2019S0278-1 02/25/19
 
  By: Holland H.B. No. 2556
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to excess loss damage waivers in connection with the lease
  of motor vehicles; providing a civil penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle B, Title 5, Business & Commerce Code, is
  amended by adding Chapter 94 to read as follows:
  CHAPTER 94. EXCESS WEAR AND USE WAIVERS FOR LEASES OF MOTOR
  VEHICLES
         Sec. 94.001.  DEFINITIONS. In this chapter:
               (1)  "Excess wear and use waiver" means a provision of
  or addendum to a lease agreement under which the lessor agrees to
  not hold a lessee liable for all or part of the excess wear and use.
               (2)  "Lease agreement" means an agreement entered into
  in this state under which a lessee pays a fee or other consideration
  to a lessor for the right to possession and use of a motor vehicle
  for a scheduled term, regardless of whether the agreement provides
  the lessee an option to purchase or otherwise become the owner of
  the motor vehicle upon the expiration of the term of the agreement.
               (3)  "Lessee" means an individual who acquires the
  right to possession and use of a motor vehicle under a lease
  agreement primarily for personal, family, or household purposes.
               (4)  "Lessor" means a person who, in the ordinary
  course of business, regularly leases, offers to lease, or arranges
  for the lease of a motor vehicle under a lease agreement. Unless
  the context clearly indicates otherwise, the term includes an
  assignee.
               (5)  "Motor vehicle" has the meaning assigned by
  Section 541.201, Transportation Code.
         Sec. 94.002.  CONTRACT FOR EXCESS WEAR AND USE WAIVER. A
  lessee may contract with a lessor for an excess wear and use waiver
  in connection with a lease agreement.
         Sec. 94.003.  RESTRICTIONS ON LESSOR CONCERNING WAIVER. A
  lessor may not:
               (1)  sell an excess wear and use waiver, unless:
                     (A)  the lease agreement containing the waiver
  complies with this chapter; and
                     (B)  the lessee agrees to the waiver in writing;
  or
               (2)  impose or require the purchase of an excess wear
  and use waiver as a condition of entering into a lease agreement.
         Sec. 94.004.  REQUIRED NOTICE. A lease agreement that
  offers an excess wear and use waiver must be in writing and include
  the following notice:
         "This excess wear and use waiver is optional, not a condition
  of leasing the vehicle, and is being provided for an additional
  charge to cover your responsibility for any excess wear and use to
  the leased vehicle."
         Sec. 94.005.  STATEMENT OF TOTAL CHARGE. A lease agreement,
  or an addendum to a lease agreement, that includes an excess wear
  and use waiver must include a statement of the total charge for the
  waiver.
         Sec. 94.006.  RELATIONSHIP TO INSURANCE. An excess wear and
  use waiver is not insurance.
         Sec. 94.007.  CIVIL PENALTY. A lessor that violates this
  chapter is liable for a civil penalty in an amount of not less than
  $500 or more than $1,000 for each violation.
         Sec. 94.008.  INJUNCTIVE RELIEF. A person injured or
  threatened with injury by a violation of this chapter may seek
  injunctive relief against the person committing or threatening to
  commit the violation.
         Sec. 94.009.  SUIT FOR CIVIL PENALTY OR INJUNCTIVE RELIEF.
  The attorney general or a county or district attorney may bring an
  action in the name of the state for a civil penalty under Section
  94.007, injunctive relief under Section 94.008, or both.
         SECTION 2.  The change in law made by this Act applies only
  to a lease agreement entered into on or after the effective date of
  this Act. A lease agreement entered into before the effective date
  of this Act is governed by the law in effect on the date the lease
  agreement was entered into, and the former law is continued in
  effect for that purpose.
         SECTION 3.  This Act takes effect September 1, 2019.