02/17/2025 01:30 PM Senate LABOR & COMMERCE

         SB  17-CRIME COUNTERFEIT/NONFUNCTIONING AIRBAG                                                                     
                                                                                                                                
2:02:48 PM                                                                                                                    
CHAIR  BJORKMAN   reconvened  the   meeting  and   announced  the                                                               
consideration  of SENATE  BILL NO.  17 "An  Act establishing  the                                                               
crime of airbag fraud."                                                                                                         
                                                                                                                                
2:03:16 PM                                                                                                                    
SENATOR  MATT  CLAMAN,  District  H,  Alaska  State  Legislature,                                                               
Juneau,  Alaska, sponsor  of SB  17  presented a  brief recap  as                                                               
follows:                                                                                                                        
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     To recap, Senate Bill 17  establishes airbag fraud as a                                                                    
     crime.  It prohibits  dangerous  actors from  knowingly                                                                    
     selling, installing,  or manufacturing  these dangerous                                                                    
     and improper devices.                                                                                                      
                                                                                                                                
     Passage  of  this   legislation  will  support  federal                                                                    
     efforts  to  stop  the importation  of  counterfeit  or                                                                    
     nonfunctioning  airbags  through   the  federal  Unfair                                                                    
     Trade Practices Act. It  will allow federal authorities                                                                    
     to seize these products at Alaska's border.                                                                                
                                                                                                                                
     Counterfeit  airbags are  a serious  threat to  drivers                                                                    
     and passengers in Alaska    that is to say, almost each                                                                    
     and every one of us and our constituents.                                                                                  
                                                                                                                                
2:04:10 PM                                                                                                                    
SENATOR  DUNBAR  stated  in  the   last  committee  meeting,  the                                                               
committee  discussed  generic  airbags,  and a  member  from  the                                                               
industry noted  that generic airbags essentially  don't exist. He                                                               
said that raises concerns for  him, possibly pointing to industry                                                               
capture, though  he knows that it's  not the intent of  SB 17. He                                                               
emphasized that  federal safety standards  should not be  used to                                                               
block airbags  that are functionally  identical due  to trademark                                                               
or other  industry-imposed barriers. He asked  for an elaboration                                                               
on the issue.                                                                                                                   
                                                                                                                                
2:05:15 PM                                                                                                                    
SENATOR  CLAMAN answered  that  from  personal experience  buying                                                               
auto  parts,  he  often  has  used  aftermarket  partslike   body                                                               
panelsthat  fit  well but aren't from  the original manufacturer.                                                               
He said  there's a  strong market  for many  of those  parts, but                                                               
with airbags, the tech and cost  to develop them make it hard for                                                               
third-party companies  to compete.  That's not  necessarily anti-                                                               
competitive, airbags are a tougher,  more complex market compared                                                               
to something like bumpers.                                                                                                      
                                                                                                                                
SENATOR DUNBAR asked for confirmation,  for the benefit of future                                                               
prosecutors  of defense  attorneys,  if this  crime were  brought                                                               
against  someone, it  is the  intent of  the legislature  that it                                                               
does not create a law  punishing safe aftermarket products simply                                                               
because they do not meet industry proprietary standards.                                                                        
                                                                                                                                
SENATOR CLAMAN answered that's true.                                                                                            
                                                                                                                                
2:07:21 PM                                                                                                                    
CHAIR BJORKMAN  opened public testimony  on SB 17;  finding none,                                                               
he closed public testimony.                                                                                                     
                                                                                                                                
2:07:58 PM                                                                                                                    
CHAIR BJORKMAN solicited the will of the committee.                                                                             
                                                                                                                                
2:08:02 PM                                                                                                                    
SENATOR MERRICK  moved to report  SB 17, work  order 34-LS0183\A,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note(s).                                                                                                                 
                                                                                                                                
2:08:19 PM                                                                                                                    
CHAIR BJORKMAN  found no  objection and SB  17 was  reported from                                                               
the Senate Labor and Commerce Standing Committee.