BILL ANALYSIS Ó AB 2387 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2387 (Mullin) As Amended August 16, 2016 Majority vote -------------------------------------------------------------------- |ASSEMBLY: |78-0 |(May 12, 2016) |SENATE: |39-0 |(August 22, | | | | | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- 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. AB 2387 Page 2 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. AB 2387 Page 3 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 AB 2387 Page 4 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 AB 2387 Page 5 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