Second Regular Session Seventy-third General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 22-0124.01 Richard Sweetman x4333 SENATE BILL 22-009 Senate Committees House Committees Transportation & Energy Appropriations A BILL FOR AN ACT C ONCERNING CATALYTIC CONVERTERS , AND, IN CONNECTION101 THEREWITH, ENACTING MEASURES TO ADDRESS THE THEFT102 OF CATALYTIC CONVERTERS .103 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov .) Section 1 of the bill requires the air quality control commission in the department of public health and environment to promulgate rules establishing: ! Evaluation procedures for aftermarket catalytic converters; and SENATE 3rd Reading Unamended March 9, 2022 SENATE Amended 2nd Reading March 8, 2022 SENATE SPONSORSHIP Ginal and Hisey, Liston, Bridges, Buckner, Coram, Danielson, Fenberg, Fields, Gardner, Hansen, Hinrichsen, Holbert, Jaquez Lewis, Kolker, Lee, Moreno, Pettersen, Priola, Rankin, Simpson, Smallwood, Story, Winter, Zenzinger HOUSE SPONSORSHIP Bird and Benavidez, Bockenfeld Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing statute. Dashes through the words indicate deletions from existing statute. ! Procedures for the division of administration in the department of public health and environment (division) to use to certify aftermarket catalytic converters for installation and sale. Section 2 states that on and after October 31, 2022, it is unlawful to install, sell, offer for sale, or advertise any used, recycled, or salvaged catalytic converter unless the catalytic converter is an aftermarket catalytic converter that has been certified for installation and sale by the division. For the purposes of regulating purchases of commodity metals and the commodities metals theft task force, section 3 amends the definition of "commodity metal" to include rhodium, palladium, or platinum-clad components of a catalytic converter. For the purposes of the existing criminal statute prohibiting the operation of motor vehicle chop shops, section 4 adds catalytic converters to the definition of "major component motor vehicle part". Section 5 requires each auto parts recycler to consult the national motor vehicle title information system for each catalytic converter that the auto parts recycler acquires from the recycling of a motor vehicle in order to determine whether the catalytic converter is stolen. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, 18-13-111, amend 2 (1)(a), (1)(b) introductory portion, (1)(c), (1)(d), (1.3)(a) introductory3 portion, (1.3)(a)(I), (1.3)(a)(III), (1.3)(b), (1.5), (2), (4), (8) introductory4 portion, (8)(b.5), (8)(d), (9)(c), (10)(a)(I), (10)(a)(III), and (10)(b);5 amend as it exists until March 1, 2022, (5); and add (8)(b.3) as follows:6 18-13-111. Purchases of commodity metals or catalytic7 converters - violations - commodity metals theft task force - creation8 - composition - reports - legislative declaration - definitions - repeal.9 (1) (a) Except as otherwise provided in subsection (3) of this section,10 every owner, keeper, or proprietor of a junk shop, junk store, salvage11 yard, or junk cart or other vehicle and every collector of or dealer in junk,12 salvage, or other secondhand property shall keep a book or register13 detailing all transactions involving commodity metals OR CATALYTIC 14 009-2- CONVERTERS.1 (b) The owner, keeper, proprietor, collector, or dealer shall record2 the identification of a seller of commodity metals OR CATALYTIC 3 CONVERTERS in the book or register and the method by which the seller4 verified his or her THE SELLER'S identity. The seller shall verify his or her5 THE SELLER'S identity by one of the following:6 (c) The owner, keeper, proprietor, collector, or dealer shall require7 the seller of a commodity metal OR CATALYTIC CONVERTER to provide for 8 the book or register:9 (I) A signed affidavit, sworn and affirmed under penalty of law,10 that the seller is the owner of the commodity metal OR CATALYTIC 11 CONVERTER or is otherwise entitled to sell the commodity metal OR12 CATALYTIC CONVERTER . The owner, keeper, proprietor, collector, or13 dealer shall provide the affidavit form to the seller.14 (II) The license plate number and description of the vehicle or15 conveyance, if any, in which the commodity