Rental Agreement Loss Damage Waivers
JUSTIFICATION FOR THE ADOPTION OF THE REPEAL OF CHAPTER 58, RENTAL-PURCHASE AGREEMENTS §§58.1, 58.10, 58.21, 58.70, 58.80, and 58.90
The Texas Commission of Licensing and Regulation (“Commission”) adopts the repeal of 16 Texas Administrative Code (“TAC”), Chapter 58, §§58.1, 58.10, 58.21, 58.70, 58.80, and 58.90 regarding rental-purchase agreements to implement the restructuring of the agency’s administrative rule chapters. The proposed repeal is adopted without changes to the proposal as published in the March 27, 2009, issue of the Texas Register (34 TexReg 2069). The repeal takes effect July 1, 2009.
The former rules at 16 TAC Chapter 58 implemented the current statutory requirements under Texas Business and Commerce Code, Chapter 35, Subchapter F. As the result of a rule review conducted in accordance with Texas Government Code §2001.039 (see the October 19, 2007, issue of the Texas Register (32 TexReg 7511)) and House Bill 2278, passed by the 80th Legislature, which recodified the Texas Business and Commerce Code, Chapter 35, Subchapter F, to Texas Business and Commerce Code, Chapter 92, effective April 1, 2009, the Department proposed that the former rules be repealed and replaced with new 16 TAC Chapter 81. The repeal of Chapter 58 is adopted in conjunction with the adoption of new rules in Chapter 81, which are published in the Adopted Rules section of this issue of the Texas Register.
The proposed repeal was published in the Texas Register on March 27, 2009, for a 30-day public comment period. The Department received one comment letter in support of the repeal from the Texas Association of Rental Agencies, Inc. (TARA), a non-profit trade association of rent-to-own dealers.
The repeal is adopted as the result of a rule review conducted in accordance with Texas Government Code §2001.039. The repeal is adopted under Texas Occupations Code, §51.201(b) and §51.203, which authorize the Commission, the Department’s governing body, to adopt rules as necessary to implement Chapter 51 and any other law establishing a program regulated by the Department and Texas Business and Commerce Code, Chapter 35, Subchapter F.
The statutory provisions affected by the adopted repeal are those set forth in Texas Occupations Code, Chapter 51, the Commission’s and Department’s enabling statute and pursuant to House Bill 2278, passed by the 80th Legislature, which recodified the Texas Business and Commerce Code, Chapter 35, Subchapter F, to Texas Business and Commerce Code, Chapter 92, effective April 1, 2009. No other statutes, articles, or codes are affected by the adoption.
§58.1. Authority
§58.10. Definitions
§58.21. Review Requirements-Rental Agreements
§58.70. Responsibilities of Merchants
§58.80. Fees
§58.90. Administrative Penalties and Sanctions
This agency hereby certifies that the repeal has been reviewed by legal counsel and found to be a valid exercise of the agency’s legal authority.
Filed with the Office of the Secretary of State, on June 11, 2009.
William H. Kuntz, Jr.
Executive Director
Texas Department of Licensing and Regulation
JUSTIFICATION FOR ADOPTION OF NEW CHAPTER 81, RENTAL PURCHASE AGREEMENTS §§81.1, 81.10, 81.21, 81.70, 81.80 and 81.90
The Texas Commission of Licensing and Regulation (“Commission”) adopts new rules at 16 Texas Administrative Code, (“TAC”) Chapter 81, §§81.1, 81.10, 81.21, 81.70, 81.80, and 81.90 regarding regarding rental-purchase agreements, without changes to the proposed text as published in the March 27, 2009, issue of the Texas Register (34 TexReg 2070). The adoption takes effect July 1, 2009.
The former rules at 16 TAC Chapter 58 implemented the current statutory requirements under Texas Business and Commerce Code, Chapter 35, Subchapter F. As the result of a rule review conducted in accordance with Texas Government Code §2001.039 (see the October 19, 2007, issue of the Texas Register (32 TexReg 7511)) and House Bill 2278, passed by the 80th Legislature, which recodified the Texas Business and Commerce Code, Chapter 35, Subchapter F, to Texas Business and Commerce Code, Chapter 92, effective April 1, 2009, the Department proposed that the former rules be repealed and replaced with new 16 TAC Chapter 81. New Chapter 81 is adopted in conjunction with the repeal of former rules at 16 TAC Chapter 58, which are published in the Adopted Rules section of this issue of the Texas Register.
