The bill amends Section 91.056 of the Business & Commerce Code to clarify the circumstances under which a rental company may void a damage waiver for a rental vehicle. It specifies that a rental company cannot void a damage waiver unless certain conditions are met, including intentional damage by an authorized driver, damage resulting from unauthorized use, or if the rental company was misled by fraudulent information provided by the renter. Additionally, the bill introduces new conditions under which a damage waiver can be voided, specifically if the vehicle is stolen and the renter fails to return the ignition key, report the theft to law enforcement within 24 hours, or cooperate with the investigation.

The bill also includes a provision stating that the changes will only apply to rental agreements entered into on or after the effective date of the Act, which is set for September 1, 2025. Agreements made before this date will continue to be governed by the previous law. This ensures that existing contracts are not retroactively affected by the new regulations.

Statutes affected:
Introduced: Commerce Code 91.056 (Commerce Code 91)