Automotive Fleet
MenuMENU
SearchSEARCH

The Path to Passage of the Recall Bill

The successful passage of recall legislation was the result of consensus building, working with legislators and understanding what car rental customers want.

by American Car Rental Association
January 29, 2016
4 min to read


It’s often said that to know where you are going, it’s important to know where you’ve been.

This statement cannot be truer for the car rental industry than when discussing the recent federal legislation regarding safety recalls on our vehicles. The measure, which passed as part of the multi-year highway funding bill, takes effect in June of this year.

Ad Loading...

The highway bill was signed by President Obama on Dec. 4, but the specific recall provision takes effect 180 days after being signed into law.

While this particular legislative issue has received much discussion and print space over the last several years, many of you may not appreciate its history and, therefore, how this federal legislation came to be — and the critical role ACRA has played in that history.

Where have we been? In 2011, a bill was introduced in the California legislature that would have, among other things, required rental car companies to “ground” any vehicle in its active rental fleet. In addition, the bill would have prohibited the sale of any rental car that had an unrepaired safety recall.

Because this legislation was drafted and submitted without any input from the rental car industry, it was fraught with multiple issues that would have negatively impacted industry operations. Therefore, the industry opposed the bill.

Despite our unified fight against it, the bill passed the California State Assembly and went to the California State Senate. While the bill was in the California Senate, the rental car industry started suggesting changes to the bill to accommodate the operational concerns. The industry and ACRA were making some progress in that regard.

Around this time, some ACRA members suggested that if the industry were to ultimately support legislation governing our practices, it should be at the federal level because the safety recall program is overseen by the National Highway Traffic Safety Administration (NHTSA).

Ad Loading...

Additionally, we are an industry engaged in interstate commerce: rental vehicles are regularly rented in one state and travel through one or several other states. Interstate commerce falls under the purview of Congress, not individual states. But there was no consensus on a federal strategy among ACRA member companies.

Meanwhile, in Washington, D.C., Sen. Charles Schumer (D-N.Y.) asked the Federal Trade Commission to open an investigation into our industry to determine if renting a vehicle with an unrepaired safety recall constitutes a deceptive trade practice. As a result, Schumer — along with Sen. Barbara Boxer and several other senators — introduced federal legislation that in many ways mirrored the California bill, but it went further.

Soon, other states such as New York and New Jersey began considering legislation. Could this turn into a patchwork of laws in 50 states? That wouldn’t have been a desirable outcome for the industry.

All of this dramatically upped the stakes and the rental industry had a decision to make: continue to fight — and potentially lose — the political and public relations battles or engage in constructive dialogue with Sens. Schumer and Boxer (and consumer groups) to see if a workable solution for the industry was attainable. A federal solution would solve the potential 50-state problem.

During this process through dialogue with consumer and safety groups, it became clear that our customers didn’t want to rent cars under open recalls.

Ad Loading...

ACRA and the industry decided to take the opportunity to set ourselves apart and begin blazing a new trail in auto safety legislation. We chose to do the right thing and craft federal legislation that the industry could rally behind. A compromise was ultimately reached, and the subsequent passage of the Safe Rental Car Act was the right thing to do.

ACRA firmly believes that — to borrow a phrase from Chris Brown in his Dec. 27 Auto Focus blog “The Wrong Side of History” — we will be on the right side of history.

Along the way, ACRA and its member companies proved that we can work well with legislators with whom we may disagree at first. And we can work well with consumer groups to find common ground. As ACRA addresses public policy issues in the future, we will have this history to help guide us.

Originally posted on Auto Rental News

Subscribe to Our Newsletter

More Global Fleet

A person holding a clipboard and writing on an inspection checklist beside the wheel of a large white vehicle, likely conducting a fleet or safety inspection.
SponsoredJune 1, 2026

Cameras, Safety and Insurance: From Reactive Claims to Real-time Prevention

Commercial auto remains one of the most challenging and costly lines of coverage for fleet operators and insurers alike. Learn more about how to effectively address these issues from Onur Aksan, Enterprise Business Development Executive, Geotab.

