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A00443 Summary:

BILL NOA00443
 
SAME ASNo Same As
 
SPONSORStirpe
 
COSPNSRBrindisi
 
MLTSPNSRHooper
 
Rpld 398-d sub 6 (e), amd 415-c, add 415-d, V & T L
 
Imposes a comprehensive statutory scheme to combat airbag system fraud and protect unsuspecting consumers in NY.
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A00443 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A443
 
SPONSOR: Stirpe (MS)
  TITLE OF BILL: An act to amend the vehicle and traffic law, in relation to airbag safe- ty; and to repeal paragraph (e) of subdivision 6 of section 398-d of such law relating to the replacement of inflatable restraint systems   PURPOSE OR GENERAL IDEA OF BILL: The bill seeks to impose a comprehensive statutory scheme to combat airbag system fraud and protect unsuspecting consumers in NY.   SUMMARY OF SPECIFIC PROVISIONS: Section one states the legislative intent to protect consumers from fraud associated with the sale of vehicles with defective and unsatis- factory airbags. Section two repeals paragraph (e) of section 398-d of the vehicle and traffic law. Section 3 repeals section 415-c of the vehicle and traffic law and replaces it with a new section 415-c - Sale and installation of recycled inflatable restraint systems. Subdivision one defines the terms "airbag", "light manipulating system" and "recycled airbag". subdivision 415-c (2) provides that no person shall install anything other than an airbag as part of an inflatable occupant restraint system, nor knowingly offer anything other than an airbag for sale or in any way misrepresent the presence of a vehicle airbag. Any person violating these provisions would be subject to $2500 per violation fine and or up to 180 days imprisonment. If a violation results in serious injury or death of an individual, the violator would be subject to a Class felony. Subdivision 415-c (3) requires that anyone engaged in the business of purchasing, selling, or installing recycled airbags or new replacement airbags must maintain records for a minimum of 5 years, which include, when applicable, the vehicle identification number (VIN) of the vehicle the airbag is removed from, the name address and phone number of the purchaser, the vehicle identification number of the vehicle in which the airbag is installed, the new replacement airbag supplier, the VIN number of the new airbag. The bill requires that such records be made available for inspection to the enforcement agency and the police. Licensed repair shops must also submit an affidavit attesting to the correct installa- tion of any new or used airbag. The commissioner of motor vehicles is granted authority to develop regulations to implement these standards as well as to require additional information such as identification of airbag modules; internal stock numbers, inspection certification requirements, and vehicle description requirements. Subdivision 415-c (4) provides that anyone knowingly possessing, selling or installing a stolen airbag or an airbag whose identification has been altered shall be guilty of a class D felony. Subdivision 415-c (5) requires that law enforcement reports must state whether an airbag or inflatable restraint system has been deployed in an accident. Subdivision 415-c (6) requires any person selling or trading a vehicle which contains an airbag they know to be inoperable to notify the buyer or person acquiring the trade in writing that the airbag is inoperable. A seller who fails to give notice shall be guilty of a class A misdemea- nor. The provisions of this section shall not apply to the sale or trade of a motor vehicle with a visibly deployed airbag, vehicles sold by an insurance company that acquired the vehicle in connection with a claim settlement, or if the sale is handled by a company that sells vehicles from insurance companies and which makes no sale to end users. Section 4 provides that invalid, the rest shall if any portion of this section is deemed remain in full force and effect. Section 5 establishes a regulatory promulgation 130 day effective date, subject to immediate   JUSTIFICATION: This bill is needed to ensure that consumers are not subject to fraudu- lent representations that repairs made to used vehicles, specifically airbags replacement, actually occur. The bill provides significant fines and criminal penalties for those who repair vehicles seeking to avoid the costs associated with installing a brand new airbag in a vehicle of lessened market value. Additional recordkeeping requirements ensure that the life cycle and handling of an airbag can be tracked and that safety testing and certification is documented with a responsible party. This bill would also, importantly, place the auto recycling industry on the same footing with 49 other states that currently allow the use or recycled airbags. Even though New York law allows the department of motor vehicles to allow the use of recycled airbags that are tested and certified by a third party, there has been no such third party stepping forward to provide these standards to the department. As a result, replacement of airbags which have been deployed in a vehicle accident must be replaced with brand new airbags and, in certain instances, repair shops engaged in fraud may pass off a non-functioning airbag or an airbag substitute as a new airbag. The incentive to engage in this practice can be greater when the residual value of the car is lower. All other states have instituted procedures to ensure a functioning and safe inflatable restraint system. This bill presents a uniform system and a national standard which will assist consumers by lowering insurance claims, reducing the incentive for airbag theft, and helping to ensuring the safety of the traveling public. Finally, this bill will ensure that New Yorkers who own vehicles that have ceased to be manufactured such as Saturn, Oldsmobile and Hummer will continue to be able to obtain airbags if their vehicles are damaged. Now that these vehicles will no longer be manufactured the parts for them will also cease to be manufactured.   PRIOR LEGISLATIVE HISTORY: 2011, 2012: S.5156 Referred to Transportation A9730 of 2014; Referred to Transportation A5080 of 2015-2016; Referred to Transportation   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: 180 days after enactment.
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A00443 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           443
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                     January 9, 2017
                                       ___________
 
