Existing law licenses and regulates motor vehicle dealers and retail sellers. Existing law prohibits a motor vehicle dealer or retail seller from selling any motor vehicle that is not in compliance with the requirements enumerated in the Vehicle Code.

This bill would prohibit any person, except as exempted, from removing, altering, or obfuscating the vehicle identification number that has been added to a catalytic converter, or from knowingly possessing 3 or more catalytic converters that have been so altered.

A violation of these provisions would be punishable as a misdemeanor.

By creating new crimes, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law licenses and regulates motor vehicle dealers and retail sellers. Existing law prohibits a motor vehicle dealer or retail seller from selling any motor vehicle that is not in compliance with the requirements enumerated in the Vehicle Code.

This bill would prohibit any person, except as exempted, from removing, altering, or obfuscating the vehicle identification number that has been added to a catalytic converter, or from knowingly possessing 3 or more catalytic converters that have been so altered.

A violation of these provisions would be punishable as a misdemeanor.

By creating new crimes, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law licenses and regulates motor vehicle dealers and retail sellers. Existing law prohibits a motor vehicle dealer or retail seller from selling any motor vehicle that is not in compliance with the requirements enumerated in the Vehicle Code.

This bill would prohibit any person, except as exempted, from removing, altering, or obfuscating the vehicle identification number that has been added to a catalytic converter, or from knowingly possessing 3 or more catalytic converters that have been so altered.

A violation of these provisions would be punishable as a misdemeanor.

By creating new crimes, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law licenses and regulates motor vehicle dealers and retail sellers. Existing law prohibits a motor vehicle dealer or retail seller from selling any motor vehicle that is not in compliance with the requirements enumerated in the Vehicle Code.

This bill would prohibit any person, except as exempted, from removing, altering, or obfuscating the vehicle identification number engraved, etched, or otherwise marked on that has been added to a catalytic converter, or from knowingly possessing a 3 or more catalytic converter converters that has have been so altered.

A violation of these provisions would be punishable as a misdemeanor, as specified. misdemeanor.

By creating new crimes, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law licenses and regulates motor vehicle dealers and retail sellers. Existing law prohibits a motor vehicle dealer or retail seller from selling any motor vehicle that is not in compliance with the requirements enumerated in the Vehicle Code.

This bill would also prohibit any person, except as exempted, from removing, altering, or obfuscating the VIN vehicle identification number engraved, etched, or otherwise marked on a catalytic converter, or from knowingly possessing a catalytic converter that has been so altered.

A violation of these provisions would be punishable as a misdemeanor, as specified.

By creating new crimes, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

(1)Existing law licenses and regulates motor vehicle dealers and retail sellers. Existing law prohibits a motor vehicle dealer or retail seller from selling any motor vehicle that is not in compliance with the requirements enumerated in the Vehicle Code.

This bill would prohibit a dealer or retail seller from selling a vehicle equipped with a catalytic converter unless the catalytic converter has been permanently marked with the vehicle identification number (VIN) of the vehicle to which it is attached with a label, as specified. The bill would authorize a dealer or retail seller to impose a reasonable charge on the purchaser of a motor vehicle for complying with this requirement, as specified.

A violation of this provision would be punishable by specified fines.

(2)This bill would also prohibit any person, except as exempted, from removing, altering, or obfuscating the VIN engraved, etched, or otherwise marked on a catalytic converter, or from knowingly possessing a catalytic converter that has been so altered.

A violation of these provisions would be punishable as a misdemeanor, as specified.

(3)Existing law licenses and regulates automotive repair dealers, as defined.

This bill would require any automotive repair dealer that installs or replaces a catalytic converter on a motor vehicle to ensure that the catalytic converter is permanently marked with the VIN of the vehicle on which it is being installed with a label or an engraving, etching, or marking, as specified, and would authorize the automotive repair dealer to charge the consumer a reasonable fee, as specified. A violation of this provision would be punishable by specified fines.

(4)Existing law licenses and regulates smog check stations.

This bill would require a smog check station, as part of any smog check performed on a motor vehicle, to inspect the exterior of the catalytic converter and notify the customer whether or not the catalytic converter is permanently marked, as specified, with the VIN. The bill would require a smog check station to perform only a visual inspection to satisfy this requirement.

(5)By creating new crimes, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 1519

Author:(Bains)

As Amended Ver:September 1, 2023

Majority vote

SUMMARY

SUMMARY: Makes it a misdemeanor to remove, alter, or obfuscate any vehicle identification number (VIN) or other unique marking that has been added to a catalytic converter and makes it a misdemeanor to knowingly possess three catalytic converters that have a VIN or other unique marking removed, altered, or obfuscated. Specifically, this bill:

1. Makes it an infraction to knowingly possess one or two catalytic converters that have a VIN or other unique marking removed, altered, or obfuscated.
2. Provides that neither the crime of VIN removal from a catalytic converter or possession of a catalytic converter with a VIN removed apply in the following circumstances:
3. To a person who is removing, altering, or obfuscating a VIN or other unique marking in order to apply a new VIN or unique marking because the catalytic converter is being lawfully installed on a different vehicle.
4. To a person that is disassembling, smelting, or otherwise permanently destroying a catalytic converter lawfully in their possession.

Senate Amendments

Add Senator Portantino as a co-author.

COMMENTS

Catalytic converter thefts are on the rise. The Bureau of Automotive Repair (BAR) reported about 1,600 converter thefts per month statewide in 2021. According to data provided by the Personal Insurance Federation of California, insurance claims for catalytic converter thefts in California have gone up from a monthly average of 183 in 2020 to 477 claims in January of 2022. Claims rose by 308% from 2019 to 2020 and 100% from 2020 to 2021. California had the highest number of claims in the United States, accounting for 28% of all theft claims in the country. The insurance industry paid over $23 million in repair costs for catalytic converters in 2021 alone, an 11.5% increase from the year before.

A catalytic converter is an exhaust emission control device that converts toxic gases and pollutants in exhaust gas from an internal combustion engine into less-toxic pollutants.

Catalytic converter theft has been on the rise because they are coated with precious metals such as rhodium that is valued at over $14,000 per ounce and palladium which is valued at $2,500 per ounce. Toyota and Honda vehicles have been particularly attractive to thieves, because the location of the converters on certain vehicles that make it so that a thief can steal one with basic tools, such as a pipe wrench or cordless saw, in a manner of minutes.

The increase in theft, combined with supply chain issues has resulted in a shortage of replacement catalytic converters. This is likely to grow worse because of the war in Ukraine and Russia being the world's largest producer of palladium.

BAR has made several recommendations to deter theft of catalytic converters, including parking cars in well-lit areas, installing motion-sensing alarm systems, installing theft prevention devices like steel cages, and etching the converter shell with a VIN or license plate number.

Last year the Legislature passed and the Governor signed AB 1740 (Muratsuchi), Chapter 513, Statutes of 2022, and SB 1087 (Gonzalez), Chapter 514, Statutes of 2022, which prohibits a core recycler from entering into a transaction to purchase or receive a catalytic converter from any person that is not a commercial enterprise, as defined, or verifiable owner of the vehicle from which the catalytic converter was removed. These two laws place strict record-keeping requirements on core recyclers on where they got their catalytic converters from. The goal of that legislation is to make it harder for catalytic converter thieves to be able to sell their stolen catalytic converters to smelting operations. This removes the impetus to steal the catalytic converter to begin with as their value is not in the attachment of the device to another vehicle, but rather in the precious metals they contain.

It is already a crime to steal a catalytic converter, sell stolen property, and knowingly receive stolen property. Law enforcement has indicated to the Committee that they have had a difficult time catching catalytic converter thieves in the act. As a result, there have been numerous bills introduced in the past two legislative sessions to make it a crime to possess a detached catalytic converter, and several cities have passed ordinances making it a crime to merely possess a catalytic converter.

The bill is meant to be paired with SB 55 (Umberg) of the current legislative session which requires a person holding a retail seller's permit to sell new or used vehicles equipped with a catalytic converter to etch the catalytic converter with a VIN unless the buyer declines to have the VIN etched at the point of sale. The purpose of the VIN is to make it easier for law enforcement to identify a victim, a necessary element in proving there was indeed a victim in the theft and the property in possession of another is not their own. A person removing that number would defeat that purpose of helping identify the victim. Thus, this bill attempts to make it easier to prosecute someone knowingly possessing a catalytic converter that has had a VIN or other identifying number removed.

According to the Author

"Marking vehicle parts with a VIN allows stolen parts to be traced back to the original vehicle, assists law enforcement to help victims, and hinders the ability of thieves to sell stolen parts on the black market. That is why the Federal Motor Vehicle Theft Prevention Standard has required manufacturers to mark the VIN on 18 different vehicle parts since 1984. Unfortunately, catalytic converters are not covered by the federal standard and are not required to be marked. Unless law enforcement catches a thief in the act, it is nearly impossible to establish guilty and prosecute thieves for this crime. AB 1519 encourages drivers to get their catalytic converters marked by imposing a misdemeanor for obfuscating the marking. It also imposes a misdemeanor for possessing three or more catalytic converters which have had their VIN markings obfuscated. Law enforcement need more tools to prosecute thieves once they are away from the crime scene, and drivers need to know that the cost of getting their catalytic converter marked is worth it and will effectively deter theft."

Arguments in Support

According to the California Police Chiefs Association, " Under current law, it is difficult for law enforcement to prove a crime has occurred, even when we find individuals with multiple detached catalytic converters with VIN numbers removed. AB 1519 will assist law enforcement in defending against this crime by making it clear possession of a catalytic converter with VIN number removed or altered is in violation.

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Senate Appropriations Committee:

1. Unknown, potentially significant court workload cost pressures to adjudicate new misdemeanor offenses that are brought under the provisions of this bill (Trial Court Trust Fund, General Fund).
2. Unknown, non-reimbursable local incarceration costs, as misdemeanor violations are generally punishable by imprisonment for up to six months in county jail, or a fine of up to $1,000, or both. (local funds).

VOTES:

ASM TRANSPORTATION: 15-0-0

YES: Friedman, Vince Fong, Berman, Juan Carrillo, Davies, Gipson, Hart, Jackson, Kalra, Lowenthal, Stephanie Nguyen, Sanchez, Wallis, Ward, Wicks

ASM PUBLIC SAFETY: 8-0-0

YES: Jones-Sawyer, Alanis, Bonta, Bryan, Lackey, Ortega, Santiago, Zbur

ASM APPROPRIATIONS: 15-0-1

YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Lowenthal, Mathis, Papan, Pellerin, Sanchez, Weber, Ortega

ABS, ABST OR NV: Robert Rivas

ASSEMBLY FLOOR: 79-0-1

YES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon

ABS, ABST OR NV: Gabriel

UPDATED

VERSION: September 1, 2023

CONSULTANT: David Sforza / TRANS. / (916) 319-2093 FN: 0002260

 THIRD READING  

Bill No: AB 1519

Author: Bains (D), et al.

Amended: 9/1/23 in Senate

Vote: 21

SENATE TRANSPORTATION COMMITTEE: 16-0, 6/27/23

AYES: Gonzalez, Niello, Allen, Archuleta, Becker, Blakespear, Cortese, Dahle, Dodd, Limón, McGuire, Newman, Nguyen, Seyarto, Umberg, Wahab

SENATE PUBLIC SAFETY COMMITTEE: 4-0, 7/11/23

AYES: Bradford, Ochoa Bogh, Skinner, Wiener

NO VOTE RECORDED: Wahab

SENATE APPROPRIATIONS COMMITTEE: 7-0, 9/1/23

AYES: Portantino, Jones, Ashby, Bradford, Seyarto, Wahab, Wiener

ASSEMBLY FLOOR: 79-0, 6/1/23 - See last page for vote

SUBJECT: Vehicles: catalytic converters

SOURCE: Author

DIGEST:

This bill makes it a misdemeanor to remove, alter, or obfuscate any vehicle identification number (VIN) or other unique marking on a catalytic converter or from possessing three or more catalytic converters that have been so altered.

