|SAME AS||No Same As|
|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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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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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. LBD04738-01-7A. 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 to4 offering any salvaged inflatable restraint system for sale such salvaged5 inflatable restraint system shall be certified according to standards6 established by a nationally recognized testing, engineering and research7 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 identificationA. 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.