Texas 2019 - 86th Regular

Texas House Bill HB2556 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	86R22098 JES-F
2		-	By: Holland, Parker, Landgraf, Moody H.B. No. 2556
3		-	Substitute the following for H.B. No. 2556:
4		-	By: Collier C.S.H.B. No. 2556
	1	+	2019S0278-1 02/25/19
	2	+	By: Holland H.B. No. 2556
5	3
6	4
7	5		A BILL TO BE ENTITLED
8	6		AN ACT
9		-	relating to excess ~~wear and use~~ waivers in connection with the lease
	7	+	relating to excess loss damage waivers in connection with the lease
10	8		of motor vehicles; providing a civil penalty.
11	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	10		SECTION 1. Subtitle B, Title 5, Business & Commerce Code, is
13	11		amended by adding Chapter 94 to read as follows:
14	12		CHAPTER 94. EXCESS WEAR AND USE WAIVERS FOR LEASES OF MOTOR
15	13		VEHICLES
16	14		Sec. 94.001. DEFINITIONS. In this chapter:
17	15		(1) "Excess wear and use waiver" means a provision of
18	16		or addendum to a lease agreement under which the lessor agrees to
19		-	not hold a lessee liable for all or part of the excess wear and use
20		-	to a motor vehicle.
21		-	(2) "Lease agreement" means an agreement, including
22		-	any addendum to the agreement, entered into in this state under
23		-	which a lessee pays a fee or other consideration to a lessor for the
24		-	right to possession and use of a motor vehicle for a term of more
25		-	than 180 days, regardless of whether the agreement provides the
26		-	lessee an option to purchase or otherwise become the owner of the
27		-	motor vehicle upon the expiration of the term of the agreement.
	17	+	not hold a lessee liable for all or part of the excess wear and use.
	18	+	(2) "Lease agreement" means an agreement entered into
	19	+	in this state under which a lessee pays a fee or other consideration
	20	+	to a lessor for the right to possession and use of a motor vehicle
	21	+	for a scheduled term, regardless of whether the agreement provides
	22	+	the lessee an option to purchase or otherwise become the owner of
	23	+	the motor vehicle upon the expiration of the term of the agreement.
28	24		(3) "Lessee" means an individual who acquires the
29	25		right to possession and use of a motor vehicle under a lease
30	26		agreement primarily for personal, family, or household purposes.
31	27		(4) "Lessor" means a person who, in the ordinary
32	28		course of business, regularly leases, offers to lease, or arranges
33	29		for the lease of a motor vehicle under a lease agreement. Unless
34	30		the context clearly indicates otherwise, the term includes an
35		-	assignee ~~of the lessor~~.
	31	+	assignee.
36	32		(5) "Motor vehicle" has the meaning assigned by
37	33		Section 541.201, Transportation Code.
38	34		Sec. 94.002. CONTRACT FOR EXCESS WEAR AND USE WAIVER. A
39	35		lessee may contract with a lessor for an excess wear and use waiver
40	36		in connection with a lease agreement.
41		-	Sec. 94.003. RESTRICTIONS ON LESSOR CONCERNING ~~EXCESS WEAR~~
42		-	~~AND USE WAIVER. A~~ lessor may not:
	37	+	Sec. 94.003. RESTRICTIONS ON LESSOR CONCERNING WAIVER. A
	38	+	lessor may not:
43	39		(1) sell an excess wear and use waiver, unless:
44		-	(A) the lease agreement containing the ~~excess~~
45		-	~~wear and use waiver~~ complies with this chapter; and
46		-	(B) the lessee agrees to the ~~excess wear and use~~
47		-	~~waiver in writing;~~ or
	40	+	(A) the lease agreement containing the waiver
	41	+	complies with this chapter; and
	42	+	(B) the lessee agrees to the waiver in writing;
	43	+	or
48	44		(2) impose or require the purchase of an excess wear
49	45		and use waiver as a condition of entering into a lease agreement.
50	46		Sec. 94.004. REQUIRED NOTICE. A lease agreement that
51	47		offers an excess wear and use waiver must be in writing and include
52	48		the following notice:
53		-	"This excess wear and use waiver is optional, is not a
54		-	~~condition~~ of leasing the vehicle, and is being provided for an
55		-	~~additional~~ charge to cover your responsibility for any excess wear
56		-	~~and use to~~ the leased vehicle."
57		-	Sec. 94.005. STATEMENT OF TOTAL CHARGE. A lease agreement
58		-	or an addendum to a lease agreement that includes an excess wear ~~and~~
59		-	use waiver must include a statement of the total charge for the
60		-	~~excess wear and use~~ waiver.
	49	+	"This excess wear and use waiver is optional, not a condition
	50	+	of leasing the vehicle, and is being provided for an additional
	51	+	charge to cover your responsibility for any excess wear and use to
	52	+	the leased vehicle."
	53	+	Sec. 94.005. STATEMENT OF TOTAL CHARGE. A lease agreement,
	54	+	or an addendum to a lease agreement, that includes an excess wear
	55	+	and use waiver must include a statement of the total charge for the
	56	+	waiver.
61	57		Sec. 94.006. RELATIONSHIP TO INSURANCE. An excess wear and
62	58		use waiver is not insurance.
63	59		Sec. 94.007. CIVIL PENALTY. A lessor that violates this
64	60		chapter is liable for a civil penalty in an amount of not less than
65	61		$500 or more than $1,000 for each violation.
66	62		Sec. 94.008. INJUNCTIVE RELIEF. A person injured or
67	63		threatened with injury by a violation of this chapter may seek
68	64		injunctive relief against the person committing or threatening to
69	65		commit the violation.
70	66		Sec. 94.009. SUIT FOR CIVIL PENALTY OR INJUNCTIVE RELIEF.
71	67		The attorney general or a county or district attorney may bring an
72	68		action in the name of the state for a civil penalty under Section
73	69		94.007, injunctive relief under Section 94.008, or both.
74	70		SECTION 2. The change in law made by this Act applies only
75	71		to a lease agreement entered into on or after the effective date of
76	72		this Act. A lease agreement entered into before the effective date
77	73		of this Act is governed by the law in effect on the date the lease
78	74		agreement was entered into, and the former law is continued in
79	75		effect for that purpose.
80	76		SECTION 3. This Act takes effect September 1, 2019.