1-1 By: Dutton (Senate Sponsor - Brown) H.B. No. 2480
1-2 (In the Senate - Received from the House May 17, 1993;
1-3 May 19, 1993, read first time and referred to Committee on
1-4 Jurisprudence; May 25, 1993, reported favorably by the following
1-5 vote: Yeas 4, Nays 0; May 25, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Henderson x
1-9 Harris of Tarrant x
1-10 Brown x
1-11 Harris of Dallas x
1-12 Luna x
1-13 Parker x
1-14 West x
1-15 A BILL TO BE ENTITLED
1-16 AN ACT
1-17 relating to provisions in an automobile rental agreement.
1-18 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-19 SECTION 1. Section 4(a), Article 9026, Revised Statutes, is
1-20 amended to read as follows:
1-21 (a) A rental company in a rental agreement may not offer for
1-22 sale in this state a loss damage waiver under which the rental
1-23 company agrees to limit the amount of the renter's liability to the
1-24 rental company unless the renter agrees to the loss damage waiver
1-25 in writing at the time the rental agreement is executed. A rental
1-26 company is not required to exclude any type of damage from its loss
1-27 damage waiver. However, should a rental company choose to exclude
1-28 some types of damage, the agreement may contain only the following
1-29 exclusions and no others:
1-30 (1) damage is caused intentionally by an authorized
1-31 driver or as a result of wilful and wanton misconduct of an
1-32 authorized driver;
1-33 (2) damage arises out of any authorized driver's
1-34 operation of a private passenger automobile while legally
1-35 intoxicated or under the influence of any illegal drug or chemical
1-36 as defined or determined under the law of the state in which the
1-37 damage occurred;
1-38 (3) damage is caused while the authorized driver is
1-39 engaged in a speed contest;
1-40 (4) the rental transaction is based on information
1-41 supplied by the renter with the intent to defraud the rental
1-42 company;
1-43 (5) damage arises out of the use of the private
1-44 passenger automobile while committing or otherwise engaged in a
1-45 criminal act in which the automobile usage is substantially related
1-46 to the nature of the criminal activity;
1-47 (6) damage arises out of the use of the private
1-48 passenger automobile to transport persons or property for hire;
1-49 (7) damage arises out of the use of the private
1-50 passenger automobile outside the United States or Canada unless the
1-51 use is specifically authorized by the rental agreement;
1-52 (8) damage arises out of the use of the private
1-53 passenger automobile while towing or pushing anything; <or>
1-54 (9) damage is caused to the vehicle while it is being
1-55 driven other than on a regularly maintained roadway; or
1-56 (10) the private passenger automobile is stolen and
1-57 the renter has facilitated the theft by leaving the ignition key in
1-58 the automobile while the automobile is unoccupied.
1-59 SECTION 2. This Act applies to the rental of private
1-60 passenger automobiles by rental companies under rental agreements
1-61 executed on and after the effective date of this Act. Rental of
1-62 private passenger automobiles by rental companies under rental
1-63 agreements executed before the effective date of this Act are
1-64 governed by the law as it existed at the time the parties executed
1-65 the rental agreement and that law is continued in effect for that
1-66 purpose.
1-67 SECTION 3. This Act takes effect September 1, 1993.
1-68 SECTION 4. The importance of this legislation and the
2-1 crowded condition of the calendars in both houses create an
2-2 emergency and an imperative public necessity that the
2-3 constitutional rule requiring bills to be read on three several
2-4 days in each house be suspended, and this rule is hereby suspended.
2-5 * * * * *
2-6 Austin,
2-7 Texas
2-8 May 25, 1993
2-9 Hon. Bob Bullock
2-10 President of the Senate
2-11 Sir:
2-12 We, your Committee on Jurisprudence to which was referred H.B.
2-13 No. 2480, have had the same under consideration, and I am
2-14 instructed to report it back to the Senate with the recommendation
2-15 that it do pass and be printed.
2-16 Henderson,
2-17 Chairman
2-18 * * * * *
2-19 WITNESSES
2-20 FOR AGAINST ON
2-21 ___________________________________________________________________
2-22 Name: Phil W. Ridgeway x
2-23 Representing: National Car Rental
2-24 City: Corpus Christi
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2-26 Name: Johnnie B. Rogers x
2-27 Representing: TX Car & Truck Rental
2-28 City: Austin
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