II 

112TH CONGRESS 

1ST SESSION S. 1445 

To designate certain conduct by car and truck rental companies relating 

to motor vehicle safety defects and recalls as unfair and deceptive acts 

or practices to be regulated by the Federal Trade Commission, and 

for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 28, 2011 

Mr. SCHUMER (for himself, Mr. BLUMENTHAL, Mrs. BOXER, Mrs. FEINSTEIN, 

and Mrs. GILLIBRAND) introduced the following bill; which was read 

twice and referred to the Committee on Commerce, Science, and Transportation 

A BILL 

To designate certain conduct by car and truck rental companies relating to motor vehicle safety defects and recalls 

as unfair and deceptive acts or practices to be regulated 

by the Federal Trade Commission, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Raechel and Jacqueline 

5 Houck Safe Rental Car Act of 2011’’. 


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1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) COVERED VEHICLE.—The term ‘‘covered ve4 hicle’’ means a motor vehicle that— 

5 (A) is rated at 26,000 pounds gross vehicle 

6 weight or less; 

7 (B) is rented or leased without a driver; 

8 and 

9 (C) is part of a motor vehicle fleet of 5 or 

10 more motor vehicles that is used for rental or 

11 lease purposes by a rental company. 

12 (2) DEFECT, MOTOR VEHICLE, MOTOR VEHICLE

13 SAFETY, MOTOR VEHICLE SAFETY STANDARD.—The 

14 terms ‘‘defect’’, ‘‘motor vehicle’’, ‘‘motor vehicle 

15 safety’’, and ‘‘motor vehicle safety standard’’ have 

16 the meanings given such terms in section 30102 of 

17 title 49, United States Code. 

18 (3) PERSON.—The term ‘‘person’’ has the 

19 meaning given the term in section 1 of title 1, 

20 United States Code. 

21 (4) RENTAL COMPANY.—The term ‘‘rental com22 pany’’ means a person who— 

23 (A) is engaged in the business of renting 

24 or leasing covered vehicles; and 


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1 (B) uses for rental or lease purposes a 

2 motor vehicle fleet of 5 or more covered vehi3 cles. 

4 SEC. 3. PROHIBITION ON RENTAL, LEASE, AND SALE OF DE5 FECTIVE CARS AND TRUCKS. 

6 (a) PROHIBITION.— 

7 (1) IN GENERAL.—Except as provided in para8 graph (2), it shall be unlawful for a rental company 

9 to rent, lease, or sell a covered vehicle on or after 

10 the earlier of the date of receipt by the rental com11 pany of a notification ordered by the Secretary of 

12 Transportation under subsection (b)(2)(A) of section 

13 30118 of title 49, United States Code, or the date 

14 on which a manufacturer gives notice to owners, 

15 purchasers, and dealers pursuant to subsection (c) 

16 of such section that the covered vehicle contains a 

17 defect related to motor vehicle safety or does not 

18 comply with an applicable motor vehicle safety 

19 standard, unless the defect or noncompliance has 

20 been remedied prior to rental, lease, or sale. 

21 (2) EXCEPTION.—Paragraph (1) shall not 

22 apply to a notification ordered by the Secretary 

23 under subsection (b)(2)(A) of such section if en24 forcement of the order is set aside in a civil action 

25 to which section 30121(d) of such title applies. 


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1 (3) DATE OF RECEIPT OF A NOTIFICATION.— 

2 For purposes of paragraph (1), a rental company 

3 shall be considered to have received a notification 

4 described in such paragraph 5 business days fol5 lowing the date on which such notification was 

6 mailed. 

7 (b) NOTIFICATION DURING RENTAL OR LEASE.—If, 

8 during a rental or lease period of a covered vehicle, a rent9 al company receives a notification pursuant to subsection 

10 (b)(2)(A) or (c) of section 30118 of such title that the 

11 covered vehicle contains a defect related to motor vehicle 

12 safety or does not comply with an applicable motor vehicle 

13 safety standard, the rental company shall immediately— 

14 (1) contact the renter or lessee and any author15 ized driver for whom the rental company has imme16 diate contact information to inform such renter or 

17 lessee and authorized driver of the defect or non18 compliance; and 

19 (2) offer to provide such renter, lessee, or au20 thorized driver a comparable alternative vehicle, at 

21 no additional cost to the renter, lessee, or authorized 

22 driver, until the defect or noncompliance has been 

23 remedied. 


