Bill Text: TX SB1778 | 2019-2020 | 86th Legislature | Enrolled

Texas Senate Bill 1778 (Prior Session Legislation)

Bill Title: Relating to excess wear and use waivers in connection with the lease of motor vehicles; providing a civil penalty.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2019-06-10 - Effective on 9/1/19 [SB1778 Detail]

Download: Texas-2019-SB1778-Enrolled.html



	S.B. No. 1778




	AN ACT
	relating to excess wear and use waivers in connection with the lease
	of motor vehicles; providing a civil penalty.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Subtitle B, Title 5, Business & Commerce Code, is
	amended by adding Chapter 94 to read as follows:
	CHAPTER 94. EXCESS WEAR AND USE WAIVERS FOR LEASES OF MOTOR
	VEHICLES
	Sec. 94.001. DEFINITIONS. In this chapter:
	(1) "Excess wear and use waiver" means a provision of
	or addendum to a lease agreement under which the lessor agrees to
	not hold a lessee liable for all or part of the excess wear and use
	to a motor vehicle.
	(2) "Lease agreement" means an agreement, including
	any addendum to the agreement, entered into in this state under
	which a lessee pays a fee or other consideration to a lessor for the
	right to possession and use of a motor vehicle for a term of more
	than 180 days, regardless of whether the agreement provides the
	lessee an option to purchase or otherwise become the owner of the
	motor vehicle upon the expiration of the term of the agreement.
	(3) "Lessee" means an individual who acquires the
	right to possession and use of a motor vehicle under a lease
	agreement primarily for personal, family, or household purposes.
	(4) "Lessor" means a person who, in the ordinary
	course of business, regularly leases, offers to lease, or arranges
	for the lease of a motor vehicle under a lease agreement. Unless
	the context clearly indicates otherwise, the term includes an
	assignee of the lessor.
	(5) "Motor vehicle" has the meaning assigned by
	Section 541.201, Transportation Code.
	Sec. 94.002. CONTRACT FOR EXCESS WEAR AND USE WAIVER. A
	lessee may contract with a lessor for an excess wear and use waiver
	in connection with a lease agreement.
	Sec. 94.003. RESTRICTIONS ON LESSOR CONCERNING EXCESS WEAR
	AND USE WAIVER. A lessor may not:
	(1) sell an excess wear and use waiver, unless:
	(A) the lease agreement containing the excess
	wear and use waiver complies with this chapter; and
	(B) the lessee agrees to the excess wear and use
	waiver in writing; or
	(2) impose or require the purchase of an excess wear
	and use waiver as a condition of entering into a lease agreement.
	Sec. 94.004. REQUIRED NOTICE. An excess wear and use waiver
	must be in writing and include a notice substantially similar to the
	following:
	"This excess wear and use waiver is optional, is not a
	condition of leasing the vehicle, and is being provided for an
	additional charge to cover your responsibility for any excess wear
	and use to the leased vehicle."
	Sec. 94.005. REQUIRED DISCLOSURES. A lease agreement that
	includes an excess wear and use waiver must disclose:
	(1) the total charge for the excess wear and use
	waiver; and
	(2) any exclusions or limitations on the amount of
	excess wear and use that may be waived under the excess wear and use
	waiver.
	Sec. 94.006. RELATIONSHIP TO INSURANCE. An excess wear and
	use waiver is not insurance.
	Sec. 94.007. CIVIL PENALTY. A lessor 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 violation.
	Sec. 94.008. INJUNCTIVE RELIEF. 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.
	Sec. 94.009. 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
	94.007, injunctive relief under Section 94.008, or both.
	SECTION 2. The change in law made by this Act applies only
	to a lease agreement entered into on or after the effective date of
	this Act. A lease agreement entered into before the effective date
	of this Act is governed by the law in effect on the date the lease
	agreement was entered into, and the former law is continued in
	effect for that purpose.
	SECTION 3. This Act takes effect September 1, 2019.






	______________________________	______________________________
	President of the Senate	Speaker of the House

	I hereby certify that S.B. No. 1778 passed the Senate on
	April 29, 2019, by the following vote: Yeas 31, Nays 0.


	______________________________
	Secretary of the Senate

	I hereby certify that S.B. No. 1778 passed the House on
	May 22, 2019, by the following vote: Yeas 139, Nays 5, two
	present not voting.


	______________________________
	Chief Clerk of the House



	Approved:

	______________________________
	Date


	______________________________
	Governor