Bill Text: HI SB2733 | 2022 | Regular Session | Introduced

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Bill Title: Relating To Catalytic Converters.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2022-02-01 - The committee on CPN deferred the measure. [SB2733 Detail]

Download: Hawaii-2022-SB2733-Introduced.html

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THE SENATE	S.B. NO.	2733
THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to catalytic converters.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The legislature finds that in recent years, the State has seen an increase in the number of catalytic converters being stolen from motor vehicles and resold for profit.  News outlets reported that in 2021 the Honolulu police department received more than one thousand eight hundred reports of stolen catalytic converters plus hundreds of attempted thefts of the devices.

     The legislature further finds that catalytic converters contain precious metals such as platinum, palladium, and rhodium, making catalytic converters highly sought after by thieves due to their high resale value.  Catalytic converters remove toxic elements from the exhaust stream making them essential to vehicles and thus are federally mandated to be installed on a vehicle.  A catalytic converter can be stolen in less than sixty seconds, causing damage to other areas of a vehicle, leading to hundreds to thousands of dollars in repair costs.

     The purpose of this Act is to:

     (1)  Require used motor vehicle parts dealers to obtain a written statement that the seller has the lawful right to sell and dispose of the catalytic converter;

     (2)  Require certain sellers to provide copies of receipts or a declaration from the purchase of a catalytic converter;

     (3)  Require dealers to keep records of purchases and sales of catalytic converters;

     (4)  Require dealers to pay for catalytic converters by check;

     (5)  Require scrap dealers to keep records of purchases and sales of palladium, platinum, and rhodium;

     (6)  Require scrap dealers to pay for palladium, platinum, and rhodium by check;

     (7)  Creates a penalty for engaging in the unlawful business of purchasing or selling of catalytic converters, palladium, platinum, or rhodium; and

     (8)  Establish the offense of theft of catalytic converter and make it a class C felony.

     SECTION 2.  Chapter 289, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

     "§289-    Statement required; catalytic converter.  (a)  Every licensee, when the licensee purchases a catalytic converter within the State, shall obtain a written statement signed by the seller certifying that the seller has the lawful right to sell and dispose of the catalytic converter.  This statement shall also contain the:

     (1)  Seller's name, business or residence address, and occupation;

     (2)  Description, including serial numbers and other identifying marks, when practical, of every catalytic converter;

     (3)  Amount paid to the seller;

     (4)  Date, time, and place of the sale; and

     (5)  License number of any vehicle used to deliver the property to the place of purchase.

     (b)  The seller shall provide a copy of a receipt that describes, with particularity:

     (1)  The exact item that is being offered for sale;

     (2)  Who issued the receipt;

     (3)  The date of sale of the item prior to the item being offered to the licensee; and

     (4)  The price, if any, of the item when obtained by the seller.

     (c)  If a receipt is not available, the seller shall provide to the licensee a notarized declaration, describing with particularity:

     (1)  The exact item that is being offered for sale;

     (2)  Who sold or otherwise transferred the item to the seller;

     (3)  The date of sale of the item; and

     (4)  The price, if any, of the item when obtained by the seller.

     (d)  If the seller does not provide a copy of the receipt or the notarized declaration as required by subsections (b) and (c), the licensee shall not purchase the catalytic converter, in whole or in part, and shall report the attempted sale to the police.

     (e)  If the licensee purchases any catalytic converter, in whole or in part, the licensee shall take one or more separate photographs of each individual catalytic converter offered for sale.

     (f)  The licensee shall require the seller to verify the seller's identity by presenting a valid photo identification card or license issued by a federal or state government agency authorized to issue valid identification.  The licensee shall:

     (1)  Take a photograph of the seller; or

     (2)  Make a photocopy of the identification card or license of the seller.

     (g)  The licensee shall keep at the licensee's place of business the signed written statement, receipt or notarized declaration required by subsections (b) and (c), photographs required by subsection (e), and photocopy of the identification card or license, and photograph of the seller required by subsection (f), if applicable, from the seller for a period of two years after the date of purchase and the statement, receipt or notarized declaration required by subsections (b) and (c), photographs required by subsection (e), and photocopy or photograph required by subsection (f), if applicable, may be examined at any time by the director of finance, chief of police, attorney general, prosecuting attorney, or their designees.

     (h)  Violation of this section shall be a class C felony.

     §289-    Payment for catalytic converter purchased by licensee; check; mailing.  (a)  If the licensee purchases a catalytic converter, payment for the catalytic converter shall be made by check payable to the seller.  At the time of sale of the catalytic converter, the seller shall present to the licensee a valid photo identification card or license of the seller issued by a federal or state government agency authorized to issue valid identification.  The check may be mailed to the address shown on the identification, or the licensee may arrange for the check to be picked up personally by the seller at the place of business of the licensee.

     (b)  Violation of this section shall be a class C felony."

     SECTION 3.  Section 289-1, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Catalytic converter" means a device that is incorporated in a motor vehicle's exhaust system and contains a catalyst for converting pollutant gas emissions into less harmful emissions, regardless of whether the device has been removed from a motor vehicle's exhaust system."

