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.