Amend CSSB 279 by adding an appropriately numbered ARTICLE 
and renumbering the subsequent ARTICLES of the bill appropriately:

ARTICLE 28.  RENTAL-PURCHASE AGREEMENTS
	SECTION 1.  Section 35.71, Business & Commerce Code, is 
amended by adding Subdivisions (3-a) to read as follows:
	(3-a)  "Loss damage waiver" means a merchant's agreement not 
to hold a consumer liable for loss from all or part of any damage to 
merchandise.
	SECTION 2.  Section 35.72 (c), Business & Commerce Code, is 
amended to read as follows:
	(c)  A rental-purchase agreement may not contain a provision:                  
		(1)  requiring a confession of judgment;                                      
		(2)  authorizing a merchant or an agent of the merchant 
to commit a breach of the peace in the repossession of the 
merchandise;
		(3)  waiving a defense, counterclaim, or right the 
consumer may have against the merchant or an agent of the merchant;
		(4)  requiring the purchase of insurance or a loss 
damage waiver from the merchant to cover the merchandise;
		(5)  requiring the payment of a late charge or 
reinstatement fee unless a periodic payment is delinquent for more 
than seven days if the payment is due monthly, or is delinquent for 
more than three days if the payment is due more frequently than 
monthly, and the charge or fee is in an amount equal to not more than 
the lesser of five percent of the delinquent payment or $5, and not 
less than $2; or
		(6)  requiring a payment at the end of the scheduled 
rental-purchase term in excess of or in addition to a regular 
periodic payment in order to acquire ownership of the merchandise.  
In no event shall the consumer be required to pay a sum greater than 
the total amount to be paid to acquire ownership, as directed in 
Subsection (g) (3) of this section.
	SECTION 3.  Subchapter F, chapter 35, Business & Commerce 
Code, is amended by adding Section 35.721 to read as follows:
	Sec. 35.721.  LOSS DAMAGE WAIVER.  (a)  In addition to other 
charges permitted by this subchapter, a consumer may contract for a 
loss damage waiver.  A loss damage waiver is not insurance.
	(b)  A merchant may not sell a loss damage waiver unless the 
consumer agrees to the waiver in writing.  A merchant may not impose 
or require the purchase of a loss damage waiver as a mandatory 
charge.
	(c)  A loss damage waiver may exclude loss or damage to the 
merchandise that is caused by an unexplained disappearance or 
abandonment of the merchandise, or any other damage that is 
intentionally caused by the consumer or that results from the 
consumer's wilful or wanton misconduct.
	(d)  A loss damage waiver agreement must include a statement 
of the total charge for the loss damage waiver.
	(e)  A merchant may charge a periodic fee for a loss damage 
waiver that may not exceed 10 percent of the periodic rental 
payment.
	(f)  A contract that offers a loss damage waiver must include 
the following notice:
	"This contract offers an optional loss damage waiver for a 
additional charge to cover your responsibility for loss of or 
damage to the merchandise.  You do not have to purchase this 
coverage.  Before deciding whether or not to purchase this loss 
damage waiver, you may consider whether your homeowners' or 
casualty insurance policy affords you  coverage for loss of or 
damage to rental merchandise and the amount of the deductible you 
would pay under your policy."
	(g)  a merchant may not sell a loss damage waiver unless the 
form of the contract containing the waiver has been approved by the 
Texas Department of Licensing and Regulation.
	(h)  The Texas Commission of Licensing and Regulation shall 
by rule:  
		(1)  provide for annual submission of a all contract 
forms, and all amendments to contract forms, containing a loss 
damage waiver for review; and
		(2)  establish a reasonable fee to be paid by the 
merchant for the review of contract forms and for Texas Department 
of Licensing and Regulation administration of this subchapter.
	SECTION 4.  Subchapter F, Chapter 35, Business and Commerce 
Code, is amended by adding Section 35.722 to read as follows:
	Section 35.722 ENFORCEMENT; INVESTIGATION; HEARING.                     
	(a)  The Executive Director of the Texas Department of 
Licensing and Regulation shall enforce Section 35.721 and may 
investigate any merchant who has one or more contracts that include 
loss damage waivers as necessary.
	(b)  A person may file a complaint alleging a violation of 
Section 35.721 with the Executive Director of the Texas Department 
of Licensing and Regulation, who shall investigate the alleged 
violation on receipt of the complaint, and may inspect any records 
relevant to the complaint.
	(c)  If, as a result of an investigation, the Executive 
Director of the Texas Department of Licensing and Regulation 
determines that a violation may have occurred, an opportunity for a 
hearing shall be provided pursuant to the provisions of the 
Administrative Procedure Act, Gov't Code, Chapter 2001.
	(d)  If, after opportunity for hearing, the Texas Commission 
of Licensing and Regulation determines that the merchant has 
violated Section 35.721, the Commission may, as appropriate:
		(1)  impose an administrative penalty pursuant to 
Occupations Code, Chapter 51, Subchapter F, ad
		(2)  award the complaint damages in an amount up to the 
amount of the contract price for the merchandise.
	Section 5.  The change in law made by this article applies 
only to a rental-purchase agreement entered into on or after the 
effective date of this Act.  A rental-purchase agreement entered 
into before the effective date of this Act is governed by the law in 
effect on the date on which the rental-purchase agreement was 
entered into, and the former law is continued in effect for that 
purpose.