SB 2987

relating to the circumstances in which a rental company may void a
damage waiver for a rental vehicle.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 91.056, Business & Commerce Code, is
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:
(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;
(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;
(4)  the vehicle is stolen and the renter fails to:
(A)  return the vehicle's ignition key to the
(B)  file a report with law enforcement not later
than 24 hours after the renter discovers the theft; and
(C)  fully cooperate with the rental company and
any law enforcement agency or other authority investigating the
stolen vehicle in all matters relating to the investigation of the
SECTION 2.  The change in law made by this Act applies only
to an agreement entered into on or after the effective date of this
Act.  An agreement entered into before the effective date of this
Act is governed by the law in effect on the date the agreement was
entered into, and the former law is continued in effect for that
SECTION 3.  This Act takes effect September 1, 2025.