House committee substitute to the 1st edition makes the following changes.

Amends GS 20-71.4 further by adding that if the owners of a franchised motor vehicle dealer have no actual knowledge that a counterfeit supplemental restraint system, or a nonfunctional airbag has been installed in a vehicle, knowledge by any other person will not be imputed to the dealer or its owners and the dealer or its owners are not deemed to have committed an unlawful act under new (a)(3).

Amends GS 20-136.2 to make it illegal to knowingly import, manufacture, sell, offer for sale, distribute, install, or reinstall a counterfeit supplemental restraint system or nonfunctional airbag in any motor vehicle, or other component device that causes a motor vehicle to fail to meet federal motor vehicle safety standards (was, any device intended to replace a supplemental restraint system component in any motor vehicle if the device is a counterfeit component, nonfunctional airbag, or causes a vehicle to fail to meet federal motor vehicle safety standards). Violations are a Class 1 misdemeanor and constitute an unfair and deceptive trade practice. Violations that contribute to a person's physical injury or death, are a Class H felony (in the previous edition, all violations were a Class H felony). Adds that if a franchised motor vehicle dealer or its owners have no actual knowledge that a counterfeit supplemental restraint system, nonfunctional airbag, or other component device has been imported, manufactured, sold, offered for sale, installed, or reinstalled in lieu of a supplemental restraint system component at the dealer's place of business or elsewhere, knowledge by any other person will not be imputed to the dealer or its owners and the dealer or its owners are not deemed to have committed an unlawful act and will not have criminal liability. 

Changes the effective date of the act to October (was, December) 1, 2019.