CITY OF COMMERCEAGENDA REPORTCITY OF COMMERCEAGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
Item No. Item No.
Item No.
Item No.
TO: Honorable City Council
FROM: City Manager
SUBJECT: Introduction of Ordinance for First Reading Amending Commence Municipal Code, Title 9 (Peace, Safety and Morals) by Adding Chapter 9.82 “Unlawful Possession of Catalytic Converters” Meeting Date: January 24, 2023
RECOMMENDATION:
The City Council will consider the following:
Introduce for first reading by title only and waive further reading of an ordinance, adding Chapter 9.82 (Unlawful possession of Catalytic Converters) to Title 9 of the Commerce Municipal Code entitled “AN ORDINANCE OF THE CITY OF COMMERCE, CALIFORNIA, ADDING CHAPTER 9.82 (“UNLAWFUL POSSESSION OF CATALYTIC CONVERTER”) OF TITLE 9 (“PEACE, SAFETY AND MORALS”) OF THE COMMERCE MUNICIPAL CODE TO PROHIBIT THE UNLAWFUL POSSESSION OF CATALYTIC CONVERTERS IN THE CITY; and Schedule the Second Reading and Adoption of the Ordinance, for the next regular scheduled City Council meeting.
BACKGROUND:
Like many communities in the region, the City of Commerce has experienced a large number of catalytic converter thefts from vehicles located in the City. Catalytic converters are being stolen from vehicle exhaust systems because they contain small amounts of expensive precious metals – including Rhodium, Palladium, and Platinum – which may be sold as scrap metals to recyclers for significant sums of money.
According to the National Insurance Crime Bureau (“NICB”), in 2020 there was an average of 1,200 catalytic converter thefts a month in the United States, up sharply from an average of about 280 the previous year. Also, according to the NICB, recyclers will pay between $50 and $250 dollars for a catalytic converter. The average cost of fixing a vehicle after the catalytic converter has been stolen ranges from one thousand ($1,000) to three thousand ($3,000) dollars, resulting in a significant financial burden to victims of the crime.
California Business and Professions Code Section 21600, et seq. requires junk dealers and recyclers in the State of California to keep written record of all sales, purchases and individuals selling or purchasing catalytic converters, the failure of which is considered a misdemeanor. Unfortunately, identifying violations of this statute is difficult as these transactions are difficult to identify in real time, create evidentiary problems, and by their nature are “off the books” transactions. For this reason, scrap metal dealers and recyclers failing to comply with Section 21600 et seq. often go unidentified and are not prosecuted.
Local governments throughout California have recently made efforts to address this issue through local ordinances designed to aid law enforcement in the identification of stolen catalytic converters, and staff has prepared such an ordinance for the City Council’s consideration.
Assembly Bill (AB) 1740 and Senate Bill (SB) 1087 have recently been signed into California law and will go into effect on January 1, 2023 to curb the rise in stolen catalytic converters. While AB 1740 requires core recyclers to keep detailed records for no less than two (2) years, and SB 1087 prohibits any person from purchasing a used catalytic converter from anybody other than specified sellers who possess proper documentation. Unfortunately, there is currently no City, State, or Federal legislation applicable within the City requiring individuals to provide proof to law enforcement as to how they obtained catalytic converters. The ability for law enforcement to protect the public by preventing catalytic converter thefts and seize suspected stolen catalytic converters when no victim is present continues to be acutely limited.
This Ordinance is necessary to provide the City a means to protect the public, deter this criminal activity, and promote a more productive use of staff resources by the staff responsible for investigating catalytic converter thefts.
ANALYSIS:
Currently, the Commerce Municipal Code (“CMC”) does not regulate the unlawful possession of catalytic converters in the City. Ordinance No. 23-XXXX will make it unlawful to possess any catalytic converter that is not attached to a vehicle unless the possessor has valid documentation or other proof to verify they are in lawful possession of the catalytic converter. Each and every violation of this section shall constitute a misdemeanor punishable for up to $1,000 or imprisonment in County jail for no more than six (6) months as authorized by Chapter 1.12 (Penalty and Arrest Provisions) of the City of Commerce Municipal Code. Each and every catalytic converter unlawfully possessed shall constitute a separate violation, with the City reserving its rights to all remedies and enforcement measures authorized by the CMC.
ALTERNATIVES:
Approve staff recommendation
Disapprove staff recommendation
Provide further direction to staff
FISCAL IMPACT:
There is no budget impact associated with this item, other than the cost of investigating and enforcing violations.
RELATIONSHIP TO STRATEGIC GOALS:
The recommended action will further the City’s Strategic Goal to work in partnership with all of our communities to achieve safe and livable neighborhoods.
Recommended by: Vilko Domic, Assistant City Manager
Approved as to form: Noel Tapia, City Attorney
Respectfully submitted: Edgar P. Cisneros, City Manager ATTACHMENT:
Draft Ordinance