BILL ANALYSIS Ó
AB 2387
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB
2387 (Mullin)
As Amended August 16, 2016
Majority vote
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|ASSEMBLY: |78-0 |(May 12, 2016) |SENATE: |39-0 |(August 22, |
| | | | | |2016) |
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Original Committee Reference: PUB. S.
SUMMARY: Particularizes the crime of selling counterfeit
airbags, and increases the penalty for selling counterfeit
airbags.
The Senate amendments:
1)Add an intent requirement to the prohibition on 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 supplemental restraint
system component or nonfunctional airbag, or when no airbag is
installed.
2)Delete the subsection which would have deemed a violation of
this section an unfair or deceptive act or practice for the
purposes of the Consumer Legal Remedies Act.
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3)Clarify the safe harbor provision of the definition of a
"nonfunctional airbag" by stating the violation does not occur
until an installer, seller, or re-seller has returned the
vehicle to the customer or when they intended to transfer
ownership of the vehicle.
4)Delete the subsection of the "nonfunctional airbag" definition
stating an airbag subject to a federal recall shall not be
considered non-functional for purpose of this section.
5)Define as a nonfunctional airbag an airbag subject to the
prohibitions of federal laws regarding repairs or recalls, as
defined.
6)Insert a "savings clause" so that this provision does not
affect the other rights, remedies and/or duties available at
law regarding nonfunctional, counterfeit airbags or other
airbags, as defined.
7)Clarify that the provisions of the bill do not preclude
prosecution under any other area of the law.
EXISTING LAW:
1)Prohibits installation, reinstallation, rewiring, tampering
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.
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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 Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
AS PASSED BY THE ASSEMBLY, this bill:
1)Repealed existing provisions of law relating to the
installation or rewiring of airbag systems to falsely indicate
the system is in working order.
2)Prohibited 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)Prohibited 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
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nonfunctional airbag, or when no airbag is installed.
4)Stated 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)Granted safe harbor to allow installers and other persons to
complete their installation work before a violation can occur.
6)Defined "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)Defined "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)Defined "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
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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.
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."
Please see the policy committee analysis for a full discussion
of this bill.
Analysis Prepared by:
Matt Dean / PUB. S. / (916) 319-3744 FN:
0004428