Regular Session
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This bill's path through the Texas Legislature
BILL ANALYSIS
| Senate Research Center | S.B. 72 |
| 89R343 ATP-F | By: Zaffirini |
| Business & Commerce | |
| 2/14/2025 | |
| As Filed |
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
At times, persons may need to rent a car for more than 30 days for long-term travel, temporary transportation while a personal vehicle is unavailable due to repairs or other factors, or business use. Consumers also may want to purchase a damage waiver, which is offered by rental car companies to protect renters from financial liability in the event of damage to the vehicle. Currently, Chapter 152, Tax Code, defines a rental as an agreement for the use of a motor vehicle for a period of up to 180 days for consideration, but the damage waiver statute in Chapter 91, Business and Commerce Code, defines a rental agreement as an agreement of 30 days or less. Accordingly, consumers may not have the option to purchase a damage waiver beyond the initial 30-day period. S.B. 72 would align the definition of "rental" in the damage waiver to mean a rental as an agreement for the use of a motor vehicle up to 180 days for consideration. This change would provide financial security to consumers by ensuring they have the option to voluntarily purchase damage waivers when renting a motor vehicle for more than 30 days.
As proposed, S.B. 72 amends current law relating to the regulation of private passenger vehicle rental companies.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Sections 91.001(6) and (7), Business & Commerce Code, to redefine "rental agreement" and "rental company."
SECTION 2. Amends Subchapter B, Chapter 91, Business & Commerce Code, by adding Section 91.057, as follows:
Sec. 91.057. REFUND OF DAMAGE WAIVER CHARGE. Requires the rental company, if a renter returns a rented motor vehicle before the conclusion of the rental term, to issue a pro rata refund of the damage waiver charge from the date the vehicle is returned.
SECTION 3. Makes application of this Act prospective.
SECTION 4: Effective date: September 1, 2025.
| S.B. No. 72 | ||
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| relating to the regulation of private passenger vehicle rental | ||
| companies. | ||
| 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 [ |
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| 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 [ |
||
| 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. A rental | ||
| company shall issue to a renter a refund of any damage waiver | ||
| charges charged or collected for a period that exceeds the number of | ||
| calendar days a damage waiver is in effect if: | ||
| (1) the renter returns a rented motor vehicle before | ||
| the anticipated return date; or | ||
| (2) the damage waiver is not in effect for the entire | ||
| period of the rental agreement because the renter cancels the | ||
| damage waiver before the anticipated return date, and the rental | ||
| company confirms that the rented motor vehicle was not damaged | ||
| before the damage waiver's cancellation. | ||
| 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 | ||
| purpose. | ||
| SECTION 4. This Act takes effect September 1, 2025. | ||
| TO: | Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce |
| FROM: | Jerry McGinty, Director, Legislative Budget Board |
| IN RE: | SB72 by Zaffirini (Relating to the regulation of private passenger vehicle rental companies.), As Introduced |
| Source Agencies: | 302 Office of the Attorney General, 304 Comptroller of Public Accounts |
| LBB Staff: | JMc, CMA |
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Common questions about SB72
Senate Bill 72 fundamentally expands the regulatory definition of a "rental agreement" from 30 days to 180 days, subjecting long-term and "mini-lease" rentals to Chapter 91 compliance. Additionally, the law mandates pro-rated refunds for damage waivers upon early return or mid-rental cancellation, requiring immediate reconfiguration of Point-of-Sale (POS) financial logic. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: September 1, 2025.
SB72 was authored by Texas Senator Judith Zaffirini during the Regular Session.
SB72 was signed into law by Governor Greg Abbott on May 27, 2025.
SB72 is enforced by Office of the Attorney General (Consumer Protection Division).
The compliance urgency for SB72 is rated as "critical". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
The cost impact of SB72 is estimated as "medium". This may vary based on industry and implementation requirements.
SB72 addresses topics including business & commerce, business & commerce--general and rental cars.
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