(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).

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