Add Art 12-E §399-u, §415-d, amd §301, V & T L; amd §§69-e, 69-g & 69-i, ren §69-h to be §69-i, add §§69-h &
69-j, Gen Bus L; amd §2336, Ins L
Imposes certain restrictions on catalytic converters; requires all vehicle catalytic converters to be indelibly marked or engraved with a readily observable unique serial number; provides a reduction in premium charges for certain motor vehicle liability, comprehensive and collision insurance rates with respect to automobiles equipped with a catalytic converter which contains such unique marking or engraving.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9056
SPONSOR: Buttenschon TITLE OF BILL:
An act to amend the vehicle and traffic law, the general business law
and the insurance law, in relation to imposing certain restrictions on
catalytic converters
PURPOSE OR GENERAL IDEA OF BILL:
To impose certain restrictions on catalytic converters
SUMMARY OF PROVISIONS:
Section 1 amends the Vehicle and Traffic Law to add a new article 12-E
provide that scrap catalytic converters may only be purchased by a scrap
processing facility or vehicle dismantling facility that has been duly
licensed by the Department of Motor Vehicles.
Section 2 amends subdivision (d) of section 301 of Vehicle and Traffic
Law to provide that the Commissioner of DMV shall establish and maintain
a catalytic converter record program.
Section 3 amends the Vehicle and Traffic Law by adding a new section
415-d requiring that no retail dealer shall sell a new or used vehicle
unless the vehicle has an etched catalytic converter.
Sections 4 amend section 69-e of the General Business Law to provide for
definitions used in this article.
Section 5 amends section 69-g of the general business law:
*establish uniform standards for the purchase of scrap material by a
scrap processing facility
*regulate the purchase of scrap catalytic converters by a scrap process-
ing facility
*prohibit the sale or purchase as scrap of any metal items bearing mark-
ings of any governmental entity, utility company, cemetery or railroad
unless such items are duly authorized for sale;
*require electronic record keeping;
*require the installation of security cameras;
* establish a uniform statewide operating and reporting requirements for
scrap processing facilities by preempting inconsistent provisions of
local laws; and
* Establish penalties for enforcement of the statute.
Section 6 section 69-h of the general business law is renumbered 69-i
and two sections 69-h and 69-j are added: 69-h - makes is illegal for a
scrap metal processing facility to purchase government scrap metal with-
out written authorization. 69-j - provides for a pre-emption of local
laws
Section 7 amends section 69-I of the general business law to provide for
penalties for violations of not more than $1000 and/or jail term of not
more than 15 days. For second violations within a two-year period, a
person may be charged with a misdemeanor and subject to fines of up to
$5,000 and jail term on no more than 1 year.
Section 8 amends section 2336 of the insurance law to allow for an
insurance reduction for policies on vehicles with etched catalytic
converters, similar to discounts for air bags, anti-lock brakes etc.
Section 9 - Provides for a January 1, 2023 effective date provided any
rules, regulations are authorized to be made and completed prior to the
effective date.
JUSTIFICATION:
A catalytic converter is an exhaust emission control device that reduces
toxic gases and pollutants in exhaust gas from an internal combustion
engine into less-toxic pollutants. It is considered one of the greatest
environmental inventions of all time. Catalytic converters have been
installed in vehicles since the 1970s and all vehicles are required to
have a catalytic converter by the US EPA.
Because of the external location and the use of valuable precious metals
including platinum, palladium and rhodium, catalytic converters are a
target for thieves. Rates of catalytic converter thefts have become more
common during the 2000s and particularly in 2020 due to high metal pric-
es. Bolt-on catalytic converters are especially easy to remove, but
welded-on converters are easily cut off with a theft taking two minutes
or less. The tools used to remove a catalytic converter can often damage
other components of 'the car, such as the alternator, wiring or fuel
lines leading to dangerous consequences. A catalytic converter can cost
thousands of dollars to replace and the amount increases (sometimes
greatly) if further damage was done to the vehicle in the process of
removing the converter.
Thieves often target parking lots; auto dealerships and auto repair
shops, though thefts from residents' driveways also occur. Catalytic
converters can be stolen in seconds and are not stamped with an identi-
fier, which makes these cases hard to solve. This legislation will deter
thieves from stealing catalytic converters in the first place by requir-
ing vehicle dismantlers and scrap processors keep a paper trail and
information on the Seller of a catalytic converter that law enforcement
may use in their investigations and will ensure consequences for those
caught stealing these vital pieces of environmental protection equip-
ment.
