In Australia, where many areas have mandatory helmet laws, they have set up 
convenience stores (7-11, etc.) to sell/rent helmets for $5 as well as helmet 
vending machines. You can return the helmet and get $3 back.   See the 
following links for more information for Melbourne's system
http://www.melbournebikeshare.com.au/helmet-locations 
http://bike-sharing.blogspot.com/2010/10/melbourne-gets-on-top-of-its-slow.html 

A group of students at MIT are working on a helmet vending system in the USA, 
see
http://streetsblog.net/2012/02/29/rental-helmets-coming-soon-to-a-bike-share-station-near-you/
 

Vancouver, BC has a mandatory helmet law for adults and is apparently 
struggling with implementing a bike share system because of it.  They are 
looking to Australia for info, see 
http://blogs.crikey.com.au/theurbanist/2012/02/12/is-the-helmet-law-why-bikeshare-is-failing-in-australian-cities/
 

Mexico City repealed it's mandatory helmet law when they implemented a bike 
share system. 
http://bike-sharing.blogspot.com/2010/06/mexico-city-repeals-bike-helmet-law.html
 


Arthur Ross, Pedestrian-Bicycle Coordinator
City of Madison Traffic Engineering Division
215 Martin Luther King, Jr. Blvd., Suite 100
PO Box 2986
Madison, WI  53701-2986
608/266-6225

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