NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5080
SPONSOR: Stirpe (MS) TITLE OF BILL: An act to amend the vehicle and traffic law, in
relation to airbag safety; 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
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
180 days after enactment.
