Relating to the regulation of private passenger vehicle rental companies.

89(R) HB 1395 - House Committee Report version - Bill Text

89R18717 BCH-F

By: Lujan

H.B. No. 1395

Substitute the following for H.B. No. 1395:

By: Button

C.S.H.B. No. 1395

A BILL TO BE ENTITLED

AN ACT

relating to the regulation of private passenger vehicle rental

companies.

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

SECTION 1. Sections 91.001(6) and (7), Business & Commerce

Code, are amended to read as follows:

(6) "Rental agreement" means an agreement for
180
[
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
180
[
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.

SECTION 2. Subchapter B, Chapter 91, Business & Commerce

Code, is amended by adding Section 91.057 to read as follows:

Sec.

91.057.

REFUND OF DAMAGE WAIVER CHARGE. A rental

company shall issue to a renter a refund of any damage waiver

charges charged or collected for a period that exceeds the number of

calendar days a damage waiver is in effect if:

(1)

the renter returns a rented motor vehicle before

the anticipated return date; or

(2)

the damage waiver is not in effect for the entire

period of the rental agreement because the renter cancels the

damage waiver before the anticipated return date, and the rental

company confirms that the rented motor vehicle was not damaged

before the damage waiver's cancellation.

SECTION 3. The changes in law made by this Act apply only to

a rental agreement entered into on or after the effective date of

this Act. A rental agreement entered into before the effective date

of this Act is governed by the law in effect on the date the contract

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

purpose.

SECTION 4. This Act takes effect September 1, 2025.