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A10362 Summary:

BILL NOA10362A
 
SAME ASSAME AS S09242
 
SPONSORRules (Buttenschon)
 
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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A10362 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A10362A
 
SPONSOR: Rules (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 proc- essing facility * prohibit the sale or purchase as scrap of any metal items bearing markings of any governmental entity, utility company, cemetery or rail- road 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 meaningful 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 consistent 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: 2022 Session - new bill   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None   EFFECTIVE DATE: The bill would take effect January 1, 2023.
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A10362 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                        10362--A
 
                   IN ASSEMBLY
 
                                      May 13, 2022
                                       ___________
 
        Introduced by COMMITTEE ON RULES -- (at request of M. of A. Buttenschon)
          --  read  once  and  referred  to  the  Committee on Transportation --
          committee discharged, bill amended, ordered reprinted as  amended  and
          recommitted to said committee
 
        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.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15849-03-2

        A. 10362--A                         2
 
     1    § 2. Subdivision (d) of section 301 of the vehicle and traffic law  is
     2  amended by adding a new paragraph 5 to read as follows:
     3    (5)  (a)  The  commissioner  shall  establish and maintain a catalytic
     4  converter  record  program  to  enable  a   facility   performing   such
     5  inspections pursuant to this section to:
     6    (i)  Indelibly  mark  or  engrave a vehicle catalytic converter with a
     7  readily observable unique serial number if such catalytic convert is not
     8  already marked; and
     9    (ii) Maintain a record of the make, model, vehicle type, vehicle iden-
    10  tification number and the  unique  serial  number  marked,  engraved  or
    11  otherwise affixed to each such catalytic converter.
    12    (b)  For the purposes of this paragraph the term "catalytic converter"
    13  shall have the same meaning as defined in section three hundred  ninety-
    14  nine-u of this title.
    15    §  3.  The  vehicle and traffic law is amended by adding a new section
    16  415-d to read as follows:
    17    § 415-d. Catalytic converter serial  number  requirements.  No  retail
    18  dealer  shall  sell a new or used motor vehicle or parts of vehicles for
    19  which a certificate of title has been  issued  by  the  commissioner  or
    20  which  would  be  eligible  to  have  such a certificate of title issued
    21  unless the vehicle catalytic converter  has  been  indelibly  marked  or
    22  engraved  with  a  readily  observable unique serial number. Such dealer
    23  shall maintain a record of the make, model, vehicle type, vehicle  iden-
    24  tification  number  and  the  unique  serial  number marked, engraved or
    25  otherwise affixed to each such catalytic converter.
    26    § 4. Section 69-e of the general business law, as added by chapter 431
    27  of the laws of 1976, is amended to read as follows:
    28    § 69-e. Definitions. 1. "Scrap metal processing facility"  shall  mean
    29  an establishment engaged primarily in the purchase, processing and ship-
    30  ment  of  ferrous and/or non-ferrous scrap[, the end product of which is
    31  the production of raw material for remelting purposes for  steel  mills,
    32  foundaries,  smelters,  refiners, and similar users] metal and/or end of
    33  life vehicles but shall not  include  a  redemption  center,  dealer  or
    34  distributor as such terms are defined in section 27-1003 of the environ-
    35  mental conservation law or an electronic waste collection, consolidation
    36  or  recycling  facility  as such terms are defined in section 27-2601 of
    37  the environmental conservation law.
    38    2. "Scrap processor" shall mean any person,  association,  partnership
    39  or  corporation  operating  and  maintaining  a  "scrap metal processing
    40  facility".
    41    3. "Government issued  photographic  identification"  shall  mean  any
    42  current  and valid official form of identification issued by the govern-
    43  ment of the United States of America, a state, territory,  protectorate,
    44  or dependency of the United States of America, a county, municipality or
    45  subdivision  thereof,  any  public  agency or department thereof, or any
    46  public employer, which requires and bears the photograph of  the  person
    47  to whom it is issued.
    48    4. "Catalytic converter" shall mean an exhaust emission control device
    49  which  modifies  exhaust gas from an internal combustion engine by cata-
    50  lyzing a redox reaction.
    51    5. "End of life vehicle" shall mean any motor vehicle sold, given,  or
    52  otherwise disposed of as junk or salvage.
    53    6.  "Scrap  catalytic converter" shall mean a catalytic converter that
    54  was previously installed in a vehicle and which has  been  removed  from
    55  such vehicle in whole or in part.

