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. The new provisions specify that a rental company can void a damage waiver if the damage is caused intentionally by an authorized driver, arises from unauthorized use of the vehicle, 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 if the vehicle is stolen. Specifically, the renter must return the vehicle's ignition key, file a police report within 24 hours of discovering the theft, and fully cooperate with the rental company and law enforcement during the investigation.

The bill also states that these 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 prior to this date will continue to be governed by the existing law. This ensures that renters who entered into agreements before the new provisions take effect will not be subject to the updated conditions.

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