2019S0278-1 02/25/19
By: Holland H.B. No. 2556
A BILL TO BE ENTITLED
AN ACT
relating to excess loss damage waivers in connection with the lease
of motor vehicles; providing a civil penalty.
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 94 to read as follows:
CHAPTER 94. EXCESS WEAR AND USE WAIVERS FOR LEASES OF MOTOR
VEHICLES
Sec. 94.001. DEFINITIONS. In this chapter:
(1) "Excess wear and use waiver" means a provision of
or addendum to a lease agreement under which the lessor agrees to
not hold a lessee liable for all or part of the excess wear and use.
(2) "Lease agreement" means an agreement entered into
in this state under which a lessee pays a fee or other consideration
to a lessor for the right to possession and use of a motor vehicle
for a scheduled term, regardless of whether the agreement provides
the lessee an option to purchase or otherwise become the owner of
the motor vehicle upon the expiration of the term of the agreement.
(3) "Lessee" means an individual who acquires the
right to possession and use of a motor vehicle under a lease
agreement primarily for personal, family, or household purposes.
(4) "Lessor" means a person who, in the ordinary
course of business, regularly leases, offers to lease, or arranges
for the lease of a motor vehicle under a lease agreement. Unless
the context clearly indicates otherwise, the term includes an
assignee.
(5) "Motor vehicle" has the meaning assigned by
Section 541.201, Transportation Code.
Sec. 94.002. CONTRACT FOR EXCESS WEAR AND USE WAIVER. A
lessee may contract with a lessor for an excess wear and use waiver
in connection with a lease agreement.
Sec. 94.003. RESTRICTIONS ON LESSOR CONCERNING WAIVER. A
lessor may not:
(1) sell an excess wear and use waiver, unless:
(A) the lease agreement containing the waiver
complies with this chapter; and
(B) the lessee agrees to the waiver in writing;
or
(2) impose or require the purchase of an excess wear
and use waiver as a condition of entering into a lease agreement.
Sec. 94.004. REQUIRED NOTICE. A lease agreement that
offers an excess wear and use waiver must be in writing and include
the following notice:
"This excess wear and use waiver is optional, not a condition
of leasing the vehicle, and is being provided for an additional
charge to cover your responsibility for any excess wear and use to
the leased vehicle."
Sec. 94.005. STATEMENT OF TOTAL CHARGE. A lease agreement,
or an addendum to a lease agreement, that includes an excess wear
and use waiver must include a statement of the total charge for the
waiver.
Sec. 94.006. RELATIONSHIP TO INSURANCE. An excess wear and
use waiver is not insurance.
Sec. 94.007. CIVIL PENALTY. A lessor 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 violation.
Sec. 94.008. 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. 94.009. 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
94.007, injunctive relief under Section 94.008, or both.
SECTION 2. The change in law made by this Act applies only
to a lease agreement entered into on or after the effective date of
this Act. A lease agreement entered into before the effective date
of this Act is governed by the law in effect on the date the lease
agreement was entered into, and the former law is continued in
effect for that purpose.
SECTION 3. This Act takes effect September 1, 2019.