     SECTION 4.  Section 445-233, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (b) to read:

     "(b)  If the scrap presented for purchase is copper, palladium, platinum, rhodium, a beer keg, or an urn, in whole or in part, the seller shall provide a copy of a receipt that describes, with particularity:

     (1)  The exact item that is being offered for sale;

     (2)  Who issued the receipt;

     (3)  The date of sale of the item prior to the item's being offered to the scrap dealer; and

     (4)  The price, if any, of the item when obtained by the seller."

      2.  By amending subsections (d) through (f) to read:

     "(d)  If the seller does not provide a copy of the receipt or the notarized declaration as required by subsections (b) and (c), the scrap dealer shall not purchase the copper, palladium, platinum, rhodium, beer keg, or urn, in whole or in part, and shall report the attempted sale to the police.

     (e)  If the scrap dealer purchases any copper, palladium, platinum, rhodium, beer keg, or urn, in whole or in part, the scrap dealer shall take a photograph or photographs of all of [the copper, beer keg, or urn,] each individual item offered for sale[.]; provided that if the item is in powdered or granular form then photographs of the powdered or granular substance in aggregate is sufficient.

     (f)  The scrap dealer shall also require the seller to verify the seller's identity by presenting a valid photo identification card or license issued by a federal or state government agency authorized to issue valid identification.  If the scrap being offered for sale is copper, palladium, platinum, rhodium, a beer keg, or an urn, in whole or in part, the scrap dealer shall:

     (1)  Take a photograph of the seller; [or] and

     (2)  Make a photocopy of the identification card or license of the seller."

     SECTION 5.  Section 445-233.5, Hawaii Revised Statutes, is amended by amending its title and subsection (a) to read as follows:

     "[[]§445-233.5[]]  Payment [of] for copper, pallandium, platinum, or rhodium purchased by scrap dealer or recycler; check; mailing.  (a)  If the scrap dealer or recycler, as applicable, purchases any copper, palladium, platinum, rhodium, payment for [the copper] those items shall be made by check payable to the seller.  At the time of sale of the copper, palladium, platinum, rhodium, the seller shall present to the scrap dealer or recycler a valid photo identification card or license of the seller issued by a federal or state government agency authorized to issue valid identification.  The check may be mailed to the address shown on the identification, or the scrap dealer or recycler may arrange for the check to be picked up personally by the seller at the place of business of the scrap dealer or recycler."

     SECTION 6.  Section 445-235, Hawaii Revised Statutes, is amended to read as follows:

     "§445-235  Prohibitions; penalty.  (a)  Any person who violates section 445-232, 445-233, or 445-233.5, or any person who falsifies a statement required by section 445-233, shall be guilty of a misdemeanor [and shall be sentenced in accordance with chapter 706, except that the court shall impose a minimum sentence of:].

     (b)  Where the violation of section 445-232, 445-233, or 445-233.5 or falsification of a statement required by section 445-233, involves palladium, platinum, rhodium, it shall be a class C felony.

     (c)  In addition to any penalties the court may impose pursuant to subsections (a) and (b), the court shall order, at minimum:

     (1)  A fine of $1,000 for the first offense;

     (2)  A fine of $3,000 for the second offense; and

     (3)  A fine of $5,000 and the suspension of the scrap dealer's license for a period of six months for the third or subsequent offense; provided that if the third or subsequent offense occurs within a five-year period from the occurrence of two prior offenses, the scrap dealer shall be subject to license revocation."

     SECTION 7.  Chapter 708, Hawaii Revised Statutes, is amended by adding a new section to part IV to be appropriately designated and to read as follows:

     "§708-    Theft of catalytic converter.  (1)  A person commits the offense of theft of catalytic converter if the person commits theft of a catalytic converter.

     (2)  For the purposes of this section, "catalytic converter" means a device that is incorporated in a motor vehicle's exhaust system and contains a catalyst for converting pollutant gas emissions into less harmful emissions, regardless of whether the device has been removed from a motor vehicle’s exhaust system.

     (3)  Theft of catalytic converter is a class C felony."

     SECTION 8.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 9.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 10.  This Act shall take effect upon its approval.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Catalytic Converter; Palladium; Platinum; Rhodium; Theft; Penal Code; Class C Felony; Sales; Statement

 

Description:

Requires used motor vehicle parts dealers to obtain a written statement that the seller has the lawful right to sell and dispose of the catalytic converter.  Requires certain sellers to provide copies of receipts or a declaration from the purchase of a catalytic converter.  Requires dealers to keep records of purchases and sales of catalytic converters.  Requires dealers to pay for catalytic converters by check.  Requires scrap dealers to keep records of purchases and sales of palladium, platinum, and rhodium.  Requires scrap dealers to pay for palladium, platinum, and rhodium by check.  Creates a penalty for engaging in the unlawful business of purchasing or selling of catalytic converters, palladium, platinum, or rhodium.  Establishes the offense of theft of catalytic converter and make it a class C felony.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.