BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2387


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          ASSEMBLY THIRD READING


          AB  
          2387 (Mullin)


          As Amended  April 14, 2016


          Majority vote


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Public Safety   |7-0  |Jones-Sawyer,         |                    |
          |                |     |Melendez, Lackey,     |                    |
          |                |     |Lopez, Low, Quirk,    |                    |
          |                |     |Santiago              |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Privacy         |11-0 |Chau, Wilk, Baker,    |                    |
          |                |     |Calderon, Chang,      |                    |
          |                |     |Cooper, Dababneh,     |                    |
          |                |     |Gatto, Gordon, Low,   |                    |
          |                |     |Olsen                 |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |19-0 |Gonzalez, Bigelow,    |                    |
          |                |     |Bloom, Bonilla,       |                    |
          |                |     |Bonta, Calderon,      |                    |
          |                |     |Chang, Daly, Eggman,  |                    |
          |                |     |Gallagher, Eduardo    |                    |
          |                |     |Garcia, Holden,       |                    |
          |                |     |Jones, Obernolte,     |                    |








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          |                |     |Quirk, Santiago,      |                    |
          |                |     |Wagner, Weber, Wood   |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
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          SUMMARY:  Particularizes the crime of selling counterfeit  
          airbags, and increases the penalty for selling counterfeit  
          airbags.  Specifically, this bill:  
          1)Repeals existing provisions of law relating to the  
            installation or rewiring of airbag systems to falsely indicate  
            the system is in working order.
          2)Prohibits a person from manufacturing, importing, installing,  
            reinstalling, distributing, selling or offering for sale any  
            device with the intent that the device replace an airbag in  
            any motor vehicle if the person knows or reasonably should  
            know the device is a counterfeit or nonfunctional airbag, as  
            defined, or does not meet federal safety standards, as  
            provided.


          3)Prohibits a person from knowingly and intentionally selling,  
            installing, or reinstalling in a vehicle, any device that  
            causes the vehicle's diagnostic systems to fail to warn when  
            the vehicle is equipped with a counterfeit airbag or  
            nonfunctional airbag, or when no airbag is installed.


          4)States that a violation of the aforementioned provisions is a  
            misdemeanor, punishable by a fine of up to $5,000 or by  
            imprisonment in a county jail for up to one year, or by both  
            that fine and imprisonment.


          5)Grants safe harbor to allow installers and other persons to  
            complete their installation work before a violation can occur.










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          6)Defines "airbag" as a motor vehicle inflatable occupant  
            restraint system device, including all component parts, such  
            as the cover, sensors, controllers, inflators, and wiring,  
            that the vehicle manufacturer recommends be replaced after  
            deployment that meets both of the following criteria:


             a)   Operates in the event of a crash; or
             b)   Is designed in accordance with federal motor vehicle  
               safety standards for the specific make, model, and year of  
               the motor vehicle in which it is or will be installed.


          7)Defines "counterfeit airbag" as a replacement airbag that  
            displays a mark identical or substantially similar to the  
            genuine mark of a motor vehicle manufacturer or a supplier of  
            parts to the manufacturer of a motor vehicle without  
            authorization from that manufacturer or supplier.
          8)Defines "nonfunctional airbag" as a replacement airbag that  
            meets any of the following criteria:


             a)   The airbag was previously deployed or damaged;
             b)   The airbag has an electric fault that is detected by the  
               vehicle's airbag diagnostic systems after the installation  
               procedure is completed; or


             c)   The airbag includes a part or object, including, but not  
               limited to, a counterfeit or repaired airbag cover or  
               airbag component, installed in a motor vehicle to mislead  
               the owner or operator of the motor vehicle into believing  
               that a functional airbag has been installed.


          EXISTING LAW: 


          1)Prohibits installation, reinstallation, rewiring, tampering  








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            with, altering or modifying for compensation a vehicle's  
            computer or supplemental restraint system, or the system's  
            performance indicators, so that it falsely indicates the  
            supplemental restraint system is in proper working order.  
          2)Prohibits knowingly distributing or selling a previously  
            deployed air bag or previously deployed air bag component that  
            will no longer meet the original equipment manufacturing form  
            or function for proper operation.  


          3)States that improper installation or installation of  
            previously deployed air bag components which no longer meet  
            the original equipment manufacturing form or function for  
            proper operation is a misdemeanor.  


          4)Punishes anyone who knowingly sells or knowingly holds for  
            sale any counterfeit trademark registered with the Secretary  
            of State or the Principal Register of the United States Patent  
            and Trademark Office, as provided, according to the total  
            value of the goods or products.  


          5)Prohibits anyone from willfully and falsely representing their  
            goods or products as being the products of a true dealer,  
            manufacturer or producer of those goods or products.  


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, minor nonreimbursable local costs for incarceration,  
          offset to a degree by fine revenue.
          COMMENTS:  According to the author, "AB 2387 is a consumer protection  
          measure. It strengthens existing laws aimed at deterring the  
          fraudulent distribution and installation of counterfeit airbags  
          by more clearly defining key terms and increasing the penalty  
          for knowingly exposing the public to this potentially deadly  
          hazard."










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          Analysis Prepared by:                                             
          Matt Dean/ PUB. S. / (916) 319-3744  FN: 0002811