Overall Vote Recommendation
Neutral
Principle Criteria
Free Enterprise
Property Rights
Personal Responsibility
Limited Government
Individual Liberty
In Layman's Terms
SB 72 expands Texas regulations for private passenger vehicle rentals from 30 days to 180 days and requires rental companies to refund unused damage waiver charges in certain situations. The committee substitute clarifies that refunds apply only to the unused portion of the damage waiver and adds rules for customers who cancel the coverage early.
Digest
SB 72 amends the regulation of private passenger vehicle rental companies by expanding the maximum rental period covered under Chapter 91, Business & Commerce Code, from 30 days to 180 days. As a result, rental agreements and rental companies offering private passenger vehicle rentals for up to 180 days would be subject to the chapter's requirements, while businesses whose primary activity is not vehicle rental remain excluded from the definition of a rental company.
The bill also requires a rental company to refund unused damage waiver charges when a renter returns a vehicle before the anticipated return date or cancels a damage waiver before the end of the rental period, provided the rental company confirms the vehicle was not damaged before the cancellation. The refund must correspond to the portion of the damage waiver period that was not used, ensuring renters are not charged for protection beyond the time the waiver was actually in effect.
The bill applies only to rental agreements entered into on or after its effective date, preserving existing law for agreements executed before that date.
The Committee Substitute for SB 72 retains the Senate engrossed version's primary policy changes without altering the bill's expansion of Chapter 91, Business & Commerce Code, from rental agreements of 30 days or less to 180 days or less. Both versions broaden the definitions of "rental agreement" and "rental company" to reflect the longer rental period and continue to exclude licensed motor vehicle dealers whose primary business is not vehicle rentals. The substitute also leaves unchanged the effective date and the provision applying the bill prospectively to rental agreements entered into on or after September 1, 2025.
The principal substantive change made by the House Committee Substitute concerns refunds of damage waiver charges. The Senate engrossed version required a rental company to provide a pro rata refund of the damage waiver charge whenever a renter returned a vehicle before the end of the rental term.
The Committee Substitute narrows and clarifies that requirement by limiting refunds to damage waiver charges that exceed the number of calendar days the damage waiver was actually in effect. In addition to covering early vehicle returns, the substitute adds a second circumstance under which a refund is required: when a renter cancels the damage waiver before the anticipated return date, provided the rental company confirms the vehicle was not damaged before the waiver was canceled. Rather than requiring a general pro rata refund whenever a vehicle is returned early, the substitute ties the refund specifically to the unused portion of the damage waiver and establishes conditions governing cancellation of the waiver itself.
Author (1)
Judith Zaffirini
Sponsor (1)
John Lujan
Contact the Author
Sen. Judith Zaffirini
Capitol Phone:
(512) 463-0121
Capitol Office:
CAP 1E.13
E-Mail:
