Texas 2009 - 81st Regular

Texas House Bill HB1851 Compare Versions

Only one version of the bill is available at this time.

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1	1	By: Solomons H.B. No. 1851
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to rental agreements.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Business and Commerce Code Title 5, Regulation
9	9	of Businesses and Services, Subtitle B, Rental Practices, is
10	10	amended by adding Chapter 93 to read as follows:
11	11	CHAPTER 93. RENTAL AGREEMENTS
12	12	SUBCHAPTER A. GENERAL PROVISIONS
13	13	Sec. 93.001. DEFINITIONS. In this chapter:
14	14	(1) "Commission" means the Texas Commission of
15	15	Licensing and Regulation.
16	16	(2) "Consumer" means an individual who rents personal
17	17	property under a rental agreement.
18	18	(3) "Department" means the Texas Department of
19	19	Licensing and Regulation.
20	20	(4) "Loss damage waiver" means a rental company's
21	21	agreement to not hold a consumer liable for loss from all or part of
22	22	any damage to merchandise.
23	23	(5) "Merchandise" means the personal property that is
24	24	the subject of a rental agreement.
25	25	(6) "Rental agreement" means an agreement for 30 days
26	26	or less that states the terms governing the consumers use of
27	27	merchandise rented by a rental company and that does not permit the
28	28	consumer to become the owner of the merchandise.
29	29	(7) "Rental Company" means a person who, in the
30	30	ordinary course of business, regularly rents, offers to rent, or
31	31	arranges for the renting of merchandise under a rental agreement.
32	32	SUBCHAPTER B. FORM AND CONTENT OF AGREEMENTS
33	33	Sec. 93.051. FORM OF AGREEMENT. (a) A rental agreement
34	34	must be written in plain English.
35	35	(b) A numerical amount included in a rental agreement must
36	36	be stated in figures.
37	37	(c) A disclosure required by this chapter must be printed or
38	38	typed in each rental agreement in a size equal to at least 10-point
39	39	boldfaced type.
40	40	Sec. 93.052. REQUIRED DISCLOSURES. (a) A rental agreement
41	41	must disclose:
42	42	(1) the rental time period;
43	43	(2) the base charge for the rental time period;
44	44	(3) the amount and purpose of any payment, charge, or
45	45	fee in addition to the base charge for the rental time period; and
46	46	(4) whether the consumer is liable for loss or damage
47	47	to the merchandise and, if so, the maximum amount for which the
48	48	consumer may be liable.
49	49	Sec. 93.053. OTHER REQUIRED PROVISIONS. A rental agreement
50	50	must provide that any payment, charge, or fee in addition to the
51	51	base charge for the rental time period must be reasonably related to
52	52	the service performed.
53	53	Sec. 93.054. PROHIBITED PROVISIONS. (a) A rental
54	54	agreement may not:
55	55	(1) require a consumer to purchase insurance or a loss
56	56	damage waiver from the rental company to cover the merchandise;
57	57	(2) require a confession of judgment; or
58	58	(3) waive a defense, counterclaim, or right the
59	59	consumer may have against the rental company or an agent of the
60	60	rental company.
61	61	SUBCHAPTER C. LOSS DAMAGE WAIVERS AND MANDATORY CHARGES
62	62	Sec. 93.101. LOSS DAMAGE WAIVER MUST BE AGREED TO IN
63	63	WRITING. The purchase of a loss damage waiver must be agreed to in
64	64	writing by the consumer at or before the time the rental agreement
65	65	is executed.
66	66	Sec. 93.102. NOTICE TO CONSUMER. A rental agreement that
67	67	offers a loss damage waiver must include the following notice:
68	68	NOTICE: Your rental agreement offers, for an additional
69	69	charge, an optional waiver to cover all or a part of your
70	70	responsibility for damage to or loss to the merchandise rented.
71	71	Before deciding whether to purchase the waiver, you may wish to
72	72	determine whether your own homeowners or renters insurance or
73	73	credit card agreement provides you coverage for loss or damage to
74	74	rental merchandise and the amount of the deductible you would pay
75	75	under your own insurance coverage. The purchase of the waiver is
76	76	not mandatory. The waiver is not insurance.
77	77	Sec. 93.103. POSTED NOTICE. In addition to providing the
78	78	notice required by Section 91.052, a rental company shall post in a
79	79	conspicuous location where the damage waiver is offered the
80	80	following notice:
81	81	Notice to Texas Residents Regarding Loss Damage Waivers
82	82	Your homeowners or renters insurance policy may or may
83	83	not provide coverage for your responsibility for the loss of or
84	84	damage to rented merchandise during the rental term. Before
85	85	deciding whether to purchase a loss damage waiver, you may wish to
86	86	determine whether your homeowners or renters insurance policy
87	87	provides you coverage for damage or loss to the rented merchandise.
88	88	Sec. 93.104. PROHIBITED REPRESENTATIONS AND COERCION. (a)
89	89	An employee or agent of a rental company may not:
90	90	(1) make an oral or written representation that
91	91	contradicts this chapter; or
92	92	(2) use coercive language or a coercive act in an
93	93	attempt to persuade a consumer to purchase a damage waiver.
94	94	(b) For purposes of this section, if the consumer has
95	95	declined the damage waiver, a further statement or question by the
96	96	employee or agent that refers to the damage waiver, other than a
97	97	statement made in conjunction with review of the rental agreement
98	98	that the waiver has been declined, is considered coercive.