        Introduced  by  M. of A. STIRPE, BRINDISI -- Multi-Sponsored by -- M. of
          A. HOOPER -- read once and referred to the Committee on Transportation
 
        AN ACT to amend the vehicle and traffic law, in relation to airbag safe-
          ty; and to repeal paragraph (e) of subdivision 6 of section  398-d  of
          such law relating to the replacement of inflatable restraint systems

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Legislative  intent.  The  legislature  finds  that  airbag
     2  system  fraud is a public safety concern for both consumers and the auto
     3  insurance industry and that efforts to  address  this  serious  risk  to
     4  consumers  have been piecemeal, rather than coordinate, and that compre-
     5  hensive coordinated legislation is necessary to  protect  consumers  and
     6  insure the integrity of vehicle restraint systems.
     7    §  2.  Paragraph  (e) of subdivision 6 of section 398-d of the vehicle
     8  and traffic law is REPEALED.
     9    § 3. Section 415-c of the vehicle and traffic law, as added by chapter
    10  161 of the laws of 1996, subdivision 2 as amended by chapter 78  of  the
    11  laws of 1998, and subdivisions 1 and 2 as further amended by section 104
    12  of  part  A  of  chapter  62  of the laws of 2011, is amended to read as
    13  follows:
    14    § 415-c. [Sale] Tracking of salvaged  inflatable  restraint  systems[;
    15  restrictions.  1].  On and after January first, nineteen hundred ninety-
    16  seven, prior to offering any salvaged inflatable  restraint  system  for
    17  sale,  such  salvaged inflatable restraint system part [indentification]
    18  identification number and the vehicle identification number of the vehi-
    19  cle from which the salvaged inflatable restraint system was taken, shall
    20  be referred to a nationally recognized theft index  bureau  approved  by
    21  the  commissioner,  in consultation with the superintendent of financial
    22  services, for the purposes of determining prior to sale that neither the
    23  salvaged inflatable restraint system nor the motor  vehicle  [were]  was
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04738-01-7

