By: Bohac (Senate Sponsor - Seliger) H.B. No. 2052
(In the Senate - Received from the House April 20, 2015;
April 23, 2015, read first time and referred to Committee on
Business and Commerce; May 12, 2015, reported favorably by the
following vote: Yeas 7, Nays 0; May 12, 2015, sent to printer.)
Click here to see the committee vote
COMMITTEE VOTE
YeaNayAbsentPNV
EltifeX
CreightonX
EllisX
HuffinesX
SchwertnerX
SeligerX
TaylorofGalvestonX
WatsonX
WhitmireX
A BILL TO BE ENTITLED
AN ACT
relating to loss damage waivers in connection with the rental of
certain heavy equipment; providing penalties.
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 93 to read as follows:
CHAPTER 93. LOSS DAMAGE WAIVERS FOR RENTAL OF CERTAIN HEAVY
EQUIPMENT
Sec. 93.001. DEFINITIONS. In this chapter:
(1) "Customer" means a person who rents heavy
equipment under a rental agreement.
(2) "Heavy equipment" has the meaning assigned by
Section 23.1241, Tax Code.
(3) "Heavy equipment loss damage waiver" means a
merchant's agreement to not hold a customer liable for loss from all
or part of any damage to heavy equipment.
(4) "Merchant" means a person who, in the ordinary
course of business, regularly rents, offers to rent, or arranges
for the rental of heavy equipment under a rental agreement.
(5) "Rental agreement" means an agreement under which
a customer pays a fee or other consideration to rent heavy
equipment.
Sec. 93.002. CONTRACT FOR LOSS DAMAGE WAIVER. A customer
may contract with a merchant for a heavy equipment loss damage
waiver in connection with a rental agreement.
Sec. 93.003. RESTRICTIONS ON MERCHANT CONCERNING WAIVER. A
merchant may not:
(1) sell a heavy equipment loss damage waiver unless:
(A) the contract containing the waiver complies
with this chapter; and
(B) the customer agrees to the waiver in writing;
or
(2) impose or require the purchase of a heavy
equipment loss damage waiver as a condition of entering into a
rental agreement.
Sec. 93.004. REQUIRED NOTICE. A contract that offers a
heavy equipment loss damage waiver must include the following
notice:
"This contract offers an optional loss damage waiver for an
additional charge to cover your responsibility for loss of or
damage to the heavy equipment. You do not have to purchase this
coverage. Before deciding whether to purchase this loss damage
waiver, you may consider whether your insurance policies afford you
coverage for loss of or damage to the heavy equipment rented and the
amount of the deductible you would pay under your policies."
Sec. 93.005. STATEMENT OF TOTAL CHARGE. A heavy equipment
loss damage waiver agreement must include a statement of the total
charge for the waiver.
Sec. 93.006. AUTHORIZED EXCLUSIONS. A heavy equipment loss
damage waiver may exclude:
(1) loss of or damage to the heavy equipment that is
caused by an unexplained disappearance or abandonment of the heavy
equipment;
(2) damage that is intentionally caused by the
customer; or
(3) damage that results from the customer's wilful or
wanton misconduct.
Sec. 93.007. RELATIONSHIP TO INSURANCE. A heavy equipment
loss damage waiver is not insurance.
Sec. 93.008. CIVIL PENALTY. A merchant 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 act of violation.
Sec. 93.009. 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. 93.010. 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
93.008, injunctive relief under Section 93.009, or both.
SECTION 2. The change in law made by this Act applies only
to a rental agreement entered into on or after the effective date of
this Act. A rental agreement entered into before the effective date
of this Act is governed by the law in effect when the rental
agreement was entered into, and the former law is continued in
effect for that purpose.
SECTION 3. This Act takes effect September 1, 2015.
* * * * *