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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of private passenger vehicle rental |
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companies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 91.001(6) and (7), Business & Commerce |
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Code, are amended to read as follows: |
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(6) "Rental agreement" means an agreement for 180 [30] |
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days or less that states the terms governing the use of a private |
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passenger vehicle rented by a rental company. |
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(7) "Rental company" means a person in the business of |
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renting private passenger vehicles to the public for 180 [30] days |
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or less. The term does not include a person who holds a license |
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under Chapter 2301, Occupations Code, and whose primary business |
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activity is not renting private passenger vehicles. |
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SECTION 2. Subchapter B, Chapter 91, Business & Commerce |
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Code, is amended by adding Section 91.057 to read as follows: |
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Sec. 91.057. REFUND OF DAMAGE WAIVER CHARGE. A rental |
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company shall issue to a renter a refund of any damage waiver |
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charges charged or collected for a period that exceeds the number of |
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calendar days a damage waiver is in effect if: |
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(1) the renter returns a rented motor vehicle before |
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the anticipated return date; or |
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(2) the damage waiver is not in effect for the entire |
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period of the rental agreement because the renter cancels the |
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damage waiver before the anticipated return date, and the rental |
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company confirms that the rented motor vehicle was not damaged |
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before the damage waiver's cancellation. |
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SECTION 3. The changes in law made by this Act apply only to |
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a rental agreement entered into on or after the effective date of |
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this Act. A rental 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 contract |
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was entered into, and the former law is continued in effect for that |
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purpose. |
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SECTION 4. This Act takes effect September 1, 2025. |