An Overview of Catalytic Converter Laws
Catalytic converters are an important component on most modern vehicles designed to convert harmful emissions from internal combustion engines. Covered under the federal Clean Air Act, catalytic converters are subject to regulation in order to protect the environment in which we live. As a result, both state and federal laws prevent these devices, as well as the metals they contain, from being taken and sold for profit . Colorado, for example, prohibits the unauthorized taking, sale or possession of a catalytic converter and provides for harsh penalties where individuals and businesses are convicted under the applicable statutes. Most importantly, not only is the individual illegally taking the device subject to prosecution, but the business that employed the individual may also be held responsible if proper supervision over its employees is not exercised to ensure compliance with state law.
Current Colorado State Catalytic Converter Laws
Colorado does have more specific laws and regulations when it comes to catalytic converters, with the General Assembly adding a few provisions in recent years to combat the significant issues the state has faced with catalytic converter theft.
On July 1st, 2014, the Colorado General Assembly passed House Bill 14-1022, which aims to fight catalytic converter theft by making it easier to identify the thieves and purchasers of stolen catalytic converters. Under 42-5-401, it is illegal to "knowingly sell or transfer a catalytic converter, without being an authorized purchaser." To be considered an authorized purchaser, one must be an employee or agent of a business that sells, installs, or repairs motor vehicles or sells car parts; be an employee or agent of a person engaged in "as a principal medium or means" the purchase, sale, processing, recycling, or disposal of scrap material; or own or operate a licensed vehicle recycler. The seller or transfer of any catalytic converter must provide the authorized purchaser with proof of ownership of both the vehicle from which the catalytic converter was removed and of the catalytic converter itself. Any new scrap metals purchaser must be licensed by the state to purchase scrap metallic material within the jurisdiction. A catalytic converter is considered scrap metallic material under 42-5-404, and an authorized purchaser must own or rent, by lease or otherwise, an electronic device that can record the catalytic converter’s serial number. An authorized purchaser subject to 42-5-406 must maintain a physical or electronic record of a catalytic converter’s serial number upon purchase until the purchaser disposes of it for cash. A failure to maintain a physical or electronic record of a catalytic converter’s serial number upon purchase or during the retainment period is a class 3 petty offense, punishable by a fine of $100; a violation of 42-5-404 is a class 6 felony, punishable by 12 months to 18 months in prison. An authorized purchaser accepting a catalytic converter without being provided the proper proofs of ownership commits a class 2 misdemeanor at minimum, punishable by 6 months to 1 year in prison. It is also a crime under 42-5-406 for a person who owns or operates a scrapyard to either purchase or receive a catalytic converter from a person who does not have a valid driver’s license or other form of legal identification, or sell it without either placing a number on it or entering it into a database. A violation of this section is a class 2 misdemeanor, punishable by 6 months to 1 year in prison, and a violation will result in the revocation of the authorized purchaser’s license. The authorized purchaser’s license will be revoked automatically if the purchaser has a third or any subsequent violation. Any penalties are in addition to any other penalties under the law. According to the Colorado Yard Barometer (the "Barometer") and Rocky Mountain Recycling (the "RMR"), Colorado is host to a fair amount of unscrupulous scrap yards and unauthorized purchasers who are complicit in the theft of catalytic converters. Scrapyard owners will pay anywhere from $40 to $200 for a catalyst off the street, often without asking for identification from the seller and without registering the purchase in their database. The RMR can confirm that catalytic converters go right back on the road, as purchasers will cut out the stolen catalytic converters, weld new ones on, and then resell the original at half the market value. Fortunately, with laws like 42-5-401 and 42-5-406, it will hopefully become harder to get away with it.
Legal Responsibilities for Vehicle Owners
When it comes to catalytic converter compliance, Colorado has several requirements that vehicle owners should be aware of. For starters, vehicles produced after 1975 must have catalytic converters that meet both federal and state standards. The federal Environmental Protection Agency (EPA) requires the installation of catalytic converters in order to reduce the amount of harmful emissions released into the atmosphere. Additionally, Colorado has its own set of regulations designed to ensure that these devices operate effectively and are properly maintained.
