SB0037b -1- HCS SB 37(L&C) New Text Underlined [DELETED TEXT BRACKETED] 33-LS0277\B HOUSE CS FOR SENATE BILL NO. 37(L&C) IN THE LEGISLATURE OF THE STATE OF ALASKA THIRTY-THIRD LEGISLATURE - SECOND SESSION BY THE HOUSE LABOR AND COMMERCE COMMITTEE Offered: 2/26/24 Referred: Rules Sponsor(s): SENATOR CLAMAN A BILL FOR AN ACT ENTITLED "An Act establishing the crime of airbag fraud." 1 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 2 * Section 1. AS 28.35 is amended by adding a new section to read: 3 Sec. 28.35.248. Airbag fraud. (a) A person commits the crime of airbag fraud 4 if the person 5 (1) knowingly sells, offers for sale, imports, installs, or reinstalls 6 (A) a replacement airbag that does not comply with federal 7 safety regulations specific to the vehicle's make, model, and year; 8 (B) an airbag that is counterfeit or nonfunctioning; or 9 (C) a part or device that is intended to conceal a counterfeit or 10 nonfunctioning airbag; 11 (2) knowingly manufactures 12 (A) a counterfeit or nonfunctioning airbag; or 13 (B) a part or device that is intended to conceal a counterfeit or 14 nonfunctioning airbag; or 15 33-LS0277\B HCS SB 37(L&C) -2- SB0037b New Text Underlined [DELETED TEXT BRACKETED] (3) intentionally sells, leases, or trades or offers for sale, lease, or trade 1 a vehicle that the person knows has 2 (A) a replacement airbag that does not comply with federal 3 safety regulations specific to the vehicle's make, model, and year; or 4 (B) a counterfeit or nonfunctioning airbag. 5 (b) This section does not apply to 6 (1) a person installing, reinstalling, or replacing an airbag on a vehicle 7 used solely for police work; 8 (2) an owner or employee of a motor vehicle dealership or the owner 9 of a vehicle who, before the sale of the vehicle, does not have knowledge that the 10 vehicle's airbag is counterfeit or nonfunctioning; 11 (3) a person who transfers a vehicle title to an insurance company to 12 satisfy an insurance claim when the insurance company declares the vehicle to be an 13 actual total loss or constructive total loss; or 14 (4) an insurance company that sells or otherwise disposes of a vehicle 15 as authorized by law or regulation. 16 (c) This section does not 17 (1) preclude liability of any party in a civil action; or 18 (2) create a duty that, before the sale of a vehicle, an owner or 19 employee of a motor vehicle dealership or the owner of the vehicle inspect a vehicle in 20 the possession of the dealership or owner to determine whether the airbag is 21 counterfeit or nonfunctioning. 22 (d) In this section, 23 (1) "airbag" includes an airbag component; 24 (2) "counterfeit" means a replacement airbag displaying an 25 unauthorized mark that is identical, or substantially similar, to the genuine mark of a 26 motor vehicle manufacturer or supplier of parts to a motor vehicle manufacturer; 27 (3) "nonfunctioning" means a replacement airbag that is inoperable, 28 damaged, or recalled, has previously been deployed, will cause a vehicle's diagnostic 29 system to inaccurately indicate that the vehicle is equipped with a properly functioning 30 airbag, or results in an electric fault detected by a vehicle's diagnostic system after the 31 33-LS0277\B SB0037b -3- HCS SB 37(L&C) New Text Underlined [DELETED TEXT BRACKETED] installation procedure is complete; 1 (4) "recalled" means an airbag that was removed from a vehicle 2 because a manufacturer or federal agency determined the airbag created an 3 unreasonable safety risk or did not meet minimum safety standards and that federal 4 law has not exempted from reinstallation. 5 (e) Airbag fraud is 6 (1) a class A misdemeanor; or 7 (2) a class C felony if death or serious physical injury to another 8 person results from 9 (A) the manufacture, sale, importation, installation, or 10 reinstallation of a replacement airbag that does not comply with federal safety 11 regulations specific to the vehicle's make, model, and year or a counterfeit or 12 nonfunctioning airbag; or 13 (B) the sale, lease, or trade of a vehicle that has a replacement 14 airbag that does not comply with federal safety regulations specific to the 15 vehicle's make, model, and year or a counterfeit or nonfunctioning airbag. 16