| 1 | 1 | | 89R5437 BCH-F |
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| 2 | 2 | | By: Hagenbuch S.B. No. 2987 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the circumstances in which a rental company may void a |
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| 10 | 10 | | damage waiver for a rental vehicle. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 91.056, Business & Commerce Code, is |
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| 13 | 13 | | amended to read as follows: |
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| 14 | 14 | | Sec. 91.056. VOIDING OF DAMAGE WAIVER. A rental company may |
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| 15 | 15 | | not void a damage waiver unless: |
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| 16 | 16 | | (1) an authorized driver causes the damage |
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| 17 | 17 | | intentionally or by wilful and wanton misconduct; |
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| 18 | 18 | | (2) the damage arises out of use of the vehicle: |
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| 19 | 19 | | (A) by a person: |
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| 20 | 20 | | (i) who is not an authorized driver; |
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| 21 | 21 | | (ii) while under the influence of an |
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| 22 | 22 | | intoxicant that impairs driving ability, including alcohol, an |
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| 23 | 23 | | illegal drug, or a controlled substance; or |
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| 24 | 24 | | (iii) while engaged in commission of a |
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| 25 | 25 | | crime other than a traffic infraction; |
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| 26 | 26 | | (B) to carry persons or property for hire; |
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| 27 | 27 | | (C) to push or tow anything; |
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| 28 | 28 | | (D) for driver's training; |
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| 29 | 29 | | (E) to engage in a speed contest; or |
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| 30 | 30 | | (F) outside the continental United States, |
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| 31 | 31 | | unless the rental agreement specifically authorizes the use; [or] |
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| 32 | 32 | | (3) the rental company entered into the rental |
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| 33 | 33 | | transaction based on fraudulent information supplied by the renter; |
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| 34 | 34 | | or |
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| 35 | 35 | | (4) the vehicle is stolen and the renter fails to: |
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| 36 | 36 | | (A) return the vehicle's ignition key to the |
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| 37 | 37 | | rental company; |
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| 38 | 38 | | (B) file a report with law enforcement not later |
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| 39 | 39 | | than 24 hours after the renter discovers the theft; and |
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| 40 | 40 | | (C) fully cooperate with the rental company and |
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| 41 | 41 | | any law enforcement agency or other authority investigating the |
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| 42 | 42 | | stolen vehicle in all matters relating to the investigation of the |
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| 43 | 43 | | stolen vehicle. |
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| 44 | 44 | | SECTION 2. The change in law made by this Act applies only |
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| 45 | 45 | | to an agreement entered into on or after the effective date of this |
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| 46 | 46 | | Act. An agreement entered into before the effective date of this |
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| 47 | 47 | | Act is governed by the law in effect on the date the agreement was |
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| 48 | 48 | | entered into, and the former law is continued in effect for that |
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| 49 | 49 | | purpose. |
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| 50 | 50 | | SECTION 3. This Act takes effect September 1, 2025. |
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