[Congressional Bills 112th Congress]
[From the U.S. Government Printing Office]
[S. 1445 Introduced in Senate (IS)]
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Raechel and Jacqueline Houck Safe
Rental Car Act of 2011''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Covered vehicle.--The term ``covered vehicle'' means a
motor vehicle that--
(A) is rated at 26,000 pounds gross vehicle weight
or less;
(B) is rented or leased without a driver; and
(C) is part of a motor vehicle fleet of 5 or more
motor vehicles that is used for rental or lease
purposes by a rental company.
(2) Defect, motor vehicle, motor vehicle safety, motor
vehicle safety standard.--The terms ``defect'', ``motor
vehicle'', ``motor vehicle safety'', and ``motor vehicle safety
standard'' have the meanings given such terms in section 30102
of title 49, United States Code.
(3) Person.--The term ``person'' has the meaning given the
term in section 1 of title 1, United States Code.
(4) Rental company.--The term ``rental company'' means a
person who--
(A) is engaged in the business of renting or
leasing covered vehicles; and
(B) uses for rental or lease purposes a motor
vehicle fleet of 5 or more covered vehicles.
SEC. 3. PROHIBITION ON RENTAL, LEASE, AND SALE OF DEFECTIVE CARS AND
TRUCKS.
(a) Prohibition.--
(1) In general.--Except as provided in paragraph (2), it
shall be unlawful for a rental company to rent, lease, or sell
a covered vehicle on or after the earlier of the date of
receipt by the rental company of a notification ordered by the
Secretary of Transportation under subsection (b)(2)(A) of
section 30118 of title 49, United States Code, or the date on
which a manufacturer gives notice to owners, purchasers, and
dealers pursuant to subsection (c) of such section that the
covered vehicle contains a defect related to motor vehicle
safety or does not comply with an applicable motor vehicle
safety standard, unless the defect or noncompliance has been
remedied prior to rental, lease, or sale.
(2) Exception.--Paragraph (1) shall not apply to a
notification ordered by the Secretary under subsection
(b)(2)(A) of such section if enforcement of the order is set
aside in a civil action to which section 30121(d) of such title
applies.
(3) Date of receipt of a notification.--For purposes of
paragraph (1), a rental company shall be considered to have
received a notification described in such paragraph 5 business
days following the date on which such notification was mailed.
(b) Notification During Rental or Lease.--If, during a rental or
lease period of a covered vehicle, a rental company receives a
notification pursuant to subsection (b)(2)(A) or (c) of section 30118
of such title that the covered vehicle contains a defect related to
motor vehicle safety or does not comply with an applicable motor
vehicle safety standard, the rental company shall immediately--
(1) contact the renter or lessee and any authorized driver
for whom the rental company has immediate contact information
to inform such renter or lessee and authorized driver of the
defect or noncompliance; and
(2) offer to provide such renter, lessee, or authorized
driver a comparable alternative vehicle, at no additional cost
to the renter, lessee, or authorized driver, until the defect
or noncompliance has been remedied.
(c) Effective Date.--This section shall take effect on the date
that is 60 days after the date of the enactment of this Act.
SEC. 4. ENFORCEMENT BY FEDERAL TRADE COMMISSION.
(a) In General.--Violation of section 3 of this Act shall be
treated as a violation of a rule under section 18 of the Federal Trade
Commission Act (15 U.S.C. 57a) regarding unfair or deceptive acts or
practices. The Federal Trade Commission shall enforce this Act in the
same manner, by the same means, and with the same jurisdiction, powers,
and duties as though all applicable terms and provisions of the Federal
Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated into and
make a part of this Act.
(b) Penalties.--Any person who violates this Act or any regulation
prescribed under this Act shall be subject to the penalties and
entitled to the privileges and immunities provided in the Federal Trade
Commission Act as though all applicable terms and provisions of the
Federal Trade Commission Act were incorporated in and made part of this
Act.
(c) Authority Preserved.--Nothing in this section shall be
construed to limit the authority of the Commission under any other
provision of law.
SEC. 5. ENFORCEMENT BY STATES.
(a) Right of Action.--Except as provided in subsection (e), the
attorney general of a State, or other authorized State officer,
alleging a violation of this Act or any regulation issued under this
Act that affects or may affect such State or its residents, may bring
an action on behalf of the residents of the State in any United States
district court for the district in which the defendant is found,
resides, or transacts business, or wherever venue is proper under
section 1391 of title 28, United States Code, to obtain appropriate
injunctive relief.
(b) Rights of Federal Trade Commission.--
(1) Notice to federal trade commission.--
(A) In general.--Except as provided in subparagraph
(C), the attorney general of a State, or other
authorized State officer, shall notify the Federal
Trade Commission in writing of any civil action under
subsection (a), prior to initiating such civil action.