        A. 10362--A                         3
 
     1    §  5.  Section 69-g of the general business law, as amended by chapter
     2  302 of the laws of 2007, is amended to read as follows:
     3    § 69-g. Records. 1. [Such] A scrap [processor] metal processing facil-
     4  ity  shall record [(i) each purchase of any pig or pigs of metal, bronze
     5  or brass castings or parts thereof, sprues or gates  or  parts  thereof,
     6  utility  wire  or  brass  car journals, or of metal beer kegs, and (ii)]
     7  each purchase of [iron, steel] ferrous and/or nonferrous scrap or an end
     8  of life vehicle for a price of fifty dollars or more, and preserve  such
     9  record  for a period of three years; which record shall show the date of
    10  purchase, the name of the seller, [his] the seller's residence or  busi-
    11  ness  address  [by  street, number, city, village or town], the driver's
    12  license number or information  from  a  government  issued  photographic
    13  identification  card, [if any, of such person, or by such description as
    14  will reasonably locate the seller,] and the type and  quantity  of  such
    15  purchase[;  and  the]. The scrap processor shall cause such record to be
    16  signed by the seller or his or her agent. It shall be unlawful  for  any
    17  seller  to refuse to furnish such information or to furnish incorrect or
    18  incomplete information. Such scrap processor shall also make and  retain
    19  a copy of the government issued photographic identification card used to
    20  verify  the  identity  of  [the]  any natural person from whom the scrap
    21  metal was purchased and shall retain  this  copy  in  a  separate  book,
    22  register  or  electronic  archive  [for  two  years  from  the  date  of
    23  purchase].
    24    2. Such records shall be  available  for  inspection  by  [the  police
    25  department  of  the state or the municipality in which the establishment
    26  is located] law enforcement personnel or a state regulatory agency.
    27    3. a. A scrap metal processing facility shall be licensed as  a  scrap
    28  processor  or  a  vehicle  dismantler  pursuant to section three hundred
    29  ninety-nine-u of the vehicle and  traffic  law  prior  to  the  purchase
    30  and/or acceptance of one or more scrap catalytic converters.
    31    b. A scrap metal processing facility which purchases one or more scrap
    32  catalytic converters shall:
    33    (i) record the date of purchase, the name of the seller, and the sell-
    34  er's residential or business address;
    35    (ii)  make  and  retain  a  copy of the government issued photographic
    36  identification card used to verify the identity of  any  natural  person
    37  from whom such scrap catalytic converters were purchased; and
    38    (iii) record the unique identification number, if any, affixed to each
    39  such catalytic converter purchased from each seller.
    40    4.  No  later  than  June  first, two thousand twenty-three, all scrap
    41  metal processing facility shall install and maintain an electronic video
    42  recording system at all customer  scales  and  at  all  points  of  sale
    43  located  on  the  premises of the scrap metal processing facility. Elec-
    44  tronic video records shall be maintained in an electronic archive for  a
    45  period  of  no less than one hundred twenty days from the date when such
    46  electronic video record was made. Such electronic video record shall  be
    47  available  for  inspection upon demand by law enforcement personnel or a
    48  state regulatory agency.
    49    § 6. Section 69-h of the general business law  is  renumbered  section
    50  69-i and two new sections 69-h and 69-j are added to read as follows:
    51    §  69-h. Government scraps. Notwithstanding any provision of law, rule
    52  or regulation to the contrary, it shall be unlawful for  a  scrap  metal
    53  processing  facility  to purchase as scrap any metal items bearing mark-
    54  ings of any governmental entity, utility company, cemetery  or  railroad
    55  unless  such  items are offered for sale by an employee or agent thereof

        A. 10362--A                         4
 
     1  with the express written authorization of any such governmental  entity,
     2  utility company, cemetery or railroad.
     3    §  69-j.  Preemption  of local laws. The provisions of sections sixty-
     4  nine-g and sixty-nine-h of this article shall supersede and preempt  all
     5  rules,  regulations,  codes, statutes or ordinances of all cities, coun-
     6  ties, municipalities and local agencies which would:
     7    1. Regulate the purchase or sale of scrap metal;
     8    2. Impose record keeping or reporting requirements in a  manner  which
     9  conflicts  with  or imposes additional record keeping requirements other
    10  than those set forth within this article;
    11    3. Require a scrap metal processing facility to  hold  scrap  material
    12  for  a  specified period of time prior to the processing or sale of said
    13  scrap material; or
    14    4. Specify a manner of payment for such scrap metal.
    15    § 7. Section 69-i of the general business law, as added by chapter 431
    16  of the laws of 1976 and as renumbered by section six  of  this  act,  is
    17  amended to read as follows:
    18    § 69-i. Penalty. 1. [Each violation of this article by a scrap proces-
    19  sor  shall be a violation subject to a fine of not more than two hundred
    20  dollars, unless such violation shall be wilful, in which event it  shall
    21  be  a  misdemeanor  except,  however,  the  scrap processor shall not be
    22  liable for any violation of this article by a seller, his  agent,  or  a
    23  purported  seller  or agent] A person found to have violated a provision
    24  of this article shall be guilty of a violation and liable for a fine  of
    25  not more than one thousand dollars and/or imprisonment for a term of not
    26  more than fifteen days.
    27    2. [Each violation of this article by a seller or his agent shall be a
    28  misdemeanor.]  A  person  found  to  have violated any provision of this
    29  article for a second time within a two-year period shall be guilty of  a
    30  misdemeanor  and  subject to a criminal fine of not more than five thou-
    31  sand dollars and/or imprisonment for a term of not more than one year.
    32    3. If a defendant has gained money or property through the  commission
    33  of  any  misdemeanor  or  violation  pursuant  to  this section and upon
    34  conviction thereof, the court, in lieu of imposing the  fine  authorized
    35  for  the offense pursuant to subdivision one or two of this section, may
    36  sentence such defendant to pay an amount, fixed by  the  court,  not  to
    37  exceed double the amount of such defendant's gain from the commission of
    38  the offense.
    39    §  8.  Section  2336  of  the insurance law is amended by adding a new
    40  subsection (i) to read as follows:
    41    (i) Any schedule of rates or rating plan  for  non-commercial  private
    42  passenger  automobile  insurance  shall  also provide for an actuarially
    43  appropriate reduction in premium charges for property damage  liability,
    44  comprehensive   and  collision  coverage  with  respect  to  automobiles
    45  equipped with a catalytic converter  upon  which  a  unique  marking  or
    46  engraving has been made.
    47    §  9. This act shall take effect January 1, 2023. Effective immediate-
    48  ly, the addition, amendment and/or repeal  of  any  rule  or  regulation
    49  necessary  for  the implementation of this act on its effective date are
    50  authorized to be made and completed on or before such effective date.
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