HBA-JEK H.B. 3533 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3533
By: Tillery
Civil Practices
4/2/2001
Introduced



BACKGROUND AND PURPOSE 

The transport of hazardous substances by pipeline may impose a serious risk
to residents and persons located near the pipeline.  Current law makes no
distinction as to the degree of care owed by a person transporting
hazardous substances by pipeline.  House Bill 3533 sets forth separate
liability provisions for a person who owns, operates, or manages a pipeline
that transports a hazardous substance. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 3533 amends the Civil Practice and Remedies Code to provide that
a person who owns, operates, or manages a pipeline that transports a
hazardous substance (pipeline manager) is strictly liable for damages for
personal injury, death, or property damage arising from the transportation
of the hazardous substance by the pipeline.  The bill provides that a
pipeline manager is negligent as a matter of law if the person violates a
state or federal law, rule, or regulation related to the transportation of
a hazardous substance.  A pipeline manager found liable for any amount of
damages arising from the transportation of the hazardous substance is
jointly liable with any other defendant for the entire amount of damages,
but proportionate responsibility does not apply.  Limitations on exemplary
damages also do not apply. 

H.B. 3533 provides that a pipeline manager must have liability insurance
coverage that covers damages in an amount equal to or greater than $750
million for each single occurrence of personal injury, death, or property
damage arising from the transportation of a hazardous substance by a
pipeline. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.