Second Regular Session Seventy-third General Assembly STATE OF COLORADO REVISED This Version Includes All Amendments Adopted on Second Reading in the Second House LLS NO. 22-0124.01 Richard Sweetman x4333 SENATE BILL 22-009 Senate Committees House Committees Transportation & Energy Energy & Environment 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 HOUSE Amended 2nd Reading April 11, 2022 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)(b)(II), (1)(b)(IV), (1)(b)(VI), (1)(c),3 (1)(d), (1.3)(a) introductory portion, (1.3)(a)(I), (1.3)(a)(III), (1.3)(b),4 (1.5), (2), (4), (8) introductory portion, (8)(b.5), (8)(d), (9)(c), (10)(a)(I),5 (10)(a)(III), and (10)(b); amend as it exists until March 1, 2022, (5);6 and add (8)(f) as follows:7 18-13-111. Purchases of commodity metals or detached8 catalytic converters - violations - commodity metals theft task force9 - creation - composition - reports - legislative declaration - definitions10 - repeal. (1) (a) Except as otherwise provided in subsection (3) of this11 section, every owner, keeper, or proprietor of a junk shop, junk store,12 salvage yard, or junk cart or other vehicle and every collector of or dealer13 in junk, salvage, or other secondhand property shall keep a book or14 009-2- register detailing all transactions involving commodity metals OR1 DETACHED CATALYTIC CONVERTERS .2 (b) The owner, keeper, proprietor, collector, or dealer shall record3 the identification of a seller of commodity metals OR DETACHED4 CATALYTIC CONVERTERS in the book or register and the method by which5 the seller verified his or her THE SELLER'S identity. The seller shall verify6 his or her THE SELLER'S identity by one of the following:7 (II) An A VALID identification card issued in accordance with8 section 42-2-302; C.R.S.;9 (IV) A VALID military identification card;10 (VI) An A VALID alien registration card.11 (c) The owner, keeper, proprietor, collector, or dealer shall require12 the seller of a commodity metal OR DETACHED CATALYTIC CONVERTER to13 provide for the book or register:14 (I) A signed affidavit, sworn and affirmed under penalty of law,15 that the seller is the owner of the commodity metal OR DETACHED16 CATALYTIC CONVERTER or is otherwise entitled to sell the commodity17 metal OR DETACHED CATALYTIC CONVERTER . The owner, keeper,18 proprietor, collector, or dealer shall provide the affidavit form to the19 seller.20 (II) The license plate number and description of the vehicle or21 conveyance, if any, in which the commodity metal OR DETACHED22 CATALYTIC CONVERTER was delivered.23 (d) The owner, keeper, proprietor, collector, or dealer shall24 include the following in the book or register:25 (I) The date and place of each purchase of the commodity metal26 OR DETACHED CATALYTIC CONVERTER ; and27 009 -3- (II) The description and quantity of the commodity metal OR1 DETACHED CATALYTIC CONVERTER purchased.2 (1.3) (a) A purchaser of commodity metals OR DETACHED3 CATALYTIC CONVERTERS shall:4 (I) Sign up with the scrap theft alert system maintained by the5 Institute of Scrap Recycling Industries, Incorporated, or its successor6 organization, to receive alerts regarding thefts of commodity metals OR 7 DETACHED CATALYTIC CONVERTERS in the purchaser's geographic area;8 (III) Use the alerts to identify potentially stolen commodity metals9 OR DETACHED CATALYTIC CONVERTERS , including training the purchaser's10 employees to use the alerts during the purchaser's daily operations.11 (b) A purchaser of commodity metals OR DETACHED CATALYTIC12 CONVERTERS shall maintain for ninety days copies of any theft alerts13 received and downloaded pursuant to paragraph (a) of this subsection14 (1.3) SUBSECTION (1.3)(a) OF THIS SECTION. A purchaser shall also15 maintain documentation that the purchaser educates employees about, and16 provides to employees, scrap theft alerts.17 (1.5) (a) An owner, keeper, proprietor, collector, or dealer is18 permitted to pay a seller in cash for any commodity metals METAL OR19 DETACHED CATALYTIC CONVERTER transaction of three hundred dollars20 or less.21 (b) If the transaction costs more than three hundred dollars, the22 owner, keeper, proprietor, collector, or dealer shall pay the seller of a23 commodity metal OR DETACHED CATALYTIC CONVERTER by check unless24 the seller is paid by means of any process in which a picture of the seller25 is taken when the money is paid.26 (2) Except as otherwise provided in subsection (3) of this section,27 009 -4- the owner, keeper, proprietor, collector, or dealer of any commodity metal1 OR DETACHED CATALYTIC CONVERTER shall