BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
                              Senator Jim Beall, Chair
                                2015 - 2016  Regular 

          Bill No:          AB 2387           Hearing Date:     6/14/2016
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          |Author:   |Mullin                                                |
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          |Version:  |6/2/2016                                              |
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          |Urgency:  |No                     |Fiscal:      |Yes             |
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          |Consultant|Randy Chinn                                           |
          |:         |                                                      |
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          SUBJECT:  Vehicle equipment: supplemental restraint system  
          components and nonfunctional airbags

            DIGEST:  This bill makes it a crime to sell or install a  
          counterfeit airbag or sell or install any device which causes  
          the vehicle's diagnostic system to fail to warn when the vehicle  
          is equipped with a counterfeit airbag.

          ANALYSIS:
          
          Existing law:
          
          1)Prohibits tampering with a vehicle's computer system or  
            supplemental restraint system to falsely indicate the systems  
            are in working order 

          2)Prohibits selling a previously deployed air bag that no longer  
            functions as originally intended.

          This bill replaces current law with:

          1)A prohibition against knowingly and intentionally  
            manufacturing, importing, installing, distributing, and  
            selling any device intended to replace a supplemental  
            restraint system component (e.g., airbag) if the device is  
            counterfeit  or a nonfunctional airbag or does not meet  
            applicable federal safety requirements.

          2)A prohibition against knowingly and intentionally selling or  
            installing any device that causes the vehicle's diagnostic  







          AB 2387 (Mullin)                                   Page 2 of ?
          
          
            systems to fail to warn when the vehicle is equipped with a  
            counterfeit supplemental restraint system component or  
            nonfunctional airbag.

          Violating these prohibitions 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 both.

          COMMENTS:

          1)Purpose.  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.

          2)Huge problem.  Airbags are an essential component of modern  
            vehicle safety systems, helping ensure that the occupants'  
            heads and upper bodies do not strike the vehicle interior in a  
            crash.  Beginning in 2008, airbags made by Takata were  
            recalled because of concerns that airbag deployment could  
            injure the car occupants.  Originally limited to Honda, the  
            recall was expanded to 14 car manufacturers and as many as  
            68.8 million airbags in what the National Highway Traffic  
            Safety Administration (NHTSA) called the largest and most  
            complex safety recall in history.  As these airbags are  
            replaced, problems have arisen with the use of counterfeit  
            airbags which don't provide adequate protection.  In October  
            2012, the NHTSA issued an advisory warning about the dangers  
            of counterfeit airbags.

          3)Other states leading.  The problem of counterfeit airbags has  
            led 10 states to enact legislation to prohibit the use of  
            counterfeit airbags, including Ohio, Texas, New York, and  
            Florida.  The Council of State Governments proposed model  
            legislation to make it a crime to manufacture, import, or  
            install a nonfunctional or counterfeit airbag.

          4)Closing a loophole.  This bill closes a loophole in current  
            law which does not address counterfeit airbags.  Recent  
            reports indicate that several car manufacturers sell new cars  
            with recalled airbags.  That circumstance is not addressed in  
            this bill.









          AB 2387 (Mullin)                                   Page 3 of ?
          
          
          5)Double-referral.  This bill has been double referred to the  
            Senate Judiciary Committee.

          Related Legislation:
          
          AB 1854 (Brownley, Chapter 97, Statutes of 2012) - prohibits:

             a)   Tampering with a vehicle's computer system or  
               supplemental restraint system to falsely indicate the  
               systems are in working order

             b)   Selling a previously deployed air bag that no longer  
               functions as originally intended.
          Assembly Votes

               Floor:         78-0
               Appr:          19-0
               P. & C.P:      11-0
               Pub. S.:       7-0
          
          FISCAL EFFECT:  Appropriation:  No    Fiscal Com.:  Yes     
          Local:  Yes


            POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,
                          June 8, 2016.)
          
            SUPPORT:  

          Auto Alliance
          Automobile Club of Southern California
          Automobile Association of Southern California
          California Association of Highway Patrolmen
          California Professional Firefighters
          Coalition Against Insurance Fraud
          Ford
          Global Automakers
          Honda
          Los Angeles County District Attorney

          OPPOSITION:

          None received









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