Pennsylvania Legislature
Bill Information: HB 791

On June 28, 2023, the state House of Representatives passed House Bill 791 by a vote of 119 to 84.ⁱ  This legislation will now go to the Senate of Pennsylvania for consideration. 

House Bill 791ⁱⁱ (Isaacson-D) amends the Scrap Material Theft Prevention Act, further providing for identification requirements for sale of scrap materials to scrap processors and recycling facility operators. It would also require scrap processors and recycling facilities to collect additional information for transactions that include a catalytic converter such as:  

• The year, make, model and vehicle identification number of the vehicle from which the catalytic converter was removed.
• A photograph of the catalytic converter.
• A photograph of the seller.  

It would empower the scrap processor or recycling facility to withhold payment to the seller for a period of 48 hours. During those 48 hours, the scrap processor or recycling facility operator shall keep the catalytic converter intact and safe. 

In addition, Representative Rob Kauffman (R-Franklin) amended the bill on the House floor to add the requirement that scrap processors and recycling facility operators collect identification information if the scrap material bears a name or mark. The legislation imposes a new penalty for a scrap processor or recycling facility that fails to collect the required information. Specifically, an individual who violates this section would be guilty of a misdemeanor of the third degree. The amendment sets the minimum fine for a conviction at $5,000. A misdemeanor of the third degree is punishable by imprisonment not to exceed 1 year. 

The legislation further makes it an offense for a person that is not affiliated with a commercial account to, without proper justification, intentionally possess a detached catalytic converter. This offense is a misdemeanor of the third degree and is punishable by up to one year in jail or a fine of up to $2,500. 

As you may know, John Odorisio, Executive Director of the Pennsylvania Independent Automobile Dealers Association (PIADA), testified before the House Consumer Protection, Technology & Utilities Committee on June 8, 2023, regarding how the theft of catalytic converters has severe financial repercussions on small automobile dealers. For example, if stolen from an automobile dealer, that dealer is then responsible for covering the large insurance deductible (average $2,500) associated with their policy. Replacing a stolen catalytic converter can cost anywhere from $1,000 to $2,500, accounting for both the part itself and the labor to install it. Small automobile dealers across the state simply cannot afford multiple catalytic converters thefts from their lots. 

Moreover, a June 28, 2023, article on AXIOS Philadelphia highlighted this ongoing problem in reporting that “Bucks County District Attorney Matt Weintraub announced charges on [June 27, 2023] against 11 people and Philly-based TDI Towing, described as the "main buyer" of thousands of catalytic converters stolen throughout Delaware Valley.”ⁱⁱⁱ “Weintraub said it's the first time that the Bucks County DA has ever criminally charged a corporation, crediting investigators who "worked up the chain" to get the alleged main players. Our goal is to put them out of business forever," Weintraub said.”^iv 

Rep. Isaacson’s House Bill 791 could make the illicit resale of catalytic converters tougher by tightening identification requirements for scrap materials and making it an offense for a person that is not affiliated with a commercial account to, without proper justification, intentionally possess a detached catalytic converter.  

PIADA will be sure to keep you updated as this important legislation moves through the legislative process in Harrisburg.   

Erik A. Ross
Senior Associate 
Milliron Goodman

ⁱHouse Bill 791 PN 1754, Final Passage by House
ⁱⁱHouse Bill 791 PN 1754  
ⁱⁱⁱ“Philly tow company snared in catalytic converter theft ring,” Isaac Avilucea, AXIOS Philadelphia, 6/28/2023 
^ivIBID