Scrap Metal Transactions Involving Private Metal Property.
Scrap metal businesses engaged in purchasing or receiving private, nonferrous, or commercial metal property are subject to certain statutory requirements. These requirements include specific recordkeeping duties, restrictions on transactions, and obligations to cooperate with law enforcement to assist in preserving evidence of stolen property. Certain violations of these requirements carry criminal penalties. For example, it is a gross misdemeanor to deliberately remove, alter, or obliterate any identifying marks on an item of private, nonferrous, or commercial metal property to deceive a scrap metal business; or to purchase or receive any private, nonferrous, or commercial metal property where identifying marks engraved or etched upon the property have been deliberately and conspicuously removed, altered, or obliterated.
"Private metal property" means catalytic converters, either singly or in bundles, bales, or bulk, that have been removed from vehicles for sale as a specific commodity.
Criminal Penalties Related to Theft of Private Metal Property.
Theft in the First Degree. A person is guilty of Theft in the first degree if he or she commits theft of:
Theft in the first degree is a class B felony.
Theft in the Second Degree. A person is guilty of Theft in the second degree if he or she commits theft of:
Theft in the second degree is a class C felony.
Theft in the Third Degree. A person is guilty of Theft in the third degree if he or she commits theft of property or services which does not exceed $750 in value, or includes 10 or more merchandise pallets, or 10 or more beverage crates, or a combination of 10 or more merchandise pallets and beverage crates. Theft in the third degree is a gross misdemeanor.
Metal Theft Grant Program.
In 2013 the Legislature enacted a bill requiring the Washington Association of Sheriffs and Police Chiefs (WASPC), when funded, to establish a grant program to assist local law enforcement agencies in support of special enforcement emphasis targeting metal theft. Funding has not been provided to WASPC to establish the grant program.
Grant applicants are required to:
Grant applications must be reviewed and awarded through peer review panels. Grant applicants are encouraged to utilize multijurisdictional efforts. The cost of administering grants may not exceed $60,000, or 3 percent of appropriated funding, whichever is greater. Grant awards may not be used to supplant preexisting funding sources for special enforcement targeting metal theft.
Scrap Metal Transactions Involving Private Metal Property.
A scrap metal business engaging in a transaction specifically involving a catalytic converter that has been removed from a vehicle must record documentation indicating that the private metal property in the seller's possession was the result of the seller replacing private metal property from a vehicle registered in the seller's name.
Catalytic Converter Theft Work Group.
The Joint Transportation Committee is required to convene a catalytic converter theft work group to study and provide options and recommendations related to reducing catalytic converter theft in Washington. The work group must consist of, but is not limited to, the following membership:
The work group's study must include, but is not limited to, the following:
The work group's recommendations must include, but are not limited to, the following:
The work group must submit a preliminary report and recommendations to the Transportation Committee and Public Safety Committee of the Legislature by November 1, 2022. The work group must submit a final report and recommendations by January 1, 2023.
Metal Theft Grant Program.
When funded, the Washington Association of Sheriffs and Police Chiefs (WASPC) is required to establish a grant and training program to assist local law enforcement with special enforcement targeting metal theft. Grant applications must be reviewed through peer review panels after coordination with other appropriate entities, such as those involved with enforcement against metal theft. Grant applicants with a demonstrated increase in metal theft over the previous 24 months are encouraged to focus solely on metal theft and unlawful purchasing and selling of unlawfully obtained metal in their jurisdiction but may coordinate with other jurisdictions.
The amended bill: (1) requires the Washington Association of Sheriffs and Police Chiefs (WASPC) to develop a comprehensive state law enforcement strategy targeting metal theft in consultation with the Criminal Justice Training Commission, including a metal theft grant and training program; (2) modifies certain requirements for applicants to the WASPC's metal theft grant and training program; (3) requires Washington State University, rather than the Joint Transportation Committee, to convene a catalytic converter theft work group; (4) requires the catalytic converter theft work group to review the effectiveness of the WASPC's metal theft grant and training program; (5) requires the WASPC to include individuals who attempt to purchase or sell unlawfully obtained metals at licensed scrap metal recyclers and individuals who attempt to conduct a transaction while under the influence of controlled substances in the WASPC's electronic statewide no-buy list database program; (6) imposes an additional fine of $1,000 per catalytic converter for certain gross misdemeanor crimes involving catalytic converters; (7) prohibits certain cash transactions involving private metal property or nonferrous metal property with a person who does not provide photographic identification; (8) authorizes a scrap metal business to pay up to a maximum of $30 in cash, stored value device, or electronic funds transfer for nonferrous metal property, and to pay the balance by nontransferable check, stored value device, or electronic funds transfer at the time the transaction is made if the scrap metal business digitally captures certain information; (9) prohibits payment to an individual seller of private metal property until three business days after the transaction is made; (10) prohibits a vehicle wrecker from making a transaction involving a catalytic converter with any person who does not provide a street address and photographic identification; (11) provides that a vehicle wrecker making a transaction involving a catalytic converter may make payment only via nontransferable check mailed no earlier than three days after the transaction is made; (12) requires a vehicle wrecker to maintain specific records related to catalytic converters; (13) provides that a violation of certain regulations related to transactions involving catalytic converters constitutes an unfair or deceptive act or practice or unfair method of competition in the conduct of trade or commerce for purpose of the Consumer Protection Act; (14) provides an effective date of July 1, 2022, for the provisions of the bill related to regulation of vehicle wreckers and certain gross misdemeanor crimes involving catalytic converters; (15) provides an emergency clause and an effective date of May 1, 2022, for the provisions of the bill related to regulation of scrap metal businesses; and (16) provides an emergency clause and an immediate effective date for all other provisions of the bill.