ANALYSIS:

Existing law:

1. Prohibits individuals from purchasing used catalytic converters, as specified. A violation of this offense is an infraction punishable by a fine of up to $4,000. (Veh. Code, § 10852.5.)
2. Provides that any person who knowingly buys, sells, receives, disposes of, conceals, or possesses any property from which any distinguishing number or identification mark has been removed, defaced, covered, altered, or destroyed, is guilty of a public offense, punishable by imprisonment in a county jail not exceeding six months if the value of the property does not exceed $950, or by imprisonment in a county jail not exceeding one year, if the value of the property exceeds $950. Property includes, but is not limited to, any component part of a vehicle. (Pen. Code, § 537e.)
3. States that no person shall either individually, or in association with one or more other persons, willfully injure or tamper with any vehicle or the contents thereof or break or remove any part of a vehicle without the consent of the owner. This offense is a misdemeanor, punishable by imprisonment in a county jail not exceeding six months, or by fine not exceeding $1,000, or by both. (Veh. Code, §§ 10852 & 42004; Pen. Code, § 19.)
4. Provides that no person shall install, sell, offer for sale, or advertise any device, apparatus, or mechanism intended for use with, or as a part of, a required motor vehicle pollution control device or system, including catalytic converters, that alters or modifies the original design or performance of the motor vehicle pollution control device or system. If the court finds that a person has willfully violated this section, the court shall impose the maximum fine that may be imposed in the case, and no part of the fine may be suspended. (Veh. Code, §§ 27156 & 38391.)
5. Provides that no person shall install, sell, offer for sale, or advertise any device, apparatus, or mechanism intended for use with, or as a part of, a required motor vehicle pollution control device or system, including catalytic converters, that alters or modifies the original design or performance of the motor vehicle pollution control device or system. If the court finds that a person has willfully violated this section, the court shall impose the maximum fine that may be imposed in the case, and no part of the fine may be suspended. (Vehicle Code section (VEH) §27156 and §38391)
6. States that no person shall either individually or in association with one or more other persons, willfully injure or tamper with any vehicle or the contents thereof or break or remove any part of a vehicle without the consent of the owner. This offense is a misdemeanor, punishable by imprisonment in the county jail not exceeding six months, or by fine not exceeding $1,000, or by both. (VEH §40000.9.)

This bill:

1. Makes it a misdemeanor to remove, alter, or obfuscate any VIN or other unique marking that has been added a catalytic converter.
2. Makes it a misdemeanor to knowingly possess three or more catalytic converters that have a VIN or other unique marking removed, altered, or obfuscated.
3. Exempts from these offenses:
   1. Any person who is removing, altering, or obfuscating a VIN or other unique marking in order to apply a new VIN or unique marking because the catalytic converter is being lawfully installed on a different vehicle; and
   2. Any person that is disassembling, smelting, or otherwise permanently destroying a catalytic converter lawfully in their possession.

Comments

1. Purpose of bill. According to the author “Marking vehicle parts with a VIN allows stolen parts to be traced back to the original vehicle, assists law enforcement to help victims, and hinders the ability of thieves to sell stolen parts on the black market. That is why the Federal Motor Vehicle Theft Prevention Standard has required manufacturers to mark the VIN on 18 different vehicle parts since 1984. Unfortunately, catalytic converters are not covered by the federal standard and are not required to be marked. AB 1519 encourages drivers to get their catalytic converters marked by imposing a misdemeanor for obfuscating the marking. It also imposes a misdemeanor for possessing three or more catalytic converters which have had their VIN markings obfuscated. Law enforcement needs more tools to prosecute thieves once they are away from the crime scene, and drivers need to know that the cost of getting their catalytic converter marked is worth it and will effectively deter theft.”
2. Vehicle identification numbers (VINs). VINs are 17-digit codes made up of numbers and letters that are assigned to vehicles when they are manufactured. This code contains information on the vehicle including the country and manufacturing plant of origin, the vehicle type, and the model year. VINs allow for unique identification and tracking of a vehicle and its parts. Federal regulations require auto manufacturers to etch or stamp a car’s unique VIN on the engine, transmission and a dozen other major vehicle parts, but currently not the catalytic converter.
3. Catalytic converters clean car emissions. Catalytic converters are an essential and required component of motor vehicle exhaust systems. They are responsible for changing toxic emissions from the combustion engine into less-toxic alternatives before they are released into the air. Catalytic converters work by using the chemical properties of small amounts of precious metals such as rhodium, palladium and platinum to promote a chemical reaction in exhaust fumes that degrades the toxic pollutants.
4. Catalytic converters are attractive targets for thieves. Catalytic converters are often located in readily accessible locations in a vehicle’s undercarriage. With simple equipment, a potential thief can saw off most catalytic converters in minutes, likely damaging the car in the process. The converters can then be quickly sold to scrap yards who then sell them to recyclers who reclaim the precious metals. According to a 2021 report by the Congressional Research Service titled Addressing Catalytic Converter Theft, stolen catalytic converters can be sold by thieves for anywhere from $25 to $500 depending on the type and model of vehicle they were stolen from. Replacing a catalytic converter, especially if additional components were damaged during the removal, can cost a consumer thousands of dollars.
5. Etching catalytic converters. Etching VINs to track components, discourage theft, and aid prosecution is already required for several essential vehicle components. Additional etching of VINs on windshields and other nonessential components has been marketed to consumers as an anti-theft measure. Marking parts with the VIN requires a thief to spend time and money to replace the marked part or remove the markings. This cuts into the profit of the theft, potentially reducing the incentive to steal the vehicle. Etching is recommended by many groups including law enforcement agencies, the California Bureau of Automotive Repair, and insurance groups. Without a VIN, proving a component was stolen from a vehicle is difficult, stymieing prosecution. Etching of VINs aids prosecution and also increases the odds that a component, if recovered by law enforcement, will be able to be returned to the original owner. Occasionally, free etching services will be offered by these groups at public events.
6. Catalytic converter thefts spiked during the pandemic. Palladium and rhodium, the precious metals in catalytic converters, have become particularly valuable recently due to scarcity and disruptions in the supply chain related to the COVID-19 pandemic. While the prices have been dropping from their largest spikes over the last two years, they remain quite high.

The number of catalytic converter thefts dramatically increased over the recent years, according to an analysis from National Insurance Crime Bureau (NICB) of submitted insurance claims. According to the NICB, which is a U.S. insurance industry trade association focused on preventing insurance fraud and vehicle theft, the number of reported catalytic converter thefts nationwide has increased from 1,489 in 2018 to 64,701 in 2022. The increase in thefts has leveled off in recent years as rare metal prices have fallen, but remain much higher than they used to be. This spike in thefts is particularly notable in California, which accounted for nearly 37% of all thefts in 2022 and experienced a 40-fold increase in thefts from 2018. These numbers are based on insurance claims filings so they likely underreport the true number of thefts.

1. The Legislature acted to reduce thefts. In the previous legislative session a slew of bills were introduced to address the problem of increased catalytic converter thefts. The two bills that were enacted (SB 1087 (Gonzalez) and AB 1740 (Muratsuchi)) addressed this problem by focusing on the point of sale for stolen converters. They prohibited the purchase of used catalytic converters except from certain sellers and required core recyclers to track additional information about the vehicle the converter was removed from in order to better track the ownership of the converter. One of the pieces of information that was newly required to be tracked is the VIN marked on the converter, if the converter is marked. These changes were made to make it more difficult for thieves to sell stolen converters and disincentive the thefts. SB 366 (Umberg, Chapter 601, Statutes of 2021) reconstituted the Vehicle Dismantling Industry Strike Team and required a study of the number of unlicensed automobile dismantlers investigated and the number of investigations that resulted in an enforcement action for the theft of catalytic converters. These bills have only been in statute for a short period of time, so it is too soon to say if they are successfully reducing thefts.

This year, SB 55 (Umberg) further encourages VIN etching by requiring car dealers to offer etching services to consumers. This bill helps strengthen that recent policy by encouraging newly sold vehicles in California to have their catalytic converters marked. It is similar to AB 641 (Fong), also being heard by this committee, which would make it a crime to possess six or more catalytic converters that have been cut from a vehicle.

1. Criminalizing ownership. It is already a crime to steal a catalytic converter, sell stolen property, and knowingly receive stolen property. It is also already illegal to knowingly buy, sell, or possess any property from which any distinguishing number or identification mark has been removed. Despite these provisions, law enforcement has indicated that they have had a difficult time catching catalytic converter thieves in the act. It is difficult for prosecution to determine a victim and therefore establish "personal property" for purposes of getting a conviction under the penal code. AB 1519 will be helpful because law enforcement does not need to link the stolen catalytic convert back to an individual victim to establish guilt.

There have been numerous bills introduced in the past two legislative sessions to make it a crime to possess a detached catalytic converter, and several cities have passed ordinances making it a crime to merely possess a catalytic converter. While it is difficult to think of why an average car owner would have more than three catalytic converters with altered VINs, making possession itself a criminal act is unusual for an item that is not inherently dangerous.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes

According to the Senate Appropriations Committee, this bill results in unknown, potentially significant court workload cost pressures to adjudicate new misdemeanor offenses that are brought under the provisions of this bill. Unknown, non-reimbursable local incarceration costs, as misdemeanor violations are generally punishable by imprisonment for up to six months in county jail, or a fine of up to $1,000, or both.

SUPPORT: (Verified 9/1/23)

Auto Club of Southern California

California Association of Highway Patrolmen

California District Attorneys Association

California Police Chiefs Association

National Insurance Crime Bureau

Peace Officers Research Association of California

State of California Auto Dismantlers Association

OPPOSITION: (Verified 9/1/23)

None received

ASSEMBLY FLOOR: 79-0, 6/1/23

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon

NO VOTE RECORDED: Gabriel

Prepared by: Jacob O'Connor / TRANS. / (916) 651-4121

9/2/23 9:51:54

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

AB 1519 (Bains) - Vehicles: catalytic converters

Bill Summary:

AB 1519 would make it a misdemeanor to remove, alter, or obfuscate any vehicle identification number (VIN) or other unique marking on a catalytic converter, or to knowingly possess three or more catalytic converters that have been so altered, with specified exemptions.

*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********

The following information is revised to reflect amendments

adopted by the committee on September 1, 2023

Fiscal Impact:

• Unknown, potentially significant court workload cost pressures to adjudicate new misdemeanor offenses that are brought under the provisions of this bill (Trial Court Trust Fund, General Fund).
  
• Unknown, non-reimbursable local incarceration costs, as misdemeanor violations are generally punishable by imprisonment for up to six months in county jail, or a fine of up to $1,000, or both. (local funds)

Committee Amendments:

• Add Senator Portantino as a co-author.

-- END --

SENATE COMMITTEE ON

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

AB 1519 (Bains) - Vehicles: catalytic converters

Bill Summary:

AB 1519 would make it a misdemeanor to remove, alter, or obfuscate any vehicle identification number (VIN) or other unique marking on a catalytic converter, or to knowingly possess three or more catalytic converters that have been so altered, with specified exemptions.

Fiscal Impact:

• Unknown, potentially significant court workload cost pressures to adjudicate new misdemeanor offenses that are brought under the provisions of this bill (Trial Court Trust Fund, General Fund). See Staff Comments.
  
