Texas House bill by Rep. Lujan amends conditions to void rental vehicle damage waivers

Passed bill authored by State Rep. John Lujan seeks to clarify conditions under which rental companies may void damage waivers, aiming to address intentional damage, unauthorized use, and renter obligations, according to the Texas Legislature website.

In the House, 52 Democrats and 83 Republicans voted in favor of the bill, while one Republican opposed it.

Meanwhile, in the Senate, 11 Democrats and 20 Republicans voted in favor, with no opposing votes.

John Lujan introduced the bill in the Texas House on Wednesday, Feb. 19, during the 89th regular legislative session.

Lujan, a Republican, was elected to the Texas State House in 2021 to represent the state’s 118th House district, replacing previous state representative Leo Pacheco.

According to the Texas Legislature, the bill’s official text was summarized as follows: ‘Relating to the circumstances in which a rental company may void a damage waiver for a rental vehicle’.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill amends the conditions under which a rental company in Texas may void a damage waiver for a rental vehicle. A damage waiver can be voided if an authorized driver causes damage intentionally or through gross misconduct. It also applies if the vehicle is used by an unauthorized driver, under the influence of impairing substances, in criminal activities, for hire, towing, driver’s training, racing, or outside the continental U.S. without specific authorization. Moreover, if the rental contract was entered based on fraudulent information or if a vehicle is stolen and the renter fails to meet specific obligations, such as returning the ignition key, filing a theft report within 24 hours, or cooperating with investigations, the waiver can be voided. The changes apply to agreements made on or after the bill’s effective date of Sept. 1, 2025.

The bill was co-authored by Rep. Oscar Longoria (Democrat – District 35) and Rep. Ryan Guillen (Republican – District 31), along with two other authors.

The bill received its final legislative approval on Wednesday, May 28, and was signed into law by Gov. Greg Abbott on Friday, June 20.

Bills in Texas go through a multi-step legislative process, including committee review, debates, and votes in both chambers before reaching a final decision. Each session, there are typically thousands of bills introduced, but only a portion successfully navigate the process to become law.

You can read more about the bills and other measures here.