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A09056 Summary:

BILL NOA09056
 
SAME ASNo Same As
 
SPONSORButtenschon
 
COSPNSR
 
MLTSPNSR
 
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.
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A09056 Actions:

BILL NOA09056
 
02/05/2024referred to transportation
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A09056 Memo:

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.
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A09056 Text:



 
                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.
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