• Unknown, non-reimbursable local incarceration costs, as misdemeanor violations are generally punishable by imprisonment for up to six months in county jail, or a fine of up to $1,000, or both. (local funds)

Background:

Since 1975, all vehicles produced in the United States must have a catalytic converter as part of the exhaust system to help reduce contaminants from a vehicle’s exhaust. Catalytic converters contain precious metals like palladium, rhodium, and platinum, which often makes them a target for theft. Most catalytic converters in modern cars are found underneath the vehicle toward the exhaust outlet, which makes it accessible to cut the whole unit out from underneath the vehicle.

According to a recent analysis from the National Insurance Crime Bureau, the number of reported catalytic converter thefts nationwide, based on insurance claim filings, has increased from 1,489 in 2018 to 64,701 in 2022. The highest number of thefts occurred in California, accounting for 37% of the reported thefts in 2022, which represents a 40-fold increase from 2018.

Existing federal regulations require auto manufacturers to etch or stamp a vehicle’s VIN on the engine, transmission, and a dozen other specified major vehicle parts, but there is no current requirement to stamp the VIN on a catalytic converter. Etching VINs on vehicle component parts allows for the tracking of components, discourages theft, and aids prosecution, and there has been an increased interest in catalytic converter VIN etching services.

Existing law prohibits the purchase of used catalytic converters except from certain sellers. Existing law defines a “core recycler” as a person or business that buys used individual catalytic converters, transmissions, or other parts previously removed from a vehicle, requires core recyclers to maintain a written record of sales of catalytic converters, including the VIN etched or engraved on the converter, and prohibits core recyclers from providing payment for a catalytic converter unless the payment is made by check, and the core recycler obtains a clear picture or video of the seller and the catalytic converter that captures the permanent VIN marking, a copy of valid photo ID of the seller, and a written statement from the seller indicating how the catalytic converter was obtained.

Proposed Law:

AB 1519 would make it a misdemeanor for a person to do either of the following:

• Remove, alter, or obfuscate any VIN or other unique marking that has been added to a catalytic converter.
• Knowingly possess three or more catalytic converters that have the VIN or other unique marking removed, altered, or obfuscated.

These prohibitions would not apply to a person removing, altering, or obfuscating a VIN or marking in order to apply a new VIN or marking because the catalytic converter is being installed on another vehicle, or to a person who is disassembling, smelting, or otherwise permanently destroying a catalytic converter lawfully in their possession.

Related Legislation:

AB 641 (V. Fong), which is currently pending in this Committee, makes it a crime for a person to possess nine or more detached catalytic converters that have been cut from a vehicle unless the person is a licensed automobile dismantler or is expressly excluded from having to be a licensed automobile dismantler. A first offense for violating these provisions would be an infraction, and subsequent offenses would be misdemeanors with specified graduated fines.

SB 55 (Umberg), which is currently pending in the Assembly Appropriations Committee, would make it an infraction offense for a dealer or retailer to sell a new or used motor vehicle equipped with a catalytic converter, unless the catalytic converter has been marked with the vehicle’s VIN, except as specified.

Staff Comments:

It is unknown how many additional misdemeanor prosecutions will be brought as a result of AB 1519. However, misdemeanor charges carry the potential for incarceration and therefore certain defendants’ rights are attached to the proceedings. These include the right to a jury trial and the right to counsel (at public expense if the defendant is unable to afford the costs of representation) which could lead to lengthier and more complex court proceedings. It generally costs about $8,000 to operate a courtroom for one eight-hour day. If misdemeanor cases brought as a result of this bill take an additional 50 hours of court time in the aggregate, the cost pressures to the courts would surpass the Suspense File threshold. Although courts are not funded on the basis of workload, increased staff time and resources may create a need for increased funding for courts from the General Fund to perform existing duties. Numerous trial court operations are funded through the imposition and collection of criminal fines and fees. However, the Legislature has reduced and eliminated criminal fines and fees over the past decade. As a result, the 2023-24 May Revision proposes an ongoing annual allocation of $105.1 million from the GF to backfill declining revenue to the Trial Court Trust Fund.

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SENATE COMMITTEE ON PUBLIC SAFETY

Senator Aisha Wahab, Chair

2023 - 2024 Regular

Bill No: AB 1519 Hearing Date: July 11, 2023

Subject: Vehicles: catalytic converters

HISTORY

Source: Author

Prior Legislation: SB 986 (Umberg), failed Assembly floor, 2022

SB 1087 (Gonzalez), Ch. 514, Stats. 2022

AB 1740 (Muratsuchi), Ch. 513, Stats. 2022

AB 2682 (Gray), failed Senate Appropriations, 2022

SB 919 (Jones), failed Sen. Pub. Safety, 2022

Support: California District Attorneys Association

Opposition: None known

Assembly Floor Vote: 79 - 0

PURPOSE

The purpose of this bill is to create a new misdemeanor for removing, altering, or obfuscating any vehicle identification number (VIN) or other unique marking on a catalytic converter or from possessing three or more catalytic converters that have been so altered.

Existing law states that except in cases where a different punishment is prescribed by any law of this state, every offense declared to be a misdemeanor is punishable by imprisonment in the county jail not exceeding six months, or by fine not exceeding $1,000, or by both. (Pen. Code, § 19.)

Existing law divides theft into two degrees, petty theft and grand theft. (Pen. Code, § 486.)

Existing law defines grand theft as when the money, labor, or real or personal property taken is of a value exceeding $950 dollars, except as specified. (Pen. Code, § 487.)

Existing law states that petty theft is punishable by a fine not exceeding $1,000, by imprisonment in the county jail not exceeding six months, or both. (Penal Code § 490.)

Existing law prohibits buying or receiving any property that has been stolen or that has been obtained in any manner constituting theft or extortion, knowing the property to be so stolen or obtained, and punishes the offense as an alternate felony-misdemeanor when the value of the property exceeds $950, or as a misdemeanor when the value of the property is $950 or less. (Pen. Code, § 496.)

Existing law states that it is a misdemeanor for any person to willfully injure or tamper with any vehicle or the contents thereof or break or remove any part of a vehicle without the consent of the owner. (Veh. Code, §§ 10852, 40000.9.)

Existing law states that it is a misdemeanor for a person to intentionally deface, destroy, or alter the motor number, other distinguishing number, or identification mark of a vehicle required or employed for registration purposes without written authorization from the department, nor shall any person place or stamp any serial, motor, or other number or mark upon a vehicle, as specified. (Veh. Code, § 10750, 40000.9.)

This bill states that any person who removes, alters, or obfuscates any vehicle identification number or other unique marking that has been added to a catalytic converter is guilty of a misdemeanor.

This bill provides that any person who knowingly possesses three or more catalytic converters that have the vehicle identification number or other unique marking removed, altered, or obfuscated is guilty of a misdemeanor.

COMMENTS

1. Need for This Bill

According to the author of this bill:

Marking vehicle parts with a VIN allows stolen parts to be traced back to the original vehicle, assists law enforcement to help victims, and hinders the ability of thieves to sell stolen parts on the black market. That is why the Federal Motor Vehicle Theft Prevention Standard has required manufacturers to mark the VIN on 18 different vehicle parts since 1984. Unfortunately, catalytic converters are not covered by the federal standard and are not required to be marked. AB 1519 encourages drivers to get their catalytic converters marked by imposing a misdemeanor for obfuscating the marking. It also imposes a misdemeanor for possessing three or more catalytic converters which have had their VIN markings obfuscated. Law enforcement need more tools to prosecute thieves once they are away from the crime scene, and drivers need to know that the cost of getting their catalytic converter marked is worth it and will effectively deter theft.

1. Catalytic Converter Theft

Catalytic converters are devices that reduce pollution-causing emissions. Since 1975, all vehicles produced in the United States must have a catalytic converter as part of the exhaust system. Some vehicles may have more than one catalytic converter. The precious metals inside act as catalysts; when hot exhaust enters the converter, a chemical reaction occurs that renders toxic gases, such as carbon monoxide and hydrocarbons, into less harmful emissions.

In 2009, due to reports of increased catalytic thefts, California enacted SB 627 (Calderon), Chapter 603, Statutes of 2009. The law required core recyclers to comply with additional recordkeeping and identification procedures and new payment restrictions when purchasing catalytic converters. Specifically, the law required core recyclers to obtain identifying information about the seller of the catalytic converter including a copy of valid identification, a photograph or video of the seller, a photograph or video of the catalytic converter and information about the sale including date of the transaction and a written statement from the seller indicating ownership of the catalytic converter. This information must be maintained by the core recycler for a minimum period of two years and to provide this information for inspection by local law enforcement upon demand. There is an exception for keeping information on sales or receipts of a catalytic converter if the core recycler and the seller have a written agreement for the transaction. The law makes a knowing and willful violation of its provisions punishable as a misdemeanor with graduated fines and the ability of the court to order the defendant to cease engaging in the business of a core recycler for a specified period of time. (Bus. & Prof. Code, § 21610.)

According to a 2021 report by the Congressional Research Service on catalytic converter theft:

Thefts of catalytic converters, a key part of the emission control systems of internal combustion vehicles, are on the rise. The devices, which are installed not only on passenger vehicles but also on buses, motorcycles, and commercial trucks, use valuable metals to reduce pollutants emanating from the engine. Replacing a stolen catalytic converter can cost a passenger vehicle owner up to $3,000. …

Catalytic converters, the sale of which may net thieves $25 to $500 depending on the type and model of vehicle they were attached to, have become targets for theft for several reasons. During the pandemic, many cars and fleet vehicles remained parked in the same spot for extended periods since people were not driving as much due to pandemic restrictions. These vehicles might be attractive targets for thieves because people were not paying attention to them and because the value of the precious metals they contain has risen sharply. …

Federal laws to deter vehicle and vehicle parts thefts were enacted in 1984 and again in 1992 to address rising theft of motor vehicles that were taken to illicit body shops, often called “chop shops,” for disassembly. The parts—mainly bumpers, hoods, fenders and similar large metal parts— were then sold either directly or through a salvage yard. These laws simplified the tracing and recovery of parts from stolen vehicles and established a national information system that enables states to access automobile titling information. In implementing these laws, the National Highway Traffic Safety Administration (NHTSA) issued a Federal Motor Vehicle Theft Standard, which requires manufacturers to apply or stamp a car’s unique Vehicle Identification Number (VIN) on the engine, transmission, and a dozen other major vehicle parts so law enforcement agencies can better identify vehicles from which the parts were stolen. However, the standard does not require automakers to stamp identification numbers on catalytic converters. …

Identifying stolen vehicle parts has been facilitated by the National Motor Vehicle Title Information System, established by federal law in 1992 (P.L. 102-519) to keep stolen vehicles from being resold. Administered by the American Association of Motor Vehicle Administrators, it requires regular reporting by scrap recyclers and salvage yards. Harnessing the cooperation of these businesses could lead to a decline in catalytic converter thefts if additional documentation were to be required before converters are purchased. …

California has some of the most stringent standards regarding the sale of catalytic converters to scrap recyclers. […] Thus far, CRS has not located evidence about the effectiveness of California’s standards in reducing converter theft.

(Congressional Research Service, Addressing Catalytic Converter Theft (July 6, 2021) <https://crsreports.congress.gov/product/pdf/IF/IF11870/2> [as of April 16, 2023].)

This bill would make it a misdemeanor to remove, alter, or obfuscate the VIN on the catalytic converter, and would make it a misdemeanor to knowingly possess three or more catalytic converters that have had a VIN removed, altered, or obfuscated. The proponents of this bill argue that enforcement and prosecution of catalytic converter theft is extremely difficult unless the perpetrator is caught in the act and thus punishing mere possession is needed.

