| 1 | 1 | | H.B. No. 1745 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | AN ACT |
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| 5 | 5 | | relating to vicarious liability of a transportation network company |
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| 6 | 6 | | for acts of a driver using the company's digital network. |
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| 7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 8 | | SECTION 1. Title 6, Civil Practice and Remedies Code, is |
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| 9 | 9 | | amended by adding Chapter 150E to read as follows: |
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| 10 | 10 | | CHAPTER 150E. CIVIL ACTIONS OR ARBITRATIONS INVOLVING |
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| 11 | 11 | | TRANSPORTATION NETWORK COMPANIES |
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| 12 | 12 | | Sec. 150E.001. DEFINITIONS. In this chapter: |
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| 13 | 13 | | (1) "Digital network" and "transportation network |
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| 14 | 14 | | company" have the meanings assigned by Section 2402.001, |
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| 15 | 15 | | Occupations Code. |
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| 16 | 16 | | (2) "Network vehicle" means a land motor vehicle that: |
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| 17 | 17 | | (A) is available on a digital network; |
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| 18 | 18 | | (B) is of the following type: |
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| 19 | 19 | | (i) black car or other for hire; or |
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| 20 | 20 | | (ii) private passenger, pickup truck, or |
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| 21 | 21 | | cargo van; |
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| 22 | 22 | | (C) is designed to operate primarily on a public |
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| 23 | 23 | | road; |
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| 24 | 24 | | (D) has at least four wheels; and |
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| 25 | 25 | | (E) has seating for not more than eight |
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| 26 | 26 | | passengers, including the driver. |
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| 27 | 27 | | Sec. 150E.002. APPLICABILITY OF CHAPTER. This chapter |
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| 28 | 28 | | applies only to an action or arbitration proceeding in which: |
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| 29 | 29 | | (1) a transportation network company is a defendant; |
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| 30 | 30 | | (2) the claimant seeks recovery of damages for loss of |
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| 31 | 31 | | property, bodily injury, or death; |
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| 32 | 32 | | (3) the claim for which the action or proceeding is |
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| 33 | 33 | | brought arises out of the ownership, use, operation, or possession |
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| 34 | 34 | | of a network vehicle while the vehicle's driver or passenger was |
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| 35 | 35 | | logged on to a transportation network company's digital network; |
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| 36 | 36 | | and |
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| 37 | 37 | | (4) the theory of recovery for which damages are |
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| 38 | 38 | | sought against the transportation network company is based on: |
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| 39 | 39 | | (A) the ownership, operation, design, |
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| 40 | 40 | | manufacture, or maintenance of a digital network accessed by a |
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| 41 | 41 | | driver or passenger; or |
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| 42 | 42 | | (B) the relationship, affiliation, or |
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| 43 | 43 | | interaction with a driver logged on to a transportation network |
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| 44 | 44 | | company's digital network. |
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| 45 | 45 | | Sec. 150E.003. LIMITATION OF LIABILITY. (a) A |
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| 46 | 46 | | transportation network company may not be held vicariously liable |
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| 47 | 47 | | for damages in an action or arbitration proceeding to which this |
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| 48 | 48 | | chapter applies if: |
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| 49 | 49 | | (1) the claimant does not prove by clear and |
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| 50 | 50 | | convincing evidence that the company was grossly negligent with |
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| 51 | 51 | | respect to the subject claim; and |
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| 52 | 52 | | (2) the company has fulfilled all of the company's |
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| 53 | 53 | | obligations with respect to the transportation network company |
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| 54 | 54 | | driver under Chapter 2402, Occupations Code, relating to the |
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| 55 | 55 | | subject claim. |
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| 56 | 56 | | (b) Subsection (a) does not affect the liability of a |
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| 57 | 57 | | transportation network company arising out of the company's own |
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| 58 | 58 | | negligence or gross negligence for an act or omission relating to |
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| 59 | 59 | | the use of the company's digital network, including the failure to |
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| 60 | 60 | | prevent a driver from logging on to the digital network if, at the |
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| 61 | 61 | | time of the event giving rise to the cause of action, the company |
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| 62 | 62 | | had actual knowledge that the driver was disqualified from logging |
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| 63 | 63 | | on to the company's digital network for a reason described by |
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| 64 | 64 | | Section 2402.107(b), Occupations Code, that occurred after the most |
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| 65 | 65 | | recent review of the driver's driving record or criminal background |
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| 66 | 66 | | check required by Section 2402.107, Occupations Code. |
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| 67 | 67 | | SECTION 2. The changes in law made by this Act apply only to |
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| 68 | 68 | | a cause of action that accrues on or after the effective date of |
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| 69 | 69 | | this Act. |
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| 70 | 70 | | SECTION 3. This Act takes effect September 1, 2023. |
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| 71 | 71 | | ______________________________ ______________________________ |
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| 72 | 72 | | President of the Senate Speaker of the House |
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| 73 | 73 | | I certify that H.B. No. 1745 was passed by the House on May 2, |
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| 74 | 74 | | 2023, by the following vote: Yeas 110, Nays 35, 1 present, not |
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| 75 | 75 | | voting. |
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| 76 | 76 | | ______________________________ |
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| 77 | 77 | | Chief Clerk of the House |
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| 78 | 78 | | I certify that H.B. No. 1745 was passed by the Senate on May |
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| 79 | 79 | | 15, 2023, by the following vote: Yeas 25, Nays 6. |
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| 80 | 80 | | ______________________________ |
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| 81 | 81 | | Secretary of the Senate |
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| 82 | 82 | | APPROVED: _____________________ |
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| 83 | 83 | | Date |
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| 84 | 84 | | _____________________ |
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| 85 | 85 | | Governor |
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