make a digital photographic2 record, video record, or other record that identifies the seller and the3 commodity metal OR DETACHED CATALYTIC CONVERTER that the seller is4 selling. The digital photographic record, video record, or other record5 format shall be retained for one hundred eighty days, and the owner shall6 permit a law enforcement officer to make inspections of the record.7 (4) The information entered in the book or register, as provided8 in subsection (1) of this section, need not be kept for a period longer than9 three years after the date of purchase of the commodity metal OR 10 DETACHED CATALYTIC CONVERTER .11 (5) A person who violates subsection (1) of this section by failing12 to keep a book or register, any person who knowingly gives false13 information with respect to the information required to be maintained in14 the book or register provided for in subsection (1) of this section, and any15 person who violates subsection (1.3), (1.5), or (2) of this section commits:16 (a) A class 2 misdemeanor if the value of the commodity metal OR 17 DETACHED CATALYTIC CONVERTER involved is less than five hundred18 dollars; or19 (b) A class 1 misdemeanor if the value of the commodity metal OR 20 DETACHED CATALYTIC CONVERTER involved is five hundred dollars or21 more.22 (8) For the purposes of AS USED IN this section, unless the context23 otherwise requires:24 (f) "DETACHED CATALYTIC CONVERTER " MEANS A25 POST-COMBUSTION DEVICE THAT:26 (I) O XIDIZES HYDROCARBONS AND CARBON MONOXIDE GASES OR 27 009 -5- REDUCES OXIDES OF NITROGEN; 1 (II) I S DESIGNED OR INTENDED FOR USE AS PART OF AN EMISSION 2 CONTROL SYSTEM; AND3 (III) WAS PREVIOUSLY INSTALLED ON A MOTOR VEHICLE AND4 SUBSEQUENTLY REMOVED .5 (b.5) "Commodity metal" means copper; a copper alloy, including6 SUCH AS bronze or brass; or aluminum. "Commodity metal" does not7 include precious metals, such as gold, silver, or platinum.8 (d) "Dealer" means any person, business, or entity that buys, sells,9 or distributes, for the purpose of recycling, PROCESSING, OR SMELTING,10 any commodity metal OR DETACHED CATALYTIC CONVERTER on a11 wholesale basis. FOR THE PURPOSES OF THIS SUBSECTION (8)(d), A12 TRANSACTION BETWEEN A DEALER AND A MOTOR VEHICLE DEALER IS NOT13 A WHOLESALE SALE.14 (9) (c) The task force shall hold its first meeting no later than July15 1, 2011. At the first meeting, the task force shall discuss the best way to16 distribute and use information related to theft of scrap metals, including17 whether and how to promote use by law enforcement agencies of the18 scrap theft alert system maintained by the institute of scrap recycling19 industries, incorporated, or its successor organization. Thereafter, the task20 force shall meet on a regular basis, convening at least every October, to21 discuss issues related to theft of commodity metals OR DETACHED22 CATALYTIC CONVERTERS, including sharing relevant information on theft23 of scrap metal, identifying ways in which Colorado's laws regulating24 commodity metals METAL AND DETACHED CATALYTIC CONVERTER25 purchases can be improved to reduce theft, and reviewing any26 performance problems or communication issues. The task force is27 009 -6- specifically directed to consider:1 (I) Possible policies or practices to aid in tracking or apprehending2 stolen commodity metals OR DETACHED CATALYTIC CONVERTERS prior to3 the point of sale in order to assist law enforcement personnel in theft4 prevention and recovery of stolen materials;5 (II) Recommendations regarding when and how a commodity6 metals METAL OR DETACHED CATALYTIC CONVERTER purchaser should be7 required to apprise local law enforcement authorities if a purchased8 commodity metal OR DETACHED CATALYTIC CONVERTER is a potential9 match of a commodity metal OR DETACHED CATALYTIC CONVERTER10 reported stolen in the scrap theft alert system; and11 (III) The creation and attributes of a civil penalty process for12 egregious and repeat violators of the record-keeping requirements of this13 section.14 (10) (a) The general assembly hereby finds, determines, and15 declares that:16 (I) Thefts of commodity metals AND DETACHED CATALYTIC17 CONVERTERS jeopardize the safety and welfare of the public, financially18 burden taxpayers and industry, and exhaust law enforcement resources;19 (III) The regulation of commodity metal OR DETACHED CATALYTIC20 CONVERTER purchases is a matter of statewide concern.21 (b) In order to continue the ability of the state to identify causes22 of commodity metal AND DETACHED CATALYTIC CONVERTER theft and23 provide realistic solutions to the theft problem, the general assembly24 encourages law enforcement authorities in the state to join the scrap theft25 alert system maintained by the Institute of Scrap Recycling Industries,26 Incorporated, or its successor organization, and to report thefts of27 009 -7- commodity metals AND DETACHED CATALYTIC CONVERTERS occurring1 within their jurisdictions to this system. The general assembly also2 encourages commercial stakeholders affected by commodity metals3 METAL AND DETACHED CATALYTIC CONVERTER theft to sign up for and4 participate in the scrap theft alert system. 