Theft of a catalytic converter is currently punishable as theft, grand theft, breaking or removing any part of a vehicle without the consent of the owner, and receiving stolen property.

The offense that would most likely apply to a person possessing a stolen catalytic converter would be receiving stolen property punishable as either a misdemeanor or felony, depending on the value of the property. (Pen. Code, § 496.) Three catalytic converters would likely meet the felony threshold which requires the value of the property to exceed $950. (Ibid.) Finding someone is guilty of this offense, requires proof that the property was stolen, that the defendant had knowledge that the property was stolen, and that the defendant concealed or withheld the property from the owner. (Pen. Code, § 496.) Both direct evidence and circumstantial evidence may be used to prove an element of the crime beyond a reasonable doubt. (CALCRIM No. 223.) Circumstantial evidence to prove that the defendant had knowledge that the property was stolen could be met by any number of circumstances that tend to show this knowledge including actual possession of stolen property, no explanation or an unsatisfactory explanation of possession, sale of the property under a false name or at an inadequate price, identity marks removed from the property, or by other suspicious circumstances. (Bench Notes, CALCRIM No. 376.)

1. Permanent Markings on Catalytic Converters

With the increased interest in catalytic converter VIN etching services, a variety of etching products and techniques have been developed. One of the most common methods of etching a catalytic converter is to use an engraving hand tool to etch the number into the equipment.

Permanent marking, or etching, of catalytic converters is one method by which one could identify a stolen catalytic converter. With the increased interest in catalytic converter VIN etching services, a variety of etching products and techniques have been developed. One of the most common methods of etching a catalytic converter is to use an engraving hand tool to etch the number into the equipment. Manual engraving tools can be purchased from hardware stores or online from a wide range of retailers for $25 – $400+. Chemical etch labels and kits can also be a cost-effective technique (often less than $30) to ensure that even if the label is removed, identification information is still permanently detectable on the equipment. Automated industrial-level VIN etching machines can cost thousands, generally over $1,000 for a small and simple machine and over $5-10,000 for a larger and more complex machine, but many automotive professionals can still etch catalytic converters rapidly and effectively with manual tools.

While the etching process itself is generally simple and inexpensive, accessing the catalytic converter for etching can be difficult for many newer car models. Catalytic converters are typically located on the underside of the car, but many newer vehicle models incorporate the catalytic converter as a part of the exhaust manifold, essentially making the catalytic converter difficult to access without disassembling a significant portion of the vehicle engine. In these cases, automobile technicians require specialized equipment and additional time to access the catalytic converter for etching.

While permanently marking a catalytic converter with the vehicle’s VIN is not required under existing law, recent bills have attempted to make this a requirement. Additionally, some consumers may voluntarily pay to have the VIN etched to their vehicle’s catalytic converter to aid in theft detection.

This bill creates new misdemeanors for any person who removes, alters, or obfuscates any VIN or other unique marking that has been added to a catalytic converter, or who knowingly possesses a catalytic converter where the VIN has been removed, altered, or obfuscated. The new misdemeanors would not apply to a person who is removing, altering, or obfuscating a VIN or other unique marking in order to apply a new VIN or unique marking because the catalytic converter is being lawfully installed on a different vehicle, or a person that is disassembling, smelting, or otherwise permanently destroying a catalytic converter lawfully in their possession.

1. Argument in Support

According to California District Attorneys Association:

Catalytic converter theft has become an increasingly alarming problem in communities across the state. The theft itself is often committed within minutes and the stolen catalytic converter, often devoid of any identifying information, is then typically sold to a core recycler for a significant profit. This makes enforcement and prosecution of catalytic converter theft extremely difficult, if not impossible, unless the perpetrator is caught in the act.

By requiring dealers, retail sellers, and automotive repair dealers to ensure that the vehicles they sell or repair contain catalytic converters that are permanently marked with the vehicle identification number (VIN), and by making it a crime to alter the VIN or to knowingly possess a catalytic with an altered VIN, this bill provides law enforcement and prosecutors with important tools that are necessary to discourage and prevent the growing crime of catalytic converter theft.

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SENATE COMMITTEE ON TRANSPORTATION

Senator Lena Gonzalez, Chair

2023 - 2024 Regular

Bill No: AB 1519 Hearing Date: 6/27/2023

SUBJECT: Vehicles: catalytic converters

DIGEST: This bill makes it a misdemeanor to remove, alter, or obfuscate any vehicle identification number (VIN) or other unique marking on a catalytic converter or from possessing three or more catalytic converters that have been so altered.

ANALYSIS:

Existing law:

1. Prohibits individuals from purchasing used catalytic converters, as specified. A violation of this offense is an infraction punishable by a fine of up to $4,000. (Veh. Code, § 10852.5.)
2. Provides that any person who knowingly buys, sells, receives, disposes of, conceals, or possesses any property from which any distinguishing number or identification mark has been removed, defaced, covered, altered, or destroyed, is guilty of a public offense, punishable by imprisonment in a county jail not exceeding six months if the value of the property does not exceed $950, or by imprisonment in a county jail not exceeding one year, if the value of the property exceeds $950. Property includes, but is not limited to, any component part of a vehicle. (Pen. Code, § 537e.)
3. States that no person shall either individually, or in association with one or more other persons, willfully injure or tamper with any vehicle or the contents thereof or break or remove any part of a vehicle without the consent of the owner. This offense is a misdemeanor, punishable by imprisonment in a county jail not exceeding six months, or by fine not exceeding $1,000, or by both. (Veh. Code, §§ 10852 & 42004; Pen. Code, § 19.)
4. Provides that no person shall install, sell, offer for sale, or advertise any device, apparatus, or mechanism intended for use with, or as a part of, a required motor vehicle pollution control device or system, including catalytic converters, that alters or modifies the original design or performance of the motor vehicle pollution control device or system. If the court finds that a person has willfully violated this section, the court shall impose the maximum fine that may be imposed in the case, and no part of the fine may be suspended. (Veh. Code, §§ 27156 & 38391.)
5. Provides that no person shall install, sell, offer for sale, or advertise any device, apparatus, or mechanism intended for use with, or as a part of, a required motor vehicle pollution control device or system, including catalytic converters, that alters or modifies the original design or performance of the motor vehicle pollution control device or system. If the court finds that a person has willfully violated this section, the court shall impose the maximum fine that may be imposed in the case, and no part of the fine may be suspended. (Vehicle Code section (VEH) §27156 and §38391)
6. States that no person shall either individually or in association with one or more other persons, willfully injure or tamper with any vehicle or the contents thereof or break or remove any part of a vehicle without the consent of the owner. This offense is a misdemeanor, punishable by imprisonment in the county jail not exceeding six months, or by fine not exceeding $1,000, or by both. (VEH §40000.9.)

This bill:

1. Makes it a misdemeanor to remove, alter, or obfuscate any VIN or other unique marking that has been added a catalytic converter.
2. Makes it a misdemeanor to knowingly possess three or more catalytic converters that have a VIN or other unique marking removed, altered, or obfuscated.
3. Exempts from these offenses:
   1. Any person who is removing, altering, or obfuscating a VIN or other unique marking in order to apply a new VIN or unique marking because the catalytic converter is being lawfully installed on a different vehicle; and
   2. Any person that is disassembling, smelting, or otherwise permanently destroying a catalytic converter lawfully in their possession.

COMMENTS:

1. Purpose of bill. According to the author “Marking vehicle parts with a VIN allows stolen parts to be traced back to the original vehicle, assists law enforcement to help victims, and hinders the ability of thieves to sell stolen parts on the black market. That is why the Federal Motor Vehicle Theft Prevention Standard has required manufacturers to mark the VIN on 18 different vehicle parts since 1984. Unfortunately, catalytic converters are not covered by the federal standard and are not required to be marked. AB 1519 encourages drivers to get their catalytic converters marked by imposing a misdemeanor for obfuscating the marking. It also imposes a misdemeanor for possessing three or more catalytic converters which have had their VIN markings obfuscated. Law enforcement needs more tools to prosecute thieves once they are away from the crime scene, and drivers need to know that the cost of getting their catalytic converter marked is worth it and will effectively deter theft.”
2. Vehicle identification numbers (VINs). VINs are 17-digits codes made up of numbers and letters that are assigned to vehicles when they are manufactured. This code contains information on the vehicle including the country and manufacturing plant of origin, the vehicle type, and the model year. VINs allow for unique identification and tracking of a vehicle and its parts. Federal regulations require auto manufacturers to etch or stamp a car’s unique VIN on the engine, transmission and a dozen other major vehicle parts, but currently not the catalytic converter.
3. Catalytic converters clean car emissions. Catalytic converters are an essential and required component of motor vehicle exhaust systems. They are responsible for changing toxic emissions from the combustion engine into less-toxic alternatives before they are released into the air. Catalytic converters work by using the chemical properties of small amounts of precious metals such as rhodium, palladium and platinum to promote a chemical reaction in exhaust fumes that degrades the toxic pollutants.
4. Catalytic converters are attractive targets for thieves. Catalytic converters are often located in readily accessible locations in a vehicle’s undercarriage. With simple equipment, a potential thief can saw off most catalytic converters in minutes, likely damaging the car in the process. The converters can then be quickly sold to scrap yards who then sell them to recyclers who reclaim the precious metals. According to a 2021 report by the Congressional Research Service titled Addressing Catalytic Converter Theft, stolen catalytic converters can be sold by thieves for anywhere from $25 to $500 depending on the type and model of vehicle they were stolen from. Replacing a catalytic converter, especially if additional components were damaged during the removal, can cost a consumer thousands of dollars.
5. Etching catalytic converters. Etching VINs to track components, discourage theft, and aid prosecution is already required for several essential vehicle components. Additional etching of VINs on windshields and other nonessential components has been marketed to consumers as an anti-theft measure. Marking parts with the VIN requires a thief to spend time and money to replace the marked part or remove the markings. This cuts into the profit of the theft, potentially reducing the incentive to steal the vehicle. Etching is recommended by many groups including law enforcement agencies, the California Bureau of Automotive Repair, and insurance groups. Without a VIN, proving a component was stolen from a vehicle is difficult, stymieing prosecution. Etching of VINs aids prosecution and also increases the odds that a component, if recovered by law enforcement, will be able to be returned to the original owner. Occasionally, free etching services will be offered by these groups at public events.
6. Catalytic converter thefts spiked during the pandemic. Palladium and rhodium, the precious metals in catalytic converters, have become particularly valuable recently due to scarcity and disruptions in the supply chain related to the COVID-19 pandemic. While the prices have been dropping from their largest spikes over the last two years, they remain quite high. According to online price trackers, the price of palladium as of March 1^st, 2023 was $1453 per ounce, down 39% from its price two years prior, but up 46% from its price on the same date in 2018. Rhodium follows a similar trend, costing 74% less than it did in 2021, but 46% more than in 2018. The spike in value of palladium and rhodium increased the value of stolen converters, encouraging their theft. The pandemic may also have created more opportunities for thieves to target unattended vehicles as people traveled less.

Whatever the cause, the number of catalytic converter thefts dramatically increased over the recent years, according to an analysis from National Insurance Crime Bureau (NICB) of submitted insurance claims. According to the NICB, which is a U.S. insurance industry trade association focused on preventing insurance fraud and vehicle theft, the number of reported catalytic converter thefts nationwide has increased from 1,489 in 2018 to 64,701 in 2022. The increase in thefts has leveled off in recent years as rare metal prices have fallen, but remain much higher than they used to be. This spike in thefts is particularly notable in California, which accounted for nearly 37% of all thefts in 2022 and experienced a 40-fold increase in thefts from 2018. These numbers are based on insurance claims filings so they likely underreport the true number of thefts.

