S5156-2011 Actions

• Jan 4, 2012: REFERRED TO TRANSPORTATION
• May 3, 2011: REFERRED TO TRANSPORTATION

S5156-2011 Memo

BILL NUMBER:S5156

TITLE OF BILL:

An act
to amend the vehicle and traffic law, in relation to airbag safety; and
to repeal certain provisions of such law relating thereto

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
unsatisfactory 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 D 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 installation 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 misdemeanor. 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 if any portion of this section is deemed
invalid, the rest shall remain in full force and effect.

Section 5 establishes a 180 day effective date, subject to immediate
regulatory promulgation.

JUSTIFICATION:

This bill is needed to ensure that consumers are not subject to
fraudulent 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 of 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, Buick 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:


2010: S.8024 - Referred to Transportation Committee

EFFECTIVE DATE:
180 days after enactment.

S5156-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    5156

                         2011-2012 Regular Sessions

                              I N  SENATE

                                 May 3, 2011
                                 ___________

  Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
    printed to be committed to the Committee on Transportation

  AN ACT to amend the vehicle and traffic law, in relation to airbag safe-
    ty; and to repeal certain provisions of such law relating thereto

    THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section  1.  Legislative  intent.  The  legislature  finds that airbag
  system fraud is a public safety concern for both consumers and the  auto
  insurance  industry  and  that  efforts  to address this serious risk to
  consumers have been piecemeal, rather than coordinate, and that  compre-
  hensive  coordinated  legislation  is necessary to protect consumers and
  insure the integrity of vehicle restraint systems.
    S 2. Paragraph (e) of subdivision 6 of section 398-d  of  the  vehicle
  and traffic law is REPEALED.
    S  3.  Section  415-c of the vehicle and traffic law is REPEALED and a
  new section 415-c is added to read as follows:

    S 415-C.  SALE  AND  INSTALLATION  OF  RECYCLED  INFLATABLE  RESTRAINT
  SYSTEMS;  RESTRICTIONS.  1.  FOR  PURPOSES OF THIS SECTION THE FOLLOWING
  TERMS SHALL HAVE THE FOLLOWING MEANINGS:

    (A) THE TERM "AIRBAG" SHALL MEAN ANY COMPONENT OF AN INFLATABLE  OCCU-
  PANT RESTRAINT SYSTEM THAT IS DESIGNED IN ACCORDANCE WITH FEDERAL SAFETY
  REGULATIONS  FOR  THE  MAKE,  MODEL,  AND  YEAR  OF  THE  VEHICLE  TO BE
  INSTALLED, OPERATE, AND ACTIVATE IN A MOTOR VEHICLE AS SPECIFIED BY  THE
  VEHICLE  MANUFACTURER,  IN  THE  EVENT  OF  A  CRASH.  AIRBAG COMPONENTS
  INCLUDE, BUT ARE NOT LIMITED TO SENSORS, CONTROLLERS,  WIRING,  AND  THE
  AIRBAG ITSELF.
    (B)  THE  TERM  "LIGHT  MANIPULATING SYSTEM" MEANS ANYTHING THAT WOULD
  MASK OR CAUSE THE INACCURATE INDICATION OF  THE  AIRBAG  SYSTEM  STATUS,
  CONDITION, OR OPERABILITY.
    (C)  "PERSON" SHALL MEAN ANY NATURAL PERSON, CORPORATION, PARTNERSHIP,
  UNINCORPORATED ASSOCIATION, OR OTHER ENTITY.