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1 (c) EFFECTIVE DATE.—This section shall take effect 

2 on the date that is 60 days after the date of the enactment 

3 of this Act. 

4 SEC. 4. ENFORCEMENT BY FEDERAL TRADE COMMISSION. 

5 (a) IN GENERAL.—Violation of section 3 of this Act 

6 shall be treated as a violation of a rule under section 18 

7 of the Federal Trade Commission Act (15 U.S.C. 57a) re8 garding unfair or deceptive acts or practices. The Federal 

9 Trade Commission shall enforce this Act in the same man10 ner, by the same means, and with the same jurisdiction, 

11 powers, and duties as though all applicable terms and pro12 visions of the Federal Trade Commission Act (15 U.S.C. 

13 41 et seq.) were incorporated into and make a part of this 

14 Act. 

15 (b) PENALTIES.—Any person who violates this Act 

16 or any regulation prescribed under this Act shall be sub17 ject to the penalties and entitled to the privileges and im18 munities provided in the Federal Trade Commission Act 

19 as though all applicable terms and provisions of the Fed20 eral Trade Commission Act were incorporated in and 

21 made part of this Act. 

22 (c) AUTHORITY PRESERVED.—Nothing in this sec23 tion shall be construed to limit the authority of the Com24 mission under any other provision of law. 


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1 SEC. 5. ENFORCEMENT BY STATES. 

2 (a) RIGHT OF ACTION.—Except as provided in sub3 section (e), the attorney general of a State, or other au4 thorized State officer, alleging a violation of this Act or 

5 any regulation issued under this Act that affects or may 

6 affect such State or its residents, may bring an action on 

7 behalf of the residents of the State in any United States 

8 district court for the district in which the defendant is 

9 found, resides, or transacts business, or wherever venue 

10 is proper under section 1391 of title 28, United States 

11 Code, to obtain appropriate injunctive relief. 

12 (b) RIGHTS OF FEDERAL TRADE COMMISSION.— 

13 (1) NOTICE TO FEDERAL TRADE COMMIS14 SION.— 

15 (A) IN GENERAL.—Except as provided in 

16 subparagraph (C), the attorney general of a 

17 State, or other authorized State officer, shall 

18 notify the Federal Trade Commission in writing 

19 of any civil action under subsection (a), prior to 

20 initiating such civil action. 

21 (B) CONTENTS.—The notice required by 

22 subparagraph (A) shall include a copy of the 

23 complaint to be filed to initiate such civil ac24 tion. 

25 (C) EXCEPTION.—If it is not feasible for 

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1 thorized State officer, to provide the notice re2 quired by subparagraph (A), the State shall 

3 provide notice immediately upon instituting a 

4 civil action under subsection (a). 

5 (2) INTERVENTION BY FEDERAL TRADE COM6 MISSION.—Upon receiving notice required by para7 graph (1) with respect to a civil action, the Federal 

8 Trade Commission may— 

9 (A) intervene in such action; and 

10 (B) upon intervening— 

11 (i) be heard on all matters arising in 

12 such civil action; and 

13 (ii) file petitions for appeal of a deci14 sion in such action. 

15 (c) CONSTRUCTION.—Nothing in this section shall be 

16 construed— 

17 (1) to prevent the attorney general of a State, 

18 or other authorized State officer, from exercising the 

19 powers conferred on the attorney general, or other 

20 authorized State officer, by the laws of such State; 

21 or 

22 (2) to prohibit the attorney general of a State, 

23 or other authorized State officer, from proceeding in 

24 State or Federal court on the basis of an alleged vio25 lation of any civil or criminal statute of that State. 


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1 (d) LIMITATION.—No separate suit shall be brought 

2 under this section if, at the time the suit is brought, the 

3 same alleged violation is the subject of a pending action 

4 by the Federal Trade Commission or the United States 

5 under this Act. 