(B) Contents.--The notice required by subparagraph
(A) shall include a copy of the complaint to be filed
to initiate such civil action.
(C) Exception.--If it is not feasible for the
attorney general of a State, or other authorized State
officer, to provide the notice required by subparagraph
(A), the State shall provide notice immediately upon
instituting a civil action under subsection (a).
(2) Intervention by federal trade commission.--Upon
receiving notice required by paragraph (1) with respect to a
civil action, the Federal Trade Commission may--
(A) intervene in such action; and
(B) upon intervening--
(i) be heard on all matters arising in such
civil action; and
(ii) file petitions for appeal of a
decision in such action.
(c) Construction.--Nothing in this section shall be construed--
(1) to prevent the attorney general of a State, or other
authorized State officer, from exercising the powers conferred
on the attorney general, or other authorized State officer, by
the laws of such State; or
(2) to prohibit the attorney general of a State, or other
authorized State officer, from proceeding in State or Federal
court on the basis of an alleged violation of any civil or
criminal statute of that State.
(d) Limitation.--No separate suit shall be brought under this
section if, at the time the suit is brought, the same alleged violation
is the subject of a pending action by the Federal Trade Commission or
the United States under this Act.
SEC. 6. CONSTRUCTION.
Nothing in this Act shall be construed to prohibit an individual
from seeking any remedies available under any provision of Federal or
State law.
SEC. 7. NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION REPORT ON SALES
OF MOTOR VEHICLES TO RENTAL COMPANIES WITHOUT STANDARD
SAFETY FEATURES.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, the Administrator of the National Highway
Traffic Safety Administration shall submit to Congress a report on all
matters relating to the sales of motor vehicles to rental companies
without safety features that are normally included in the sales of such
motor vehicles to consumers.
(b) Elements.--The report required by subsection (a) shall include
the following:
(1) A description of the buying practices of rental
companies with respect to motor vehicles that do not include
safety features that are normally included in the sale of such
motor vehicles to consumers.
(2) A description of the implications of such practices on
the safety of consumers.
(3) The recommendations of the Administrator with respect
to the regulatory and legislative actions that can be taken to
protect consumers with respect to such practices.
SEC. 8. NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION REPORT ON SALES
OF MOTOR VEHICLES BY RENTAL COMPANIES KNOWN TO INCLUDE
SAFETY DEFECTS BEFORE SUCH VEHICLES ARE RECALLED.
(a) Initial Report.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the Administrator of the National
Highway Traffic Safety Administration shall submit to Congress
a report on sales of covered vehicles--
(A) by rental companies that are aware, including
by notice posted on the Internet website of the
Administration, such covered vehicles may contain a
defect related to motor vehicle safety or may not be in
compliance with an applicable motor vehicle safety
standard; and
(B) during the period--
(i) beginning on the date on which such
rental companies become aware that such
vehicles may contain such defects or may not be
in compliance as described in subparagraph (A);
and
(ii) ending on the earlier of the date of
receipt by the rental company of a notification
ordered by the Secretary of Transportation
under subsection (b)(2)(A) of section 30118 of
title 49, United States Code, and the date on
which a manufacturer gives notice to owners,
purchasers, and dealers pursuant to subsection
(c) of such section that such covered vehicles
contain a defect related to motor vehicle
safety or do not comply with an applicable
motor vehicle safety standard.
(2) Elements.--The report required by paragraph (1) shall
include the following:
(A) A description and analysis of the frequency of
sales of covered vehicles described in such paragraph.
(B) A discussion of the effects of such sales on
consumers.
(C) The recommendations of the Administrator, if
any, on legislative and administrative action that
should be taken to address such sales or mitigate such
effects.
(b) Follow-Up Report.--
(1) In general.--Not later than 1 year after the date on
which the Administrator submits the report required by
subsection (a)(1), the Administrator shall submit to Congress a
report on the sales of covered vehicles as described in such
subsection during the period beginning on the date on which the
Administrator submits the report required by such subsection
and ending on the date on which the report is submitted under
this paragraph.
(2) Elements.--The report required by paragraph (1) shall
include the following:
(A) A description, analysis, discussion, and
recommendations as described in subsection (a)(2) but
with respect to the period described in paragraph (1)
of this subsection.
(B) An identification and analysis of differences
between the findings of the Administrator with respect
to the report required by subsection (a)(1) and the
findings of the Administrator with respect to
subparagraph (A) of this paragraph.
(C) A discussion of the effects of the provisions
of this Act on the sales of covered vehicles as
described in subsection (a)(1).
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