One key provision is that vehicle owners may not remove or tamper with emissions control equipment that is installed by the manufacturer. This includes the catalytic converter itself, as well as any other components that help to reduce emissions. Tampering with these devices is not only illegal, but it can also lead to increased emissions and decreased fuel efficiency.
In order to ensure compliance with these regulations, vehicle owners are encouraged to have their cars and trucks regularly serviced by a qualified mechanic. This is especially important if any emissions control devices have been replaced or repaired. Mechanics can use diagnostic tools to check for any potential issues and make repairs as needed.
Vehicle owners should also keep in mind that catalytic converters are designed to last for several years and should not need to be replaced unless there is a problem. If a catalytic converter needs to be replaced, it is important that the replacement meets state and federal standards. This means purchasing a converter that has been certified as meeting EPA regulations and will function properly with the vehicle’s emissions control system.
Penalties If You Don’t Comply
Legal repercussions for not adhering to Colorado’s catalytic converter laws can be serious both financially and legally. If a person, company, or corporation is found to have broken the law, they might be cited, fined, or even imprisoned. From December 31, 2020, all such criminal actions relating to an unauthorized transaction of a catalytic converter will be prosecuted as a Class 6 felony. This means that Colorado courts and authorities can impose up to 18 months in jail and $100,000 in fines, maximum, for all those found guilty. While most penalties are monetary, this does not mean going out of compliance with these laws is a simply cost-effective choice. In a lot of cases, this is deliberate conduct. In recent years, we’ve seen a major spike in businesses that take part in this activity, often representing themselves as legitimate businesses in order to pull off the scheme. These organizations would then buy and sell catalytic converters before scrap yards along with other businesses. The reality is, if you’ve been found guilty of breaking Colorado’s catalytic converter laws, the repercussions are not worth it. We urge all people to abide by the law.
Responsibilities of the Auto Shop or Mechanic
An often-overlooked aspect of complying with Colorado catalytic converter laws is the role that auto shops and certified technicians play in ensuring that vehicles on the road meet legal requirements. In fact, it seems that some vehicle owners believe that the onus is entirely on recycler to know the law and be aware of what they can or cannot purchase in the secondary markets.
Nothing could be further from the truth – as is evidenced in part by how the CARS law explicitly requires that a recycler does not purchase a catalytic converter from a "scrap metal processor or other person unless the purchaser [of the catalytic converter] has received documentation that demonstrates that the catalytic converter was properly obtained . . ." COLO. REV. STAT. § 42-5-112.5(4).
However, in the rush to comply with CARS, many vehicle owners have not provided for the legal documentations required by the law. In this situation, the auto shop and its certified technician may find themselves with unwanted liability. For example, if an individual sells a used vehicle to a dealer that plans to send the vehicle to auction, that dealer may direct the owner to remove the catalytic converter from the vehicle and sell it in the secondary markets. The dealer will often provide a release that is intended to shield itself from any liability that might arise.
As previously discussed on the blog, these releases simply do not work, as the statutory requirements of CARS are still triggered by the sale. However, if the individual obtains this release and proceeds to remove the unit, they will likely be unsuccessful in its sale unless the remove it according to CARS. According to the law, CARS 2 permits removal only when performed by either the ultimate purchaser (i . e., the scrap metal processor) or through an auto shop that is owned by the ultimate purchaser. COLO. REV. STAT. § 42-5-112.5(5)(B). If the individual does not have this relationship with the scrap metal processor, the sale of the unit will trigger CARS 3 and ultimately CARS 4 through purchasers of the removed catalytic converter.
