Week 14 Update: Catalytic Convertors
April 14, 2022
Another issue that ABI is following relates to catalytic converter theft. Earlier this week, the House advanced an amended version of SF 2287 that defines “business transaction” for scrap metal transactions. The Iowa Senate passed the original bill in early March.
“Business transactions” with catalytic converters applies to: scrap metal dealers, authorized vehicle recyclers at a fixed location, motor vehicle dealers at a fixed location, towable recreational vehicle dealers at a fixed location, mechanic or auto repair facilities at a fixed location. These businesses can be in-state or out of state.
The bill contains several problematic provisions, including language that allows a jury to infer that: “a person aided and abetted the underlying theft of a catalytic converter” or “the person had knowledge that a public offense has been committed and that a certain person committed it” if there is a violation of the additional, mandatory record keeping and invoicing procedures for transactions related to catalytic converters.
The bill also outlines that the first violation of the law leads to a fine of $1,000 and increases to $5,000 for a second violation within two years, and $10,000 for a third or subsequent violation within two years. ABI is opposed to the bill.