metal OR CATALYTIC 16 CONVERTER was delivered.17 (d) The owner, keeper, proprietor, collector, or dealer shall18 include the following in the book or register:19 (I) The date and place of each purchase of the commodity metal20 OR CATALYTIC CONVERTER ; and21 (II) The description and quantity of the commodity metal OR 22 CATALYTIC CONVERTER purchased.23 (1.3) (a) A purchaser of commodity metals OR CATALYTIC 24 CONVERTERS shall:25 (I) Sign up with the scrap theft alert system maintained by the26 Institute of Scrap Recycling Industries, Incorporated, or its successor27 009 -3- organization, to receive alerts regarding thefts of commodity metals OR1 CATALYTIC CONVERTERS in the purchaser's geographic area;2 (III) Use the alerts to identify potentially stolen commodity metals3 OR CATALYTIC CONVERTERS, including training the purchaser's employees4 to use the alerts during the purchaser's daily operations.5 (b) A purchaser of commodity metals OR CATALYTIC CONVERTERS 6 shall maintain for ninety days copies of any theft alerts received and7 downloaded pursuant to paragraph (a) of this subsection (1.3)8 SUBSECTION (1.3)(a) OF THIS SECTION. A purchaser shall also maintain9 documentation that the purchaser educates employees about, and provides10 to employees, scrap theft alerts.11 (1.5) (a) An owner, keeper, proprietor, collector, or dealer is12 permitted to pay a seller in cash for any commodity metals METAL OR13 CATALYTIC CONVERTER transaction of three hundred dollars or less.14 (b) If the transaction costs more than three hundred dollars, the15 owner, keeper, proprietor, collector, or dealer shall pay the seller of a16 commodity metal OR CATALYTIC CONVERTER by check unless the seller 17 is paid by means of any process in which a picture of the seller is taken18 when the money is paid.19 (2) Except as otherwise provided in subsection (3) of this section,20 the owner, keeper, proprietor, collector, or dealer of any commodity metal21 OR CATALYTIC CONVERTER shall make a digital photographic record,22 video record, or other record that identifies the seller and the commodity23 metal OR CATALYTIC CONVERTER that the seller is selling. The digital 24 photographic record, video record, or other record format shall be25 retained for one hundred eighty days, and the owner shall permit a law26 enforcement officer to make inspections of the record.27 009 -4- (4) The information entered in the book or register, as provided1 in subsection (1) of this section, need not be kept for a period longer than2 three years after the date of purchase of the commodity metal OR 3 CATALYTIC CONVERTER.4 (5) A person who violates subsection (1) of this section by failing5 to keep a book or register, any person who knowingly gives false6 information with respect to the information required to be maintained in7 the book or register provided for in subsection (1) of this section, and any8 person who violates subsection (1.3), (1.5), or (2) of this section commits:9 (a) A class 2 misdemeanor if the value of the commodity metal OR 10 CATALYTIC CONVERTER involved is less than five hundred dollars; or11 (b) A class 1 misdemeanor if the value of the commodity metal OR 12 CATALYTIC CONVERTER involved is five hundred dollars or more.13 (8) For the purposes of AS USED IN this section, unless the context14 otherwise requires:15 (b.3) "C ATALYTIC CONVERTER " MEANS A POST-COMBUSTION 16 DEVICE THAT:17 (I) O XIDIZES HYDROCARBONS AND CARBON MONOXIDE GASES OR 18 REDUCES OXIDES OF NITROGEN; AND19 (II) I S DESIGNED OR INTENDED FOR USE AS PART OF AN EMISSION 20 CONTROL SYSTEM.21 (b.5) "Commodity metal" means copper; a copper alloy, including22 SUCH AS bronze or brass; or aluminum. "Commodity metal" does not23 include precious metals, such as gold, silver, or platinum.24 (d) "Dealer" means any person, business, or entity that buys, sells,25 or distributes, for the purpose of recycling, any commodity metal OR 26 CATALYTIC CONVERTER on a wholesale basis.27 009 -5- (9) (c) The task force shall hold its first meeting no later than July1 1, 2011. At the first meeting, the task force shall discuss the best way to2 distribute and use information related to theft of scrap metals, including3 whether and how to promote use by law enforcement agencies of the4 scrap theft alert