1. The Legislature acted to reduce thefts. In the previous legislative session a slew of bills were introduced to address the problem of increased catalytic converter thefts. The two bills that were enacted (SB 1087 (Gonzalez) and AB 1740 (Muratsuchi)) addressed this problem by focusing on the point of sale for stolen converters. They prohibited the purchase of used catalytic converters except from certain sellers and required core recyclers to track additional information about the vehicle the converter was removed from in order to better track the ownership of the converter. One of the pieces of information that was newly required to be tracked is the VIN marked on the converter, if the converter is marked. These changes were made to make it more difficult for thieves to sell stolen converters and disincentive the thefts. SB 366 (Umberg, Chapter 601, Statutes of 2021) reconstituted the Vehicle Dismantling Industry Strike Team and required a study of the number of unlicensed automobile dismantlers investigated and the number of investigations that resulted in an enforcement action for the theft of catalytic converters. These bills have only been in statute for a short period of time, so it is too soon to say if they are successfully reducing thefts.

This year, SB 55 (Umberg) further encourages VIN etching by requiring car dealers to offer etching services to consumers. This bill helps strengthen that recent policy by encouraging newly sold vehicles in California to have their catalytic converters marked. It is similar to AB 641 (Fong), also being heard by this committee, which would make it a crime to possess six or more catalytic converters that have been cut from a vehicle.

1. Criminalizing ownership. It is already a crime to steal a catalytic converter, sell stolen property, and knowingly receive stolen property. It is also already illegal to knowingly buy, sell, or possess any property from which any distinguishing number or identification mark has been removed. Despite these provisions, law enforcement has indicated that they have had a difficult time catching catalytic converter thieves in the act. It is difficult for prosecution to determine a victim and therefore establish "personal property" for purposes of getting a conviction under the penal code. AB 1519 will be helpful because law enforcement does not need to link the stolen catalytic convert back to an individual victim to establish guilt.

There have been numerous bills introduced in the past two legislative sessions to make it a crime to possess a detached catalytic converter, and several cities have passed ordinances making it a crime to merely possess a catalytic converter. While it is difficult to think of why an average car owner would have more than three catalytic converters with altered VINs, making possession itself a criminal act is unusual for an item that is not inherently dangerous. Opponents to these measures have raised concerns that these measures may be used to further police minority communities.

1. Double referral. This bill has been double referred to the Senate Committee on Public Safety.

Related Legislation:

SB 55 (Umberg) would prohibit motor vehicle dealers from selling a vehicle equipped with a catalytic converter unless the converter has been permanently marked with the vehicle’s identification number, the vehicle is sold for dismantling or salvage, the vehicle is sold at a wholesale auction or a buyer declines the marking offered by the dealer. The bill is pending in the Assembly Transportation Committee.

AB 641 (Fong) would makes it a misdemeanor for a person to possess six or more used catalytic converters that have been cut from a vehicle unless they are a licensed automobile dismantler or are expressly excluded from having to be a licensed automobile dismantler. AB 641 is pending in this committee.

SB 1087 (Gonzalez, Chapter 514, Statutes of 2022) – Prohibited any person from purchasing a used catalytic converter from anybody other than specified sellers or the verifiable owner of the vehicle and makes a violation punishable as an infraction.

AB 1740 (Muratsuchi, Chapter 513, Statutes of 2022) – Prohibited core recyclers form purchasing or receiving a catalytic converter from any person that is not a commercial enterprise or verifiable owner of the vehicle from which the catalytic converter was removed.

AB 1653 (Patterson, Chapter 105, Statutes of 2022) added vehicle burglary and theft of vehicle parts and accessories to the California Highway Patrol regional property crimes task force for organized retail theft.

SB 986 (Umberg, 2022) – Would have required a traceable method of payment for catalytic converters and prohibited dealers from selling a vehicle equipped with a catalytic converter unless the converter was engraved with the vehicle’s VIN. This bill failed passage on the Assembly floor.

SB 366 (Umberg, Chapter 601, Statutes of 2021) reconstituted the Vehicle Dismantling Industry Strike Team (VDIST), which amongst other things, requires a study the number of unlicensed automobile dismantlers investigated and the number of investigations that resulted in an enforcement action for the theft of catalytic converters.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Assembly Appropriations Committee, this bill will results in potential cost pressures in the tens of thousands of dollars annually to the trial courts in increased workload, given this bill creates a new crime. If five new crimes are filed annually statewide and proceed to trial resulting in two days of court time, at an estimated cost of approximately $8,000 for an eight-hour court day, the approximate annual cost to the courts is $80,000. The bill would also result in potential non-reimbursable costs in the tens of thousands of dollars annually for increased incarceration costs, as misdemeanors are generally punishable by up to six months in county jail or $1,000 in fines.

POSITIONS: (Communicated to the committee before noon on Wednesday,

June 21^st.)

SUPPORT:

Auto Club of Southern California (AAA)
California Association of Highway Patrolmen
California District Attorneys Association
California Police Chiefs Association
National Insurance Crime Bureau
Peace Officers Research Association of California (PORAC)
State of California Auto Dismantlers Association

OPPOSITION:

None received

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ASSEMBLY THIRD READING

ATR Bill Id:AB 1519

Author:(Bains)

As Amended Ver:April 19, 2023

Majority vote

SUMMARY

Makes it a misdemeanor to remove, alter, or obfuscate any vehicle identification number (VIN) or other unique marking that has been added to a catalytic converter and makes it a misdemeanor to knowingly possess three catalytic converters that have a VIN or other unique marking removed, altered, or obfuscated.

Major Provisions

1. Makes it an infraction to knowingly possess one or two catalytic converters that have a VIN or other unique marking removed, altered, or obfuscated.
2. Provides that neither the crime of VIN removal from a catalytic converter or possession of a catalytic converter with a VIN removed apply in the following circumstances:
3. To a person who is removing, altering, or obfuscating a VIN or other unique marking in order to apply a new VIN or unique marking because the catalytic converter is being lawfully installed on a different vehicle.
4. To a person that is disassembling, smelting, or otherwise permanently destroying a catalytic converter lawfully in their possession.

COMMENTS

Catalytic converter thefts are on the rise. The Bureau of Automotive Repair (BAR) reported about 1,600 converter thefts per month statewide in 2021. According to data provided by the Personal Insurance Federation of California, insurance claims for catalytic converter thefts in California have gone up from a monthly average of 183 in 2020 to 477 claims in January of 2022. Claims rose by 308% from 2019 to 2020 and 100% from 2020 to 2021. California had the highest number of claims in the United States, accounting for 28% of all theft claims in the country. The insurance industry paid over $23 million in repair costs for catalytic converters in 2021 alone, an 11.5% increase from the year before.

A catalytic converter is an exhaust emission control device that converts toxic gases and pollutants in exhaust gas from an internal combustion engine into less-toxic pollutants.

Catalytic converter theft has been on the rise because they are coated with precious metals such as rhodium that is valued at over $14,000 per ounce and palladium which is valued at $2,500 per ounce. Toyota and Honda vehicles have been particularly attractive to thieves, because the location of the converters on certain vehicles that make it so that a thief can steal one with basic tools, such as a pipe wrench or cordless saw, in a manner of minutes.

The increase in theft, combined with supply chain issues has resulted in a shortage of replacement catalytic converters. This is likely to grow worse because of the war in Ukraine and Russia being the world's largest producer of palladium.

BAR has made several recommendations to deter theft of catalytic converters, including parking cars in well-lit areas, installing motion-sensing alarm systems, installing theft prevention devices like steel cages, and etching the converter shell with a VIN or license plate number.

Last year the Legislature passed and the Governor signed AB 1740 (Muratsuchi) Chapter 513, Statutes of 2022 and SB 1087 (Gonzalez) Chapter 514, Statutes of 2022, which prohibits a core recycler from entering into a transaction to purchase or receive a catalytic converter from any person that is not a commercial enterprise, as defined, or verifiable owner of the vehicle from which the catalytic converter was removed. These two laws place strict record-keeping requirements on core recyclers on where they got their catalytic converters from. The goal of that legislation is to make it harder for catalytic converter thieves to be able to sell their stolen catalytic converters to smelting operations. This removes the impetus to steal the catalytic converter to begin with as their value is not in the attachment of the device to another vehicle, but rather in the precious metals they contain.

It is already a crime to steal a catalytic converter, sell stolen property, and knowingly receive stolen property. Law enforcement has indicated to the Committee that they have had a difficult time catching catalytic converter thieves in the act. As a result, there have been numerous bills introduced in the past two legislative sessions to make it a crime to possess a detached catalytic converter, and several cities have passed ordinances making it a crime to merely possess a catalytic converter.

The bill is meant to be paired with SB 55 (Umberg of 2023) which requires a person holding a retail seller's permit to sell new or used vehicles equipped with a catalytic converter to etch the catalytic converter with a VIN unless the buyer declines to have the VIN etched at the point of sale. The purpose of the VIN is to make it easier for law enforcement to identify a victim, a necessary element in proving there was indeed a victim in the theft and the property in possession of another is not their own. A person removing that number would defeat that purpose of helping identify the victim. Thus, this bill attempts to make it easier to prosecute someone knowingly possessing a catalytic converter that has had a VIN or other identifying number removed.

According to the Author

"Marking vehicle parts with a VIN allows stolen parts to be traced back to the original vehicle, assists law enforcement to help victims, and hinders the ability of thieves to sell stolen parts on the black market. That is why the Federal Motor Vehicle Theft Prevention Standard has required manufacturers to mark the VIN on 18 different vehicle parts since 1984. Unfortunately, catalytic converters are not covered by the federal standard and are not required to be marked. Unless law enforcement catches a thief in the act, it is nearly impossible to establish guilty and prosecute thieves for this crime. AB 1519 encourages drivers to get their catalytic converters marked by imposing a misdemeanor for obfuscating the marking. It also imposes a misdemeanor for possessing three or more catalytic converters which have had their VIN markings obfuscated. Law enforcement need more tools to prosecute thieves once they are away from the crime scene, and drivers need to know that the cost of getting their catalytic converter marked is worth it and will effectively deter theft."

Arguments in Support

According to the California Police Chiefs Association, " Under current law, it is difficult for law enforcement to prove a crime has occurred, even when we find individuals with multiple detached catalytic converters with VIN numbers removed. AB 1519 will assist law enforcement in defending against this crime by making it clear possession of a catalytic converter with VIN number removed or altered is in violation.

Arguments in Opposition

None on file

FISCAL COMMENTS

According to Assembly Appropriations Committee:

1. Potential cost pressures (General Fund (GF) or Trial Court Trust Fund (TCTF)) in the tens of thousands of dollars annually to the trial courts in increased workload, given this bill creates a new crime, as described above. A defendant charged with a misdemeanor is entitled to no-cost legal representation and a jury trial. If five new crimes are filed annually statewide and proceed to trial resulting in two days of court time, at an estimated cost of approximately $8,000 for an eight-hour court day, the approximate annual cost to the courts is $80,000. Although courts are not funded on the basis of workload, increased pressure on staff and the TCTF may create a need for increased court funding from the GF to perform existing duties. The Governor's 2023-24 state budget already proposes $109.3 million in ongoing GF revenue to continue backfilling the TCTF for expected revenue declines.
2. Potential non-reimbursable costs in the tens of thousands of dollars annually for increased incarceration costs, as misdemeanors are generally punishable by up to six months in county jail or $1,000 in fines.  The average annual cost to incarcerate a defendant in county jail is approximately $29,000.  California county jails are increasingly overcrowded – particularly since the enactment of the Realignment Act in 2011.  Jail overcrowding since 2011 has resulted in court-mandated population caps and increased rates of inmate violence and death.  Overcrowding has also resulted in significant state funding for additional jail construction.  Although new crimes are not considered reimbursable state mandates pursuant to Proposition 30 (2012), overcrowding in county jails creates cost pressure on the GF because the state has historically granted new funding to counties to offset overcrowding after the 2011 Realignment Act.