Accordingly, any dealer should strongly consider requiring a vehicle owner to present the required documentation before removing and selling a used catalytic converter. Further, the dealer should consider purchasing the vehicle from the previous owner with the catalytic converter already removed. In both cases, the dealer risk of liability is minimized or eliminated and the customer remains satisfied with their transaction.
Alternatively, the certified technician may choose to install an aftermarket catalytic converter, in which case, they should be certain to check if the replacement unit is allowable under CARS 1. Again, experience shows that many vehicle owners believe that the applicable laws are the full extent of their responsibility. In contrast, the technician and/or auto shop may be held liable for the torts of its employees or affiliated persons. See generally, COLO. REV. STAT. §§ 13-80-201(4), 13-21-110(1)(a).
In summary, while the statutory requirements of CARS clearly places liability on the purchaser in the secondary markets of a used catalytic converter, every tier of the sale is affected by the law. If you are an auto shop or certified technician, be sure to consider the role you and your company play in the sale of a used or used catalytic converter – even if you are acting as a downstream operator for a manufacturer or scrap processor.
Future Updates and Trends in Catalytic Converter Legislation
As the global conversation around climate change continues to gain prominence, it is likely that Catalytic Converter laws in Colorado will evolve to align more closely with these wider environmental policies. Such shifts would fall in line with broader legislative trends that have seen an increase in regulations aimed at reducing greenhouse gas emissions. These regulations often rely upon technologies such as catalytic converters, which have been employed for decades as a means to trap harmful substances in vehicle emissions before they can enter the atmosphere.
In terms of emerging technologies, the recent development of micro-catalytic converters specifically designed for smaller engines could transform transport regulations in Colorado. The new technology, which uses light-activated atoms, could potentially be embedded into buildings, bridges and other structures in the near future. Such innovations in air purification may well prompt the state to amend its catalytic converter laws, adding in these newer, more compact models to their list of approved devices.
A potential increase in smart technology could also reshape Colorado’s Catalytic Converter laws in the future. From tracking devices to monitor usage, to sensors that detect pollutant levels, such innovations would give authorities the means to more efficiently regulate the installation and maintenance of catalytic converters on vehicles driving through the state. Intrusive technologies, however, may be met with resistance, and will need to be enacted in a way that respects individual privacy rights. Such technology, if done right, could assist in the prevention of a spike in theft of catalytic converters in Colorado.
Protective Measures for Your Catalytic Converter
In light of recent sharp upticks in thefts, vehicle owners should be vigilant and stay on guard to prevent catalytic converter theft and damage. Vehicle Lien holders are taking an active role in helping their customers safeguard their vehicles future repairs.
Not all catalytic converters are created equal. Catalytic converters contain small amounts of palladium, rhodium, and platinum. They are vital components of a vehicle’s exhaust system and help reduce air pollutants. Because of the precious metals inside them, catalytic converters have become a hot commodity for thieves to steal and sell for cash. The catalytic converter is easily accessible to thieves who may approach a car in a matter of minutes, and may cost thousands of dollars to replace. Given the high-stakes nature of catalytic converters, there are preventative measures you can take to protect yourself.
First, keep your vehicle locked when not in use and park in well-lit areas. Thieves are more likely to walk away from a vehicle that is locked and inaccessible. Second , have your repair facility engrave your last name on your catalytic converter. This will make it difficult for thieves to sell stolen catalytic converters on the black market, as the engraving will deter customers. Third, install anti-theft protection, like alarm systems and cages or steel shields for the catalytic converter.
As a preventative measure against theft, insurance policies should include comprehensive coverage on the vehicle to pay for the replacement of catalytic converters. However, in the event of an accident or other loss, Colorado Revised Statute §10-4-110.8 provides for automobile insurance companies to offer vehicle owners the option to elect the application of an anti-theft discount provision where their vehicle is equipped with an approved anti-theft system. The insurance company has the right to determine the amount of the anti-theft discount to be applied to qualified vehicles. This can be a win-win for vehicle owners who choose to have their vehicles protected by installing an approved anti-theft system.