BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2387


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          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