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AN ACT
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relating to loss damage waivers in connection with the rental of |
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certain heavy equipment; providing penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle B, Title 5, Business & Commerce Code, is |
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amended by adding Chapter 93 to read as follows: |
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CHAPTER 93. LOSS DAMAGE WAIVERS FOR RENTAL OF CERTAIN HEAVY |
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EQUIPMENT |
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Sec. 93.001. DEFINITIONS. In this chapter: |
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(1) "Customer" means a person who rents heavy |
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equipment under a rental agreement. |
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(2) "Heavy equipment" has the meaning assigned by |
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Section 23.1241, Tax Code. |
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(3) "Heavy equipment loss damage waiver" means a |
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merchant's agreement to not hold a customer liable for loss from all |
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or part of any damage to heavy equipment. |
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(4) "Merchant" means a person who, in the ordinary |
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course of business, regularly rents, offers to rent, or arranges |
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for the rental of heavy equipment under a rental agreement. |
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(5) "Rental agreement" means an agreement under which |
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a customer pays a fee or other consideration to rent heavy |
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equipment. |
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Sec. 93.002. CONTRACT FOR LOSS DAMAGE WAIVER. A customer |
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may contract with a merchant for a heavy equipment loss damage |
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waiver in connection with a rental agreement. |
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Sec. 93.003. RESTRICTIONS ON MERCHANT CONCERNING WAIVER. A |
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merchant may not: |
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(1) sell a heavy equipment loss damage waiver unless: |
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(A) the contract containing the waiver complies |
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with this chapter; and |
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(B) the customer agrees to the waiver in writing; |
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or |
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(2) impose or require the purchase of a heavy |
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equipment loss damage waiver as a condition of entering into a |
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rental agreement. |
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Sec. 93.004. REQUIRED NOTICE. A contract that offers a |
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heavy equipment loss damage waiver must include the following |
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notice: |
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"This contract offers an optional loss damage waiver for an |
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additional charge to cover your responsibility for loss of or |
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damage to the heavy equipment. You do not have to purchase this |
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coverage. Before deciding whether to purchase this loss damage |
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waiver, you may consider whether your insurance policies afford you |
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coverage for loss of or damage to the heavy equipment rented and the |
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amount of the deductible you would pay under your policies." |
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Sec. 93.005. STATEMENT OF TOTAL CHARGE. A heavy equipment |
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loss damage waiver agreement must include a statement of the total |
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charge for the waiver. |
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Sec. 93.006. AUTHORIZED EXCLUSIONS. A heavy equipment loss |
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damage waiver may exclude: |
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(1) loss of or damage to the heavy equipment that is |
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caused by an unexplained disappearance or abandonment of the heavy |
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equipment; |
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(2) damage that is intentionally caused by the |
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customer; or |
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(3) damage that results from the customer's wilful or |
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wanton misconduct. |
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Sec. 93.007. RELATIONSHIP TO INSURANCE. A heavy equipment |
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loss damage waiver is not insurance. |
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Sec. 93.008. CIVIL PENALTY. A merchant that violates this |
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chapter is liable for a civil penalty in an amount of not less than |
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$500 or more than $1,000 for each act of violation. |
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Sec. 93.009. INJUNCTIVE RELIEF. A person injured or |
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threatened with injury by a violation of this chapter may seek |
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injunctive relief against the person committing or threatening to |
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commit the violation. |
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Sec. 93.010. SUIT FOR CIVIL PENALTY OR INJUNCTIVE RELIEF. |
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The attorney general or a county or district attorney may bring an |
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action in the name of the state for a civil penalty under Section |
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93.008, injunctive relief under Section 93.009, or both. |
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SECTION 2. The change in law made by this Act applies only |
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to a rental agreement entered into on or after the effective date of |
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this Act. A rental agreement entered into before the effective date |
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of this Act is governed by the law in effect when the rental |
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agreement was entered into, and the former law is continued in |
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effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2015. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2052 was passed by the House on April |
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16, 2015, by the following vote: Yeas 145, Nays 1, 2 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2052 was passed by the Senate on May |
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20, 2015, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |