Relating to the circumstances in which a rental company may void a damage waiver for a rental vehicle.

Contracts

Mandatory Amendment: Your standard Texas Rental Agreement (Terms & Conditions) must be updated. The "Damage Waiver" or "Loss Damage Waiver" section must explicitly list the three new statutory grounds for voidance:

• 1. Failure to return the ignition key/fob.
• 2. Failure to file a law enforcement report within 24 hours of discovering the theft.
• 3. Failure to cooperate with the rental company or police during the investigation.

Hiring/Training

Claims & Loss Recovery: Staff must be retrained to prioritize the collection of the physical key immediately upon a theft report. They must also be trained to request the *timestamped* police report rather than just the case number.

Reporting & Record-Keeping

Incident Forms: Update your "Vehicle Theft Incident Report" to include mandatory fields for:

• Key Chain of Custody: A logged receipt indicating if the key was returned.
• Discovery Timestamp: The specific time the renter claims they noticed the vehicle missing.
• Report Timestamp: The specific time the police report was filed (to verify the 24-hour window).

Fees & Costs

Cost Positive: There are no new government fees. This legislation is financially beneficial as it reduces fleet loss ratios by providing a clear, strict-liability standard to deny coverage for negligent renters, removing the previous need to prove "wanton misconduct."