By Tillery                                            H.B. No. 3533
         77R4934 DAK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to liability for the transportation of hazardous
 1-3     substances by pipeline.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Title 4, Civil Practice and Remedies Code, is
 1-6     amended by adding Chapter 98 to read as follows:
 1-7           CHAPTER 98.  LIABILITY FOR TRANSPORTATION OF HAZARDOUS
 1-8                           SUBSTANCES BY PIPELINE
 1-9           Sec. 98.001.  DEFINITIONS.  In this chapter:
1-10                 (1)  "Hazardous substance" means:
1-11                       (A)  natural gas, as defined by Section 91.173,
1-12     Natural Resources Code;
1-13                       (B)  a hazardous liquid, as defined by Section
1-14     117.001, Natural Resources Code; or
1-15                       (C)  any other hazardous chemical, waste, or
1-16     hydrocarbon.
1-17                 (2)  "Transportation" includes storage incident to the
1-18     transportation.
1-19           Sec. 98.002.  STRICT LIABILITY.  A person who owns, operates,
1-20     or manages a pipeline that transports a hazardous substance is
1-21     strictly liable for damages for personal injury, death, or property
1-22     damage arising from the transportation of the hazardous substance
1-23     by the pipeline.
1-24           Sec. 98.003.  NEGLIGENCE AS MATTER OF LAW.  A person who
 2-1     owns, operates, or manages a pipeline that transports a hazardous
 2-2     substance is negligent as a matter of law if the person violates a
 2-3     state law or rule or a federal law or regulation relating to the
 2-4     transportation of the hazardous substance.
 2-5           Sec. 98.004.  JOINT AND SEVERAL LIABILITY.  A person who
 2-6     owns, operates, or manages a pipeline that transports a hazardous
 2-7     substance and is found liable under this chapter or other law for
 2-8     any amount of damages for personal injury, death, or property
 2-9     damage arising from the transportation of the hazardous substance
2-10     by the pipeline is jointly liable with any other defendant for the
2-11     entire amount of damages for personal injury, death, or property
2-12     damage arising from the transportation of the hazardous substance
2-13     by the pipeline.
2-14           Sec. 98.005.  CHAPTER 33 DOES NOT APPLY.  Chapter 33 does not
2-15     apply in an action for damages for personal injury, death, or
2-16     property damage arising from the transportation of a hazardous
2-17     substance by a pipeline.
2-18           Sec. 98.006.  NO LIMITATION ON EXEMPLARY DAMAGES.  Section
2-19     41.008(b) does not apply in an action for damages for personal
2-20     injury, death, or property damage arising from the transportation
2-21     of a hazardous substance by a pipeline.
2-22           Sec. 98.007.  INSURANCE REQUIRED.  (a)  A person who owns,
2-23     operates, or manages a pipeline that transports a hazardous
2-24     substance must have liability insurance coverage in effect that
2-25     covers damages for personal injury, death, or property damage
2-26     arising from the transportation of a hazardous substance by a
2-27     pipeline.
 3-1           (b)  The coverage must be in the amount equal to or greater
 3-2     than $750 million for each single occurrence of death, personal
 3-3     injury, or property damage.
 3-4           SECTION 2. Section 33.002(c), Civil Practice and Remedies
 3-5     Code, is amended to read as follows:
 3-6           (c)  This chapter does not apply to:
 3-7                 (1)  an action to collect workers' compensation
 3-8     benefits under the workers' compensation laws of this state
 3-9     (Subtitle A, Title 5, Labor Code)  or actions against an employer
3-10     for exemplary damages arising out of the death of an employee;
3-11     [or]
3-12                 (2)  a claim for exemplary damages included in an
3-13     action to which this chapter otherwise applies; or
3-14                 (3)  a cause of action for damages for personal injury,
3-15     death, or property damage arising from the transportation of a
3-16     hazardous substance by a pipeline as described by Chapter 98.
3-17           SECTION 3. Section 41.008, Civil Practice and Remedies Code,
3-18     is amended by adding Subsection (f) to read as follows:
3-19           (f)  Subsection (b) does not apply to a cause of action for
3-20     damages for personal injury, death, or property damage arising from
3-21     the transportation of a hazardous substance by a pipeline as
3-22     described by Chapter 98.
3-23           SECTION 4.  (a)  This Act takes effect immediately if it
3-24     receives a vote of two-thirds of all the members elected to each
3-25     house, as provided by Section 39, Article III, Texas Constitution.
3-26     If this Act does not receive the vote necessary for immediate
3-27     effect, this Act takes effect September 1, 2001.
 4-1           (b)  This Act applies only to a cause of action that accrues
 4-2     on or after the effective date of this Act.  An action that accrued
 4-3     before the effective date of this Act is governed by the law
 4-4     applicable to the action immediately before the effective date of
 4-5     this Act, and that law is continued in effect for that purpose.