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A BILL TO BE ENTITLED
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AN ACT
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relating to the circumstances in which a rental company may void a |
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damage waiver for a rental vehicle. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 91.056, Business & Commerce Code, is |
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amended to read as follows: |
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Sec. 91.056. VOIDING OF DAMAGE WAIVER. A rental company may |
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not void a damage waiver unless: |
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(1) an authorized driver causes the damage |
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intentionally or by wilful and wanton misconduct; |
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(2) the damage arises out of use of the vehicle: |
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(A) by a person: |
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(i) who is not an authorized driver; |
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(ii) while under the influence of an |
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intoxicant that impairs driving ability, including alcohol, an |
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illegal drug, or a controlled substance; or |
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(iii) while engaged in commission of a |
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crime other than a traffic infraction; |
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(B) to carry persons or property for hire; |
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(C) to push or tow anything; |
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(D) for driver's training; |
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(E) to engage in a speed contest; or |
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(F) outside the continental United States, |
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unless the rental agreement specifically authorizes the use; [or] |
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(3) the rental company entered into the rental |
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transaction based on fraudulent information supplied by the renter; |
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or |
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(4) the vehicle is stolen and the renter fails to: |
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(A) return the vehicle's ignition key to the |
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rental company; |
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(B) file a report with law enforcement not later |
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than 24 hours after the renter discovers the theft; and |
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(C) fully cooperate with the rental company and |
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any law enforcement agency or other authority investigating the |
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stolen vehicle in all matters relating to the investigation of the |
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stolen vehicle. |
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SECTION 2. The change in law made by this Act applies only |
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to an agreement entered into on or after the effective date of this |
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Act. An agreement entered into before the effective date of this |
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Act is governed by the law in effect on the date the agreement was |
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entered into, and the former law is continued in effect for that |
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purpose. |
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SECTION 3. This Act takes effect September 1, 2025. |