On December 4, 2015 President Obama signed the Fixing America’s Surface Transportation (FAST) Act (Pub. L. No. 114-94) into law. Although the federal act focuses primarily on maintaining infrastructure, a major provision within the regulations includes rules affecting automobile rental companies. The legislation was championed by the family of Raechel and Jacqueline Houck, sisters who died in a rental vehicle that was under a safety recall that had not been repaired.

Beginning June 1, 2016, any company or dealer with fleets greater than 35 will be prohibited from renting vehicles with recalls until the problem has been fixed. Although the bill passed with the support of the rental car industry and the input of the American Car Rental Association, smaller independent companies question how the bill will affect their business. Often, automakers will announce a recall without a timeline for repairs or parts, leaving some fleets with cars parked for a potentially long time.

According to NHTSA Administrator Mark Rosekind, “This law gives NHTSA one more tool to protect the safety of U.S. Motorists. It is critical that every recalled vehicle, whether new, used, rented or leased, is repaired as soon as possible. Rental agencies operate some of the largest fleets, so this law will go a long way in ensuring the cars and trucks on the road are safe.” The NHTSA has stated it will seek 100 percent remedy completion rates in open recalls.