5 (11) THIS SECTION DOES NOT APPLY TO DETACHED CATALYTIC6 CONVERTERS ACQUIRED AS PART OF A WHOLE MOTOR VEHICLE7 TRANSACTION IN WHICH AN AUTO PARTS RECYCLER, AS DEFINED IN8 SECTION 42-4-2201 (1), REPORTS THE MOTOR VEHICLE ACQUISITION INTO9 THE NATIONAL MOTOR VEHICLE TITLE INFORMATION SYSTEM, AS10 DESCRIBED IN 49 U.S.C. SEC. 30504.11 12 SECTION 2. In Colorado Revised Statutes, 18-4-420, amend13 (5)(b)(XV) and (5)(b)(XVI); and add (5)(b)(XVII) as follows:14 18-4-420. Chop shop activity - ownership or operation of a15 chop shop - altered or removed identification number - penalties -16 definitions. (5) As used in this section, unless the context otherwise17 requires:18 (b) "Major component motor vehicle part" means any of the19 following parts of a motor vehicle:20 (XV) A wheel or tire; or21 (XVI) Any other part of a motor vehicle that is comparable in22 design or function to any of the parts that have been listed, or that have23 been labeled with a unique traceable identification number, by the24 manufacturer of the motor vehicle or part. A CATALYTIC CONVERTER; OR25 (XVII) A NY OTHER PART OF A MOTOR VEHICLE THAT IS26 COMPARABLE IN DESIGN OR FUNCTION TO ANY OF THE PARTS THAT HAVE27 009 -8- BEEN LISTED, OR THAT HAVE BEEN LABELED WITH A UNIQUE TRACEABLE1 IDENTIFICATION NUMBER.2 SECTION 3. In Colorado Revised Statutes, add 42-4-318 as3 follows:4 42-4-318. Exception to enforcement in cases of catalytic5 converter theft - unavailability of replacement catalytic converter -6 repeal. (1) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, AN7 INDIVIDUAL MAY TEMPORARILY OPERATE A MOTOR VEHICLE WITHOUT A8 CATALYTIC CONVERTER IF:9 (a) THE CATALYTIC CONVERTER HAS BEEN STOLEN FROM THE10 MOTOR VEHICLE;11 (b) THE OWNER OR OPERATOR OF THE MOTOR VEHICLE HAS12 REPORTED THE THEFT TO A LAW ENFORCEMENT AGENCY ;13 (c) THE OWNER OR OPERATOR OF THE MOTOR VEHICLE HAS MADE14 A REASONABLE EFFORT TO OBTAIN A REPLACEMENT CATALYTIC15 CONVERTER FOR THE VEHICLE, INCLUDING ORDERING A REPLACEMENT16 CATALYTIC CONVERTER; AND17 (d) WHEN THE MOTOR VEHICLE IS IN OPERATION, THE OPERATOR18 OF THE MOTOR VEHICLE POSSESSES RECEIPTS OR OTHER PAPERWORK19 DOCUMENTING THE ORDER FOR A REPLACEMENT CATALYTIC CONVERTER.20 (2) THE EXCEPTION DESCRIBED IN SUBSECTION (1) OF THIS SECTION21 APPLIES SO ALONG AS A CATALYTIC CONVERTER REMAINS UNAVAILABLE22 TO THE OWNER OR OPERATOR OF A MOTOR VEHICLE .23 (3) THE SECTION IS REPEALED, EFFECTIVE SEPTEMBER 1, 2027.24 BEFORE THE REPEAL, THE EXCEPTION DESCRIBED IN SUBSECTION (1) OF25 THIS SECTION IS SUBJECT TO REVIEW BY THE DEPARTMENT OF26 REGULATORY AGENCIES PURSUANT TO SECTION 24-34-104.27 009 -9- SECTION 4. In Colorado Revised Statutes, 24-34-104, add1 (28)(a)(VII) as follows:2 24-34-104. General assembly review of regulatory agencies3 and functions for repeal, continuation, or reestablishment - legislative4 declaration - repeal. (28) (a) The following agencies, functions, or both,5 are scheduled for repeal on September 1, 2027:6 (VII) THE EXCEPTION DESCRIBED IN SECTION 42-4-3187 CONCERNING THE PERMISSIBLE USE OF A MOTOR VEHICLE FROM WHICH A8 CATALYTIC CONVERTER HAS BEEN STOLEN .9 SECTION 5. In Colorado Revised Statutes, add 42-4-318 as10 follows:11 42-4-318. Catalytic converter theft - use of after-market12 catalytic converters permitted. (1) NOTWITHSTANDING ANY OTHER13 PROVISION OF LAW, AN INDIVIDUAL MAY OPERATE A MOTOR VEHICLE WITH14 AN AFTER-MARKET CATALYTIC CONVERTER RATHER THAN AN ORIGINAL15 EQUIPMENT MANUFACTURER 'S CATALYTIC CONVERTER IF:16 (a) A CATALYTIC CONVERTER WAS STOLEN FROM THE MOTOR17 VEHICLE;18 (b) THE OWNER OR OPERATOR OF THE VEHICLE HAS REPORTED THE19 THEFT OF THE CATALYTIC CONVERTER TO A LAW ENFORCEMENT AGENCY;20 AND21 (c) THE VEHICLE EQUIPPED WITH THE AFTER-MARKET CATALYTIC22 CONVERTER PASSES ANY EMISSIONS TEST REQUIRED PURSUANT TO THIS23 PART 3.24 SECTION 6. Safety clause. The general assembly hereby finds,25 determines, and declares that this act is necessary for the immediate26 preservation of the public peace, health, or safety.27 009 -10-