Read More →
Cover of a whitepaper titled “The Hidden Costs of Departmentally Assigned Vehicles on Your Fleet” featuring a black fleet vehicle driving on a road at sunset. Subheadline reads: “Discover how your fleet can reduce costs and minimize risk by implementing vehicle sharing.” The document focuses on fleet optimization, vehicle sharing, cost reduction, utilization tracking, and risk management for fleet operations.
SponsoredMay 13, 2026

Why Fleet Managers Are Replacing Departmental Vehicles with Shared Motor Pools

Departmentally assigned vehicles often create hidden costs through underutilization, poor visibility, and increased administrative burden. This white paper explores how shared motor pool strategies help fleets reduce costs, improve accountability, and optimize vehicle utilization.

Read More →
Cover image for the “5th Annual Market Pulse Report” by Element titled “Navigating fleet management in 2026: Data and insights shaping the future of fleet and mobility.” The design features an aerial view of a cable-stayed bridge with vehicles traveling on a highway beside a dense green forest. A teal graphic panel overlays the lower portion of the image, with the Element logo and tagline “Intelligence in motion” at the bottom.
SponsoredMay 6, 2026

Fleet Costs Are Rising: Here’s How Leaders Are Responding

Fleet leaders are under pressure to reduce costs, adapt to economic uncertainty, and make smarter decisions. See how peers across North America are responding with real data, proven strategies, and forward-looking insights. Download the 2026 Market Pulse Report to benchmark your strategy and uncover where you can gain an edge.

Read More →
Ad Loading...
A world graphic of workers holding hands surrounds a globe with a line of cars on top, representing Global Fleets.
Global Fleetby News/Media ReleaseOctober 30, 2025

Enterprise Fleet Management Surpasses 900,000 Vehicles in U.S. & Canada

Enterprise Mobility connects with mobility solutions around the globe

Read More →
SponsoredOctober 14, 2025

Automotive Fleet's Guide to Fleet Electrification

Unlock the secrets to a successful transition to electric fleets with Automotive Fleet's comprehensive Fleet Electrification Guide!

Read More →
Two people pose with a sign symbolizing Viaduct's partnership with SRI.
Global Fleetby Chris BrownSeptember 8, 2025

Sumitomo Rubber Industries to Acquire Viaduct

Viaduct will join Sumitomo as an independent subsidiary. Partnership strengthens global reach and accelerates AI-driven innovation for fleets and manufacturing.

Read More →
Ad Loading...
A presenter speaks on stage at a conference, addressing an audience seated at round tables, with large screens displaying presentation slides in the background.
Global FleetAugust 11, 2025

AfMA’s 2025 Education & Leadership Summit: 26 Years of Impactful Connection

Held in Sydney, the Australasian Fleet Management Association’s 2025 Summit marked ten years of growth as the event expanded its global reach and doubled down on practical, non-commercial fleet leadership programming.

Read More →
Graphic of awards announcement
Global Fleetby StaffJune 6, 2025

Closing Soon! Nominate a 2025 Global Fleet Team of the Year

Submit your nomination for the award that honors outstanding multinational fleet teams. Nominations close Aug. 15.

Read More →
A graphic with cars driving past in the background with motion blur. Text reads "Reducing Preventable Accidents".
Global FleetNovember 26, 2024

Seven Strategies to Reduce Preventable Accidents

“Accidents” suggest inevitability, but most crashes are preventable — caused by driver actions and behaviors. Here’s why shifting the narrative can improve road safety.

Read More →
Ad Loading...
Four people sitting on stage doing presentation.
Global Fleetby Chris BrownNovember 6, 2024

2024 Global Fleet Conference in Photos

Check out photos from the first two days of the 2024 Global Fleet Conference, which convened for the first time in San Diego Nov. 4-6 as part of the new Fleet Week series of conferences.

Read More →