| (a) A vehicle lessor or vehicle lease facilitator operating
within the State of 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 the State of 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
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 chairs from which the vehicle lessor
or vehicle lease facilitator transacts business; and
(ii) a working telephone number listed in the business
name or assumed name under which the vehicle lessor or vehicle lease
facilitator conducts business.
(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 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.
(iv) The physical address of the office must be recognized
by the U.S. Postal Service and capable of receiving U.S. mail.
(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 person engaged in business as a 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 the State of Texas.
(2) Sign requirements. A vehicle lessor or vehicle
lease facilitator shall display a conspicuous and permanent sign at
the licensed location showing the name under which the vehicle lessor
or vehicle lease facilitator conducts business. Outdoor signs must
contain letters that are at least six inches in height.
(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 landlord of the premises and the
name of the vehicle lease facilitator as the tenant 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; and
(C) the period of time for which the premises lease
is valid.
(b) A vehicle lessor that does not deal directly with
the public to execute vehicle leases and whose licensed location is
in another state must meet the following requirements at each location.
(1) Physical location requirements.
(A) The vehicle lessor's office structure must be of
sufficient size to accommodate the following required equipment:
(i) a desk and chairs from which the vehicle lessor
transacts business; and
(ii) a working telephone number listed in the business
name or assumed name under which the vehicle lessor conducts business.
(B) A vehicle lessor that files an application for
a new license or a satellite location with a primary licensed location
in another state must conform to the following requirements:
(i) The office must be located in a building with 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.
(iv) The physical address of the office must be recognized
by the U.S. Postal Service and capable of receiving U.S. mail.
(C) 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.
(D) More than one licensed vehicle lessor may occupy
the same business structure and conduct vehicle leasing operations
under different names in accordance with the license held by each
vehicle lessor. Each person engaged in business as a vehicle lessor
must have:
(i) a separate desk from which that vehicle lessor
transacts business;
(ii) a separate working telephone number listed in
the vehicle lessor's business name or assumed name;
(iii) a separate right of occupancy that meets the
requirements of this section; and
(iv) a vehicle lessor license issued by the department
in the name of the vehicle lessor.
(2) Sign requirements. An out of state vehicle lessor
shall display a conspicuous and permanent sign at the licensed location
showing the name under which the vehicle lessor conducts business.
Outdoor signs must contain letters at least six inches in height.
(3) Premises lease requirements. If the out of state
premises from which a licensed vehicle lessor conducts business is
not owned by the license holder, the license holder must maintain
a valid premises lease for the property of the licensed location.
The premises lease must be continuous during the period of time for
which the license will be issued. The premises lease agreement must
be on a properly executed form containing at a minimum:
(A) the name of the landlord of the premises and the
name of the licensed lessor identified as the tenant 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; and
(C) the period of time for which the premises lease
is valid.
(c) 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.
(d) 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 |
