacturer shall indemnify and hold harmless a seller against
    2-4  loss arising out of a products liability action, except for any
    2-5  loss caused by the seller's negligence, intentional misconduct, or
    2-6  other act or omission, such as negligently modifying or altering
    2-7  the product, for which the seller is independently liable.
    2-8        (b)  For purposes of this section, "loss" includes court
    2-9  costs and other reasonable expenses, reasonable attorney fees, and
   2-10  any reasonable damages.
   2-11        (c)  Damages awarded by the trier of fact shall, on final
   2-12  judgment, be deemed reasonable for purposes of this section.
   2-13        (d)  For purposes of this section, a wholesale distributor or
   2-14  retail seller who completely or partially assembles a product in
   2-15  accordance with the manufacturer's instructions shall be considered
   2-16  a seller.
   2-17        (e)  The duty to indemnify under this section:
   2-18              (1)  applies without regard to the manner in which the
   2-19  action is concluded; and
   2-20              (2)  is in addition to any duty to indemnify
   2-21  established by law, contract, or otherwise.
   2-22        (f)  A seller eligible for indemnification under this section
   2-23  shall give reasonable notice to the manufacturer of a product
   2-24  claimed in a petition or complaint to be defective, unless the
   2-25  manufacturer has been served as a party or otherwise has actual
    3-1  notice of the action.
    3-2        (g)  A seller is entitled to recover from the manufacturer
    3-3  court costs and other reasonable expenses, reasonable attorney
    3-4  fees, and any reasonable damages incurred by the seller to enforce
    3-5  the seller's right to indemnification under this section.
    3-6        Sec. 82.004.  INHERENTLY UNSAFE PRODUCTS.  (a)  In a products
    3-7  liability action, a manufacturer or seller shall not be liable if:
    3-8              (1)  the product is inherently unsafe and the product
    3-9  is known to be unsafe by the ordinary consumer who consumes the
   3-10  product with the ordinary knowledge common to the community; and
   3-11              (2)  the product is a common consumer product intended
   3-12  for personal consumption, such as sugar, castor oil, alcohol,
   3-13  tobacco, and butter, as identified in Comment i to Section 402A of
   3-14  the Restatement (Second) of Torts.
   3-15        (b)  For purposes of this section, the term "products
   3-16  liability action" does not include an action based on manufacturing
   3-17  defect or breach of an express warranty.
   3-18        Sec. 82.005.  DESIGN DEFECTS.  (a)  In a products liability
   3-19  action in which a claimant alleges a design defect, the burden is
   3-20  on the claimant to prove by a preponderance of the evidence that:
   3-21              (1)  there was a safer alternative design; and
   3-22              (2)  the defect was a producing cause of the personal
   3-23  injury, property damage, or death for which the claimant seeks
   3-24  recovery.
   3-25        (b)  In this section, "safer alternative design" means a
    4-1  product design other than the one actually used that in reasonable
    4-2  probability:
    4-3              (1)  would have prevented or significantly reduced the
    4-4  risk of the claimant's personal injury, property damage, or death
    4-5  without substantially impairing the product's utility; and
    4-6              (2)  was economically and technologically feasible at
    4-7  the time the product left the control of the manufacturer or seller
    4-8  by the application of existing or reasonably achievable scientific
    4-9  knowledge.
   4-10        (c)  This section does not supersede or modify any statute,
   4-11  regulation, or other law of this state or of the United States that
   4-12  relates to liability for, or to relief in the form of, abatement of
   4-13  nuisance, civil penalties, cleanup costs, cost recovery, an
   4-14  injunction, or restitution that arises from contamination or
   4-15  pollution of the environment.
   4-16        (d)  This section does not apply to:
   4-17              (1)  a cause of action based on a toxic or
   4-18  environmental tort as defined by Sections 33.013(c)(2) and (3); or
   4-19              (2)  a drug or device, as those terms are defined in
   4-20  the federal Food, Drug, and Cosmetic Act (21 U.S.C. Section 321).
   4-21        (e)  This section is not declarative, by implication or
   4-22  otherwise, of the common law with respect to any product and shall
   4-23  not be construed to restrict the courts of this state in developing
   4-24  the common law with respect to any product which is not subject to
   4-25  this section.
