SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Raechel and Jacqueline Houck Safe 
Rental Car Act of 2012''.

SEC. 2. APPLICATION OF MOTOR VEHICLE SAFETY STANDARDS TO CAR RENTAL 
              COMPANIES.

    (a) Covered Rental Vehicle and Rental Company Defined.--Section 
30102(a) of title 49, United States Code, is amended--
            (1) by redesignating paragraphs (1) through (11) as 
        paragraphs (2), (3), (4), (5), (6), (7), (8), (9), (10), (12), 
        and (13), respectively;
            (2) by inserting before paragraph (2) (as so redesignated) 
        the following:
            ``(1) `covered rental vehicle' means a motor vehicle that--
                    ``(A) is rated at 26,000 pounds gross vehicle 
                weight or less;
                    ``(B) is rented without a driver for an initial 
                term of less than 4 months; and
                    ``(C) is part of a motor vehicle fleet of 5 or more 
                motor vehicles that is used for rental purposes by a 
                rental company.''; and
            (3) by inserting after paragraph (10) (as so redesignated) 
        the following:
            ``(11) `rental company' means a person who--
                    ``(A) is engaged in the business of renting covered 
                rental vehicles; and
                    ``(B) uses for rental purposes a motor vehicle 
                fleet of 5 or more covered rental vehicles.''.
    (b) Notification by Rental Companies to Renters.--
            (1) In general.--Section 30119 of such title is amended by 
        adding at the end the following:
    ``(g) Notification by Rental Company to Renter.--A rental company 
that receives a notification required under section 30118 of this title 
that includes the vehicle identification number of a covered rental 
vehicle during a period in which the vehicle is rented shall, as soon 
as practicable, contact the renter of the vehicle and any authorized 
driver of the vehicle for whom the rental company has immediate contact 
information to inform the renter and authorized driver of the defect or 
noncompliance.''.
            (2) Regulations.--The Secretary of Transportation may not 
        begin any process to promulgate regulations under subsection 
        (g) of such section, as added by paragraph (1), until the date 
        that is 3 years after the date of the enactment of this Act.
    (c) Limitation on Sales, Leases, or Rentals by Rental Companies.--
Section 30120(i) of such title is amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A)--
                            (i) by inserting ``, or the manufacturer 
                        has provided to a rental company notification 
                        about a covered rental vehicle (including the 
                        vehicle identification number for such vehicle) 
                        in the company's possession at the time of 
                        notification,'' after ``time of notification''; 
                        and
                            (ii) by striking ``the dealer may sell or 
                        lease'' and inserting ``the dealer or rental 
                        company may sell, lease, or rent''; and
                    (B) in subparagraph (A), by striking ``under the 
                sale or lease'' and inserting ``under the sale, lease, 
                or rental agreement'';
            (2) in paragraph (2), by inserting ``or rental company'' 
        after ``a dealer''; and
            (3) in the subsection heading by striking ``or Lease'' and 
        inserting ``, Lease, or Rental''.
    (d) Prohibition on Making Safety Devices and Elements 
Inoperative.--Section 30122(b) of such title is amended by inserting 
``rental company,'' after ``dealer,'' both places it appears.
    (e) Inspections, Investigations, and Records.--
            (1) Matters that can be inspected and impoundment.--
        Subsection (c)(2) of section 30166 of such title is amended by 
        striking ``or dealer'' both places it appears and inserting 
        ``dealer, or rental company''.
            (2) Records and making reports.--Subsection (e) of such 
        section is amended by striking ``or dealer'' each place it 
        appears and inserting ``dealer, or rental company''.
            (3) Providing copies of communications about defects and 
        noncompliance.--Subsection (f) of such section is amended by 
        inserting ``rental companies or other'' after ``dealers or 
        to''.
    (f) Research Authority.--The Secretary of Transportation may 
conduct a study of the effectiveness of the amendments made by this 
section and of other activities of rental companies (as defined in 
section 30102(a) of title 49, United States Code, as added by 
subsection (a)(2)) related to their use and disposition of motor 
vehicles that are the subject of a notification required under section 
30118 of title 49, United States Code.
    (g) Effective Date.--The amendments made by this section shall take 
effect on the date that is 60 days after the date of enactment of this 
Act.
Raechel and Jacqueline Houck Safe Rental Car Act of 2012 - Requires a rental company that receives a Secretary of Transportation (DOT) ordered notification from the manufacturer of a covered rental vehicle of equipment defect, or noncompliance with federal motor vehicle safety standards, during the vehicle rental period to contact the renter and any authorized driver of the vehicle about the defect or noncompliance.

Covers a rental vehicle: (1) rated at 26,000 pounds gross vehicle weight or less, (2) rented without a driver for an initial term of under 4 months, and (3) that is part of a motor vehicle fleet of 5 or more motor vehicles used for rental purposes by a rental company.

Authorizes a rental company that receives notification of a defect or the noncompliance of a new vehicle or new replacement vehicle equipment in the company's possession to rent such vehicle or equipment only if the defect or noncompliance is remedied.

Prohibits a rental company from knowingly making inoperable any safety devices or elements of design installed on or in a compliant motor vehicle or vehicle equipment unless the company reasonably believes such vehicle or equipment will not be used when the devices or elements are inoperable.

Authorizes the Secretary, upon request, to inspect records of a rental company with respect to a safety investigation. Authorizes the Secretary to require a rental company to keep records or make reports for purposes of compliance with federal motor vehicle safety orders or regulations.

Authorizes the Secretary to study the effectiveness of the amendments made by this Act and of other activities of rental companies.
A bill to amend title 49, United States Code, to prohibit rental of motor vehicles under a safety recall because of a defect related to motor vehicle safety or noncompliance with an applicable motor vehicle safety standard until the defect or noncompliance is remedied, and for other purposes.