        A. 443                              2
 
     1  stolen,  as  determined  at the time of inquiry. The sales invoice shall
     2  state the date and the result of the inquiry to such theft index bureau.
     3    [2.  On  and after March first, nineteen hundred ninety-nine, prior to
     4  offering any salvaged inflatable restraint system for sale such salvaged
     5  inflatable restraint system shall be certified  according  to  standards
     6  established by a nationally recognized testing, engineering and research
     7  body  approved  by the commissioner in consultation with the superinten-
     8  dent of financial services.]
     9    § 4. The vehicle and traffic law is amended by adding  a  new  section
    10  415-d to read as follows:
    11    §  415-d.  Sale  and  installation  of  recycled  inflatable restraint
    12  systems; restrictions. 1. For purposes of  this  section  the  following
    13  terms shall have the following meanings:
    14    (a)  The  term  "airbag"  shall  mean  any  component of an inflatable
    15  restraint system that is designed  in  accordance  with  federal  safety
    16  regulations for the make, model and year of the vehicle to be installed,
    17  operate  and  activate  in  a  motor vehicle as specified by the vehicle
    18  manufacturer, in the event of a crash. Airbag  components  include,  but
    19  are not limited to sensors, controllers, wiring and the airbag itself.
    20    (b)  The  term  "light  manipulating system" means anything that would
    21  mask or cause the inaccurate indication of  the  airbag  system  status,
    22  condition, or operability.
    23    (c)  "Person" shall mean any natural person, corporation, partnership,
    24  limited liability company, unincorporated association or other entity.
    25    (d) "Recycled airbag" shall mean an original equipment  manufacturer's
    26  non-deployed  airbag  that  has  been  removed from a vehicle for use in
    27  another vehicle.
    28    2. (a) No person shall: (i) install or reinstall, as part of a vehicle
    29  inflatable occupant restraint system, any object other than  an  airbag;
    30  (ii)  sell or offer for sale any device with the intent that such device
    31  will replace an airbag in any motor vehicle  if  such  person  knows  or
    32  reasonably  should  know  that  such device does not meet federal safety
    33  requirements; (iii)  sell  or  offer  for  sale  any  device  that  when
    34  installed in any motor vehicle gives the impression that a viable airbag
    35  is installed in the vehicle, including any light manipulating system; or
    36  (iv)  intentionally misrepresent the presence of an airbag when one does
    37  not exist.
    38    (b) Any person found to have violated the provisions of this  subdivi-
    39  sion  shall  be  guilty  of a misdemeanor, and, upon conviction thereof,
    40  shall be punished by a fine of up to two thousand five  hundred  dollars
    41  per violation and/or by imprisonment for up to one hundred eighty days.
    42    (c)  Any  person who violates the provisions of this subdivision whose
    43  violation results in serious bodily injury or death shall be guilty of a
    44  class D felony.
    45    3. (a) Any person engaged in the business of purchasing,  selling,  or
    46  installing recycled airbags shall maintain a manual or electronic record
    47  of  the purchase, sale or installation, which must include the identifi-
    48  cation number of the airbag; the vehicle identification  number  of  the
    49  vehicle  from  which  the recycled airbag was removed; and, in the event
    50  that the recycled airbag is installed, the vehicle identification number
    51  of the vehicle into which the airbag is installed.
    52    (b) No new or recycled airbag shall be sold or installed which  is  or
    53  has been subject to a specific manufacturer's or appropriate authority's
    54  notice of recall.
    55    (c) (i) In the case of a new replacement airbag, any person engaged in
    56  installing  any  airbag  shall  maintain the name and tax identification