(In support) The National Insurance Crime Bureau reports a tenfold increase in catalytic converter thefts. Cities in Washington are receiving numerous complaints about the huge increase in thefts and the devastating consequences for victims. Stolen catalytic converters contain precious metals which can be sold for quick cash. Additionally, the market for catalytic converters extends interstate and internationally because they can be easily mailed. However, the amount that thieves receive for a stolen catalytic converters is typically around 10 percent of the total costs suffered by the owners of the vehicles they are stolen from. Even when insurance companies cover part of customers' expenses, those customers' insurance premiums rise as a result. In addition to the financial consequences, people who depend on their vehicles for work and other life activities lose their time. Older cars and vans are effectively totaled by having their catalytic converters stolen. The trucking industry and supply chains are likewise impacted by the rise of thefts.
This bill was the result of listening to and working with scrap metal recyclers, automobile manufacturers, and law enforcement. The pilot project created by this bill would permanently mark catalytic converters with unique identifiers, such as vehicle identification numbers (VINs), which will allow local jurisdictions to better identify the owners of catalytic converters and make it difficult for thieves to sell them illegally. This bill also establishes a task force to develop creative solutions to these difficult, cross-jurisdictional problems.
Under current law, there is little a peace officer can do to stop a catalytic converter theft unless the officer catches the thief in the act. There is some concern that marking catalytic converters would do little to deter theft, and therefore the Legislature should consider making it illegal to buy, possess, or sell a used converter without proper documentation from the vehicle's registered owner. There is also concern that the pilot project should not mark converters with VINs. There is no reason a catalytic converter should be presented for sale separate from the car it came from. When a thief presenting a catalytic converter for sale is unable to identify the VIN associated with the catalytic converter, it is easier to tell it has been stolen. Most licensed entities in this state only purchase catalytic converters from commercial sellers, so there is a significant flow of stolen catalytic converters going to buyers that have not been identified, possibly through online markets. Auto wreckers should be included on the task force to provide their expertise in interstate and international markets.
Washington previously enacted legislation to require significant record keeping when purchasing materials that may be stolen, but some components of that legislation did not receive funding. The Legislature should follow through with funding on those efforts.
(Opposed) None.
(Other) Although this bill is well-intended, manufacturers of automobiles and catalytic converters should also be considered for membership on the task force.
(In support) The National Insurance Crime Bureau reports a 10-fold increase in catalytic converter thefts. There are devastating consequences for victims. Even when insurance covers the expenses, customers' premiums rise, and everyone pays for it. In addition to financial consequences, people who depend on their cars for their livelihood lose precious time. Older cars and vans may be effectively totaled by having their catalytic converters stolen. Even the trucking industry, the supply chain, and new dealerships have been hit by the rise of these thefts. Previous laws in Washington required significant record keeping when purchasing materials that may be stolen. This time there is a need to work on getting funding for the program. For 50 years the auto wreckers have been fighting against stolen auto parts. Most components are already marked and those records are kept. Auto recyclers are not the problem; the scrap dealers are not the problem. These things are stolen and go into the black market, where they often go overseas. Finding the tools to track that down is difficult. In the City of Des Moines in 2020, there were 12 thefts and in 2021, there were 82 thefts through October. This is a huge destruction of societal wealth when a repair can cost $2,000 and yet the stolen part may only sell for one-tenth of that. Licensed scrap yards are committed to requiring proof of ownership before a catalytic converter is purchased by a yard. One of the tools is to have some kind of marking on the catalytic converter. Currently if someone brings a catalytic converter to a yard, it is usually attached to a car, but if cut off the bottom, they are often sold in illicit markets and other places not regulated by this legislation. It is important to resolve the differences between the proposals to address this.
(Opposed) None.
(Other) The Washington State Patrol (WSP) understands that catalytic converter theft has been growing in the state. The WSP does not have the resources to complete the pilot project or to facilitate a task force without the appropriate fiscal support. Secondly, the WSP does not want to be held liable for the marking of catalytic converters. If an individual volunteers to have their catalytic converter marked and it is different from what the manufacturer intended, the WSP would not want to carry the liability risk. Adding a clause that would hold the state harmless would satisfy that concern. In addition, it is not clear who is responsible for marking the catalytic converters. The WSP doesn't have the resources to assume this responsibility. Clarification is needed as to whether it would be auto dealers, repair shops, local law enforcement agencies, or community groups. Also clarify what happens if the marked catalytic converter is stolen. Would this be reported to local law enforcement agency and the WSP? Will local law enforcement be required to report to the WSP regarding any recovered catalytic converters and the outcome of their investigations? The final concern is that the WSP is getting involved when local law enforcement is the primary investigator. These thefts are reported to local jurisdictions and the WSP does not have authority over local law enforcement and wants to be sensitive regarding the state's role regarding these thefts.