Bill Caption

Relating to certain rental-purchase agreements.

Fiscal Notes

From the LBB: no significant fiscal implication to the state is anticipated.

Bill Analysis

SB 938 would amend the Business & Commerce Code to consider merchandise 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. Next, if merchandise is not displayed or offered to consumers primarily for lease under a rental-purchase agreement, the merchant would be required to make a series of disclosures before presenting a rental-purchase agreement.

Vote Recommendation Notes

SB 938 violates our principles of limited government and personal responsibility. Micromanaging these types of disclosures in a retail transaction between a willing buyer and a willing seller is not the proper role of the state. Also, it is the responsibility of a buyer to evaluate for themselves whether it is financially wise to take on a rent to own agreement rather than buying an item outright at the point of sale. For these reasons we oppose SB 938.