VOTES

ASM TRANSPORTATION: 15-0-0

YES: Friedman, Vince Fong, Berman, Juan Carrillo, Davies, Gipson, Hart, Jackson, Kalra, Lowenthal, Stephanie Nguyen, Sanchez, Wallis, Ward, Wicks

ASM PUBLIC SAFETY: 8-0-0

YES: Jones-Sawyer, Alanis, Bonta, Bryan, Lackey, Ortega, Santiago, Zbur

ASM APPROPRIATIONS: 15-0-1

YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Lowenthal, Mathis, Papan, Pellerin, Sanchez, Weber, Ortega

ABS, ABST OR NV: Robert Rivas

UPDATED

VERSION: April 19, 2023

CONSULTANT: David Sforza / TRANS. / (916) 319-2093 FN: 0000571

Date of Hearing: May 17, 2023

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Chris Holden, Chair

ABPCA Bill Id:AB 1519

Author:(Bains) – As Amended Ver:April 19, 2023

Urgency: No State Mandated Local Program: Yes Reimbursable: No

SUMMARY:

This bill creates new misdemeanor crimes for (a) removing, altering or obfuscating any vehicle identification number (VIN) or other unique marking that has been added to a catalytic converter and (b) possession of three or more catalytic converters that have the VIN or other unique marking removed, altered, or obfuscated.

The bill makes exceptions for a person who is removing, altering or obfuscating a VIN or other unique marking to apply a new VIN or unique marking because the catalytic converter is being lawfully installed on a different vehicle and for a person that is disassembling, smelting or otherwise permanently destroying a catalytic converter lawfully in their possession.

FISCAL EFFECT:

1. Potential cost pressures (General Fund (GF) or Trial Court Trust Fund (TCTF)) in the tens of thousands of dollars annually to the trial courts in increased workload, given this bill creates a new crime, as described above. A defendant charged with a misdemeanor is entitled to no-cost legal representation and a jury trial.  If five new crimes are filed annually statewide and proceed to trial resulting in two days of court time, at an estimated cost of approximately $8,000 for an eight-hour court day, the approximate annual cost to the courts is $80,000.  Although courts are not funded on the basis of workload, increased pressure on staff and the TCTF may create a need for increased court funding from the GF to perform existing duties.  The Governor’s 2023-24 state budget already proposes $109.3 million in ongoing GF revenue to continue backfilling the TCTF for expected revenue declines.
2. Potential non-reimbursable costs in the tens of thousands of dollars annually for increased incarceration costs, as misdemeanors are generally punishable by up to six months in county jail or $1,000 in fines.  The average annual cost to incarcerate a defendant in county jail is approximately $29,000.  California county jails are increasingly overcrowded – particularly since the enactment of the Realignment Act in 2011.  Jail overcrowding since 2011 has resulted in court-mandated population caps and increased rates of inmate violence and death.  Overcrowding has also resulted in significant state funding for additional jail construction.  Although new crimes are not considered reimbursable state mandates pursuant to Proposition 30 (2012), overcrowding in county jails creates cost pressure on the GF because the state has historically granted new funding to counties to offset overcrowding after the 2011 Realignment Act.

COMMENTS:

1. Background and Purpose. Catalytic converters are devices that reduce pollution-causing emissions. Since 1975, all vehicles produced in the United States must have a catalytic converter as part of the exhaust system to help reduce contaminants from the exhaust. The precious metals inside act as catalysts; when hot exhaust enters the converter, a chemical reaction occurs that renders toxic gases, such as carbon monoxide and hydrocarbons, into less harmful emissions.

According to the National Insurance Crime Bureau (NICB), catalytic converters can be melted down to extract rhodium, palladium and platinum, highly valued precious metals, making them easy and popular targets for theft.

Based on a study of reported thefts, NICB found that there were approximately 1,203 thefts of catalytic converters per month in 2020, compared to 108 per month in 2018. Over the three-year period, the highest number of thefts occurred in California, followed by Texas, Minnesota, North Carolina and Illinois. The frequency of thefts accelerated throughout the COVID-19 pandemic.

Recently, the Legislature has taken several actions in response to the rash of catalytic converter thefts. Legislation enacted in 2022 (a) prohibits a “core recycler” from entering into a transaction to purchase or receive a catalytic converter from any person that is not a commercial enterprise or a verifiable owner of the vehicle from which the catalytic converter was removed, (b) adds vehicle burglary and theft of vehicle parts and accessories to topics to be addressed by the California Highway Patrol regional property crimes task force for organized retail theft, (c) increases fines for being an unlicensed automobile dismantler and (d) reconstitutes the Vehicle Dismantling Industry Strike Team, which, among other things, is to study the number of unlicensed automobile dismantlers investigated and the number of investigations that resulted in an enforcement action for the theft of catalytic converters.

The author contends still more must be done. According to the author:

Marking vehicle parts with a VIN allows stolen parts to be traced back to the original vehicle, assists law enforcement to help victims, and hinders the ability of thieves to sell stolen parts on the black market. That is why the Federal Motor Vehicle Theft Prevention Standard has required manufacturers to mark the VIN on 18 different vehicle parts since 1984. Unfortunately, catalytic converters are not covered by the federal standard and are not required to be marked. Unless law enforcement catches a thief in the act, it is nearly impossible to establish guilty and prosecute thieves for this crime….Law enforcement need more tools to prosecute thieves once they are away from the crime scene, and drivers need to know that the cost of getting their catalytic converter marked is worth it and will effectively deter theft.

1. Related Legislation. AB 641 (Vince Fong) makes it a misdemeanor for a person to possess six of more detached catalytic converters that have been cut from a vehicle unless the person is a licensed automobile dismantler or are expressly excluded from having to be a licensed automobile dismantler. The bill is pending in this committee.

Analysis Prepared by: Jay Dickenson / APPR. / (916) 319-2081

Date of Hearing: April 25, 2023

Counsel: Liah Burnley

ASSEMBLY COMMITTEE ON

Reginald Byron Jones-Sawyer, Sr., Chair

ABPCA Bill Id:

Author:() – As Ver:

SUMMARY:

Makes it a misdemeanor to remove, alter, or obfuscate any vehicle identification number (VIN) or other unique marking on a catalytic converter. Specifically, this bill:

1. Makes it a misdemeanor to remove, alter, or obfuscate any VIN or other unique marking on a catalytic converter.
   
2. Makes it a misdemeanor to knowingly possess three or more catalytic converters that have a VIN or other unique marking removed, altered, or obfuscated.
   
3. Exempts from these offenses any of the following:
   
4. A person who is removing, altering, or obfuscating a VIN or other unique marking in order to apply a new VIN or unique marking because the catalytic converter is being lawfully installed on a different vehicle; and,
   
5. A person that is disassembling, smelting, or otherwise permanently destroying a catalytic converter lawfully in their possession.

EXISTING STATE LAW:

1. Prohibits individuals from purchasing used catalytic converters, as specified. A violation of this offense is an infraction punishable by a fine of up to $4,000. (Veh. Code, § 10852.5.)
   
2. Provides that any person who knowingly buys, sells, receives, disposes of, conceals, or possesses any property from which any distinguishing number or identification mark has been removed, defaced, covered, altered, or destroyed, is guilty of a public offense, punishable by imprisonment in a county jail not exceeding six months if the value of the property does not exceed $950, or by imprisonment in a county jail not exceeding one year, if the value of the property exceeds $950. Property includes, but is not limited to, any component part of a vehicle. (Pen. Code, § 537e.)
   
3. States that no person shall either individually, or in association with one or more other persons, willfully injure or tamper with any vehicle or the contents thereof or break or remove any part of a vehicle without the consent of the owner. This offense is a misdemeanor, punishable by imprisonment in the county jail not exceeding six months, or by fine not exceeding $1,000, or by both. (Veh. Code, §§ 10852 & 42004; Pen. Code, § 19.)
   
4. Provides that no person shall install, sell, offer for sale, or advertise any device, apparatus, or mechanism intended for use with, or as a part of, a required motor vehicle pollution control device or system, including catalytic converters, that alters or modifies the original design or performance of the motor vehicle pollution control device or system. If the court finds that a person has willfully violated this section, the court shall impose the maximum fine that may be imposed in the case, and no part of the fine may be suspended. (Veh. Code, §§ 27156 & 38391.)
   
5. States that no person shall either individually or in association with one or more other persons, willfully injure or tamper with any vehicle or the contents thereof or break or remove any part of a vehicle without the consent of the owner. This offense is a misdemeanor, punishable by imprisonment in the county jail not exceeding six months, or by fine not exceeding $1,000, or by both. (Veh. Code, § 40000.9.)
6. States that no person shall with intent to commit any malicious mischief, injury, or other crime, climb into or upon a vehicle whether it is in motion or at rest, nor shall any person attempt to manipulate any of the levers, starting mechanism, brakes, or other mechanism or device of a vehicle while the same is at rest and unattended, nor shall any person set in motion any vehicle while the same is at rest and unattended. This offense is a misdemeanor, punishable by imprisonment in the county jail not exceeding six months, or by fine not exceeding $1,000, or by both. (Veh. Code, §§ 10853 & 42002; Pen. Code, § 19.)
7. Provides that every person who defaces, damages or destroys real or personal property that is not their own, is guilty of vandalism. If the amount of the damage is less than $400, the offense is a misdemeanor, punishable by imprisonment in a county jail, not exceeding one year, or by a fine of $1,000 or by both. If the amount of the damage is $400 or more, the offense is a felony, punishable imprisonment in a county jail not exceeding one year, or by a fine of not more than $10,000, or both. (Pen. Code, § 594 subd. (b).)
8. Defines “receiving stolen property” as buying or receiving any property that has been stolen knowing the property is stolen, or concealing, selling, or withholding any property from the owner, knowing the property is stolen. Receiving stolen property that does not exceed $950 in value is a misdemeanor, as specified, and receiving stolen property that exceeds $950 in value is a wobbler. (Pen. Code, § 496, subds. (a) & (d).)
9. Defines “grand theft” as theft that is committed when the money, labor, or real or personal property taken is of a value exceeding $950, except as specified, and states that grand theft is a wobbler. (Pen. Code, §§ 487, 488, 489, subd. (c).)
10. Defines “petty theft” as obtaining any property by theft where the value of the money, labor, real or personal property taken does not exceed $950 and states that petty theft is a misdemeanor, punishable by a fine not exceeding $1,000 or by imprisonment in the county jail not exceeding six months, or both. (Pen. Code, §§ 490, 490.2 subd. (a).)
    
11. Provides that, unless otherwise specified, a misdemeanor is punishable by imprisonment in the county jail not exceeding six months, or by fine not exceeding $1,000, or by both. (Pen. Code, § 19.)
    
12. Requires the California Highway Patrol (CHP) to, in coordination with the Department of Justice (DOJ), convene a regional property crimes task force to assist local law enforcement with vehicle burglary and theft of vehicle parts and accessories, among other thefts. (Pen. Code, § 3899.)
    

