HB 1395
AN ACT relating to the regulation of private passenger vehicle rental
89th Regular Session
Jan 14, 2025 - Jun 2, 2025 • Session ended
Awaiting Committee Assignment
Bill filed, pending referral to House committee
Committee
Not yet assigned
Fiscal Note
Not available
What This Bill Does
Extends the definition of short-term vehicle rentals from 30 to 180 days and requires rental companies to provide pro-rated refunds for damage waiver charges if a vehicle is returned early. The changes apply to rental agreements made on or after September 1, 2025, impacting vehicle rental businesses and consumers by providing more flexibility and potential cost savings for renters who return vehicles before their contract ends.
Subject Areas
Bill Text
relating to the regulation of private passenger vehicle rental 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. If a renter returns a rented motor vehicle before the conclusion of the rental term, the rental company shall issue a pro rata refund of the damage waiver charge from the date the vehicle is returned. 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 SECTION 4. This Act takes effect September 1, 2025.
Bill Sponsors
Legislators who authored or co-sponsored this bill.
Bill History
Bill filed: AN ACT relating to the regulation of private passenger vehicle rental
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