H.B. No. 1859         AN ACT   relating to certain rental-purchase agreements.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 92.001, Business & Commerce Code, is   amended to read as follows:          Sec. 92.001.  DEFINITIONS.  (a)  In this chapter:                (1)  "Advertisement" means a commercial message in any   medium that directly or indirectly promotes or assists a   rental-purchase agreement.                (3)  "Consumer" means an individual who leases personal   property under a rental-purchase agreement.                (5)  "Loss damage waiver" means a merchant's agreement   to not hold a consumer liable for loss from all or part of any damage   to merchandise.                (6)  "Merchandise" means the personal property that is   the subject of a rental-purchase agreement.                (7)  "Merchant" means 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.     The term includes a person who is assigned an interest in a   rental-purchase agreement.                (8)  "Rental-purchase agreement" means an agreement   under which a consumer may use merchandise for personal, family, or   household purposes for an initial period of four months or less, and   that:                      (A)  is automatically renewable with each payment   after the initial period; and                      (B)  permits the consumer to become the owner of   the merchandise.          (b)  For purposes of this chapter, merchandise is displayed   or offered to consumers primarily for lease under a rental-purchase   agreement if the merchandise is displayed or offered at a place of   business that derives at least 50 percent of its revenue from   rental-purchase agreements.           SECTION 2.  Subchapter A, Chapter 92, Business & Commerce   Code, is amended by adding Section 92.003 to read as follows:          Sec. 92.003.  POINT-OF-RENTAL DISCLOSURES. (a)  If   merchandise is not displayed or offered to consumers primarily for   lease under a rental-purchase agreement, the merchant shall make   the following disclosures to a consumer before presenting a   rental-purchase agreement for specific merchandise to the consumer   for execution:                (1)  the price for which the merchant would sell the   merchandise to the consumer for cash on the date of the disclosure;                (2)  the amount of the periodic payments that would be   provided for in the agreement if it is executed on the date of the   disclosure; and                (3)  the total number and amount of periodic payments   necessary to acquire ownership of the merchandise under the   agreement if it is executed on the date of the disclosure.          (b)  The disclosures required by Subsection (a) must be made   separately from the rental-purchase agreement.           SECTION 3.  Subchapter B, Chapter 92, Business & Commerce   Code, is amended by adding Section 92.0535 to read as follows:          Sec. 92.0535.  ACKNOWLEDGMENT REQUIRED FOR CERTAIN   AGREEMENTS. If merchandise is not displayed or offered to   consumers primarily for lease under a rental-purchase agreement,   the merchant shall provide to the consumer at the time the agreement   is presented to the consumer the additional disclosures prescribed   by this section. The disclosures must:                (1)  be entitled "Acknowledgment of Rental-Purchase   Transaction";                (2)  be on a separate page;                (3)  be signed by the consumer; and                (4)  include an acknowledgment that the consumer   understands the consumer is entering into a rental-purchase   agreement and that:                      (A)  under the agreement, the consumer does not   own the merchandise but may acquire ownership rights by complying   with the ownership option terms specified in the agreement;                      (B)  the agreement is not a credit transaction;                      (C)  if provided by the agreement, the consumer   has the right to return the merchandise at any time without   additional charge or penalty, and, on the merchandise's return, the   consumer will owe only unpaid rental charges and fees;                      (D)  if the consumer fails to make a timely   payment, the consumer has a right to reinstate the agreement as   provided by the agreement and, if the merchandise is returned, the   consumer is entitled to rent the same merchandise or substitute   merchandise of comparable quality and condition if the consumer   complies with the agreement and any applicable law; and                      (E)  the consumer has reviewed and understands the   agreement, including the consumer's right and options to acquire   ownership of the merchandise and the total cost of the merchandise   if all scheduled payments are made.          SECTION 4.  Section 92.0535, Business & Commerce Code, as   added by this Act, applies only to a rental-purchase agreement   entered into on or after the effective date of this Act. A   rental-purchase agreement entered into before the effective date of   this Act is governed by the law in effect on the date the   rental-purchase agreement was entered into, and the former law is   continued in effect for that purpose.          SECTION 5.  This Act takes effect September 1, 2017.       ______________________________ ______________________________      President of the Senate Speaker of the House                   I certify that H.B. No. 1859 was passed by the House on April   28, 2017, by the following vote:  Yeas 120, Nays 12, 2 present, not   voting; and that the House concurred in Senate amendments to H.B.   No. 1859 on May 21, 2017, by the following vote:  Yeas 120, Nays 11,   2 present, not voting.     ______________________________   Chief Clerk of the House               I certify that H.B. No. 1859 was passed by the Senate, with   amendments, on May 19, 2017, by the following vote:  Yeas 29, Nays   2.     ______________________________   Secretary of the Senate      APPROVED: __________________                   Date                       __________________                 Governor