FISCAL EFFECT:

Unknown

COMMENTS:

1. Author's Statement: According to the author, “Marking vehicle parts with a VIN allows stolen parts to be traced back to the original vehicle, assists law enforcement to help victims, and hinders the ability of thieves to sell stolen parts on the black market. That is why the Federal Motor Vehicle Theft Prevention Standard has required manufacturers to mark the VIN on 18 different vehicle parts since 1984. Unfortunately, catalytic converters are not covered by the federal standard and are not required to be marked. Unless law enforcement catches a thief in the act, it is nearly impossible to establish guilt and prosecute thieves for this crime.

“AB 1519 encourages drivers to get their catalytic converters marked by imposing a misdemeanor for obfuscating the marking. It also imposes a misdemeanor for possessing three or more catalytic converters which have had their VIN markings obfuscated. Law enforcement need more tools to prosecute thieves once they are away from the crime scene, and drivers need to know that the cost of getting their catalytic converter marked is worth it and will effectively deter theft.”

1. Catalytic Converter Theft: A catalytic converter is an exhaust emission control device that converts toxic gases and pollutants in exhaust gas from an internal combustion engine into less-toxic pollutants. Catalytic converter theft has been on the rise because they are coated with precious metals that have a high recycle value. The Bureau of Automotive Repair (BAR) has made several recommendations to deter theft of catalytic converters, including parking cars in well-lit areas, installing motion-sensing alarm systems, installing theft prevention devices like steel cages, and etching the converter shell with a VIN or license plate number. (BAR, Catalytic Converter Theft and the Smog Check Program <https://www.bar.c‌a.gov/consumer/‌‌smog-check-program/catalytic-converter-theft> [as of April 17, 2023].)

According to a 2021 report by the Congressional Research Service on catalytic converter theft:

Thefts of catalytic converters, a key part of the emission control systems of internal combustion vehicles, are on the rise. The devices, which are installed not only on passenger vehicles but also on buses, motorcycles, and commercial trucks, use valuable metals to reduce pollutants emanating from the engine. Replacing a stolen catalytic converter can cost a passenger vehicle owner up to $3,000. …

Catalytic converters, the sale of which may net thieves $25 to $500 depending on the type and model of vehicle they were attached to, have become targets for theft for several reasons. During the pandemic, many cars and fleet vehicles remained parked in the same spot for extended periods since people were not driving as much due to pandemic restrictions. These vehicles might be attractive targets for thieves because people were not paying attention to them and because the value of the precious metals they contain has risen sharply. …

Federal laws to deter vehicle and vehicle parts thefts were enacted in 1984 and again in 1992 to address rising theft of motor vehicles that were taken to illicit body shops, often called “chop shops,” for disassembly. The parts—mainly bumpers, hoods, fenders and similar large metal parts— were then sold either directly or through a salvage yard. These laws simplified the tracing and recovery of parts from stolen vehicles and established a national information system that enables states to access automobile titling information. In implementing these laws, the National Highway Traffic Safety Administration (NHTSA) issued a Federal Motor Vehicle Theft Standard, which requires manufacturers to apply or stamp a car’s unique Vehicle Identification Number (VIN) on the engine, transmission, and a dozen other major vehicle parts so law enforcement agencies can better identify vehicles from which the parts were stolen. However, the standard does not require automakers to stamp identification numbers on catalytic converters. …

Identifying stolen vehicle parts has been facilitated by the National Motor Vehicle Title Information System, established by federal law in 1992 (P.L. 102-519) to keep stolen vehicles from being resold. Administered by the American Association of Motor Vehicle Administrators, it requires regular reporting by scrap recyclers and salvage yards. Harnessing the cooperation of these businesses could lead to a decline in catalytic converter thefts if additional documentation were to be required before converters are purchased. …

California has some of the most stringent standards regarding the sale of catalytic converters to scrap recyclers. […] Thus far, CRS has not located evidence about the effectiveness of California’s standards in reducing converter theft.

(Congressional Research Service, Addressing Catalytic Converter Theft (July 6, 2021) <https://crsreports.congress.gov/product/pdf/IF/IF11870/2> [as of April 16, 2023].)

This bill would make it a misdemeanor to remove, alter, or obfuscate the VIN on the catalytic converter, and would make it a misdemeanor to knowingly possess three or more catalytic converters that have had a VIN removed, altered, or obfuscated. Such an offense would be punishable by imprisonment in the county jail not exceeding six months, or by fine not exceeding $1,000, or by both. (Pen. Code, § 19.) A person would not be guilty of the offense if the catalytic converter is legally being placed on another vehicle, or is being disabled, smeltered or permanently destroyed and is in the person’s lawful possession.

1. Argument in Support: According to the California Police Chiefs Association (CPCA), “Catalytic converter theft has skyrocketed nationwide. According to the National Insurance Crime Bureau (NICB), the theft of catalytic converters has increased significantly during the pandemic. The precious metals found in catalytic converters make theft of these parts very lucrative, and thieves can cut the catalytic converters off a car in a matter of minutes. According to NICB’s Operations, Intelligence and Analytics study of reported thefts, there were 108 catalytic converter thefts per month on average in 2018, 282 average monthly thefts in 2019, and 1,203 average thefts per month in 2020. This is a problem for every single city in California, and a major priority for each law enforcement agency. Under current law, it is difficult for law enforcement to prove a crime has occurred, even when we find individuals with multiple detached catalytic converters with VIN numbers removed. AB 1519 will assist law enforcement in defending against this crime by making it clear possession of a catalytic converter with VIN number removed or altered is in violation.”
   
2. Related Legislation:
   
   1. SB 55 (Umberg) would prohibit a dealer or retailer from selling a new or used motor vehicle equipped with a catalytic converter unless the catalytic converter has been permanently marked with the VIN of the vehicle to which it is attached. SB 55 is pending hearing in the Senate Public Safety Committee.
      
   2. AB 641 (Fong) would exclude from the definition of an “automobile dismantler” a person who possesses six or more catalytic converters that are used in the same manner as the unregistered and inoperable vehicles. AB 641 is pending in the Assembly Appropriations Committee.
      
3. Prior Legislation:
   
   1. AB 2682 (Gray), of the 2021-2022 Legislative Session, was substantially similar to this bill. AB 2682 was held on the Senate Appropriations Committee suspense file.
      
   2. AB 1622 (Chen), of the 2021-2022 Legislative Session, would have required the Department of Consumer Affairs to provide a licensed smog check station with a sign informing customers about strategies for deterring catalytic converter theft, including the etching of identifying information on the catalytic converter. AB 1622 failed passage in the Assembly Transportation Committee.
      
   3. AB 1653 (Patterson), Chapter 105, Statutes of 2022, added vehicle burglary and theft of vehicle parts and accessories to the CHP regional property crimes task force for organized retail theft.
      
   4. AB 1659 (Patterson), of the 2021-2022 Legislative Session, would have revised the definition of an automobile dismantler to include a person who keeps or maintains two or more used catalytic converters that are not attached to a motor vehicle on property owned by the person, or under their possession or control, for specified purposes. AB 1659 failed passage in the Assembly Transportation Committee.
      
   5. AB 1740 (Muratsuchi), Chapter 513, Statutes of 2022, requires a core recycler to maintain a written record of the year, make, and model of the vehicle from which the catalytic converter was removed.
      
   6. AB 1984 (Choi), of the 2021-2022 Legislative Session, would have prohibited the purchase, sale, receipt, or possession of a stolen catalytic converter, and specifies that a peace officer need not have actual knowledge that the catalytic converter is stolen to establish probable cause for arrest, and that in a prosecution of the section, circumstantial evidence may be used to prove the stolen nature of the catalytic converter. AB 1984 failed passage in the Assembly Transportation Committee.
      
   7. AB 2398 (Villapudua), of the 2021-2022 Legislative Session, would have created a new crime of possession of five or more detached catalytic converters. AB 2398 failed passage in this Committee.
      
   8. SB 919 (Jones),of the 2021-2022 Legislative Session, would have prohibited a dealer or retail seller from selling a motor vehicle equipped with a catalytic converter unless the catalytic converter has been engraved, etched, or otherwise permanently marked with the vehicle identification number of the vehicle to which it is attached. SB 919 failed passage in the Senate Public Safety Committee.
      
   9. SB 986 (Umberg), of the 2021-2022 Legislative Session, would have prohibited any person from purchasing a used catalytic converter from anybody other than certain specified sellers, including an automobile dismantler, an automotive repair dealer, or an individual possessing documentation, as specified, that they are the lawful owner of the catalytic converter. SB 986 died on the Assembly inactive file.
      
   10. SB 1087 (Gonzalez), Chapter 514, Statutes of 2022, prohibits any person from purchasing a used catalytic converter from anybody other than certain specified sellers, including an automobile dismantler, an automotive repair dealer, or an individual possessing documentation, as specified, that they are the lawful owner of the catalytic converter.
       
   11. SB 366 (Umberg), Chapter 601, Statutes of 2021, reconstituted the Vehicle Dismantling Industry Strike Team (VDIST), which requires a study the number of unlicensed automobile dismantlers investigated and the number of investigations that resulted in an enforcement action for the theft of catalytic converters.
       

REGISTERED SUPPORT / OPPOSITION:

Support

Auto Club of Southern California (AAA)

California Association of Highway Patrolmen

California District Attorneys Association

California New Car Dealers Association (CNCDA)

California Police Chiefs Association

Peace Officers Research Association of California (PORAC)

Opposition

None submitted.

Analysis Prepared by:

Date of Hearing: April 17, 2023

ASSEMBLY COMMITTEE ON TRANSPORTATION

Laura Friedman, Chair

ABPCA Bill Id:AB 1519 (

Author:Bains) – As Amended Ver:March 20, 2023

SUBJECT: Vehicles: catalytic converters

SUMMARY: Makes it a misdemeanor to remove, alter, or obfuscate any vehicle identification number (VIN) or other unique marking that has been added to a catalytic converter and makes it a misdemeanor to knowingly possess three catalytic converters that have a VIN or other unique marking removed, altered, or obfuscated. Specifically, this bill:

1. Makes it an infraction to knowingly possess one or two catalytic converters that have a VIN or other unique marking removed, altered, or obfuscated.
2. Provides that neither the crime of VIN removal from a catalytic converter or possession of a catalytic converter with a VIN removed apply in the following circumstances:
3. To a person who is removing, altering, or obfuscating a VIN or other unique marking in order to apply a new VIN or unique marking because the catalytic converter is being lawfully installed on a different vehicle.
4. To a person that is disassembling, smelting, or otherwise permanently destroying a catalytic converter lawfully in their possession.

EXISTING LAW:

1. Provides that no person shall install, sell, offer for sale, or advertise any device, apparatus, or mechanism intended for use with, or as a part of, a required motor vehicle pollution control device or system, including catalytic converters, that alters or modifies the original design or performance of the motor vehicle pollution control device or system. If the court finds that a person has willfully violated this section, the court shall impose the maximum fine that may be imposed in the case, and no part of the fine may be suspended. (Vehicle Code section (VEH) 27156 and 38391)
2. States that no person shall either individually or in association with one or more other persons, willfully injure or tamper with any vehicle or the contents thereof or break or remove any part of a vehicle without the consent of the owner. This offense is a misdemeanor, punishable by imprisonment in the county jail not exceeding six months, or by fine not exceeding $1,000, or by both. (VEH 40000.9.)
   
3. States that no person shall with intent to commit any malicious mischief, injury, or other crime, climb into or upon a vehicle whether it is in motion or at rest, nor shall any person attempt to manipulate any of the levers, starting mechanism, brakes, or other mechanism or device of a vehicle while the same is at rest and unattended, nor shall any person set in motion any vehicle while the same is at rest and unattended. This offense is a misdemeanor, punishable by imprisonment in the county jail not exceeding six months, or by fine not exceeding $1,000, or by both. (VEH 10853, 40000.9)
4. Provides that every person who defaces, damages or destroys real or personal property that is not their own, is guilty of vandalism. If the amount of the damage is less than $400, the offense is a misdemeanor, punishable by imprisonment in a county jail, not exceeding one year, or by a fine of $1,000 or by both. If the amount of the damage is $400 or more, the offense is a felony, punishable imprisonment in a county jail not exceeding one year, or by a fine of not more than $10,000, or both. (Penal code section (PEN) 594).
   
