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.