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD01855-03-1

 S. 5156                             2

    (D) "RECYCLED AIRBAG" SHALL MEAN AN OEM NON-DEPLOYED AIRBAG  THAT  HAS
  BEEN REMOVED FROM A VEHICLE FOR USE IN ANOTHER VEHICLE.
    2. (A) NO PERSON SHALL: (I) INSTALL OR REINSTALL, AS PART OF A VEHICLE
  INFLATABLE  OCCUPANT  RESTRAINT SYSTEM, ANY OBJECT OTHER THAN AN AIRBAG;
  (II) SELL OR OFFER FOR SALE ANY DEVICE WITH THE INTENT THAT SUCH  DEVICE
  WILL  REPLACE  AN  AIRBAG  IN  ANY MOTOR VEHICLE IF SUCH PERSON KNOWS OR
  REASONABLY SHOULD KNOW THAT SUCH DEVICE DOES  NOT  MEET  FEDERAL  SAFETY
  REQUIREMENTS;  (III)  SELL  OR  OFFER  FOR  SALE  ANY  DEVICE  THAT WHEN
  INSTALLED IN ANY MOTOR VEHICLE GIVES THE IMPRESSION THAT A VIABLE AIRBAG
  IS INSTALLED IN THE VEHICLE, INCLUDING ANY LIGHT MANIPULATING SYSTEM; OR
  (IV) INTENTIONALLY MISREPRESENT THE PRESENCE OF AN AIRBAG WHEN ONE  DOES
  NOT EXIST.
    (B)  ANY PERSON FOUND TO HAVE VIOLATED THE PROVISIONS OF THIS SUBDIVI-
  SION SHALL BE GUILTY OF A MISDEMEANOR,  AND,  UPON  CONVICTION  THEREOF,
  SHALL  BE  PUNISHED BY A FINE OF UP TO TWO THOUSAND FIVE HUNDRED DOLLARS
  PER VIOLATION AND/OR BY IMPRISONMENT FOR UP TO ONE HUNDRED EIGHTY DAYS.
    (C) ANY PERSON WHO VIOLATES THE PROVISIONS OF THIS  SUBDIVISION  WHOSE
  VIOLATION RESULTS IN SERIOUS BODILY INJURY OR DEATH SHALL BE GUILTY OF A
  CLASS D FELONY.
    3.  (A)  ANY PERSON ENGAGED IN THE BUSINESS OF PURCHASING, SELLING, OR
  INSTALLING RECYCLED AIRBAGS SHALL MAINTAIN A MANUAL OR ELECTRONIC RECORD
  OF THE PURCHASE, SALE, OR INSTALLATION, WHICH MUST INCLUDE THE IDENTIFI-
  CATION NUMBER OF THE AIRBAG; THE VEHICLE IDENTIFICATION  NUMBER  OF  THE
  VEHICLE  FROM  WHICH THE RECYCLED AIRBAG WAS REMOVED; THE NAME, ADDRESS,
  AND DRIVER'S LICENSE NUMBER OR OTHER  MEANS  OF  IDENTIFICATION  OF  THE
  PERSON  FROM  WHOM  THE RECYCLED AIRBAG WAS PURCHASED; AND, IN THE EVENT
  THAT THE RECYCLED AIRBAG IS INSTALLED, THE VEHICLE IDENTIFICATION NUMBER
  OF THE VEHICLE INTO WHICH THE AIRBAG IS INSTALLED.
    (B) NO NEW OR RECYCLED AIRBAG SHALL BE SOLD OR INSTALLED WHICH  IS  OR
  HAS BEEN SUBJECT TO A SPECIFIC MANUFACTURER'S OR APPROPRIATE AUTHORITY'S
  NOTICE OF RECALL.
    (C) (I) IN THE CASE OF A NEW REPLACEMENT AIRBAG, ANY PERSON ENGAGED IN
  INSTALLING  ANY  AIRBAG  SHALL  MAINTAIN THE NAME AND TAX IDENTIFICATION
  NUMBER OF THE SUPPLIER OF THE AIRBAG AND RECORD THE VEHICLE  IDENTIFICA-
  TION  NUMBER  OF THE VEHICLE INTO WHICH THE AIRBAG IS INSTALLED, AS WELL
  AS THE IDENTIFICATION NUMBER OF THE AIRBAG BEING INSTALLED.
    (II) THE AIRBAG  IDENTIFICATION  NUMBER  OF  THE  PREVIOUSLY  DEPLOYED
  AIRBAG BEING REPLACED SHALL BE RECORDED.
    (III)  UPON  ANY REQUEST OF A LAW ENFORCEMENT OFFICER OF THIS STATE OR
  OTHER AUTHORIZED REPRESENTATIVE OF  THE  AGENCY  CHARGED  WITH  ADMINIS-
  TRATION  OF  THIS  SECTION, THE INSTALLER SHALL PRODUCE SUCH RECORDS AND
  PERMIT SAID AGENT OR POLICE OFFICER TO EXAMINE THEM.
    (D) ANY PERSON WHO SELLS A RECYCLED AIRBAG OR WHO INSTALLS A  RECYCLED
  AIRBAG  MUST  DISCLOSE TO THE PURCHASER OR VEHICLE OWNER THAT THE AIRBAG
  IS RECYCLED.
    (E) THE PERSON WHO INSTALLS A NEW OR RECYCLED AIRBAG SHALL  SUBMIT  AN
  AFFIDAVIT  TO THE VEHICLE OWNER OR THEIR REPRESENTATIVE STATING THAT THE
  REPLACEMENT AIRBAG HAS BEEN PROPERLY INSTALLED.
    (F) ALL RECORDS REQUIRED UNDER THIS SECTION MUST BE MAINTAINED  FOR  A
  MINIMUM  OF  FIVE  YEARS  FOLLOWING THE TRANSACTION AND MAY BE INSPECTED
  DURING NORMAL BUSINESS HOURS BY ANY POLICE  OFFICER,  PEACE  OFFICER  OR
  REPRESENTATIVE OF THE COMMISSIONER.
    (G) UPON REQUEST, INFORMATION WITHIN A PORTION OF SUCH RECORD PERTAIN-
  ING  TO  A  SPECIFIC TRANSACTION MUST BE PROVIDED TO THE INSURER AND THE
  VEHICLE OWNER.

