THE SENATE	S.B. NO.	2022
TWENTY-FIFTH LEGISLATURE, 2010		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO MOTOR VEHICLES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that airbag system fraud is a public safety concern for consumers and the motor vehicle insurance industry.  The purpose of this Act is to:

     (1)  Establish criminal penalties for fraudulent installation or reinstallation of an airbag, with more severe penalties for airbag fraud that results in serious injury or death;

     (2)  Require that any person engaged in the business of purchasing, selling, or installing airbags maintain detailed records of airbags they purchase, sell, or install;

     (3)  Mandate that any person engaged in the business of installing an airbag submit an affidavit to vehicle owners confirming the proper installation of airbags;

     (4)  Establish that police accident reports shall note whether an airbag deployed; and

     (5)  Provide that a person trading or selling a motor vehicle shall disclose whether an airbag is inoperable.

     SECTION 2.  The Hawaii Revised Statutes is amended by adding a new chapter to title 26 to be appropriately designated and to read as follows:

"Chapter

MOTOR VEHICLE AIRBAG FRAUD

§   -1  Definitions.  As used in this chapter:

     "Airbag" means any component of an inflatable occupant restraint system that is designed in accordance with federal safety regulations to be installed and to operate in a motor vehicle to activate, 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.

     "Light manipulating system" means anything that masks or causes the inaccurate indication of the airbag system status, condition, or operability.

     "Person" means any natural person, corporation, partnership, unincorporated association, or other entity.

     "Salvaged airbag" means an original equipment manufacturer non-deployed airbag that has been removed from one motor vehicle for use in another motor vehicle.

§   -2  Installation or reinstallation of any false airbag; deceptive trade practices; criminal liability.  (a)  It is a deceptive trade practice for any person to:

     (1)  Install or reinstall, as part of an inflatable vehicle occupant restraint system, any object other than an airbag, including any light manipulating system;

     (2)  Sell or offer for sale any device with the intent that the device will replace an airbag in any motor vehicle if the person knows or reasonably should know that the device does not meet federal safety requirements;

     (3)  Sell or offer for sale any device, including any light manipulating system, that when installed in a motor vehicle gives the impression that a viable airbag is installed in that vehicle; or

     (4)  Intentionally misrepresent the presence of an airbag in a vehicle when one does not exist.

     (b)  Violation of this section is a class C felony.

     (c)  For a conviction under this section, the sentence shall be:

     (1)  For a violation of subsection (a)(1) that results in serious bodily injury or death:

         (A)  An indeterminate term of imprisonment for not more than        years;

         (B)  A fine of not more than $          ; or

         (C)  Both; and

     (2)  For all other violations of this section:

         (A)  An indeterminate term of imprisonment for not more than        years;

         (B)  A fine of not more than $          ; or

         (C)  Both.

§   -3  Purchase, sale, or installation of new airbag; records.  (a)  In the case of a new replacement airbag, any person engaged in installing an airbag shall maintain a record of:

     (1)  The name and tax identification number of the supplier of the airbag; 

     (2)  The vehicle identification number of the vehicle into which the airbag is installed;

     (3)  The identification number of the airbag being installed; and

     (4)  The airbag identification number of the previously deployed airbag being replaced.

     (b)  Any person who installs a new airbag shall submit an affidavit or a repair invoice that includes the parts number of the installed airbag to the vehicle owner or the vehicle owner's representative confirming that the replacement airbag has been properly installed.

     (c)  All records required by this section shall be maintained for not less than five years and may be inspected upon request during normal business hours by any law enforcement officer of this State or an authorized representative of the department of commerce and consumer affairs.

     Upon request by the vehicle insurer or vehicle owner, information within a portion of the records required by this section pertaining to a specific transaction shall be provided to the vehicle insurer and the vehicle owner.

     (d)  The department of commerce and consumer affairs shall adopt rules in accordance with chapter 91 to carry out the purposes of this section. 

§   -4  Installation of salvaged airbags prohibited.  Installation or reinstallation, as part of a vehicle occupant restraint system, of a salvaged airbag is prohibited.  Violation of this section is a                . 

§   -5  Prohibitions; penalties.  (a)  It is unlawful for any person to knowingly possess, sell, or install:

     (1)  A stolen airbag;

     (2)  An airbag from which the manufacturer's part number labeling or vehicle identification number has been removed, altered, or defaced; or

     (3)  An airbag taken from a stolen motor vehicle.

Violation of this subsection is a class C felony.

     (b)  Failure to maintain complete and accurate records, prepare complete and accurate documents, or provide information from the record upon request as required by this chapter, is a misdemeanor.

     (c)  Violation of any provision of this chapter for which a separate penalty is not otherwise provided, shall be a misdemeanor.

§   -6  Accidents; police report.  Any traffic accident report required under chapter 291C shall clearly contain a notation as to whether the motor vehicle's airbag or inflatable restraint system had been deployed in the accident.

§   -7  Sale or trade of motor vehicle with an inoperable airbag.  (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)  Violation of this section shall be a deceptive trade practice and the violator shall be subject to the penalties under section    -2."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 4.  This Act shall take effect upon its approval.

Report Title:

Motor Vehicles; Airbag Fraud

Description:

Establishes criminal penalties for fraudulent installation or reinstallation of an airbag.  Requires that any person engaged in the business of purchasing, selling, or installing an airbag maintain detailed records of airbags they purchase, sell, or install.  Mandates that any person engaged in the business of installing an airbag submit an affidavit to a vehicle owner saying that an airbag was installed properly.  Prohibits the installation or reinstallation of a salvaged airbag.  Establishes that police accident reports must note whether an airbag deployed. Requires that a person trading or selling a motor vehicle must disclose whether an airbag is inoperable.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.