Bill by Merced’s Gray among latest legislative efforts targeting catalytic converter theft

A new bill that would crack down on catalytic converter thefts drew bipartisan support on Monday, the first of several legislative hurdles before the bill becomes law, according to a news release from the office of Assemblymember Adam Gray, D-Merced.

Assembly Bill 2682, which passed through the Assembly Transportation Committee on Monday, would require catalytic converters to be labeled with the vehicle identification number of the vehicle they’re in, regardless of whether the car is new or used.

The idea is in line with recommendations from law enforcement groups all over the country and the Bureau of Automotive Repair, the release said.

“Nearly a dozen bills have been introduced in the legislature this year to address catalytic converter theft,” said Gray. “AB 2682 is one of the few with bipartisan support.”

A catalytic converter is a crucial part of a vehicle’s exhaust system that converts hydrocarbons, carbon monoxide and nitrogen oxide into less harmful water vapor and carbon dioxide, according to the news release.

They also contain three different precious metals that are worth a lot on the black market: palladium, rhodium and platinum. The three metals are essential parts of the catalytic converter to create the necessary chemical reaction that allows the vehicle to work.

Catalytic converter thieves have known this for a long time, but the uptick in the value of these metals correlates to a rise in the theft of these components of cars like the Toyota Prius, Honda Element, Honda Accord, Ford Econoline, Honda CR-V, Ford F-250, Toyota Tundra, Toyota Sequoia, Ford Excursion and Toyota Tacoma, according to Gray’s office.

Sites of precious metal retailers like macrotrends.net indicates the price of palladium, in particular, increased from $1,350.20 an ounce in April 2019 to $2,355.40 an ounce today. Rhodium prices also saw a huge jump from $2,770 an ounce in April 2019 to $17,900 an ounce this month. For platinum, the price increase is fairly nominal – $905.40 an ounce in April 2019 compared to $994.20 today – but an increase nevertheless, according to Kitco.com.

“Thieves typically flip catalytic converters for $50-$500 while victims can expect to pay anywhere from $1,000 to $4,000 to get their vehicle fixed,” Gray said in the release.

“Unless a thief is caught in the act red-handed, law enforcement officers have few resources to investigate this crime. Even when a suspect is arrested, many are never prosecuted.”

Crimes increasing

According to the National Insurance Crime Bureau, catalytic converter theft is way up nationwide. The organization tracked an average of 108 catalytic converter thefts per month in 2018, which rose to 282 per month in 2019 and 1,203 per month in 2020.

The state that led the way in the number of catalytic converter thefts? California, followed by Texas, Minnesota, North Carolina and Illinois.

“It’s an opportunistic crime,” said David Glawe, president and CEO of the NICB. “We have seen a significant increase during the pandemic. There is a clear connection between times of crisis, limited resources, and the disruption of the supply chain that drives investors towards these precious metals.”

State Farm, the nationwide insurance company that insures homes and cars, touted another surprising number. Catalytic converter thefts jumped 293% between July 2020 and June 2021 compared to the same period a year before, indicating about 18,000 individual thefts. The increased thefts resulted in a payout of $33.7 million in insurance claims, up from $9 million the year before.

Catalytic converter thefts have been a problem in the Merced area for some time. In October 2021, police found multiple stolen catalytic converters at Fat Cat Recycling in Merced, along with multiple stolen vehicles. More than $300,000 worth of stolen property was located at the recycling business, with more than $200,000 worth of stolen catalytic converters.

Police told the Sun-Star that recyclers pay $200 to $500 for each stolen converter before turning around to make $1,200 to $1,300 per converter. AB 2682 could make that a lot more difficult, Gray said.

“Once a thief gets away with your catalytic converter, there is often little law enforcement can do to prove a suspect committed a theft,” said Gray in the release.

“By requiring these parts to be marked, a detached catalytic converter can be traced back to its original vehicle and legal ownership can be established. If the marking on the catalytic converter is removed, then possession of that catalytic converter is a crime – which will serve as a significant deterrent for any black-market repair shop or recycler to take possession of the stolen part.”

The bill now faces the Assembly Public Safety Committee before it heads to the Assembly Appropriations Committee. If it passes committee, it will be up for a full vote in the State Assembly in May.

This story was originally published April 19, 2022 at 12:48 PM.