Rental Agreement Loss Damage Waivers Administrative Rules

RENTAL PURCHASE AGREEMENTS
Administrative Rules of the Texas Department of Licensing and Regulation
16 Texas Administrative Code, Chapter 81
(Effective July 1, 2009)

TABLE OF CONTENTS

81.1. Authority
81.10. Definitions
81.21. Review Requirements--Rental Agreements
81.70. Responsibilities of Merchants
81.80. Fees
81.90. Administrative Penalties and Sanctions

81.1. Authority. (New section adopted effective July 1, 2009, 34 TexReg 4331)

These rules are promulgated under the authority of Texas Business and Commerce Code, Chapter 92, and Texas Occupations Code, Chapter 51.

81.10. Definitions. (New section adopted effective July 1, 2009, 34 TexReg 4331)

The following words and terms, when used in this chapter, have the following meanings.

(1) Rental Agreement--A rental-purchase agreement as defined in Texas Business and Commerce Code §92.001(8) that includes a loss damage waiver, either as an integral part or as an attachment.

(2) Merchant--A person who, in the ordinary course of business, regularly leases, offers to lease, or arranges for the leasing of merchandise under a rental-purchase agreement, and includes a person who is assigned an interest in a rental-purchase agreement.

81.21. Review Requirements--Rental Agreements. (New section adopted effective July 1, 2009, 34 TexReg 4331)

(a) Merchants must submit all rental agreements for review and may not use or offer the rental agreement in Texas until notified by the Department.

(b) Each rental agreement submitted to the Department for review must:

(1) be accompanied by a review fee;

(2) be accompanied by a rental purchase agreement review application; and

(3) include the entire rental agreement including any addenda or attachments.

(c) If the rental agreement is amended after the department’s initial or annual approval, merchants must submit the amended rental agreement for approval before using or offering the rental agreement in Texas.

(d) Merchants must submit all rental agreements for review annually. After the period of approval for the rental agreement has expired a merchant may not use or offer the rental agreement in Texas.

81.70. Responsibilities of Merchants. (New section adopted effective July 1, 2009, 34 TexReg 4331)

(a) A merchant must include the following written notification in all rental agreements: “For more information regarding the approval of loss damage waivers visit www.license.state.tx.us. You may also direct inquiries to the Texas Department of Licensing and Regulation, P. O. Box 12157, Austin, Texas 78711, 1-800-803-9202, 512-463-6599.”

(b) The department issued rental agreement approval number must be listed on each rental agreement.

(c) A merchant shall allow the department to audit, examine, and copy any and all records maintained by the merchant pursuant to or relating to rental agreements as defined in §81.10 of this chapter.

81.80. Fees. (New section adopted effective July 1, 2009, 34 TexReg 4331)

(a) Original application fee is $300.

(b) Annual review fee is $300.

(c) Amended rental agreement review fee is $300.

(d) All fees are non-refundable.

81.90. Administrative Penalties and Sanctions. (New section adopted effective July 1, 2009, 34 TexReg 4331)

If a person violates any provision of Texas Business and Commerce Code, Chapter 92, Subchapter D, any provision of Title 16, Texas Administrative Code, Chapter 81, or any provision of an order of the Executive Director or Commission, proceedings may be instituted to impose administrative penalties, administrative sanctions, or both administrative penalties and sanctions in accordance with the provisions of Texas Business and Commerce Code, Chapter 92; Texas Occupations Code, Chapter 51 and applicable rules.

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