Legislature(2025 - 2026)BARNES 124
02/12/2025 03:15 PM House LABOR & COMMERCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Role of Apprenticeships in Alaska's Workforce Development | |
| HB80 | |
| HB74 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 80 | TELECONFERENCED | |
| *+ | HB 74 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
HB 74-CRIME COUNTERFEIT/NONFUNCTIONING AIRBAG
4:30:49 PM
CO-CHAIR FIELDS announced that the final order of business would
be HOUSE BILL NO. 74, "An Act establishing the crime of airbag
fraud."
4:31:11 PM
The committee took an at-ease from 4:31 p.m. to 4:32 p.m.
4:32:34 PM
FRANK TOMASZEWSKI, Alaska State Representative, Alaska State
Legislature, as prime sponsor, presented HB 74. He explained
that HB 74 was brought to his attention by the Honda Motor Co.,
Inc. and the Automotive Anti-Counterfeiting Council (A2C2). He
stated that there are currently no laws in Alaska that prohibit
the installation or re-installation of airbags that do not meet
federal safety standards. He stated that counterfeit and non-
functioning airbags are known to improperly deploy, or not
deploy at all, which can result in serious injury or death. He
stated that HB 74 would establish the crime of airbag fraud and
prohibit dangerous actors from knowingly selling, installing, or
manufacturing counterfeit or non-functioning airbags. He
explained that a counterfeit airbag is defined as a replacement
airbag displaying an unauthorized mark that is similar to the
mark of the vehicle manufacturer [Honda, Toyota, Subaru]. A
non-functioning airbag is an inoperable or damaged airbag, or an
airbag that had been previously deployed or removed from a
vehicle due to unreasonable safety risks. He noted that
legislation similar to HB 74 has passed in 30 other states. He
stated that passage of HB 74 would align Alaska with the Federal
Administration's efforts to stop the importation of counterfeit
or non-functioning airbags through the Federal Trade Commission
Act (FTC Act). He stated that HB 74 would allow federal
authorities to seize counterfeit or non-functioning airbags at
Alaska's border. He stated that the Coalition Against Insurance
Fraud, which supports HB 74, believes that consumers should be
able to trust that their airbags will function.
REPRESENTATIVE TOMASZEWSKI asserted that Alaska has a
responsibility to protect its citizens from all counterfeit and
non-functioning airbags. He stated the HB 74 would provide
legal consequences for those who knowingly install counterfeit
or non-functional airbags. Further, he noted that, in the
proposed legislation, there are protections for third parties,
such as owners or dealerships, who unknowingly install or sell
counterfeit/non-functional airbags.
REPRESENTATIVE TOMASZEWSKI concluded with a personal anecdote,
stating that he was involved in a head-on collision three years
prior, where all airbags were properly deployed. He asked his
staff to continue with the sectional analysis of HB 74.
4:35:53 PM
DAVID GOFF, Staff, Representative Tomaszewski, Alaska State
Legislature, as staff to Representative Tomaszewski, prime
sponsor of HB 74, gave the sectional analysis of HB 74 [included
in the committee file], which read as follows [original
punctation provided]:
Section 1
Amends the airbag fraud statute (AS 28.35.248) by
establishing and defining airbag fraud as knowingly
selling, offering for sale, installing, reinstalling,
or manufacturing a counterfeit or nonfunctioning
airbag
or device that is intended to conceal a counterfeit or
nonfunctioning airbag, or intentionally selling,
leasing or trading a vehicle that the person knows has
a counterfeit or nonfunctioning airbag.
Establishes airbag fraud as a class A misdemeanor or a
class C felony if death or serious physical
injury to another person occurs as a result of the
counterfeit or nonfunctioning airbag.
Establishes that the liability of any party in a civil
action is not precluded. Provides that this
legislation does not create a duty to inspect a
vehicle for a counterfeit or nonfunctioning airbag
before its sale.