system maintained by the institute of scrap recycling5 industries, incorporated, or its successor organization. Thereafter, the task6 force shall meet on a regular basis, convening at least every October, to7 discuss issues related to theft of commodity metals OR CATALYTIC 8 CONVERTERS, including sharing relevant information on theft of scrap9 metal, identifying ways in which Colorado's laws regulating commodity10 metals METAL AND CATALYTIC CONVERTER purchases can be improved to11 reduce theft, and reviewing any performance problems or communication12 issues. The task force is specifically directed to consider:13 (I) Possible policies or practices to aid in tracking or apprehending14 stolen commodity metals OR CATALYTIC CONVERTERS prior to the point 15 of sale in order to assist law enforcement personnel in theft prevention16 and recovery of stolen materials;17 (II) Recommendations regarding when and how a commodity18 metals METAL OR CATALYTIC CONVERTER purchaser should be required19 to apprise local law enforcement authorities if a purchased commodity20 metal OR CATALYTIC CONVERTER is a potential match of a commodity 21 metal OR CATALYTIC CONVERTER reported stolen in the scrap theft alert 22 system; and23 (III) The creation and attributes of a civil penalty process for24 egregious and repeat violators of the record-keeping requirements of this25 section.26 (10) (a) The general assembly hereby finds, determines, and27 009 -6- declares that:1 (I) Thefts of commodity metals AND CATALYTIC CONVERTERS 2 jeopardize the safety and welfare of the public, financially burden3 taxpayers and industry, and exhaust law enforcement resources;4 (III) The regulation of commodity metal OR CATALYTIC 5 CONVERTER purchases is a matter of statewide concern.6 (b) In order to continue the ability of the state to identify causes7 of commodity metal AND CATALYTIC CONVERTER theft and provide 8 realistic solutions to the theft problem, the general assembly encourages9 law enforcement authorities in the state to join the scrap theft alert system10 maintained by the Institute of Scrap Recycling Industries, Incorporated,11 or its successor organization, and to report thefts of commodity metals12 AND CATALYTIC CONVERTERS occurring within their jurisdictions to this13 system. The general assembly also encourages commercial stakeholders14 affected by commodity metals METAL AND CATALYTIC CONVERTER theft15 to sign up for and participate in the scrap theft alert system. 16 17 SECTION 2. In Colorado Revised Statutes, 18-4-420, amend18 (5)(b)(XV) and (5)(b)(XVI); and add (5)(b)(XVII) as follows:19 18-4-420. Chop shop activity - ownership or operation of a20 chop shop - altered or removed identification number - penalties -21 definitions. (5) As used in this section, unless the context otherwise22 requires:23 (b) "Major component motor vehicle part" means any of the24 following parts of a motor vehicle:25 (XV) A wheel or tire; or26 (XVI) Any other part of a motor vehicle that is comparable in27 009 -7- design or function to any of the parts that have been listed, or that have1 been labeled with a unique traceable identification number, by the2 manufacturer of the motor vehicle or part. A CATALYTIC CONVERTER; OR3 (XVII) A NY OTHER PART OF A MOTOR VEHICLE THAT IS4 COMPARABLE IN DESIGN OR FUNCTION TO ANY OF THE PARTS THAT HAVE5 BEEN LISTED, OR THAT HAVE BEEN LABELED WITH A UNIQUE TRACEABLE6 IDENTIFICATION NUMBER, BY THE MANUFACTURER OF THE MOTOR VEHICLE7 OR PART.8 SECTION 3. In Colorado Revised Statutes, add 42-4-2205 as9 follows:10 42-4-2205. Catalytic converters - checks for stolen materials11 required. A NY PERSON THAT ACQUIRES FIVE OR MORE VEHICLES WITHIN 12 ANY TWELVE-MONTH PERIOD FOR THE PURPOSE OF DISMANTLING ,13 WRECKING, SHREDDING, COMPACTING, CRUSHING, OR OTHERWISE14 DESTROYING VEHICLES FOR RECLAIMABLE PARTS OR SCRAP METALS ,15 INCLUDING CATALYTIC CONVERTERS , SHALL REPORT ALL SUCH VEHICLES16 TO THE NATIONAL MOTOR VEHICLE TITLE INFORMATION SYSTEM WITHIN17 FIVE DAYS AFTER ACQUIRING THE VEHICLES TO ENSURE THAT THE18 VEHICLES ARE NOT STOLEN.19 SECTION 4. Safety clause. The general assembly hereby finds,20 determines, and declares that this act is necessary for the immediate21 preservation of the public peace, health, or safety.22 009 -8-