bill letting rental companies void damage waivers on stolen cars

The text as introduced · 347 words

89R5437 BCH-F

By: Hagenbuch
S.B. No. 2987

A BILL TO BE ENTITLED

AN ACT

relating to the circumstances in which a rental company may void a

damage waiver for a rental vehicle.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 91.056, Business & Commerce Code, is

amended to read as follows:

Sec. 91.056. VOIDING OF DAMAGE WAIVER. A rental company may

not void a damage waiver unless:

(1) an authorized driver causes the damage

intentionally or by wilful and wanton misconduct;

(2) the damage arises out of use of the vehicle:

(A) by a person:

(i) who is not an authorized driver;

(ii) while under the influence of an

intoxicant that impairs driving ability, including alcohol, an

illegal drug, or a controlled substance; or

(iii) while engaged in commission of a

crime other than a traffic infraction;

(B) to carry persons or property for hire;

(C) to push or tow anything;

(D) for driver's training;

(E) to engage in a speed contest; or

(F) outside the continental United States,

unless the rental agreement specifically authorizes the use; [ or ]

(3) the rental company entered into the rental

transaction based on fraudulent information supplied by the renter ;

or

(4) the vehicle is stolen and the renter fails to:

(A) return the vehicle's ignition key to the

rental company;

(B) file a report with law enforcement not later

than 24 hours after the renter discovers the theft; and

(C) fully cooperate with the rental company and

any law enforcement agency or other authority investigating the

stolen vehicle in all matters relating to the investigation of the

stolen vehicle .

SECTION 2. The change in law made by this Act applies only

to an agreement entered into on or after the effective date of this

Act. An agreement entered into before the effective date of this

Act is governed by the law in effect on the date the agreement was

entered into, and the former law is continued in effect for that

purpose.

SECTION 3. This Act takes effect September 1, 2025.