    5-1        Sec. 82.006.  FIREARMS AND AMMUNITION.  (a)  In a products
    5-2  liability action brought against a manufacturer or seller of a
    5-3  firearm or ammunition that alleges a design defect in the firearm
    5-4  or ammunition, the burden is on the claimant to prove, in addition
    5-5  to any other elements that the claimant must prove, that:
    5-6              (1)  the actual design of the firearm or ammunition was
    5-7  defective, causing the firearm or ammunition not to function in a
    5-8  manner reasonably expected by an ordinary consumer of firearms or
    5-9  ammunition; and
   5-10              (2)  the defective design was a producing cause of the
   5-11  personal injury, property damage, or death.
   5-12        (b)  The claimant may not prove the existence of the
   5-13  defective design by a comparison or weighing of the benefits of the
   5-14  firearm or ammunition against the risk of personal injury, property
   5-15  damage, or death posed by its potential to cause such injury,
   5-16  damage, or death when discharged.
   5-17        SECTION 2.  Subchapter A, Chapter 16, Civil Practice and
   5-18  Remedies Code, is amended by adding Section 16.012 to read as
   5-19  follows:
   5-20        Sec. 16.012.  PRODUCTS LIABILITY:  MANUFACTURING EQUIPMENT.
   5-21  (a)  In this section:
   5-22              (1)  "Claimant," "products liability action," "seller,"
   5-23  and "manufacturer" have the meanings assigned by Section 82.001.
   5-24              (2)  "Manufacturing equipment" means equipment and
   5-25  machinery used in the manufacturing, processing, or fabrication of
    6-1  tangible personal property but does not include agricultural
    6-2  equipment or machinery.
    6-3        (b)  Except as provided by Subsection (c), a claimant must
    6-4  commence a products liability action against a manufacturer or
    6-5  seller of manufacturing equipment before the end of 15 years after
    6-6  the date of the sale of the equipment by the defendant.
    6-7        (c)  If a manufacturer or seller expressly represents that
    6-8  the manufacturing equipment has a useful safe life of longer than
    6-9  15 years, a claimant must commence a products liability action
   6-10  against that manufacturer or seller of the equipment before the end
   6-11  of the number of years represented after the date of the sale of
   6-12  the equipment by that seller.
   6-13        (d)  This section does not reduce a limitations period that
   6-14  applies to a products liability action involving manufacturing
   6-15  equipment that accrues before the end of the limitations period
   6-16  under this section.
   6-17        (e)  This section does not extend the limitations period
   6-18  within which a products liability action involving manufacturing
   6-19  equipment may be commenced under any other law.
   6-20        (f)  This section applies only to the sale and not to the
   6-21  lease of manufacturing equipment.
   6-22        SECTION 3.  (a)  Sections 82.002 through 82.004, Civil
   6-23  Practice and Remedies Code, as added by this Act, apply only to a
   6-24  cause of action commenced on or after the effective date of this
   6-25  Act.  A cause of action commenced before the effective date of this
    7-1  Act is governed by the law in effect at the time the action
    7-2  accrued, and that law is continued in effect for that purpose.
    7-3        (b)  Sections 16.012, 82.005, and 82.006, Civil Practice and
    7-4  Remedies Code, as added by this Act, apply only to a cause of
    7-5  action that accrues on or after the effective date of this Act.  A
    7-6  cause of action that accrued before the effective date of this Act
    7-7  is governed by the law in effect at the time the action accrued,
    7-8  and that law is continued in effect for that purpose.
    7-9        (c)  Section 82.001, Civil Practice and Remedies Code, as
   7-10  added by this Act, takes effect on the effective date of this Act.
   7-11        SECTION 4.  This Act takes effect September 1, 1993.
   7-12        SECTION 5.  The importance of this legislation and the
   7-13  crowded condition of the calendars in both houses create an
   7-14  emergency   and   an   imperative   public   necessity   that   the
   7-15  constitutional rule requiring bills to be read on three several
   7-16  days in each house be suspended, and this rule is hereby suspended.