Additionally, the scrap recycling industry is vital to the State's
economic development. The scrap recycling industry in New York directly
provides 8,500 green jobs with an aggregate payroll of more than $500
million dollars. (Source: John Dunham Associates). Moreover, the scrap
processing industry is integral to the advancement of New York's envi-
ronmental sustainability agenda.
Provisions of the General Business Law that address scrap processing
facilities contain outdated requirements. This legislation updates and
clarifies these requirements to facilitate compliance, deter theft of
scrap material and provide enhanced protection of public health, safety
and the environment.
The cost of all commodities has significantly increased of late due to
pent-up demand as the nation emerges from the 'pause' associated with
the pandemic. This is particularly true with regard to scrap metal; in
fact, scrap copper has increased from around $3 / pound to nearly $5 /
pound in just the last few months. It is reasonable to expect a corre-
sponding increase in the theft of metal for sale as scrap. Recent media
coverage has also reported a sharp increase in the theft of catalytic
converters.
This bill will establish uniform standards to deter the crime of scrap
theft by requiring scrap recycling facilities to maintain video
surveil-lance at scales and points of sale. Penalties for the disregard
of these scrap theft deterrent measures are established to provide mean-
ingful enforcement.
A hodge-podge of inconsistent local laws variously imposing conflicting
operation and reporting requirements unnecessarily impedes the scrap
processing industry. This bill establishes a uniform reporting standard
to minimize the burden of companies that operate multiple scrap process-
ing facilities throughout the State.This limited preemption is consist-
ent with other recently enacted recycling laws, including the following:
ECL § 27-1701 Lead-acid batteries
ECL § 27-2305 Cell phones
ECL § 27-1811 Rechargeable batteries
ECL § 27-2619 Electronic Equipment {e-waste)
ECL § 27-2713 Plastic Bag and Film Plastic
The bill would prohibit the purchase by a scrap processor of certain
enumerated items unless the scrap material is accompanied by written
authorization from the generator of the scrap.
Lastly, the bill will increase penalties for violations of the General
Business Law pertaining to scrap processors. The bill also provides for
recovery of monies received by a violator of the provisions of General
Business Law in an amount not exceeding double the amount of the defend-
ant's gain from the commission of the offense
PRIOR LEGISLATIVE HISTORY:
2021 - 2022: A.10362 - referred to transportation
2022 Session - new bill
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None
EFFECTIVE DATE:
The bill would take effect January 1, 2024.
STATE OF NEW YORK
________________________________________________________________________
9056
IN ASSEMBLY
February 5, 2024
___________
Introduced by M. of A. BUTTENSCHON -- read once and referred to the
Committee on Transportation
AN ACT to amend the vehicle and traffic law, the general business law
and the insurance law, in relation to imposing certain restrictions on
catalytic converters
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The vehicle and traffic law is amended by adding a new
2 article 12-E to read as follows:
3 ARTICLE 12-E
4 CATALYTIC CONVERTERS
5 Section 399-u. Catalytic converters.
6 § 399-u. Catalytic converters. 1. For the purposes of this article the
7 following terms shall have the following meanings:
8 (a) "Catalytic converter" means an exhaust emission control device
9 which modifies exhaust gas from an internal combustion engine by cata-
10 lyzing a redox reaction.
11 (b) "Used or scrap catalytic converter" means a catalytic converter
12 that was previously installed in a vehicle and which has been removed
13 from such vehicle in whole or in part.
14 2. A used or scrap catalytic converter shall only be purchased or
15 otherwise accepted by an entity which is licensed as either a scrap
16 processor or as a vehicle dismantler pursuant to this chapter.
17 3. A scrap processor or vehicle dismantler which purchases one or more
18 used or scrap catalytic converters shall:
19 (a) Record the date of purchase, the name of the seller, and the sell-
20 er's residential or business address;
21 (b) Make and retain a copy of the government issued photographic iden-
22 tification card used to verify the identity of any natural person from
23 whom such used or scrap catalytic converters were purchased; and
24 (c) Record the unique identification number, if any, affixed to each
25 such used or scrap catalytic converter purchased from a seller.
