NY State Senate Bill 2015-S7628

Archive: Last Bill Status - In Senate Committee Transportation Committee

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 11, 2016	referred to transportation

2015-S7628 (ACTIVE) - Details

See Assembly Version of this Bill:: A5080
Current Committee:: Senate Transportation
Law Section:: Vehicle and Traffic Law
Laws Affected:: Rpld §398-d sub 6 ¶(e), amd §415-c, add §415-d, V & T L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S5156
2013-2014: S3779, A9730
2017-2018: A443
2019-2020: A236
2021-2022: A3449

2015-S7628 (ACTIVE) - Summary

Creates procedures for motor vehicle airbag safety.

2015-S7628 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S7628

 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
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 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 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
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
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.

2015-S7628 (ACTIVE) - Bill Text download pdf

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

                                  7628

                            I N  S E N A T E

                              May 11, 2016
                               ___________

Introduced  by  Sen.  O'MARA -- 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 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:

  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, as added by chapter
161 of the laws of 1996, subdivision 2 as amended by chapter 78  of  the
laws of 1998, and subdivisions 1 and 2 as further amended by section 104
of  part  A  of  chapter  62  of the laws of 2011, is amended to read as
follows:
  S 415-c. [Sale] TRACKING of salvaged  inflatable  restraint  systems[;
restrictions.  1].  On and after January first, nineteen hundred ninety-
seven, prior to offering any salvaged inflatable  restraint  system  for
sale,  such  salvaged inflatable restraint system part [indentification]
IDENTIFICATION number and the vehicle identification number of the vehi-
cle from which the salvaged inflatable restraint system was taken, shall
be referred to a nationally recognized theft index  bureau  approved  by
the  commissioner,  in consultation with the superintendent of financial
services, for the purposes of determining prior to sale that neither the
salvaged inflatable restraint system nor the motor  vehicle  [were]  WAS
stolen,  as  determined  at the time of inquiry. The sales invoice shall
state the date and the result of the inquiry to such theft index bureau.
  [2. On and after March first, nineteen hundred ninety-nine,  prior  to
offering any salvaged inflatable restraint system for sale such salvaged

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

                                                           LBD06045-01-5

S. 7628                             2

inflatable  restraint  system  shall be certified according to standards
established by a nationally recognized testing, engineering and research
body approved by the commissioner in consultation with  the  superinten-
dent of financial services.]
  S  4.  The  vehicle and traffic law is amended by adding a new section
415-d to read as follows:
  S 415-D.  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
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,
LIMITED LIABILITY COMPANY, UNINCORPORATED ASSOCIATION OR OTHER ENTITY.
  (D)  "RECYCLED AIRBAG" SHALL MEAN AN ORIGINAL EQUIPMENT MANUFACTURER'S
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; 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.

S. 7628                             3

  (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 SHALL BE A REGISTERED VEHI-
CLE DISMANTLER, PURSUANT TO SECTION FOUR HUNDRED FIFTEEN-A OF THIS ARTI-
CLE, AND MUST DISCLOSE TO THE PURCHASER OR VEHICLE OWNER THAT THE AIRBAG
IS RECYCLED AND HAS BEEN INSPECTED IN ACCORDANCE WITH RECOGNIZED AUTOMO-
TIVE RECYCLING STANDARDS.
  (E) THE PERSON WHO INSTALLS A NEW OR RECYCLED AIRBAG MUST BE  A  MOTOR
VEHICLE  REPAIR  SHOP  REGISTERED  PURSUANT  TO ARTICLE TWELVE-A OF THIS
CHAPTER AND SHALL SUBMIT AN AFFIDAVIT TO  THE  VEHICLE  OWNER  OR  THEIR
REPRESENTATIVE  STATING  THAT  THE  REPLACEMENT AIRBAG HAS BEEN PROPERLY
INSTALLED.   RECYCLED AIRBAGS SHALL  BE  INSTALLED  IN  ACCORDANCE  WITH
RECOGNIZED AUTOMOTIVE RECYCLING STANDARDS.
  (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.
  (H)  PERSONS ENGAGED IN THE BUSINESS OF SELLING RECYCLED AIRBAGS SHALL
COMPLY WITH ALL APPLICABLE TERMS OF A PROTOCOL ESTABLISHED BY A NATIONAL
CERTIFYING ENTITY. SUCH PROTOCOL SHALL BE APPROVED BY  THE  COMMISSIONER
WHICH  SHALL  INCLUDE:  (I)  IDENTIFICATION OF THE SUPPLIER OF THE UNIT;
(II) IDENTIFICATION OF THE RECIPIENT VEHICLE,  INCLUDING  VEHICLE  IDEN-
TIFICATION  NUMBER,  YEAR,  MAKE  AND MODEL; (III) IDENTIFICATION OF THE
AIRBAG MODULE COVER COLOR AND COLOR CODE IF AVAILABLE; (IV)  IDENTIFICA-
TION  OF  THE  DONOR  VEHICLE,  INCLUDING VEHICLE IDENTIFICATION NUMBER,
YEAR, MAKE AND MODEL; (V) SUPPLIER'S INTERNAL STOCK  NUMBER  OR  LOCATOR
NUMBER;  (VI)  INDICATION  OF  SOURCE OF INTERCHANGE INFORMATION, INTER-
CHANGE MANUAL/PART NUMBER OR ORIGINAL  EQUIPMENT  MANUFACTURER  INFORMA-
TION;  (VII) A SUPPLIER CERTIFICATE INDICATING THAT ALL THE REQUIREMENTS
OF THE INSPECTION PROTOCOL HAVE BEEN SUCCESSFULLY ACHIEVED AND IDENTIFY-
ING THE PERSON WHO COMPLETED THE INSPECTION; (VIII) A DOCUMENT  CONTAIN-
ING THE VEHICLE DESCRIPTION INCLUDING THE YEAR, MAKE AND MODEL FOR WHICH
THE AIRBAG SYSTEM COMPONENT IS REQUIRED WHEN BEING SOLD TO THE END-USER;
AND (IX) ALL OTHER APPLICABLE REQUIREMENTS SET FORTH IN SUCH PROTOCOL.
  (I) RECYCLED 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 VEHICLE  IDENTIFICATION  NUMBER  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.

S. 7628                             4

  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.
  7. 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.
  8.  IN  ADDITION  TO  ANY  REQUIREMENT  SET FORTH IN THIS SECTION, ANY
PERSON WHO REMOVES, STORES, TRANSPORTS OR INSTALLS  A  RECYCLED  AIRBAG,
SHALL DO SO IN ACCORDANCE WITH THE APPLICABLE TERMS OF A PROTOCOL ESTAB-
LISHED  BY A NATIONAL CERTIFYING ENTITY. SUCH PROTOCOL SHALL BE APPROVED
BY THE COMMISSIONER IN CONSULTATION WITH THE SUPERINTENDENT OF FINANCIAL
SERVICES.
  S 5. 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 6. 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.

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Senate Bill S7628

Sponsored By

Archive: Last Bill Status - In Senate Committee Transportation Committee

2015-S7628 (ACTIVE) - Details

2015-S7628 (ACTIVE) - Summary

2015-S7628 (ACTIVE) - Sponsor Memo

2015-S7628 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7628

Share this bill

Sponsored By

Thomas F. O'Mara

Archive: Last Bill Status - In Senate Committee Transportation Committee

2015-S7628 (ACTIVE) - Details

2015-S7628 (ACTIVE) - Summary

2015-S7628 (ACTIVE) - Sponsor Memo

2015-S7628 (ACTIVE) - Bill Text download pdf

Comments