1. (a) A lessor or 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. (1) Physical location requirements.

      1. (A) A lessor or lease facilitator within Texas must be open to the public during normal working hours. The lessor or lease facilitator's business hours for each day of the week must be posted at the main entrance of the office, and the owner or an employee of the lessor or 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 leasing operations. The structure must be of sufficient size to accommodate and must be equipped with a desk and chairs from which the lessor or lease facilitator transacts his business. The office also must be equipped with a working land-based telephone instrument listed in the name under which the lessor or lease facilitator does business.

      2. (B) A lessor or lease facilitator that files an application for a new license or a supplemental location must conform to the following requirements:

         1. (i) The office must be located in a building, with connecting exterior walls on all sides, that has been assigned a separate mailing address by the U.S. Postal Service. The office structure must have at least 100 square feet of interior floor space exclusive of hallways, closets, or restrooms, and have a minimum seven foot ceiling.
         2. (ii) The office must comply with all applicable local zoning ordinances and deed restrictions.
         3. (iii) The office may not be located within a residence, apartment, hotel, motel, rooming house, or eating establishment.
         4. (iv) The office may not be located within a storeroom, closet, stock room, or any other space that is not open to the public.
         5. (v) The physical address of the office must be recognized by the U.S. Postal Service or capable of receiving U.S. mail.
      3. (C) A portable-type office structure may qualify, provided it meets the minimum requirements of this section and is not a readily moveable trailer or other such vehicle.

      4. (D) In those instances when two or more lessors or lease facilitators occupy the same business locations and conduct their respective leasing operations under different names, one office structure for all lessors or lease facilitators operating from such location will be acceptable; provided, however, each lessor or lease facilitator must have:

         1. (i) a separate desk from which that lessor or lease facilitator transacts business;
         2. (ii) a separate working telephone instrument, number, and listing in the lessor or lease facilitator's name with a fixed, land-based telephone company;
         3. (iii) a separate right of occupancy meeting the requirements of this section.
      5. (E) A lease facilitator's established and permanent place of business, as prescribed in this rule, must be physically located within the state of Texas.
   2. (2) Sign requirements. A lessor or lease facilitator shall display a conspicuous and permanent sign at the licensed location showing the name under which the lessor or lease facilitator conducts business. Outdoor signs must contain letters no smaller than six inches in height.

   3. (3) Lease requirements. If the premises from which a lessor or lease facilitator conducts business are not owned by the licensee, such licensee shall maintain a lease continuous for the same period of time as the lessor's or lease facilitator's license, and such lease agreement shall be on a properly executed form containing, but not limited to the following information:

      1. (A) the names of the lessor and lessee;
      2. (B) the legal description of the property or street address; and
      3. (C) the period of time for which the lease is valid.

2. (b) A lessor whose licensed location is in another state and who does not deal directly with the public to execute leases must meet the following requirements at each location.

   1. (1) Physical location requirements.

      1. (A) The structure must be of sufficient size to accommodate and must be equipped with a desk and chairs from which the lessor transacts his business. The office also must be equipped with a working land-based telephone instrument listed in the name under which the lessor does business.

      2. (B) A lessor that files an application for a new license or a supplemental location whose licensed location is in another state must conform to the following requirements:

         1. (i) The office must be located in a building, with connecting exterior walls on all sides, that has been assigned a separate mailing address by the U.S. Postal Service. The office structure must have at least 100 square feet of interior floor space exclusive of hallways, closets, or restrooms, and have a minimum seven foot ceiling.
         2. (ii) The office must comply with all applicable local zoning ordinances and deed restrictions.
         3. (iii) The office may not be located within a residence, apartment, hotel, motel, rooming house, or eating establishment.
         4. (iv) The office may not be located within a storeroom, closet, stock room, or any other space that is not open to the public.
         5. (v) The physical address of the office must be recognized by the U.S. Postal Service or capable of receiving U.S. mail.
      3. (C) A portable-type office structure may qualify, provided it meets the minimum requirements of this section and is not a readily moveable trailer or other such vehicle.

      4. (D) In those instances when two or more lessors occupy the same business locations and conduct their respective leasing operations under different names, one office structure for all lessors operating from such location will be acceptable; provided, however, each lessor must have:

         1. (i) a separate desk from which that lessor transacts business;
         2. (ii) a separate working telephone instrument, number, and listing in the lessor's name with a fixed, land-based telephone company;
         3. (iii) a separate right of occupancy meeting the requirements of this section.
   2. (2) Sign requirements. An out of state lessor shall display a conspicuous and permanent sign at the licensed location showing the name under which the lessor conducts business. Outdoor signs must contain letters no smaller than six inches in height.

   3. (3) Lease requirements. If the premises from which a lessor conducts business are not owned by that person or entity, that person or entity shall maintain a lease on the property of the licensed location continuous for the same period of time as the license, and such agreement shall be on a properly executed form containing, but not limited to the following information:

      1. (A) the names of the lessor and lessee;
      2. (B) the legal description of the property or street address; and
      3. (C) the period of time for which the lease is valid.
3. (c) Independence. A lessor or lease facilitator shall be independent of financial institutions and dealerships in location and in business activities unless that lessor or lease facilitator is an employee of, a legal subsidiary of, or an entity wholly owned by the financial institution or dealership.
4. (d) For the purposes of this subsection, an employee is a person who meets the requirements of §215.173(b) of this chapter (relating to License).

Source Note:The provisions of this §215.177 adopted to be effective February 11, 2010, 35 TexReg 883.