This section excludes a person installing,
reinstalling, or replacing an airbag on a vehicle used
solely for police work; an owner or employee of a
motor vehicle dealership or the owner of a
vehicle who does not have knowledge that the vehicle's
airbag is counterfeit or nonfunctioning; a
person who transfers a vehicle title to an insurance
company to satisfy an insurance claim; or an
insurance company that sells or otherwise disposes of
a vehicle as authorized by law or
regulation.
4:37:47 PM
REPRESENTATIVE SADDLER pondered on where the supply chain for
counterfeit/non-functional airbags existed. He asked if the
proposed legislation would have an effect on counterfeit/non-
functional airbag supply chains.
4:38:27 PM
REPRESENTATIVE TOMASZEWSKI responded that, to date, he is not
aware of any incidents in Alaska. He stated that he is
attempting to get ahead of the issue, reiterating that 30 other
states have already passed legislation regarding the issue. He
stated that counterfeits are circulating in the United States.
4:39:27 PM
REPRESENTATIVE COULOMBE asked about the penalties proposed under
HB 74.
4:39:53 PM
MR. GOFF responded that he would get back to the committee with
the information, but offered his belief that a felony [if death
or serious physical injury to another person occurs as a result
of the counterfeit or nonfunctioning airbag] would constitute up
to a $25,000 fine and up to one year in prison.
4:40:15 PM
CO-CHAIR HALL asked whether there was a black market or business
incentive for the manufacturing of counterfeit/non-functional
airbags.
4:40:51 PM
REPRESENTATIVE TOMASZEWSKI responded that airbags are an
expensive purchase that are required for vehicles. He stated
that an individual, in trying to cut costs, might go to an
unreputable supplier to replace the product.
4:41:46 PM
REPRESENTATIVE NELSON offered his appreciation for HB 74.
4:42:26 PM
CO-CHAIR FIELDS announced the committee would hear invited
testimony. He asked the invited testifier to clarify how
counterfeit/non-functional airbags might be installed in a
vehicle, i.e. whether it is typically an individual or third
party that installs the counterfeit/non-functional airbag.
4:42:59 PM
CRAIG ORLAN, Director of State and Local Government Affairs,
American Honda Motor Co., Inc., began invited testimony in
support of HB 74. He began his testimony by stating that
counterfeit or non-functioning airbags have been plaguing the
industry for over a decade. He clarified that counterfeit/non-
functional airbag installations are not a problem with
legitimate automotive supply chains. He explained that, after
an accident, a customer might go to an independent repair
facility for an airbag replacement and receive a
counterfeit/non-functional airbag installation. He reported
that there is a "handful" of "unscrupulous actors" installing
the counterfeit/non-functional airbags.
MR. ORLAN reported that faulty airbags have been filled with a
variety of debris, including sawdust, newspapers, rags, and
trash bags. He mentioned a shipment of counterfeits in Los
Angeles that required a bomb squad to detonate the airbags.
Additionally, he reported that a repair shop owner in Florida
was recently charged under a law similar to HB 74 for installing
over 300 counterfeit airbags in the vehicles of unsuspecting
customers.
MR. ORLAN explained that the majority of counterfeit/non-
functional airbags originate overseas and are imported into the
United States from China. He stated that agencies like the U.S.
Customs and Border Protection, the Federal Bureau of
Investigation (FBI), and the U.S. Department of Homeland
Security have limited authority and can pursue action only if
there is a violation under federal trademark or federal hazmat
law, which Mr. Orlan asserts, does not apply to the majority of
manufactured counterfeit/non-functional airbags. He asserted
that supplementing federal law with state law would allow state-
federal cooperation on prohibiting counterfeit/non-functional
airbags from entering the U.S. and allows e-commerce retailers
to delist products in a timely manner.
