H.R. 5221: Preventing Auto Recycling Theft Act

This bill, known as the Preventing Auto Recycling Theft Act, aims to address the issue of catalytic converter theft, which has become increasingly prevalent. Here’s a breakdown of its key provisions:

Definitions and Scope

The bill defines a catalytic converter as a device in a vehicle's exhaust system that helps reduce harmful emissions. It includes several types of converters: conventional catalytic converters, diesel oxidation catalysts, and diesel particulate filters.

New Motor Vehicle Regulations

The bill requires the National Highway Traffic Safety Administration (NHTSA) to update vehicle theft prevention standards. Within 180 days of the bill's enactment, catalytic converters will be included in these standards for new vehicles. The rules will also ensure that identifying information about the catalytic converters can be matched to the vehicle it was originally installed in.

Identification and Marking Requirements

The legislation mandates that catalytic converters be marked uniquely. This marking will be included in a database accessible by law enforcement. This aims to assist in tracing stolen converters back to their original vehicles.

The NHTSA will also develop regulations requiring the marking of catalytic converters using a unique identification number and ensuring the markings are easily visible and do not interfere with the converter's function.

Grant Program for Stamping Catalytic Converters

The bill establishes a program for grants to assist various entities, including law enforcement, auto dealers, and repair shops, to perform stamping of vehicle identification numbers on catalytic converters. These entities can apply for funding to obtain the necessary equipment for this purpose. The intent is to enhance the security of vehicles against catalytic converter theft.

Grant funds may be used for activities such as die or pin stamping the vehicle identification number onto catalytic converters and applying theft deterrent paint.

Purchase and Sale Regulations

The bill imposes requirements on the sale and purchase of catalytic converters. It will be illegal to sell or buy catalytic converters without retaining detailed seller information, including the seller's identification, vehicle details, and the date of transaction. This is intended to create a record of transactions that can be reviewed if theft occurs.

The legislation prohibits the purchase or sale of any catalytic converter with removed or tampered identifying markings. Furthermore, it mandates that transactions be conducted using traceable payment methods, such as checks or wire transfers, which excludes cash or cryptocurrency payments.

Criminal Penalties for Theft

For those found guilty of stealing or unlawfully selling catalytic converters, the bill introduces criminal penalties. Violators may face fines or imprisonment for up to five years, emphasizing the seriousness of this offense.

Enforcement and Reporting

The Attorney General is tasked with establishing the necessary regulations for enforcing the provisions related to catalytic converter theft and the penalties for violations. Additionally, the Secretary of Transportation is required to submit annual reports to Congress about the effectiveness of the grant program and any findings related to marked catalytic converters that are stolen.

Funding

The bill allocates funding from previously appropriated but unspent funds for the implementation of the grant program, ensuring that there are resources available for its enforcement and application.

Relevant Companies

• TSLA (Tesla, Inc.) - As a manufacturer of electric vehicles, Tesla may be indirectly impacted due to the perception of increased theft risk, leading to further investigations on the security of their vehicles’ parts.
• F (Ford Motor Company) - As a major automobile manufacturer, Ford may need to adjust its manufacturing processes to comply with new regulatory standards related to catalytic converters.
• GM (General Motors Company) - Similar to Ford, GM will also need to comply with new standards and regulations for vehicles regarding catalytic converter identification and theft prevention.
• STLA (Stellantis N.V.) - As a global automotive manufacturer, Stellantis may face operational changes due to the enactment of new marking and tracking requirements for catalytic converters.