H.B. No. 1745

	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; and
	(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.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 1745 was passed by the House on May 2,
	2023, by the following vote:  Yeas 110, Nays 35, 1 present, not
	voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 1745 was passed by the Senate on May
	15, 2023, by the following vote:  Yeas 25, Nays 6.
	______________________________
	Secretary of the Senate
	APPROVED:  _____________________
	Date
	_____________________
	Governor