CHAPTER 91. PRIVATE PASSENGER VEHICLE RENTAL COMPANIES

State Codes and Statutes

Statutes > Texas > Business-and-commerce-code > Title-5-regulation-of-businesses-and-services > 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;

(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;

(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.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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