Relating to: nonfunctional and counterfeit airbags and providing a penalty.

SB 537 prohibits the sale, installation, or distribution of nonfunctional airbags (deployed, faulty, or misleading replacements) and counterfeit airbags (unauthorized imitations of original parts). It defines these terms clearly and applies to dealers, mechanics, and sellers who must ensure airbags meet safety standards. Violations carry fines up to $5,000 or up to one year in jail, with felony charges for repeat offenses or cases causing injury or death. The law includes limited exemptions for police vehicles, dealers without knowledge of issues, and insurance-related vehicle transfers.