 S. 5156                             3

    (H) PERSONS ENGAGED IN THE BUSINESS OF SELLING RECYCLED AIRBAGS  SHALL
  COMPLY  WITH  REGULATIONS  DEVELOPED  BY  THE  COMMISSIONER  WHICH SHALL
  INCLUDE BUT NOT BE LIMITED TO: (I) IDENTIFICATION OF THE SUPPLIER OF THE
  UNIT; (II) IDENTIFICATION OF THE RECIPIENT VEHICLE, INCLUDING VIN, YEAR,
  MAKE,  AND  MODEL; (III) IDENTIFICATION OF THE AIRBAG MODULE COVER COLOR
  AND COLOR CODE IF AVAILABLE; (IV) IDENTIFICATION OF THE  DONOR  VEHICLE,
  INCLUDING  VIN,  YEAR,  MAKE,  AND  MODEL; (V) SUPPLIER'S INTERNAL STOCK
  NUMBER OR LOCATOR NUMBER;  (VI)  INDICATION  OF  SOURCE  OF  INTERCHANGE
  INFORMATION,  INTERCHANGE  MANUAL/PART  NUMBER,  OR  OEM  INFO;  (VII) A
  SUPPLIER  CERTIFICATE  INDICATING  THAT  ALL  THE  REQUIREMENTS  OF  THE
  INSPECTION  PROTOCOL HAVE BEEN SUCCESSFULLY ACHIEVED AND IDENTIFYING THE
  PERSON WHO COMPLETED THE INSPECTION; AND (VIII)  A  DOCUMENT  CONTAINING
  THE  VEHICLE  DESCRIPTION  INCLUDING THE YEAR, MAKE, AND MODEL FOR WHICH
  THE AIRBAG SYSTEM COMPONENT IS REQUIRED WHEN BEING SOLD TO THE END-USER.
    (I) SALVAGE AIRBAGS CONFORMING TO SUCH STANDARDS SHALL BE  ACCOMPANIED
  BY  A  CERTIFICATE OF CONFORMANCE WHICH SHALL BE RETAINED BY THE INSTAL-
  LER.
    (J) ANY PERSON WHO FAILS TO MAINTAIN COMPLETE AND ACCURATE RECORDS, TO
  PREPARE COMPLETE AND ACCURATE DOCUMENTS,  TO  PROVIDE  INFORMATION  FROM
  SUCH RECORD UPON REQUEST OF THE DEPARTMENT OR ANY OTHER REGULATORY BODY,
  OR  TO PROPERLY DISCLOSE THAT AN AIRBAG IS RECYCLED, AS REQUIRED BY THIS
  SUBDIVISION SHALL BE GUILTY OF A MISDEMEANOR.
    4. (A) NO PERSON SHALL KNOWINGLY POSSESS, SELL, OR  INSTALL  A  STOLEN
  AIRBAG;  AN  AIRBAG  FROM  WHICH THE MANUFACTURER'S PART NUMBER LABELING
  AND/OR VIN HAS BEEN REMOVED, ALTERED, OR DEFACED;  OR  AN  AIRBAG  TAKEN
  FROM A STOLEN MOTOR VEHICLE.
    (B)  ANY  PERSON  WHO  VIOLATES  THIS SUBDIVISION SHALL BE GUILTY OF A
  CLASS D FELONY.
    5. ANY VEHICLE ACCIDENT REPORT THAT IS FILED BY  THE  APPROPRIATE  LAW
  ENFORCEMENT  AGENCY  SHALL  CLEARLY CONTAIN A NOTATION AS TO WHETHER THE
  AUTOMOBILE'S AIRBAG OR INFLATABLE RESTRAINT SYSTEM HAD BEEN DEPLOYED  IN
  THE ACCIDENT.
    6.  (A)  ANY  PERSON SELLING OR TRADING A MOTOR VEHICLE WHO HAS ACTUAL
  KNOWLEDGE THAT THE MOTOR VEHICLE'S AIRBAG IS INOPERABLE SHALL NOTIFY THE
  BUYER OR THE PERSON ACQUIRING THE TRADE, IN WRITING, THAT THE AIRBAG  IS
  INOPERABLE.
    (B) A PERSON WHO KNOWINGLY VIOLATES THE PROVISIONS OF THIS SUBDIVISION
  SHALL BE GUILTY OF A CLASS A MISDEMEANOR.
    THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO THE SALE OR TRADE OF
  A  MOTOR  VEHICLE: (A) VISIBLY CONTAINING A DEPLOYED AIRBAG; (B) SOLD BY
  AN INSURANCE COMPANY THAT ACQUIRED THE  VEHICLE  IN  CONNECTION  WITH  A
  CLAIM  SETTLEMENT; OR (C) THE SALE OF WHICH IS HANDLED BY A COMPANY, THE
  PRIMARY BUSINESS OF WHICH IS THE SALE OF VEHICLES FROM INSURANCE  COMPA-
  NIES AND WHICH MAKES NO SALES TO END USERS.
    S  4.  If any clause, sentence, paragraph, section or part of this act
  shall be adjudged by any court of competent jurisdiction to  be  invalid
  and  after  all  further judicial review, the judgment shall not affect,
  impair or invalidate the remainder thereof, but shall be confined in its
  operation to the clause, sentence, paragraph, section or  part  of  this
  act  directly  involved  in  the controversy in which the judgment shall
  have been rendered.
    S 5. This act shall take effect on the one hundred eightieth day after
  it shall have become a law; provided, however, that any  rule  or  regu-
  lation  necessary  for its implementation may be immediately promulgated
  by the commissioner of motor vehicles.