Texas 2019 - 86th Regular

Texas Senate Bill SB1778 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 1778
	1	+	By: Paxton S.B. No. 1778
	2	+	(Holland)
2	3
3	4
	5	+	A BILL TO BE ENTITLED
4	6		AN ACT
5	7		relating to excess wear and use waivers in connection with the lease
6	8		of motor vehicles; providing a civil penalty.
7	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	10		SECTION 1. Subtitle B, Title 5, Business & Commerce Code, is
9	11		amended by adding Chapter 94 to read as follows:
10	12		CHAPTER 94. EXCESS WEAR AND USE WAIVERS FOR LEASES OF MOTOR
11	13		VEHICLES
12	14		Sec. 94.001. DEFINITIONS. In this chapter:
13	15		(1) "Excess wear and use waiver" means a provision of
14	16		or addendum to a lease agreement under which the lessor agrees to
15	17		not hold a lessee liable for all or part of the excess wear and use
16	18		to a motor vehicle.
17	19		(2) "Lease agreement" means an agreement, including
18	20		any addendum to the agreement, entered into in this state under
19	21		which a lessee pays a fee or other consideration to a lessor for the
20	22		right to possession and use of a motor vehicle for a term of more
21	23		than 180 days, regardless of whether the agreement provides the
22	24		lessee an option to purchase or otherwise become the owner of the
23	25		motor vehicle upon the expiration of the term of the agreement.
24	26		(3) "Lessee" means an individual who acquires the
25	27		right to possession and use of a motor vehicle under a lease
26	28		agreement primarily for personal, family, or household purposes.
27	29		(4) "Lessor" means a person who, in the ordinary
28	30		course of business, regularly leases, offers to lease, or arranges
29	31		for the lease of a motor vehicle under a lease agreement. Unless
30	32		the context clearly indicates otherwise, the term includes an
31	33		assignee of the lessor.
32	34		(5) "Motor vehicle" has the meaning assigned by
33	35		Section 541.201, Transportation Code.
34	36		Sec. 94.002. CONTRACT FOR EXCESS WEAR AND USE WAIVER. A
35	37		lessee may contract with a lessor for an excess wear and use waiver
36	38		in connection with a lease agreement.
37	39		Sec. 94.003. RESTRICTIONS ON LESSOR CONCERNING EXCESS WEAR
38	40		AND USE WAIVER. A lessor may not:
39	41		(1) sell an excess wear and use waiver, unless:
40	42		(A) the lease agreement containing the excess
41	43		wear and use waiver complies with this chapter; and
42	44		(B) the lessee agrees to the excess wear and use
43	45		waiver in writing; or
44	46		(2) impose or require the purchase of an excess wear
45	47		and use waiver as a condition of entering into a lease agreement.
46	48		Sec. 94.004. REQUIRED NOTICE. An excess wear and use waiver
47	49		must be in writing and include a notice substantially similar to the
48	50		following:
49	51		"This excess wear and use waiver is optional, is not a
50	52		condition of leasing the vehicle, and is being provided for an
51	53		additional charge to cover your responsibility for any excess wear
52	54		and use to the leased vehicle."
53	55		Sec. 94.005. REQUIRED DISCLOSURES. A lease agreement that
54	56		includes an excess wear and use waiver must disclose:
55	57		(1) the total charge for the excess wear and use
56	58		waiver; and
57	59		(2) any exclusions or limitations on the amount of
58	60		excess wear and use that may be waived under the excess wear and use
59	61		waiver.
60	62		Sec. 94.006. RELATIONSHIP TO INSURANCE. An excess wear and
61	63		use waiver is not insurance.
62	64		Sec. 94.007. CIVIL PENALTY. A lessor that violates this
63	65		chapter is liable for a civil penalty in an amount of not less than
64	66		$500 or more than $1,000 for each violation.
65	67		Sec. 94.008. INJUNCTIVE RELIEF. A person injured or
66	68		threatened with injury by a violation of this chapter may seek
67	69		injunctive relief against the person committing or threatening to
68	70		commit the violation.
69	71		Sec. 94.009. SUIT FOR CIVIL PENALTY OR INJUNCTIVE RELIEF.
70	72		The attorney general or a county or district attorney may bring an
71	73		action in the name of the state for a civil penalty under Section
72	74		94.007, injunctive relief under Section 94.008, or both.
73	75		SECTION 2. The change in law made by this Act applies only
74	76		to a lease agreement entered into on or after the effective date of
75	77		this Act. A lease agreement entered into before the effective date
76	78		of this Act is governed by the law in effect on the date the lease
77	79		agreement was entered into, and the former law is continued in
78	80		effect for that purpose.
79	81		SECTION 3. This Act takes effect September 1, 2019.
80		-	______________________________ ______________________________
81		-	President of the Senate Speaker of the House
82		-	I hereby certify that S.B. No. 1778 passed the Senate on
83		-	April 29, 2019, by the following vote: Yeas 31, Nays 0.
84		-	______________________________
85		-	Secretary of the Senate
86		-	I hereby certify that S.B. No. 1778 passed the House on
87		-	May 22, 2019, by the following vote: Yeas 139, Nays 5, two
88		-	present not voting.
89		-	______________________________
90		-	Chief Clerk of the House
91		-	Approved:
92		-	______________________________
93		-	Date
94		-	______________________________
95		-	Governor