6 SEC. 6. CONSTRUCTION. 

7 Nothing in this Act shall be construed to prohibit an 

8 individual from seeking any remedies available under any 

9 provision of Federal or State law. 

10 SEC. 7. NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRA11 TION REPORT ON SALES OF MOTOR VEHI12 CLES TO RENTAL COMPANIES WITHOUT 

13 STANDARD SAFETY FEATURES. 

14 (a) IN GENERAL.—Not later than 180 days after the 

15 date of the enactment of this Act, the Administrator of 

16 the National Highway Traffic Safety Administration shall 

17 submit to Congress a report on all matters relating to the 

18 sales of motor vehicles to rental companies without safety 

19 features that are normally included in the sales of such 

20 motor vehicles to consumers. 

21 (b) ELEMENTS.—The report required by subsection 

22 (a) shall include the following: 

23 (1) A description of the buying practices of 

24 rental companies with respect to motor vehicles that 

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1 cluded in the sale of such motor vehicles to con2 sumers. 

3 (2) A description of the implications of such 

4 practices on the safety of consumers. 

5 (3) The recommendations of the Administrator 

6 with respect to the regulatory and legislative actions 

7 that can be taken to protect consumers with respect 

8 to such practices. 

9 SEC. 8. NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRA10 TION REPORT ON SALES OF MOTOR VEHI11 CLES BY RENTAL COMPANIES KNOWN TO IN12 CLUDE SAFETY DEFECTS BEFORE SUCH VE13 HICLES ARE RECALLED. 

14 (a) INITIAL REPORT.— 

15 (1) IN GENERAL.—Not later than 180 days 

16 after the date of the enactment of this Act, the Ad17 ministrator of the National Highway Traffic Safety 

18 Administration shall submit to Congress a report on 

19 sales of covered vehicles— 

20 (A) by rental companies that are aware, 

21 including by notice posted on the Internet 

22 website of the Administration, such covered ve23 hicles may contain a defect related to motor ve24 hicle safety or may not be in compliance with 

25 an applicable motor vehicle safety standard; and 


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1 (B) during the period— 

2 (i) beginning on the date on which 

3 such rental companies become aware that 

4 such vehicles may contain such defects or 

5 may not be in compliance as described in 

6 subparagraph (A); and 

7 (ii) ending on the earlier of the date 

8 of receipt by the rental company of a noti9 fication ordered by the Secretary of Trans10 portation under subsection (b)(2)(A) of 

11 section 30118 of title 49, United States 

12 Code, and the date on which a manufac13 turer gives notice to owners, purchasers, 

14 and dealers pursuant to subsection (c) of 

15 such section that such covered vehicles 

16 contain a defect related to motor vehicle 

17 safety or do not comply with an applicable 

18 motor vehicle safety standard. 

19 (2) ELEMENTS.—The report required by para20 graph (1) shall include the following: 

21 (A) A description and analysis of the fre22 quency of sales of covered vehicles described in 

23 such paragraph. 

24 (B) A discussion of the effects of such 

25 sales on consumers. 


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1 (C) The recommendations of the Adminis2 trator, if any, on legislative and administrative 

3 action that should be taken to address such 

4 sales or mitigate such effects. 

5 (b) FOLLOW-UP REPORT.— 

6 (1) IN GENERAL.—Not later than 1 year after 

7 the date on which the Administrator submits the re8 port required by subsection (a)(1), the Adminis9 trator shall submit to Congress a report on the sales 

10 of covered vehicles as described in such subsection 

11 during the period beginning on the date on which 

12 the Administrator submits the report required by 

13 such subsection and ending on the date on which the 

14 report is submitted under this paragraph. 

15 (2) ELEMENTS.—The report required by para16 graph (1) shall include the following: 

17 (A) A description, analysis, discussion, and 

18 recommendations as described in subsection 

19 (a)(2) but with respect to the period described 

20 in paragraph (1) of this subsection. 

21 (B) An identification and analysis of dif22 ferences between the findings of the Adminis23 trator with respect to the report required by 

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1 ministrator with respect to subparagraph (A) of 

2 this paragraph. 

3 (C) A discussion of the effects of the provi4 sions of this Act on the sales of covered vehicles 

5 as described in subsection (a)(1). 

Æ 


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