5. Defines “Receiving stolen property” as buying or receiving any property that has been stolen knowing the property is stolen, or concealing, selling, or withholding any property from the owner, knowing the property is stolen. Receiving stolen property that does not exceed $950 is a misdemeanor, as specified, and receiving stolen property that exceeds $950 is a wobbler. (PEN 496).
   
6. Defines “Grand theft” as theft that is committed when the money, labor, or real or personal property taken is of a value exceeding $950, except as specified, and states that grand theft is a wobbler. (PEN 487, 488, 489)
   
7. Defines “Petty theft” as obtaining any property by theft where the value of the money, labor, real or personal property taken does not exceed $950 and states that petty theft is a misdemeanor, punishable by a fine not exceeding $1,000 or by imprisonment in the county jail not exceeding six months, or both. (PEN 490, 490.2)
   

FISCAL EFFECT: Unknown

COMMENTS:

Catalytic converter thefts are on the rise. The Bureau of Automotive Repair (BAR) reported about 1,600 converter thefts per month statewide in 2021. According to data provided by the Personal Insurance Federation of California, insurance claims for catalytic converter thefts in California have gone up from a monthly average of 183 in 2020 to 477 claims in January of 2022. Claims rose by 308% from 2019 to 2020 and 100% from 2020 to 2021. California had the highest number of claims in the United States, accounting for 28% of all theft claims in the country. The insurance industry paid over $23 million in repair costs for catalytic converters in 2021 alone, an 11.5% increase from the year before.

A catalytic converter is an exhaust emission control device that converts toxic gases and pollutants in exhaust gas from an internal combustion engine into less-toxic pollutants.

Catalytic converter theft has been on the rise because they are coated with precious metals such as rhodium that is valued at over $14,000 per ounce and palladium which is valued at $2,500 per ounce. Toyota and Honda vehicles have been particularly attractive to thieves, because the location of the converters on certain vehicles that make it so that a thief can steal one with basic tools, such as a pipe wrench or cordless saw, in a manner of minutes.

The increase in theft, combined with supply chain issues has resulted in a shortage of replacement catalytic converters. This is likely to grow worse because of the war in Ukraine and Russia being the world’s largest producer of palladium.

BAR has made several recommendations to deter theft of catalytic converters, including parking cars in well-lit areas, installing motion-sensing alarm systems, installing theft prevention devices like steel cages, and etching the converter shell with a VIN or license plate number.

According to the author, “Marking vehicle parts with a VIN allows stolen parts to be traced back to the original vehicle, assists law enforcement to help victims, and hinders the ability of thieves to sell stolen parts on the black market. That is why the Federal Motor Vehicle Theft Prevention Standard has required manufacturers to mark the VIN on 18 different vehicle parts since 1984. Unfortunately, catalytic converters are not covered by the federal standard and are not required to be marked. Unless law enforcement catches a thief in the act, it is nearly impossible to establish guilty and prosecute thieves for this crime. AB 1519 encourages drivers to get their catalytic converters marked by imposing a misdemeanor for obfuscating the marking. It also imposes a misdemeanor for possessing three or more catalytic converters which have had their VIN markings obfuscated. Law enforcement need more tools to prosecute thieves once they are away from the crime scene, and drivers need to know that the cost of getting their catalytic converter marked is worth it and will effectively deter theft.”

Committee comments: Last year the Legislature passed and the Governor signed AB 1740 (Muratsuchi) Chapter 513, Statutes of 2022 and SB 1087 (Gonzalez) Chapter 514, Statutes of 2022, which prohibits a core recycler from entering into a transaction to purchase or receive a catalytic converter from any person that is not a commercial enterprise, as defined, or verifiable owner of the vehicle from which the catalytic converter was removed. These two laws place strict record-keeping requirements on core recyclers on where they got their catalytic converters from. The goal of that legislation is to make it harder for catalytic converter thieves to be able to sell their stolen catalytic converters to smelting operations. This removes the impetus to steal the catalytic converter to begin with as their value is not in the attachment of the device to another vehicle, but rather in the precious metals they contain.

Nonetheless, two bills have been introduced this session to make it a crime to possess a catalytic converter. It is already a crime to steal a catalytic converter, sell stolen property, and knowingly receive stolen property. Law enforcement has indicated to the Committee that they have had a difficult time catching catalytic converter thieves in the act. As a result, there have been numerous bills introduced in the past two legislative sessions to make it a crime to possess a detached catalytic converter, and several cities have passed ordinances making it a crime to merely possess a catalytic converter.

This bill makes it a crime for a person to knowingly possess a catalytic converter with a VIN that has been removed. AB 641 (Fong of 2023) makes it a misdemeanor to merely possess any catalytic converter without having to prove the item was indeed stolen unless they have an automobile dismantler license. Both of these bills rely on an officer catching someone with a catalytic converter without knowing if there is a theft victim. However, this bill only permits a criminal charge to be filed if a VIN number that would have made it possible to identify a victim was removed.

The bill is meant to be paired with SB 55 (Umberg of 2023) which requires a person holding a retail seller’s permit to sell new or used vehicles equipped with a catalytic converter to etch the catalytic converter with a VIN unless the buyer declines to have the VIN etched at the point of sale. The purpose of the VIN is to make it easier for law enforcement to identify a victim, a necessary element in proving there was indeed a victim in the theft and the property in possession of another is not their own. A person removing that number would defeat that purpose of helping identify the victim. Thus, this bill attempts to make it easier to prosecute someone knowingly possessing a catalytic converter that has had a VIN or other identifying number removed.

Related Legislation:

SB 55 (Umberg) requires a person holding a retail seller’s permit to sell new or used vehicles equipped with a catalytic converter to etch the catalytic converter with a VIN unless the buyer declines to have the VIN etched at the point of sale. SB 55 passed out of Senate Transportation Committee and is pending before Senate Public Safety Committee.

AB 641 (Fong) makes it a misdemeanor for a person to possess six or more used catalytic converters that have been cut from a vehicle unless they are a licensed automobile dismantler or are expressly excluded from having to be a licensed automobile dismantler. AB 64 is pending before Assembly Transportation Committee.

Previous Legislation:

AB 1740 (Muratsuchi) Chapter 513, Statutes of 2022 and SB 1087 (Gonzalez), Chapter 514, Statutes of 2022, which prohibits a core recycler from entering into a transaction to purchase or receive a catalytic converter from any person that is not a commercial enterprise, as defined, or verifiable owner of the vehicle from which the catalytic converter was removed.

AB 1653 (Patterson) Chapter 105, Statutes of 2022 adds vehicle burglary and theft of vehicle parts and accessories to the California Highway Patrol regional property crimes task force for organized retail theft. That bill passed out of the Assembly and is pending before the Senate Appropriations Committee.

SB 366 (Umberg) Chapter 601, Statutes of 2021 reconstituted the Vehicle Dismantling Industry Strike Team (VDIST), which amongst other things, requires a study the number of unlicensed automobile dismantlers investigated and the number of investigations that resulted in an enforcement action for the theft of catalytic converters.

SB 986 (Umberg of 2022) would have required a traceable method of payment for catalytic converters and prohibits a dealer or retailer from selling a new or used motor vehicle equipped with a catalytic converter unless the catalytic converter has been engraved or etched with the vehicle identification number (VIN) of the vehicle to which it is attached, punishable by an infraction, with exceptions. That bill died on the Assembly Floor.

AB 1622 (Chen of 2022) would have required the Department of Consumer Affairs to provide a licensed smog check station with a sign informing customers about strategies for deterring catalytic converter theft, including the etching of identifying information on the catalytic converter, and require the sign to be posted conspicuously in all licensed smog check stations in an area frequented by customers. The bill would also authorize stations where licensed smog check technician repairs are performed to offer and recommend to customers the etching as an optional service provided in conjunction with the smog check. That bill died in the Assembly Transportation Committee.

AB 1659 (Patterson of 2022) would have revised the definition of an “automobile dismantler” to include a person who keeps or maintains two or more used catalytic converters that are not attached to a motor vehicle on property owned by the person, or under their possession or control, for specified purposes. That bill died in the Assembly Transportation Committee.

AB 1984 (Choi of 2022) would have prohibited the purchase, sale, receipt, or possession of a stolen catalytic converter, as specified. The bill specifies that a peace officer would need not to have actual knowledge that the catalytic converter is stolen to establish probable cause for arrest, and that for prosecution, circumstantial evidence may be used to prove the stolen nature of the catalytic converter. That bill died in the Assembly Transportation Committee.

AB 2398 (Villapudua of 2022) would have made possession of a detached catalytic converter a wobbler, punishable by imprisonment in a county jail for not more than one year, or in the county jail for 16 months, or two, or three years. That bill failed passage in the Assembly Public Safety Committee.

AB 2407 (O’Donnell of 2022) would have required a core recycler to report specified information about the purchase and sale of catalytic converters to the chief of police or the sheriff, as prescribed, and to request to receive theft alert notifications regarding the theft of catalytic converters from a specified theft alert system. The bill would also require a core recycler to obtain the thumbprint of a seller of a catalytic converter and to preserve the thumbprint for two years. The bill would limit the inspection or seizure of a thumbprint to that performed by law enforcement pursuant to a criminal search warrant based upon probable cause. AB 2407 was held on suspense in Senate Appropriations Committee.

AB 2682 (Gray of 2022) would have required any automotive repair dealer that installs or replaces a catalytic converter on a motor vehicle to ensure that the catalytic converter is permanently marked with the vehicle identification number (VIN) of the vehicle on which it is being installed, as specified, with cost recovery and penalties, as specified. Requires a smog check station to notify a customer whether the catalytic converter is permanently marked, as specified. Prohibits a person from removing, altering, or obfuscating any VIN or other unique marking that has been added to a catalytic converter, or possessing a catalytic converter whether the VIN has been removed, altered, or obfuscated, and provides exceptions, as specified, and provides penalties, as specified. Requires no manufacturer shall deliver a new vehicle assembled after January 1, 2024, equipped with a catalytic converter for sale in this state unless the catalytic converter has been permanently marked with the VIN of the vehicle to which it is attached. That bill was held on suspense in Senate Appropriations Committee.

SB 919 (Jones of 2022) would have prohibited a core recycler from purchasing or otherwise receiving any catalytic converter that is not engraved, etched, or otherwise permanently marked with the VIN of the vehicle that it was removed from. The bill would require a core recycler to maintain a log that includes a description of all catalytic converters purchased or received by the core recycler, as specified. The bill would prohibit a person from buying, selling, receiving, or possessing a stolen catalytic converter as well as removing, altering, or obfuscating a VIN or other unique marking that has been added to a catalytic converter. This bill would prohibit a dealer or retail seller from selling a motor vehicle equipped with a catalytic converter unless the catalytic converter has been engraved, etched, or otherwise permanently marked with the VIN of the vehicle to which it is attached. SB 919 passed Senate Business, Professions and Economic Development Committee and died in Senate Public Safety Committee.

REGISTERED SUPPORT / OPPOSITION:

Support

Auto Club of Southern California (AAA)

California Association of Highway Patrolmen
California District Attorneys Association

California Police Chiefs Association
Peace Officers Research Association of California 

Opposition

None on file

Analysis Prepared by: David Sforza / TRANS. / (916) 319-2093