CHAPTER 91. PRIVATE PASSENGER VEHICLE RENTAL COMPANIES
BUSINESS AND COMMERCE CODE
TITLE 5. REGULATION OF BUSINESSES AND SERVICES
SUBTITLE B. RENTAL PRACTICES
CHAPTER 91. PRIVATE PASSENGER VEHICLE RENTAL COMPANIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 91.001. DEFINITIONS. In this chapter:
(1) "Authorized driver" means:
(A) the renter;
(B) a person whom the rental company expressly designates on the
rental agreement as an authorized driver;
(C) the renter's spouse if the spouse:
(i) holds a driver's license; and
(ii) satisfies any minimum age requirement established by the
rental company;
(D) an employer, employee, or coworker of the renter if the
person:
(i) holds a driver's license;
(ii) satisfies any minimum age requirement established by the
rental company; and
(iii) is engaged in a business activity with the renter at the
time of the rental; or
(E) a person who:
(i) holds a driver's license; and
(ii) is driving directly to a medical or police facility under
circumstances reasonably believed to constitute an emergency.
(2) "Damage" means damage to or loss of a rented vehicle,
regardless of fault involved in the damage or loss. The term
includes:
(A) theft and loss of use; and
(B) any cost incident to the damage or loss, including storage,
impound, towing, and administrative charges.
(3) "Damage waiver" means a rental company's agreement not to
hold an authorized driver liable for all or part of any damage to
a rented vehicle.
(4) "Mandatory charge" means a charge for an item or service
provided in connection with a rental transaction, other than a
charge imposed by law:
(A) that is in addition to the base rental rate; and
(B) that the renter may not avoid or decline.
(5) "Private passenger vehicle" means a motor vehicle of the
private passenger type, including a passenger van, primarily
intended for private use.
(6) "Rental agreement" means an agreement for 30 days or less
that states the terms governing the use of a private passenger
vehicle rented by a rental company.
(7) "Rental company" means a person in the business of renting
private passenger vehicles to the public for 30 days or less.
The term does not include a person who holds a license under
Chapter 2301, Occupations Code, and whose primary business
activity is not renting private passenger vehicles.
(8) "Renter" means a person who obtains use of a private
passenger vehicle from a rental company under a rental agreement.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
SUBCHAPTER B. DAMAGE WAIVERS AND MANDATORY CHARGES
Sec. 91.051. WRITTEN AGREEMENT REQUIRED FOR DAMAGE WAIVER. A
rental company may not sell a damage waiver unless the renter
agrees to the damage waiver in writing at or before the time the
rental agreement is executed.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 91.052. NOTICE TO RENTER. (a) A rental company shall
provide each renter who purchases a damage waiver, the charge for
which is not included in the base rental rate, the following
notice:
NOTICE: Your rental agreement offers, for an additional charge,
an optional waiver to cover all or a part of your responsibility
for damage to or loss of the vehicle. Before deciding whether to
purchase the waiver, you may wish to determine whether your own
automobile insurance or credit card agreement provides you
coverage for rental vehicle damage or loss and determine the
amount of the deductible under your own insurance coverage. The
purchase of the waiver is not mandatory. The waiver is not
insurance.
(b) The notice under Subsection (a) must be in at least 10-point
type.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 91.053. POSTED NOTICE. In addition to providing the notice
required by Section 91.052, a rental company shall post in a
conspicuous location where the damage waiver is offered the
following notice:
Notice to Texas Residents Regarding Damage Waivers
Your personal automobile insurance policy may or may not provide
coverage for your responsibility for the loss of or damage to a
rented vehicle during the rental term. Before deciding whether
to purchase a damage waiver, you may wish to determine whether
your automobile insurance policy provides you coverage for rental
vehicle damage or loss. If you file a claim under your personal
automobile insurance policy, your insurance company may choose to
nonrenew your policy at your renewal date, but may do so only if
you are at fault for the claim.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 91.054. PROHIBITED REPRESENTATIONS AND COERCION. (a) An
employee or agent of a rental company may not:
(1) make an oral or written representation that contradicts this
chapter; or
(2) use coercive language or a coercive act in an attempt to
persuade a renter to purchase a damage waiver.
(b) For purposes of this section, if the renter has declined the
damage waiver, a further statement or question by the employee or
agent that refers to the damage waiver, other than a statement
made in conjunction with review of the rental agreement that the
waiver has been declined, is considered coercive.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 91.055. MANDATORY CHARGE. (a) A rental company that
includes a mandatory charge in a rental agreement shall
prominently display and fully disclose the charge:
(1) separately on the face of the agreement; and
(2) in all of the rental company's price advertising, price
quotes, price offers, and price displays, including displays in
computerized reservation systems.
(b) A rental company may not impose or require the purchase of a
damage waiver as a mandatory charge.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
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.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
SUBCHAPTER C. ENFORCEMENT PROVISIONS
Sec. 91.101. CIVIL PENALTY. A rental company that violates this
chapter is liable for a civil penalty in an amount of not less
than $500 or more than $1,000 for each act of violation.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 91.102. INJUNCTION. A person injured or threatened with
injury by a violation of this chapter may seek injunctive relief
against the person committing or threatening to commit the
violation.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.
Sec. 91.103. SUIT FOR CIVIL PENALTY OR INJUNCTIVE RELIEF. The
attorney general or a county or district attorney may bring an
action in the name of the state for a civil penalty under Section
91.101, injunctive relief under Section 91.102, or both.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 2.01, eff. April 1, 2009.