| (a) A vehicle lessor or vehicle lease facilitator operating
within Texas must meet the following requirements at each location
where vehicles are leased or offered for lease.
(1) Physical location requirements.
(A) A vehicle lessor or vehicle lease facilitator operating
within Texas must be open to the public. The vehicle lessor's or vehicle
lease facilitator's business hours for each day of the week must be
posted at the main entrance of the office. The business telephone
must be answered from 8:00 a.m. to 5:00 p.m. weekdays by a bona fide
employee, owner, answering service, voicemail service, or answering
machine. A caller must be able to speak to a natural person or leave
a message during these hours. The owner or an employee of the vehicle
lessor or vehicle lease facilitator must be at the location during
the posted business hours for the purpose of leasing vehicles. In
the event the owner or an employee is not available to conduct business
during the posted business hours, a separate sign must be posted indicating
the date and time such owner or employee will resume vehicle leasing
operations.
(B) A vehicle lessor's or vehicle leasing facilitator's
office structure must be of sufficient size to accommodate the following
required equipment:
(i) a desk and two chairs from which the vehicle lessor
or vehicle lease facilitator transacts business;
(ii) a working telephone number listed in the business
name or assumed name under which the vehicle lessor or vehicle lease
facilitator conducts business; and
(iii) internet access.
(C) A vehicle lessor or vehicle lease facilitator that
files an application for a new license or a vehicle lessor that files
an application for a satellite location must comply with the following
requirements:
(i) The office must be located in a building with a
permanent roof and connecting exterior walls on all sides.
(ii) The office must comply with all applicable local
zoning ordinances and deed restrictions.
(iii) The office may not be located within a residence,
apartment, hotel, motel, or rooming house or building not open to
the public.
(iv) The physical address of the office must be recognized
by the U.S. Postal Service, capable of receiving U.S. mail, and have
an assigned emergency services property address.
(v) The office may not be virtual or provided by a
subscription for office space or office services. Access to office
space or office services is not considered an established and permanent
location.
(D) A portable-type office structure may qualify as
an office only if the structure meets the requirements of this section
and is not a readily moveable trailer or other vehicle.
(E) One or more licensed vehicle lessors or vehicle
lease facilitators, or a combination of one or more licensed vehicle
lessors and vehicle lease facilitators may occupy the same business
structure and conduct vehicle leasing operations in accordance with
the license held by the vehicle lessor or licensed vehicle lease facilitator.
Each vehicle lessor or vehicle lease facilitator must have:
(i) a separate desk from which that vehicle lessor
or vehicle lease facilitator transacts business;
(ii) a separate working telephone number listed in
the vehicle lessor or vehicle lease facilitator's business name or
assumed name;
(iii) a separate right of occupancy that meets the
requirements of this section; and
(iv) a vehicle lessor or vehicle lease facilitator
license issued by the department in the name of the vehicle lessor
or vehicle lease facilitator.
(F) A vehicle lease facilitator's established and permanent
place of business must be physically located within Texas.
(2) Business Sign requirements. A vehicle lessor or
vehicle lease facilitator shall display a conspicuous and permanent
business sign at the licensed location showing the name under which
the vehicle lessor or vehicle lease facilitator conducts business.
Outdoor business signs must contain letters that are at least six
inches in height. The business name or assumed name on the sign must
be substantially similar to the name reflected on the license issued
by the department. A business sign is considered conspicuous if it
is easily visible to the public within 100 feet of the main entrance
of the business office. A business sign is considered permanent only
if it is made of durable, weather-resistant material.
(3) Premises lease requirements. If the premises from
which a licensed vehicle lessor or vehicle lease facilitator conducts
business is not owned by the license holder, the license holder must
maintain for the licensed location a valid premises lease that is
continuous during the period of time for which the vehicle lessor's
or vehicle lease facilitator's license will be issued. The premises
lease agreement must be on a properly executed form containing at
a minimum:
(A) the name of the property owner of the premises
and the name of the vehicle lease facilitator as the tenant or lessee
of the premises;
(B) the street address or legal description of the
property, provided that if only a legal description of the property
is included, the applicant must attach a statement that the property
description in the lease agreement is the street address identified
on the application as the physical address for the established and
permanent place of business;
(C) the signature of the property owner as the lessor
and the signature of the applicant or holder as the tenant or lessee;
(D) the period of time for which the premises lease
is valid; and
(E) if the lease agreement is a sublease in which the
property owner is not the lessor, the applicant or holder must also
obtain a signed and notarized statement from the property owner including
the following information:
(i) property owner's full name, email address, mailing
address, and phone number; and
(ii) property owner's statement confirming that the
license holder is authorized to sublease the location and may operate
a motor vehicle leasing business from the location.
(b) A vehicle lessor or vehicle lease facilitator shall
be independent of financial institutions and dealerships in location
and in business activities, unless that vehicle lessor or vehicle
lease facilitator is an:
(1) employee or legal subsidiary of the financial institution
or dealership; or
(2) entity wholly owned by the financial institution
or dealership.
(c) For purposes of this section, an employee is a
person who meets the requirements of §215.173(b) of this title
(relating to License).
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| Source Note: The provisions of this §215.177 adopted to be effective February 11, 2010, 35 TexReg 883; amended to be effective August 2, 2012, 37 TexReg 5637; amended to be effective February 13, 2017, 42 TexReg 571; amended to be effective June 1, 2024, 49 TexReg 2704 |
