SB576

SECTION 1. The legislature finds that in recent years, the State has seen an increase in the number of catalytic converters being stolen from vehicles and resold for profit. 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 licensed used motor vehicle part dealers who deal with catalytic converters to keep records of purchases and sales of catalytic converters, which may aid in the apprehension of those who engage in the theft and sale of catalytic converters by requiring the seller to file a written statement that the seller has the lawful right to sell and dispose of the catalytic converter; and

(2) Establish the offense of theft of catalytic converter as a class C felony.

SECTION 2. Chapter 289, Hawaii Revised Statutes, is amended by adding a new section 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 received by 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's 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 a photograph or photographs of the 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 or 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."

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."

SECTION 4. 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:

(a) Obtains a catalytic converter through any means described in section 708-830; or

(b) Violates section 289- , in regard to a catalytic converter.

(2) Any person who knowingly receives a stolen catalytic converter shall be guilty of a class C felony and shall be sentenced in accordance with chapter 706; provided that the court shall impose a minimum sentence of:

(a) For the first offense, a fine of $5,000 and suspension of a license issued pursuant to section 289-4 for a period of six months; and

(b) For a subsequent offense committed within five years of a prior offense, a fine of $10,000 and revocation of a license issued pursuant to section 289-4.

(3) 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."

SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	576
THIRTY-FIRST LEGISLATURE, 2021
STATE OF HAWAII