The Department determined that the new rules are necessary to update statutory citations, clarify statutory and administrative rule requirements, and reflect current Department procedures. There are no substantive changes to the rules.
The proposed new rules were published in the Texas Register on March 27, 2009, for a 30-day public comment period. The Department received one comment letter in support of the new rules from the Texas Association of Rental Agencies, Inc. (TARA), a non-profit trade association of rent-to-own dealers.
The new rules are adopted as the result of a rule review conducted in accordance with Texas Government Code §2001.039. The new rules are adopted under Texas Occupations Code, §51.201(b) and §51.203, which authorize the Commission, the Department’s governing body, to adopt rules as necessary to implement Chapter 51 and any other law establishing a program regulated by the Department. In addition, the new rules are adopted in accordance with Texas Business and Commerce Code, Chapter 35, Subchapter F.
The statutory provisions affected by the new rules are those set forth in Texas Occupations Code, Chapter 51, the Commission’s and Department’s enabling statute and pursuant to House Bill 2278, passed by the 80th Legislature, which recodified the Texas Business and Commerce Code, Chapter 35, Subchapter F, to Texas Business and Commerce Code, Chapter 92, effective April 1, 2009. No other statutes, articles, or codes are affected by the adoption.
§81.1. Authority.
These rules are promulgated under the authority of Texas Business and Commerce Code, Chapter 92, and Texas Occupations Code, Chapter 51.
§81.10. Definitions
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
(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.
(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.
(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.
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.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency’s legal authority.
Filed with the Office of the Secretary of State, on June 11, 2009.
William H. Kuntz, Jr.
Executive Director
Texas Department of Licensing and Regulation
Approved Rental Purchase Agreement Contracts and Companies
These are the approved contracts and companies that provide Loss Damage Waivers in Texas, their contract numbers and the expiration dates of their approvals:
LDW 1-1 Rent-A-Center TX LP Plano, TX 1/16/2010
LDW 2-2 ColorTyme Corsicana, TX 3/28/2010
LDW 4-4 M Rentals El Paso, TX 6/29/2010
LDW 5-5 Partners Rental Purchase Inc Friendswood, TX 10/24/2010
LDW 6-6 Sam’s Appliance and Furniture Haltom City, TX 2/17/2010
LDW 9-9 Showcase Home Furnishings Inc Allen, TX 4/01/2009
LDW 9-49 Showcase Home Furnishings Inc Allen, TX 6/27/2008
LDW 10-10 J & W Furniture Inc dba Airlawn Furniture Pecos, TX 1/20/2010
LDW 11-11 Rent One LLC Bossier City, LA 2/17/2010
LDW 16-16 EZ Rental LLC Atlanta, TX 2/17/2010
LDW 17-17 Landry's Rent to Own II Silsbee, TX 8/29/2010
LDW 18-18 Edward Wisdom Enterprises, Inc. dba Rent City Grand Prairie, TX 1/20/2010
LDW 19-19 Rapid Rent to Own LLC Mount Pleasant, TX 2/09/2010
LDW 21-21 Rent 4 Less Inc Fort Worth, TX 2/17/2010
LDW 24-24 Tally Rents LLC dba Rent 1st Hurst, TX 10/19/2010
LDW 27-27 O & F Investments, Inc dba Colortyme Paris, TX 4/01/2010
LDW 29-29 Hughes Rent to Own dba Credit World Big Spring, TX 4/16/2010
LDW 31-31 The Rental Store, Inc Scottsdale, AZ 03/27/2010
LDW 32-32 Superior Rental Purchase Pleasanton, TX 2/27/2010
LDW 33-33 Express Rent to Own Lytle, TX 6/28/2010
LDW 34-34 Advantage Rental and Sales Waco, TX 8/30/2010
LDW 36-36 Liberty TV and Appliance Paris, TX 8/03/2010
LDW 38-38 Viva Rent to Own El Paso, TX 1/18/2010
LDW 39-39 T-M Barker Enterprises, Inc dba Aladdin Homestore Marble Falls, TX 11/03/2009
LDW 41-41 Affordable Rent to Own of Beaumont Beaumont, TX 2/26/2010
LDW 44-44 NEMC National Educational Music Co. Mountainside, NJ 2/24/2010
LDW 45-45 Superior Rent to Own Furniture, Inc. Bryan, TX 2/18/2010
LDW 47-47 Amigo Rent to Own McAllen, TX 4/27/2010
LDW 48-48 Rent Smart, Inc Edinburg, TX 9/26/2009
LDW 49-50 Guitar Center Stores, Inc dba American Student Rentals Frederick, MD 02/06/2010
LDW 51-52 DDS Inc dba Home Store Rent to Own, Canton, TX 9/12/2009
LDW 52-53 Gorman Distributing dba Casa TV Rentals, El Paso, TX 9/19/2009
LDW 54-55 Patrick McGee dba Your Way Rental Purchase, Austin, TX 2/14/2010
LDW 55-56 Star Rental, Inc Houston, TX 6/01/2009
LDW 57-58 LCM Ventures, Inc dba Buzz's Rental Purchase San Antonio, TX 4/10/2010
LDW 59-60 Big D Powerhouse Inc dba ColorTyme Irving, TX 4/03/2010
LDW 61-62 MCS Ventures, Inc dba Buzz's San Antonio, TX 5/10/2010
LDW 63-64 Baxter Leasting, Inc dba Vantage Rental Purchase Pasadena, TX 6/08/2010
LDW 64-65 Bestway Rental, Inc Dallas, TX 3/27/2010
LDW 66-67 Vision Furniture & Appliance Littlefield, TX 3/27/2010
LDW 67-68 The Ultima Gemini Group, Inc dba Premier Rental-Purchase, San Antonio, TX 06/01/2010
LDW 68-69 BKNM, Inc dba Premier Rental Purchase San Antonio, TX 6/26/2010
LDW 69-70 Family Rentals, Inc dba Premier Rentals Garland, TX 7/31/2009
LDW 70-72 Quality Consumer Rentals, Inc dba Quality Rentals Cuyahoga
Falls, OH 05/01/2010
LDW 1-71 Rent-A-Center dba RimTyme TX LP Plano, TX 1/25/2009
LDW 71-73 RRSSR, Inc dba Premier Rental Purchase San Antonio, TX 5/29/2010
LDW 72-74 Bi-Rite Company dba Buddy's Home Furnishings Tampa, FL 6/25/2010
LDW 73-75 Spartan 3 Investments, LLC dba ColorTyme San Antonio, TX 6/18/2009
LDW 74-76 Jim Melhart Piano & Organ Co dba Melhart Music Center, McAllen, TX 10/06/2009
LDW 75-77 Flexi LLC dba Flexi Compras Dallas, TX 10/06/2009
LDW 76-78 Lighthouse Capital Solutions, LLC Tampa, FL 3/13/2010
LDW 77-79 easyhome, LLC dba easyhome Austin, TX 3/13/2010
LDW 78-80 Universal Meldoy Services, LLC Dallas, TX 5/14/2010
LDW 79-81 New Avenues of Texas, LLC Odessa, TX 6/19/2010
Senate Bill 279, article 24, passed by the 78th Legislature and signed into law by the Governor on June 20, 2003 amends Subchapter F, Texas Business and Commerce Code, Chapter 35 regulating Rental Agreements. The bill prohibits merchants from selling a loss damage waiver unless the form of the contract containing the waiver has been approved by the Texas Department of Licensing and Regulation. The bill became effective September 1, 2003.
To receive ongoing information about the implementation of this legislation, please subscribe to the e-mail notification list. Questions regarding the rental agreements with loss damage waivers in Texas may be directed to TDLR at lossdamagewaivers@license.state.tx.us.
