WI SB537

Prohibits importing, manufacturing, selling, offering for sale, installing, reinstalling, or distributing nonfunctional or counterfeit airbags in Wisconsin

Defines "nonfunctional airbag" as one that was previously deployed or damaged, has an electric fault detected by vehicle diagnostics, contains parts intended to mislead owners into believing a functional airbag is installed, or is prohibited from sale under federal law

Defines "counterfeit airbag" as a replacement airbag displaying an unauthorized mark substantially similar to an original equipment manufacturer or genuine parts supplier

Establishes tiered penalties: first offense up to $5,000 fine and/or 1 year in county jail; second or subsequent offense is a Class I felony; violations causing bodily harm (Class H felony), great bodily harm (Class G felony), or death (Class F felony) carry increasingly severe penalties

Exempts police vehicles, dealership owners/employees and vehicle owners without knowledge of counterfeit or nonfunctional airbags before sale, and insurance companies or salvage yards disposing of vehicles as authorized by law