Texas Senate Bill SB1778

Texas 2019 - 86th Regular

Caption

Relating to excess wear and use waivers in connection with the lease of motor vehicles; providing a civil penalty.

Impact

The introduction of SB 1778 leads to a significant revision of the Business & Commerce Code, establishing a framework for the optional purchase of excess wear and use waivers. It ensures that any charges associated with such waivers are clearly disclosed in writing to the lessee. This change is expected to foster a more consumer-friendly approach in the leasing industry, allowing consumers better control and understanding of their lease agreements. The civil penalties for violations also serve as an enforcement mechanism to hold lessors accountable for non-compliance.

Summary

Senate Bill 1778 introduces regulations concerning excess wear and use waivers in vehicle lease agreements in Texas. The primary objective of the bill is to clarify and standardize the conditions under which a lessee can be protected from liability for excessive wear and use of a leased motor vehicle. This legislation is aimed at enhancing consumer protection by ensuring that lessees are informed and not unfairly penalized. It mandates specific disclosure requirements that lessors must adhere to when offering such waivers, ensuring transparency in lease agreements.

Sentiment

The sentiment surrounding SB 1778 appears to be largely supportive, particularly among legislators focused on consumer rights and protections. The unanimous support in the Senate and the substantial approval in the House indicate a broad consensus on the necessity of such regulations. This sentiment reflects a growing emphasis on consumer protection laws and the importance of fair practices in the leasing market, aligning with broader legislative trends favoring consumer rights over lessor interests.

Contention

While there was overt support for SB 1778, potential contention could arise from lessors concerned about increased regulations and administrative burdens. The requirement for written disclosures and the potential civil penalties might be perceived negatively by some within the leasing industry. However, the bill’s proponents argue that such measures are essential for consumer protection and ensuring fair business practices. Overall, the debate highlights the tension between protecting consumer rights and ensuring a conducive business environment.