        A. 443                              3
 
     1  number of the supplier of the airbag and record the vehicle  identifica-
     2  tion  number  of the vehicle into which the airbag is installed, as well
     3  as the identification number of the airbag being installed.
     4    (ii)  The  airbag  identification  number  of  the previously deployed
     5  airbag being replaced shall be recorded.
     6    (iii) Upon any request of a law enforcement officer of this  state  or
     7  other  authorized  representative  of  the  agency charged with adminis-
     8  tration of this section, the installer shall produce  such  records  and
     9  permit said agent or police officer to examine them.
    10    (d) Any person who sells a recycled airbag shall be a registered vehi-
    11  cle dismantler, pursuant to section four hundred fifteen-a of this arti-
    12  cle, and must disclose to the purchaser or vehicle owner that the airbag
    13  is recycled and has been inspected in accordance with recognized automo-
    14  tive recycling standards.
    15    (e)  The  person who installs a new or recycled airbag must be a motor
    16  vehicle repair shop registered pursuant  to  article  twelve-A  of  this
    17  chapter  and  shall  submit  an  affidavit to the vehicle owner or their
    18  representative stating that the replacement  airbag  has  been  properly
    19  installed.    Recycled  airbags  shall  be  installed in accordance with
    20  recognized automotive recycling standards.
    21    (f) All records required under this section must be maintained  for  a
    22  minimum  of  five  years  following the transaction and may be inspected
    23  during normal business hours by any police  officer,  peace  officer  or
    24  representative of the commissioner.
    25    (g) Upon request, information within a portion of such record pertain-
    26  ing  to  a  specific transaction must be provided to the insurer and the
    27  vehicle owner.
    28    (h) Persons engaged in the business of selling recycled airbags  shall
    29  comply with all applicable terms of a protocol established by a national
    30  certifying  entity.  Such protocol shall be approved by the commissioner
    31  which shall include: (i) identification of the  supplier  of  the  unit;
    32  (ii)  identification  of  the recipient vehicle, including vehicle iden-
    33  tification number, year, make and model;  (iii)  identification  of  the
    34  airbag  module cover color and color code if available; (iv) identifica-
    35  tion of the donor  vehicle,  including  vehicle  identification  number,
    36  year,  make  and  model; (v) supplier's internal stock number or locator
    37  number; (vi) indication of source  of  interchange  information,  inter-
    38  change  manual/part  number  or original equipment manufacturer informa-
    39  tion; (vii) a supplier certificate indicating that all the  requirements
    40  of the inspection protocol have been successfully achieved and identify-
    41  ing  the person who completed the inspection; (viii) a document contain-
    42  ing the vehicle description including the year, make and model for which
    43  the airbag system component is required when being sold to the end-user;
    44  and (ix) all other applicable requirements set forth in such protocol.
    45    (i) Recycled airbags conforming to such standards shall be accompanied
    46  by a certificate of conformance which shall be retained by  the  instal-
    47  ler.
    48    (j) Any person who fails to maintain complete and accurate records, to
    49  prepare  complete  and  accurate  documents, to provide information from
    50  such record upon request of the department or any other regulatory body,
    51  or to properly disclose that an airbag is recycled, as required by  this
    52  subdivision shall be guilty of a misdemeanor.
    53    4.  (a)  No  person shall knowingly possess, sell, or install a stolen
    54  airbag; an airbag from which the  manufacturer's  part  number  labeling
    55  and/or  vehicle  identification  number  has  been  removed,  altered or
    56  defaced; or an airbag taken from a stolen motor vehicle.

        A. 443                              4
 
     1    (b) Any person who violates this subdivision  shall  be  guilty  of  a
     2  class D felony.
     3    5.  Any  vehicle  accident report that is filed by the appropriate law
     4  enforcement agency shall clearly contain a notation as  to  whether  the
     5  automobile's  airbag or inflatable restraint system had been deployed in
     6  the accident.
     7    6. (a) Any person selling or trading a motor vehicle  who  has  actual
     8  knowledge that the motor vehicle's airbag is inoperable shall notify the
     9  buyer  or the person acquiring the trade, in writing, that the airbag is
    10  inoperable.
    11    (b) A person who knowingly violates the provisions of this subdivision
    12  shall be guilty of a class A misdemeanor.
    13    7. The provisions of this section shall not apply to the sale or trade
    14  of a motor vehicle: (a) visibly containing a deployed airbag;  (b)  sold
    15  by  an  insurance company that acquired the vehicle in connection with a
    16  claim settlement; or (c) the sale of which is handled by a company,  the
    17  primary  business of which is the sale of vehicles from insurance compa-
    18  nies and which makes no sales to end users.
    19    8. In addition to any requirement  set  forth  in  this  section,  any
    20  person  who  removes,  stores, transports or installs a recycled airbag,
    21  shall do so in accordance with the applicable terms of a protocol estab-
    22  lished by a national certifying entity. Such protocol shall be  approved
    23  by the commissioner in consultation with the superintendent of financial
    24  services.
    25    §  5.  If any clause, sentence, paragraph, section or part of this act
    26  shall be adjudged by any court of competent jurisdiction to  be  invalid
    27  and  after  all  further judicial review, the judgment shall not affect,
    28  impair or invalidate the remainder thereof, but shall be confined in its
    29  operation to the clause, sentence, paragraph, section or  part  of  this
    30  act  directly  involved  in  the controversy in which the judgment shall
    31  have been rendered.
    32    § 6. This act shall take effect on the one hundred eightieth day after
    33  it shall have become a law; provided, however, that any  rule  or  regu-
    34  lation  necessary  for its implementation may be immediately promulgated
    35  by the commissioner of motor vehicles.
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