99	99	Sec. 93.105. MANDATORY CHARGE. (a) A rental company that
100	100	includes a mandatory charge in a rental agreement shall prominently
101	101	display and fully disclose the charge:
102	102	(1) separately on the face of the agreement; and
103	103	(2) in all of the rental company's price advertising,
104	104	price quotes, price offers, and price displays, including displays
105	105	in computerized reservation systems.
106	106	(b) A rental company may not impose or require the purchase
107	107	of a loss damage waiver as a mandatory charge.
108	108	Sec. 93.106. AUTHORIZED EXCLUSIONS. A loss damage waiver
109	109	may exclude:
110	110	(1) damage that is intentionally caused by the
111	111	consumer or;
112	112	(2) damage that results from the consumer's wilful or
113	113	wanton misconduct.
114	114	Sec. 93.107. RELATIONSHIP TO INSURANCE. A loss damage
115	115	waiver is not insurance.
116	116	Sec. 93.108. RULES. The commission may adopt rules
117	117	consistent with this chapter relating to loss damage waivers in
118	118	rental agreements.
119	119	Sec. 93.109. FEES. The commission may by rule establish a
120	120	fee for the administration of this chapter by the department.
121	121	SUBCHAPTER D. ENFORCEMENT PROVISIONS
122	122	Sec. 93.151. ADMINISTRATIVE ENFORCEMENT OF CHAPTER. (a) The
123	123	department shall enforce this chapter and, as necessary may
124	124	investigate a rental company who has one of more rental agreements
125	125	that include a loss damage waiver.
126	126	(b) A person may file a complaint with the department
127	127	alleging a violation of this chapter. The department shall
128	128	investigate the alleged violation on receipt of the complaint and
129	129	may inspect any record relevant to the complaint.
130	130	(c) If, as a result of an investigation the department
131	131	determines that a violation may have occurred, the commission shall
132	132	provide an opportunity for a hearing in the manner provided for a
133	133	contested case under Chapter 2001, Government Code.
134	134	(d) If, after opportunity for hearing, the commission
135	135	determines that the rental company has violated this chapter, the
136	136	commission may:
137	137	(1) impose an administrative penalty under Chapter 51,
138	138	Occupations Code; and
139	139	(2) award the complainant damages in an amount not to
140	140	exceed the amount of the price in the rental agreement.
141	141	Sec. 93.152. CIVIL ACTION FOR VIOLATION OF CHAPTER. (a) A
142	142	consumer damaged by a rental company's violation of this chapter is
143	143	entitled to recover from the rental company:
144	144	(1) actual damages; and
145	145	(2) reasonable attorney's fees and court costs.
146	146	(b) A rental company is not liable under this section for a
147	147	violation of this chapter caused by the rental company's error if,
148	148	subject to Subsection (c), the rental company:
149	149	(1) provides the consumer written notice of the error;
150	150	and
151	151	(2) makes adjustments in the consumer's account as
152	152	necessary to ensure:
153	153	(A) the consumer will not be required to pay an
154	154	amount in excess of the amount disclosed; and
155	155	(B) the agreement otherwise complies with this
156	156	chapter.
157	157	(c) A rental company must take action under Subsection (b)
158	158	before:
159	159	(1) the 31st day after the date the rental company
160	160	discovers the error; and
161	161	(2) the rental company receives written notice of the
162	162	error from the consumer or an action under this section is filed.
163	163	Sec. 93.153. DECEPTIVE TRADE PRACTICE. A violation of this
164	164	chapter is a deceptive trade practice under Subchapter E, Chapter
165	165	17.
166	166	SECTION 2. Business and Commerce Code Title 5, Regulation
167	167	of Businesses and Services, Subtitle B, Rental Practices, is
168	168	amended by adding Chapter 94 to read as follows:
169	169	CHAPTER 94. COMMERCIAL RENTAL AGREEMENTS
170	170	Sec. 94.001. DEFINITIONS. In this chapter:
171	171	(1) "Business" means a trade, occupation, profession,
172	172	or other commercial activity.
173	173	(2) "Department" means the Texas Department of
174	174	Licensing and Regulation.
175	175	(3) "Loss damage waiver" means a rental company's
176	176	agreement to not hold a business liable for loss from all or part of
177	177	any damage to merchandise.
178	178	(4) "Rental agreement" means an agreement that states
179	179	the terms governing the use of merchandise rented by a rental
180	180	company and that does not permit the consumer to become the owner of
181	181	the merchandise.
182	182	(5) "Rental Company" means a person who, in the
183	183	ordinary course of business, regularly rents, offers to rent, or
184	184	arranges for the renting of merchandise under a rental agreement.
185	185	Sec. 94.002. RENTAL AGREEMENTS WITH BUSINESSES EXEMPTED
186	186	FROM DEPARTMENT REGULATION. The Department shall not regulate
187	187	rental agreements with businesses.
188	188	Sec. 94.003. RELATIONSHIP OF LOSS DAMAGE WAIVERS TO
189	189	INSURANCE. A loss damage waiver in a rental agreement with a
190	190	business is not insurance.
191	191	SECTION 3. This Act applies to rental agreements entered
192	192	into on or after January 1, 2010. A rental agreement entered into
193	193	before January 1, 2010, is governed by the law in effect immediately
194	194	before the effective date, and the former law is continued in effect
195	195	for that purpose.
196	196	SECTION 4. This Act takes effect September 1, 2009.