Bill Text: TX HB1745 | 2023-2024 | 88th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Relating to vicarious liability of a transportation network company for acts of a driver using the company's digital network.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2023-06-02 - Effective on 9/1/23 [HB1745 Detail]

Download: Texas-2023-HB1745-Comm_Sub.html

---

88R22762 MZM-F
By: Leach H.B. No. 1745
Substitute the following for H.B. No. 1745:
By: Schofield C.S.H.B. No. 1745

A BILL TO BE ENTITLED
AN ACT
relating to vicarious liability of a transportation network company
for acts of a driver using the company's digital network.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 6, Civil Practice and Remedies Code, is
amended by adding Chapter 150E to read as follows:
CHAPTER 150E. CIVIL ACTIONS OR ARBITRATIONS INVOLVING
TRANSPORTATION NETWORK COMPANIES
Sec. 150E.001. DEFINITIONS. In this chapter:
(1) "Digital network" and "transportation network
company" have the meanings assigned by Section 2402.001,
Occupations Code.
(2) "Network vehicle" means a land motor vehicle that:
(A) is available on a digital network;
(B) is of the following type:
(i) black car or other for hire; or
(ii) private passenger, pickup truck, or
cargo van;
(C) is designed to operate primarily on a public
road;
(D) has at least four wheels; and
(E) has seating for not more than eight
passengers, including the driver.
Sec. 150E.002. APPLICABILITY OF CHAPTER. This chapter
applies only to an action or arbitration proceeding in which:
(1) a transportation network company is a defendant;
(2) the claimant seeks recovery of damages for loss of
property, bodily injury, or death;
(3) the claim for which the action or proceeding is
brought arises out of the ownership, use, operation, or possession
of a network vehicle while the vehicle's driver or passenger was
logged on to a transportation network company's digital network;
and
(4) the theory of recovery for which damages are
sought against the transportation network company is based on:
(A) the ownership, operation, design,
manufacture, or maintenance of a digital network accessed by a
driver or passenger; or
(B) the relationship, affiliation, or
interaction with a driver logged on to a transportation network
company's digital network.
Sec. 150E.003. LIMITATION OF LIABILITY. (a) A
transportation network company may not be held vicariously liable
for damages in an action or arbitration proceeding to which this
chapter applies if:
(1) the claimant does not prove by clear and
convincing evidence that the company was grossly negligent with
respect to the subject claim; or
(2) the company has fulfilled all of the company's
obligations with respect to the transportation network company
driver under Chapter 2402, Occupations Code, relating to the
subject claim.
(b) Subsection (a) does not affect the liability of a
transportation network company arising out of the company's own
negligence or gross negligence for an act or omission relating to
the use of the company's digital network, including the failure to
prevent a driver from logging on to the digital network if, at the
time of the event giving rise to the cause of action, the company
had actual knowledge that the driver was disqualified from logging
on to the company's digital network for a reason described by
Section 2402.107(b), Occupations Code, that occurred after the most
recent review of the driver's driving record or criminal background
check required by Section 2402.107, Occupations Code.
SECTION 2. The changes in law made by this Act apply only to
a cause of action that accrues on or after the effective date of
this Act.
SECTION 3. This Act takes effect September 1, 2023.