Have you consulted the engineering practice act for your state?
The change in law that your friend reported would be a great departure from previous practice. I suggest you consult the engineering practice law for your state about that.
May I assume that you have made your case to your company, but they are unresponsive?
If the company's actions endanger others, you do have a responsibility to report the issue. In considering how best to do that, I recommend consulting the IEEE Guidelines for Engineers Dissenting on Ethical Grounds, which you can find at the top of the "Additional Resources" linked at the bottom of the menu on the left of this Web page.
I hope that helps.