00 HOUSE CS FOR SENATE BILL NO. 37(L&C) 01 "An Act establishing the crime of airbag fraud." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 28.35 is amended by adding a new section to read: 04 Sec. 28.35.248. Airbag fraud. (a) A person commits the crime of airbag fraud 05 if the person 06 (1) knowingly sells, offers for sale, imports, installs, or reinstalls 07 (A) a replacement airbag that does not comply with federal 08 safety regulations specific to the vehicle's make, model, and year; 09 (B) an airbag that is counterfeit or nonfunctioning; or 10 (C) a part or device that is intended to conceal a counterfeit or 11 nonfunctioning airbag; 12 (2) knowingly manufactures 13 (A) a counterfeit or nonfunctioning airbag; or 14 (B) a part or device that is intended to conceal a counterfeit or 15 nonfunctioning airbag; or 01 (3) intentionally sells, leases, or trades or offers for sale, lease, or trade 02 a vehicle that the person knows has 03 (A) a replacement airbag that does not comply with federal 04 safety regulations specific to the vehicle's make, model, and year; or 05 (B) a counterfeit or nonfunctioning airbag. 06 (b) This section does not apply to 07 (1) a person installing, reinstalling, or replacing an airbag on a vehicle 08 used solely for police work; 09 (2) an owner or employee of a motor vehicle dealership or the owner 10 of a vehicle who, before the sale of the vehicle, does not have knowledge that the 11 vehicle's airbag is counterfeit or nonfunctioning; 12 (3) a person who transfers a vehicle title to an insurance company to 13 satisfy an insurance claim when the insurance company declares the vehicle to be an 14 actual total loss or constructive total loss; or 15 (4) an insurance company that sells or otherwise disposes of a vehicle 16 as authorized by law or regulation. 17 (c) This section does not 18 (1) preclude liability of any party in a civil action; or 19 (2) create a duty that, before the sale of a vehicle, an owner or 20 employee of a motor vehicle dealership or the owner of the vehicle inspect a vehicle in 21 the possession of the dealership or owner to determine whether the airbag is 22 counterfeit or nonfunctioning. 23 (d) In this section, 24 (1) "airbag" includes an airbag component; 25 (2) "counterfeit" means a replacement airbag displaying an 26 unauthorized mark that is identical, or substantially similar, to the genuine mark of a 27 motor vehicle manufacturer or supplier of parts to a motor vehicle manufacturer; 28 (3) "nonfunctioning" means a replacement airbag that is inoperable, 29 damaged, or recalled, has previously been deployed, will cause a vehicle's diagnostic 30 system to inaccurately indicate that the vehicle is equipped with a properly functioning 31 airbag, or results in an electric fault detected by a vehicle's diagnostic system after the 01 installation procedure is complete; 02 (4) "recalled" means an airbag that was removed from a vehicle 03 because a manufacturer or federal agency determined the airbag created an 04 unreasonable safety risk or did not meet minimum safety standards and that federal 05 law has not exempted from reinstallation. 06 (e) Airbag fraud is 07 (1) a class A misdemeanor; or 08 (2) a class C felony if death or serious physical injury to another 09 person results from 10 (A) the manufacture, sale, importation, installation, or 11 reinstallation of a replacement airbag that does not comply with federal safety 12 regulations specific to the vehicle's make, model, and year or a counterfeit or 13 nonfunctioning airbag; or 14 (B) the sale, lease, or trade of a vehicle that has a replacement 15 airbag that does not comply with federal safety regulations specific to the 16 vehicle's make, model, and year or a counterfeit or nonfunctioning airbag.