Regular Session
Key implementation requirements and action items for compliance with this legislation
Mandatory Amendment: Your standard Texas Rental Agreement (Terms & Conditions) must be updated. The "Damage Waiver" or "Loss Damage Waiver" section must explicitly list the three new statutory grounds for voidance:
Claims & Loss Recovery: Staff must be retrained to prioritize the collection of the physical key immediately upon a theft report. They must also be trained to request the *timestamped* police report rather than just the case number.
Incident Forms: Update your "Vehicle Theft Incident Report" to include mandatory fields for:
Cost Positive: There are no new government fees. This legislation is financially beneficial as it reduces fleet loss ratios by providing a clear, strict-liability standard to deny coverage for negligent renters, removing the previous need to prove "wanton misconduct."
Our government affairs experts can walk you through this bill's specific impact on your operations.
Schedule ConsultationInformation presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
This bill's path through the Texas Legislature
BILL ANALYSIS |
| H.B. 3016 |
| By: Lujan |
| Trade, Workforce & Economic Development |
| Committee Report (Unamended) |
| BACKGROUND AND PURPOSE The bill author has informed the committee about the exploitation by criminal networks engaged in organized automobile theft of collision damage waivers, a contractual agreement that shifts liability for damage or theft of a rental vehicle from the renter to the rental car company. The bill author further informed the committee that current law restricts the circumstances under which a waiver may be voided, such as unauthorized use or driver intoxication. In committee hearings for the bill, a representative from the automobile rental industry testified that the company has experienced approximately 100 thefts since the beginning of 2025, with many of those vehicles being tracked by license plate readers as having gone over the international border. The witness noted that, with many of these vehicles being covered by these waivers, no mode of recourse is currently available in these situations, even in cases where renters refuse to cooperate with law enforcement or the rental agencies. H.B. 3016 seeks to enact narrow circumstances under which a waiver may be voided when a vehicle is stolen and the renter fails to follow the bill's procedures for reporting that theft.
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| CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
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| RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
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| ANALYSIS H.B. 3016 amends the Business & Commerce Code to authorize a rental company to void a damage waiver for a rental vehicle if the vehicle is stolen and the renter fails to do the following: ·return the vehicle's ignition key to the rental company; ·file a report with law enforcement not later than 24 hours after the renter discovers the theft; and ·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 stolen vehicle. The bill applies only to an agreement entered into on or after the bill's effective date. An agreement entered into before the bill's effective date 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 purpose.
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| EFFECTIVE DATE September 1, 2025. |
| H.B. No. 3016 | ||
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| 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 | ||
| amended to read as follows: | ||
| 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: | ||
| (A) by a person: | ||
| (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; | ||
| (C) to push or tow anything; | ||
| (D) for driver's training; | ||
| (E) to engage in a speed contest; or | ||
| (F) outside the continental United States, | ||
| unless the rental agreement specifically authorizes the use; [ |
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| (3) the rental company entered into the rental | ||
| transaction based on fraudulent information supplied by the renter; | ||
| or | ||
| (4) the vehicle is stolen and the renter fails to: | ||
| (A) return the vehicle's ignition key to the | ||
| rental company; | ||
| (B) file a report with law enforcement not later | ||
| than 24 hours after the renter discovers the theft; and | ||
| (C) 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 stolen | ||
| vehicle. | ||
| 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 | ||
| purpose. | ||
| SECTION 3. This Act takes effect September 1, 2025. | ||
| TO: | Honorable Angie Chen Button, Chair, House Committee on Trade, Workforce & Economic Development |
| FROM: | Jerry McGinty, Director, Legislative Budget Board |
| IN RE: | HB3016 by Lujan (Relating to the circumstances in which a rental company may void a damage waiver for a rental vehicle.), As Introduced |
| Source Agencies: | 302 Office of the Attorney General |
| LBB Staff: | JMc, RStu, LCO, JKe |
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Common questions about HB3016
Texas rental car companies now possess statutory authority to void a damage waiver on a stolen vehicle if the renter fails to meet specific post-theft obligations. Effective September 1, 2025, liability shifts back to the renter if they fail to return the ignition key, fail to file a police report within 24 hours of discovering the theft, or fail to cooperate with the investigation. Implementation Timeline Effective Date: September 1, 2025.
HB3016 was authored by Texas Representative John Lujan during the Regular Session.
HB3016 was signed into law by Governor Greg Abbott on June 20, 2025.
The compliance urgency for HB3016 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
The cost impact of HB3016 is estimated as "low". This may vary based on industry and implementation requirements.
HB3016 addresses topics including business & commerce, business & commerce--general, consumer protection and rental cars.
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