MR. ORLAN concluded by noting that the proposed legislation had
been drafted with inputs from numerous stakeholders including
automakers, dealers, repair professionals, insurance companies,
law enforcement agencies, and consumer groups. He further noted
that similar legislation has passed in 38 other states with
bipartisan support and no public opposition. He finished with
an anecdote regarding the underground market, reporting that
there was a man in North Carolina who made over $1.7 million in
a little over one year selling counterfeit airbags to
unsuspecting consumers. He further reported that the law in
North Carolina was used as leverage to identify victims and
remove the faulty airbags from their vehicles. He said that the
nature of an underground economy makes it difficult to fully
determine its size and scope. He reported that counterfeit/non-
functional airbags have been found in almost every state. He
thanked the committee members for their time and consideration.
4:46:32 PM
CO-CHAIR FIELDS stated that some e-commerce retailers, like
Amazon or eBay, have done little "due diligence" to protect
customers from purchasing faulty airbags.
MR. ORLAN responded that some e-commerce retailers are more
helpful than others. He stated that e-commerce retailers are
more responsive when it is in violation of state and federal
laws and a public safety risk. He asserted that his company has
seen e-commerce retailers become more responsive when laws like
HB 74 are passed.
4:47:13 PM
CO-CHAIR HALL asked what the purpose of counterfeit airbags.
MR. ORLAN responded that airbags can sell for hundreds to
thousands of dollars and replacements can be sold at a much
cheaper price. He stated the goal is to deceive the consumer,
bypass radiographs, and look more authentic. He additionally
stated that many faulty airbags are simply empty, or
nonfunctional, which is why the proposed legislation was written
to include nonfunctional airbags as an act of fraud.
CO-CHAIR HALL asked how much an airbag weighs and what contents
are typically inside an airbag.
MR. ORLAN replied that an airbag is a part of a supplemental
restraint system (SRS). He explained that when a vehicle is
involved in a collision, a sensor goes off to determine the
point of impact, which airbags to deploy, in what order, and
with how much force to provide maximum protection. He explained
that a collision would trigger a small explosion, filling the
functioning/non-counterfeit airbag with gas before deflation.
He stated an airbag is a cushion material, meant to protect the
passenger. He reiterated that some people are intentionally
filling airbags with debris or nothing at all.
[HB 74 was held over.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 74 Version A.pdf |
HL&C 2/12/2025 3:15:00 PM |
HB 74 |
| HB 74 Sponsor Statement.pdf |
HL&C 2/12/2025 3:15:00 PM |
HB 74 |
| HB 74 Sectional Analysis.pdf |
HL&C 2/12/2025 3:15:00 PM |
HB 74 |
| HB 74 Letter of Support - A2C2_Airbag-Support_AK-House.pdf |
HL&C 2/12/2025 3:15:00 PM |
HB 74 |
| HB074-DOA-OPA-2-7-24.pdf |
HL&C 2/12/2025 3:15:00 PM |
HB 74 |
| HB074-DOA-PDA-1-14-25.pdf |
HL&C 2/12/2025 3:15:00 PM |
HB 74 |
| HB074-DOC-IDO-2-7-2025.pdf |
HL&C 2/12/2025 3:15:00 PM |
HB 74 |
| HB074-DPS-AST-2-7-25.pdf |
HL&C 2/12/2025 3:15:00 PM |
HB 74 |
| HB074-JUD-ACS-02-06-25.pdf |
HL&C 2/12/2025 3:15:00 PM |
HB 74 |
| HB74-LAW-CJL-01-30-25.pdf |
HL&C 2/12/2025 3:15:00 PM |
HB 74 |
| HB 80 Letter of Support - ICC Testimony in Support.pdf |
HL&C 2/12/2025 3:15:00 PM |
HB 80 |
| HB 74 Supporting Document - Deadly Counterfeit Air Bags Are Making Their Way Into Vehicles - WSJ.pdf |
HL&C 2/12/2025 3:15:00 PM |
HB 74 |
| HB 74 Supporting Document - Alaska one pager.pdf |
HL&C 2/12/2025 3:15:00 PM |
HB 74 |