(a) In general

Chapter 113 of title 18, United States Code, is amended by inserting after section 2321 the following:

2321A. Trafficking in catalytic converters

(a) Offense

Except as provided under subsection (c), whoever, in or affecting interstate commerce, knowingly—

(1)

possesses one or more catalytic converters that was removed from a motor vehicle; or

(2)

purchases one or more catalytic converters that was removed from a motor vehicle, with the intent to distribute, sell, or dispose of such catalytic converter or any precious metal removed from such converter,

shall be punished as provided in subsection (b) for each possession or purchase.

(b) Penalties

Whoever commits an offense under subsection (a)—

(1)

shall be fined not more than $100,000, imprisoned not more than 5 years, or both; and

(2)

for a second or subsequent offense under subsection (a), shall be fined not more than $200,000, imprisoned not more than 10 years, or both.

(c) Affirmative defense

It is an affirmative defense to prosecution under subsection (a) if the person complied with all State and local identification requirements and record-keeping practices relating to catalytic converters in the State which the transaction occurred and—

(1)

the catalytic converter was removed from a motor vehicle by a motor vehicle owner or by the lessee of a leased motor vehicle;

(2)

an person possessed or purchased a catalytic converter in the ordinary course of their official duties for a motor vehicle manufacturer, distributor, or dealer;

(3)

an employee or agent of a person acting in their official duties as a motor vehicle repair facility engaged in diagnosis, service, maintenance, repair, or calibration of a catalytic converter of a motor vehicle if the employee or agent does not—

(A)

extract any precious metals from the catalytic converter;

(B)

remove the identity, including the vehicle identification number or derivative thereof, or other identification marking, of such vehicle or catalytic converter; or

(C)

distribute, sell, or dispose of the vehicle, or catalytic converter, or precious metals extracted from such catalytic converter; or

(4)

a metal recycling entity that purchases or otherwise acquires a catalytic converter that was removed from a motor vehicle if the person selling the catalytic converter to the metal recycling entity acquired the catalytic converter in the ordinary course of business of such entity, including in the ordinary course of business of—

(A)

a licensed automotive wrecking and salvage yard;

(B)

a registered metal recycling entity;

(C)

a licensed motor vehicle manufacturer, distributor, converter, or dealer, including any department of a dealer or converter that repairs or services motor vehicles;

(D)

a licensed motor vehicle repair facility;

(E)

a licensed used automotive parts recycler;

(F)

a licensed motor vehicle demolisher;

(G)

a school or training program in which students are provided instruction on building, repairing, or restoring motor vehicles;

(H)

a Federal, State, or local law enforcement agency;

(I)

the National Insurance Crime Bureau;

(J)

a business that is—

(i)

located in and regulated by State or a political subdivision of a State; and

(ii)

engaged in an activity relating to catalytic converters that is regulated by a State or a political subdivision of a State; and

(K)

a business that—

(i)

is located in a jurisdiction outside the United States and operated in a business form recognized by the laws of that jurisdiction; and

(ii)

imports catalytic converters into the United States in accordance with the Harmonized Tariff Schedule of the United States published by the U.S. International Trade Commission (or a successor schedule).

(d) Definitions

In this section:

(1) Catalytic converter

The term catalytic converter means an emission pollution-control device that converts toxic byproducts of combustion in the exhaust of an engine to less toxic substances by means of catalyzed chemical reactions.

(2) Dealer; motor vehicle; motor vehicle distributor; motor vehicle manufacturer

The terms dealer, motor vehicle, motor vehicle distributor, motor vehicle manufacturer have the meanings given the terms in section 30102 of title 49.

(3) Metal recycling entity

The term metal recycling entity means a business that operates from a fixed location and is predominantly engaged in—

(A)

performing the manufacturing process by which scrap, used, or obsolete ferrous or nonferrous metal is converted into raw material products consisting of prepared grades and having an existing or potential economic value, by a method that in part requires the use of powered tools and equipment, including processes that involve processing, sorting, cutting, classifying, cleaning, baling, wrapping, shredding, shearing, or changing the physical form of that metal;

(B)

using raw material products described under subparagraph (A) in the manufacture of producer or consumer goods; or

(C)

purchasing or otherwise acquiring scrap, used, or obsolete ferrous or nonferrous metals for the eventual use of the metal for the purposes described in subparagraph (A) or (B).

(4) Motor vehicle dealer

The term motor vehicle dealer means a dealer that has an agreement with a motor vehicle manufacturer related to the diagnostics, repair, or service of a motor vehicle.

(5) Motor vehicle owner

The term motor vehicle owner—

(A)

means a person with a present possessive ownership right in a motor vehicle or a lessee of a motor vehicle; and

(B)

does not include a motor vehicle manufacturer or a person operating on behalf of a motor vehicle manufacturer, a motor vehicle financing company, a motor vehicle dealer, or a motor vehicle lessor.

(6) Motor vehicle repair facility

The term motor vehicle repair facility means any person that, in the ordinary course of its business, is engaged in the business of diagnosis, service, maintenance, repair, or calibration of motor vehicles or motor vehicle equipment.

(7) Precious metals

The term precious metals has the meaning given the term in section 109–27.5101 of title 41, Code of Federal Regulations (or a successor regulation).

(b) Technical and conforming amendment

The table of sections for chapter 113 of title 18, United States Code, is amended by inserting after the item relating to section 2321 the following: