Texas SB72 amends the definition of rental companies and rental agreements, and requires refunds for damage waiver charges if vehicles are returned.

Texas SB72 modifies the Business & Commerce Code to redefine "rental agreement" and "rental company." A rental agreement now refers to an agreement for 180 days or less, and a rental company is defined as a business renting private passenger vehicles for 180 days or less. The bill also mandates that rental companies issue a pro rata refund of the damage waiver charge if a rented vehicle is returned before the end of the rental term. These changes apply to rental agreements entered into after the bill's effective date of September 1, 2025.

Texas SB72 amends the definition of rental companies and rental agreements, and requires refunds for damage waiver charges if vehicles are returned.

Texas SB72 modifies the Business & Commerce Code to redefine "rental agreement" and "rental company." A rental agreement now refers to an agreement for 180 days or less, and a rental company is defined as a business renting private passenger vehicles for 180 days or less. The bill also mandates that rental companies issue a pro rata refund of the damage waiver charge if a rented vehicle is returned before the end of the rental term. These changes apply to rental agreements entered into after the bill's effective date of September 1, 2025.