NC S589

Defines "counterfeit supplemental restraint system component" as a replacement air bag displaying a mark identical or substantially similar to a genuine manufacturer mark without authorization.

Defines "nonfunctional air bag" as a replacement air bag that is previously deployed or damaged, has electrical faults detected by diagnostic systems, includes misleading components, or is prohibited under 49 U.S.C. § 30120(j).

Makes it unlawful to knowingly import, manufacture, sell, offer for sale, distribute, install, or reinstall counterfeit supplemental restraint system components or nonfunctional air bags that cause a vehicle to fail federal safety standards.

Elevates the violation from a Class 1 misdemeanor to a Class H felony and establishes violations as unfair and deceptive trade practices under G.S. 75-1.1.

Prohibits transferring a motor vehicle when the transferor knows a counterfeit supplemental restraint system, nonfunctional air bag, or no air bag has been installed, with exceptions for automotive dealers, repair professionals, recyclers, manufacturers, and contractors disposing of such components in accordance with law.

Becomes effective December 1, 2019, for offenses committed on or after that date.