21 | 4 | | AN ACT |
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22 | 5 | | relating to loss damage waivers in connection with the rental of |
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23 | 6 | | certain heavy equipment; providing penalties. |
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24 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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25 | 8 | | SECTION 1. Subtitle B, Title 5, Business & Commerce Code, is |
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26 | 9 | | amended by adding Chapter 93 to read as follows: |
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27 | 10 | | CHAPTER 93. LOSS DAMAGE WAIVERS FOR RENTAL OF CERTAIN HEAVY |
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28 | 11 | | EQUIPMENT |
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29 | 12 | | Sec. 93.001. DEFINITIONS. In this chapter: |
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30 | 13 | | (1) "Customer" means a person who rents heavy |
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31 | 14 | | equipment under a rental agreement. |
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32 | 15 | | (2) "Heavy equipment" has the meaning assigned by |
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33 | 16 | | Section 23.1241, Tax Code. |
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34 | 17 | | (3) "Heavy equipment loss damage waiver" means a |
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35 | 18 | | merchant's agreement to not hold a customer liable for loss from all |
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36 | 19 | | or part of any damage to heavy equipment. |
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37 | 20 | | (4) "Merchant" means a person who, in the ordinary |
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38 | 21 | | course of business, regularly rents, offers to rent, or arranges |
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39 | 22 | | for the rental of heavy equipment under a rental agreement. |
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40 | 23 | | (5) "Rental agreement" means an agreement under which |
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41 | 24 | | a customer pays a fee or other consideration to rent heavy |
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42 | 25 | | equipment. |
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43 | 26 | | Sec. 93.002. CONTRACT FOR LOSS DAMAGE WAIVER. A customer |
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44 | 27 | | may contract with a merchant for a heavy equipment loss damage |
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45 | 28 | | waiver in connection with a rental agreement. |
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46 | 29 | | Sec. 93.003. RESTRICTIONS ON MERCHANT CONCERNING WAIVER. A |
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47 | 30 | | merchant may not: |
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48 | 31 | | (1) sell a heavy equipment loss damage waiver unless: |
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49 | 32 | | (A) the contract containing the waiver complies |
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50 | 33 | | with this chapter; and |
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51 | 34 | | (B) the customer agrees to the waiver in writing; |
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52 | 35 | | or |
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53 | 36 | | (2) impose or require the purchase of a heavy |
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54 | 37 | | equipment loss damage waiver as a condition of entering into a |
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55 | 38 | | rental agreement. |
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56 | 39 | | Sec. 93.004. REQUIRED NOTICE. A contract that offers a |
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57 | 40 | | heavy equipment loss damage waiver must include the following |
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58 | 41 | | notice: |
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59 | 42 | | "This contract offers an optional loss damage waiver for an |
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60 | 43 | | additional charge to cover your responsibility for loss of or |
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61 | 44 | | damage to the heavy equipment. You do not have to purchase this |
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62 | 45 | | coverage. Before deciding whether to purchase this loss damage |
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63 | 46 | | waiver, you may consider whether your insurance policies afford you |
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64 | 47 | | coverage for loss of or damage to the heavy equipment rented and the |
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65 | 48 | | amount of the deductible you would pay under your policies." |
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66 | 49 | | Sec. 93.005. STATEMENT OF TOTAL CHARGE. A heavy equipment |
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67 | 50 | | loss damage waiver agreement must include a statement of the total |
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68 | 51 | | charge for the waiver. |
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69 | 52 | | Sec. 93.006. AUTHORIZED EXCLUSIONS. A heavy equipment loss |
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70 | 53 | | damage waiver may exclude: |
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71 | 54 | | (1) loss of or damage to the heavy equipment that is |
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72 | 55 | | caused by an unexplained disappearance or abandonment of the heavy |
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73 | 56 | | equipment; |
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74 | 57 | | (2) damage that is intentionally caused by the |
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75 | 58 | | customer; or |
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76 | 59 | | (3) damage that results from the customer's wilful or |
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77 | 60 | | wanton misconduct. |
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78 | 61 | | Sec. 93.007. RELATIONSHIP TO INSURANCE. A heavy equipment |
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79 | 62 | | loss damage waiver is not insurance. |
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80 | 63 | | Sec. 93.008. CIVIL PENALTY. A merchant that violates this |
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81 | 64 | | chapter is liable for a civil penalty in an amount of not less than |
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82 | 65 | | $500 or more than $1,000 for each act of violation. |
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83 | 66 | | Sec. 93.009. INJUNCTIVE RELIEF. A person injured or |
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84 | 67 | | threatened with injury by a violation of this chapter may seek |
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85 | 68 | | injunctive relief against the person committing or threatening to |
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86 | 69 | | commit the violation. |
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87 | 70 | | Sec. 93.010. SUIT FOR CIVIL PENALTY OR INJUNCTIVE RELIEF. |
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88 | 71 | | The attorney general or a county or district attorney may bring an |
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89 | 72 | | action in the name of the state for a civil penalty under Section |
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90 | 73 | | 93.008, injunctive relief under Section 93.009, or both. |
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91 | 74 | | SECTION 2. The change in law made by this Act applies only |
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92 | 75 | | to a rental agreement entered into on or after the effective date of |
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93 | 76 | | this Act. A rental agreement entered into before the effective date |
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94 | 77 | | of this Act is governed by the law in effect when the rental |
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95 | 78 | | agreement was entered into, and the former law is continued in |
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96 | 79 | | effect for that purpose. |
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97 | 80 | | SECTION 3. This Act takes effect September 1, 2015. |
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