II 112th CONGRESS 1st Session S. 1445 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.
Short title
This Act may be cited as the Raechel and Jacqueline Houck Safe Rental Car Act of 2011.
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.
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.
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.
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.
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.
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.
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).