26 § 2. Subdivision (d) of section 301 of the vehicle and traffic law is
27 amended by adding a new paragraph 5 to read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05183-02-4
A. 9056 2
1 (5) (a) The commissioner shall establish and maintain a catalytic
2 converter record program to enable a facility performing such
3 inspections pursuant to this section to:
4 (i) Indelibly mark or engrave a vehicle catalytic converter with a
5 readily observable unique serial number if such catalytic convert is not
6 already marked; and
7 (ii) Maintain a record of the make, model, vehicle type, vehicle iden-
8 tification number and the unique serial number marked, engraved or
9 otherwise affixed to each such catalytic converter.
10 (b) For the purposes of this paragraph the term "catalytic converter"
11 shall have the same meaning as defined in section three hundred ninety-
12 nine-u of this title.
13 § 3. The vehicle and traffic law is amended by adding a new section
14 415-d to read as follows:
15 § 415-d. Catalytic converter serial number requirements. No retail
16 dealer shall sell a new or used motor vehicle or parts of vehicles for
17 which a certificate of title has been issued by the commissioner or
18 which would be eligible to have such a certificate of title issued
19 unless the vehicle catalytic converter has been indelibly marked or
20 engraved with a readily observable unique serial number. Such dealer
21 shall maintain a record of the make, model, vehicle type, vehicle iden-
22 tification number and the unique serial number marked, engraved or
23 otherwise affixed to each such catalytic converter.
24 § 4. Section 69-e of the general business law, as added by chapter 431
25 of the laws of 1976, is amended to read as follows:
26 § 69-e. Definitions. 1. "Scrap metal processing facility" shall mean
27 an establishment engaged primarily in the purchase, processing and ship-
28 ment of ferrous and/or non-ferrous scrap[, the end product of which is
29 the production of raw material for remelting purposes for steel mills,
30 foundaries, smelters, refiners, and similar users] metal and/or end of
31 life vehicles but shall not include a redemption center, dealer or
32 distributor as such terms are defined in section 27-1003 of the environ-
33 mental conservation law or an electronic waste collection, consolidation
34 or recycling facility as such terms are defined in section 27-2601 of
35 the environmental conservation law.
36 2. "Scrap processor" shall mean any person, association, partnership
37 or corporation operating and maintaining a "scrap metal processing
38 facility".
39 3. "Government issued photographic identification" shall mean any
40 current and valid official form of identification issued by the govern-
41 ment of the United States of America, a state, territory, protectorate,
42 or dependency of the United States of America, a county, municipality or
43 subdivision thereof, any public agency or department thereof, or any
44 public employer, which requires and bears the photograph of the person
45 to whom it is issued.
46 4. "Catalytic converter" shall mean an exhaust emission control device
47 which modifies exhaust gas from an internal combustion engine by cata-
48 lyzing a redox reaction.
49 5. "End of life vehicle" shall mean any motor vehicle sold, given, or
50 otherwise disposed of as junk or salvage.
51 6. "Scrap catalytic converter" shall mean a catalytic converter that
52 was previously installed in a vehicle and which has been removed from
53 such vehicle in whole or in part.
54 § 5. Section 69-g of the general business law, as amended by chapter
55 302 of the laws of 2007, is amended to read as follows:
A. 9056 3
1 § 69-g. Records. 1. [Such] A scrap [processor] metal processing facil-
2 ity shall record [(i) each purchase of any pig or pigs of metal, bronze
3 or brass castings or parts thereof, sprues or gates or parts thereof,
4 utility wire or brass car journals, or of metal beer kegs, and (ii)]
5 each purchase of [iron, steel] ferrous and/or nonferrous scrap or an end
6 of life vehicle for a price of fifty dollars or more, and preserve such
7 record for a period of three years; which record shall show the date of
8 purchase, the name of the seller, [his] the seller's residence or busi-
9 ness address [by street, number, city, village or town], the driver's
10 license number or information from a government issued photographic
11 identification card, [if any, of such person, or by such description as
12 will reasonably locate the seller,] and the type and quantity of such
13 purchase[; and the]. The scrap processor shall cause such record to be
14 signed by the seller or his or her agent. It shall be unlawful for any
15 seller to refuse to furnish such information or to furnish incorrect or
16 incomplete information. Such scrap processor shall also make and retain
17 a copy of the government issued photographic identification card used to
18 verify the identity of [the] any natural person from whom the scrap
19 metal was purchased and shall retain this copy in a separate book,
20 register or electronic archive [for two years from the date of
21 purchase].
22 2. Such records shall be available for inspection by [the police
23 department of the state or the municipality in which the establishment
24 is located] law enforcement personnel or a state regulatory agency.
