New law requires license to buy or sell catalytic converters in Indiana

Indiana Governor Eric Holcomb signed a bill into law that regulates the sale of catalytic converters in an effort to protect vehicle owners from the theft of the valuable metal.

Secretary of State Holli Sullivan proposed the legislation.

“Every day Hoosiers’ vehicles across our state are targeted by thieves looking to make a quick buck by cutting out catalytic converters,” Secretary Sullivan said. “The metal component can be stolen in a matter of minutes but can set back unsuspecting car owners thousands of dollars for repair and replacement. Through our Auto Dealer Services Division, we are committed to slowing this trend and protecting Hoosiers’ hard-earned money.”

The new law defines catalytic converters as a ‘major component part’ so only licensed salvage recyclers can buy or sell catalytic converters.

Salvage recyclers must keep the same records as valuable metal dealers, puts a cap of $25 on cash payouts for detached catalytic converters to $25 per purchase per day. The purchase of catalytic converters valued over $25 must be paid by check.

The law also requires buyers to maintain records about the sale, including:

• Name, address, age and driver’s license or social security number of the person selling the item. The person’s identity must be verified via a government issued ID
• The date and place of purchase.
• The motor vehicle license number of the vehicle or conveyance on which the valuable metal was delivered to the valuable metal dealer.
• The price paid, a description and weight of the metal purchased and the source of the item being sold

The buyer must take a photograph of the seller and the item being purchased.

The law goes into effect July 1, 2022.