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A BILL TO BE ENTITLED
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AN ACT
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relating to excess wear and use waivers in connection with the lease |
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of motor vehicles; providing a civil penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle B, Title 5, Business & Commerce Code, is |
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amended by adding Chapter 94 to read as follows: |
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CHAPTER 94. EXCESS WEAR AND USE WAIVERS FOR LEASES OF MOTOR |
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VEHICLES |
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Sec. 94.001. DEFINITIONS. In this chapter: |
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(1) "Excess wear and use waiver" means a provision of |
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or addendum to a lease agreement under which the lessor agrees to |
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not hold a lessee liable for all or part of the excess wear and use |
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to a motor vehicle. |
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(2) "Lease agreement" means an agreement, including |
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any addendum to the agreement, entered into in this state under |
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which a lessee pays a fee or other consideration to a lessor for the |
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right to possession and use of a motor vehicle for a term of more |
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than 180 days, regardless of whether the agreement provides the |
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lessee an option to purchase or otherwise become the owner of the |
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motor vehicle upon the expiration of the term of the agreement. |
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(3) "Lessee" means an individual who acquires the |
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right to possession and use of a motor vehicle under a lease |
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agreement primarily for personal, family, or household purposes. |
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(4) "Lessor" means a person who, in the ordinary |
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course of business, regularly leases, offers to lease, or arranges |
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for the lease of a motor vehicle under a lease agreement. Unless |
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the context clearly indicates otherwise, the term includes an |
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assignee of the lessor. |
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(5) "Motor vehicle" has the meaning assigned by |
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Section 541.201, Transportation Code. |
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Sec. 94.002. CONTRACT FOR EXCESS WEAR AND USE WAIVER. A |
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lessee may contract with a lessor for an excess wear and use waiver |
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in connection with a lease agreement. |
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Sec. 94.003. RESTRICTIONS ON LESSOR CONCERNING EXCESS WEAR |
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AND USE WAIVER. A lessor may not: |
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(1) sell an excess wear and use waiver, unless: |
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(A) the lease agreement containing the excess |
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wear and use waiver complies with this chapter; and |
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(B) the lessee agrees to the excess wear and use |
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waiver in writing; or |
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(2) impose or require the purchase of an excess wear |
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and use waiver as a condition of entering into a lease agreement. |
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Sec. 94.004. REQUIRED NOTICE. A lease agreement that |
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offers an excess wear and use waiver must be in writing and include |
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the following notice: |
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"This excess wear and use waiver is optional, is not a |
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condition of leasing the vehicle, and is being provided for an |
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additional charge to cover your responsibility for any excess wear |
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and use to the leased vehicle." |
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Sec. 94.005. STATEMENT OF TOTAL CHARGE. A lease agreement |
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or an addendum to a lease agreement that includes an excess wear and |
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use waiver must include a statement of the total charge for the |
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excess wear and use waiver. |
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Sec. 94.006. RELATIONSHIP TO INSURANCE. An excess wear and |
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use waiver is not insurance. |
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Sec. 94.007. CIVIL PENALTY. A lessor that violates this |
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chapter is liable for a civil penalty in an amount of not less than |
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$500 or more than $1,000 for each violation. |
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Sec. 94.008. INJUNCTIVE RELIEF. A person injured or |
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threatened with injury by a violation of this chapter may seek |
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injunctive relief against the person committing or threatening to |
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commit the violation. |
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Sec. 94.009. SUIT FOR CIVIL PENALTY OR INJUNCTIVE RELIEF. |
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The attorney general or a county or district attorney may bring an |
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action in the name of the state for a civil penalty under Section |
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94.007, injunctive relief under Section 94.008, or both. |
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SECTION 2. The change in law made by this Act applies only |
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to a lease agreement entered into on or after the effective date of |
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this Act. A lease agreement entered into before the effective date |
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of this Act is governed by the law in effect on the date the lease |
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agreement was entered into, and the former law is continued in |
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effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2019. |