By:  Harris                                                       S.B. No. 359


A BILL TO BE ENTITLED

AN ACT

relating to notice regarding rental car damage waivers.                       
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subsection (b), Section 3, Article 9026c, 
Revised Statutes, is amended to read as follows:
	(b)  In addition to the notice provided to each renter who 
purchases a damage waiver, a rental company shall post in a 
conspicuous location where the waiver is being offered the 
following notice:

Notice to Texas Residents Regarding Damage Waivers

Your personal automobile insurance policy may or may 
not provide coverage for your responsibility for the 
loss of or damage to a rented vehicle during the rental 
term.  Before deciding whether to purchase a damage 
waiver, you may wish to determine whether your 
automobile insurance policy provides you coverage for 
rental vehicle damage or loss. [The Texas personal 
automobile insurance policy provides coverage with NO 
DEDUCTIBLE for the legal liabilities of the 
policyholder in connection with the loss of or damage 
to a rented vehicle, except for damages caused 
intentionally, up to the maximum of the property 
damage limits under your liability coverage.]  If you 
file a claim under your personal automobile insurance 
policy, your insurance company may choose to nonrenew 
your policy at your renewal date, but may do so only if 
you are at fault for the claim.
	SECTION 2.  The change in law made by this Act applies only 
to a rental agreement entered into on or after the effective date of 
this Act.  A rental agreement entered into before the effective date 
of this Act is governed by the law in effect when the rental 
agreement was entered into, and the former law is continued in 
effect for that purpose.
	SECTION 3.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.