25 3. a. A scrap metal processing facility shall be licensed as a scrap
26 processor or a vehicle dismantler pursuant to section three hundred
27 ninety-nine-u of the vehicle and traffic law prior to the purchase
28 and/or acceptance of one or more scrap catalytic converters.
29 b. A scrap metal processing facility which purchases one or more scrap
30 catalytic converters shall:
31 (i) record the date of purchase, the name of the seller, and the sell-
32 er's residential or business address;
33 (ii) make and retain a copy of the government issued photographic
34 identification card used to verify the identity of any natural person
35 from whom such scrap catalytic converters were purchased; and
36 (iii) record the unique identification number, if any, affixed to each
37 such catalytic converter purchased from each seller.
38 4. No later than June first, two thousand twenty-five, all scrap metal
39 processing facilities shall install and maintain an electronic video
40 recording system at all customer scales and at all points of sale
41 located on the premises of the scrap metal processing facility. Elec-
42 tronic video records shall be maintained in an electronic archive for a
43 period of no less than one hundred twenty days from the date when such
44 electronic video record was made. Such electronic video record shall be
45 available for inspection upon demand by law enforcement personnel or a
46 state regulatory agency.
47 § 6. Section 69-h of the general business law is renumbered section
48 69-i and two new sections 69-h and 69-j are added to read as follows:
49 § 69-h. Government scraps. Notwithstanding any provision of law, rule
50 or regulation to the contrary, it shall be unlawful for a scrap metal
51 processing facility to purchase as scrap any metal items bearing mark-
52 ings of any governmental entity, utility company, cemetery or railroad
53 unless such items are offered for sale by an employee or agent thereof
54 with the express written authorization of any such governmental entity,
55 utility company, cemetery or railroad.
A. 9056 4
1 § 69-j. Preemption of local laws. The provisions of sections sixty-
2 nine-g and sixty-nine-h of this article shall supersede and preempt all
3 rules, regulations, codes, statutes or ordinances of all cities, coun-
4 ties, municipalities and local agencies which would:
5 1. Regulate the purchase or sale of scrap metal;
6 2. Impose record keeping or reporting requirements in a manner which
7 conflicts with or imposes additional record keeping requirements other
8 than those set forth within this article;
9 3. Require a scrap metal processing facility to hold scrap material
10 for a specified period of time prior to the processing or sale of said
11 scrap material; or
12 4. Specify a manner of payment for such scrap metal.
13 § 7. Section 69-i of the general business law, as added by chapter 431
14 of the laws of 1976 and as renumbered by section six of this act, is
15 amended to read as follows:
16 § 69-i. Penalty. 1. [Each violation of this article by a scrap proces-
17 sor shall be a violation subject to a fine of not more than two hundred
18 dollars, unless such violation shall be wilful, in which event it shall
19 be a misdemeanor except, however, the scrap processor shall not be
20 liable for any violation of this article by a seller, his agent, or a
21 purported seller or agent] A person found to have violated a provision
22 of this article shall be guilty of a violation and liable for a fine of
23 not more than one thousand dollars and/or imprisonment for a term of not
24 more than fifteen days.
25 2. [Each violation of this article by a seller or his agent shall be a
26 misdemeanor.] A person found to have violated any provision of this
27 article for a second time within a two-year period shall be guilty of a
28 misdemeanor and subject to a criminal fine of not more than five thou-
29 sand dollars and/or imprisonment for a term of not more than one year.
30 3. If a defendant has gained money or property through the commission
31 of any misdemeanor or violation pursuant to this section and upon
32 conviction thereof, the court, in lieu of imposing the fine authorized
33 for the offense pursuant to subdivision one or two of this section, may
34 sentence such defendant to pay an amount, fixed by the court, not to
35 exceed double the amount of such defendant's gain from the commission of
36 the offense.
37 § 8. Section 2336 of the insurance law is amended by adding a new
38 subsection (i) to read as follows:
39 (i) Any schedule of rates or rating plan for non-commercial private
40 passenger automobile insurance shall also provide for an actuarially
41 appropriate reduction in premium charges for property damage liability,
42 comprehensive and collision coverage with respect to automobiles
43 equipped with a catalytic converter upon which a unique marking or
44 engraving has been made.
45 § 9. This act shall take effect January 1, 2025. Effective immediate-
46 ly, the addition, amendment and/or repeal of any rule or regulation
47 necessary for the implementation of this act on its effective date are
48 authorized to be made and completed on or before such effective date.
