California recently passed Senate Bill 55, which was aimed at reducing catalytic converter theft. Senate Bill 55 added Cal. Veh. Code § 24020, which prohibits dealers and retail sellers from selling “a new or used vehicle equipped with a catalytic converter unless the catalytic converter has been permanently marked with the vehicle identification number (VIN)…” (Section 24020(a).) Per Section 24020(c), “‘permanently marked’ means prominently engraved, etched, welded, metal stamped, acid marked, or otherwise permanently imprinted using a similarly reliable method of imparting a lasting mark on the exterior case of the catalytic converter.” However, there are a number of exceptions to this prohibition and/or requirement.
Section 24020(b) notes that this permanent marking is not required for:
- A collector motor vehicle.
- Where the vehicle is sold by a licensed automobile dismantler after the required reporting.
- Where the vehicle is sold after a vehicle has been properly salvaged.
- Where a vehicle is sold at a salvage disposal auction.
- Where the vehicle is sold by a wholesale auction.
- Where the vehicle is purchased from a dealer licensed in California who is also licensed in another state and does not have a warranty servicing facility in California. (This exemption expires in 2025.)
- The vehicle is a motorcycle.
In addition to the above, and of particular note for dealers selling vehicles at retail, the catalytic converter need not be marked “where the buyer declines the seller’s offer to permanently mark the catalytic converter … and the dealer discloses the catalytic converter permanent marking as a body part marking product [per the Automobile Sales Finance Act].” (Section 24020(b)(3).) There are a number of forms already circulating from the regular providers which disclose this option to permanently mark catalytic converters.
It would be good practice for dealers to arrange for the ability to permanently mark catalytic converters, either in-house or through third parties, as well as incorporate new disclosures on this option. A failure to comply with Section 24020 is punishable as an infraction. (Section 24020(d).)
