Executive Director John Odorisio Testifies before House Consumer Protection, Technology & Utilities Committee

BY TYLER BURKE, ASSOCIATE, MILLIRON & GOODMAN GOVERNMENT RELATIONS

As part of PIADA’s ongoing advocacy against catalytic converter theft in the Commonwealth, PIADA’s Executive Director John Odorisio was asked to testify before the House Consumer Protection, Technology & Utilities Committee regarding how Pennsylvania’s independent auto dealers are harmed by catalytic converter theft.

Last session, PIADA’s advocacy on this topic helped the Pennsylvania legislature to pass legislation that reclassified catalytic converters as a “secondary metal” which increased the penalties for catalytic converter theft in the Commonwealth.

This session, the legislature is seeking to address ways to make it more difficult for stolen catalytic converters to be sold. On Tuesday, June 6, John Odorisio testified before the committee. Below is a portion of his testimony:

The theft of catalytic converters has reached epidemic proportions in both Pennsylvania and across the country, with incidents of catalytic converter theft doubling in Pennsylvania in recent years. For example, a January 2023 TribuneReview article titled: “Surveillance work leads police to Western Pa. catalytic converter theft suspects” provides a good example of how such thefts impact auto dealers in Pennsylvania. The article stated as follows:

‘The catalytic converter thieves hit in early December at Jim Shorkey auto dealerships in North Huntingdon and North Union, Fayette County, police said. There was a total of 35 catalytic converters taken from Mitsubishi Outlanders at both locations — two were left behind on the ground — causing $124,000 in damage.” “Around the same time, Moon police were investigating the thefts of $20,000 worth of catalytic converters from tow trucks.’

Thefts have continued to increase along with the value of precious metals within the catalytic converters. Catalytic converters have valuable metals inside them and only take a matter of minutes to steal, especially for experienced thieves. These parts can then be sold at scrap yards for around $50 to $200, although most end up being shipped overseas.

The theft of catalytic converters has severe financial repercussions on small automobile dealers. Once a catalytic converter is stolen from an automobile dealer, they are 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. Many small automobile dealers across the state simply cannot afford multiple catalytic converters being stolen off their lot.

The testimony delivered by Executive Director Odorisio was in support of House Bill 791 (Isaacson-D), which 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.

In addition, House Bill 791 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.

PIADA will be sure to keep you updated regarding this issue and all relevant issues that are currently being addressed in Harrisburg. n

JOHN ODORISIO EXECUTIVE DIRECTOR MIDATLANTIC IADA

As some of you know all too well, many banks are pulling out of indirect lending for independent dealers. No one is sure how long this will last given some recent high profile bank failures. While this isn’t good news, it is not the first time we have been through this.

Those in business in 2008 remember the implications of the financial crisis and how many bankers abandoned our industry then. It also happened in 2001 after the 911 attacks. I realize this is of little comfort, but it does show that we as an industry can make it through by calling on our resourcefulness in times like this. We have asked our lobbyist to closely monitor the situation and keep us abreast of any developments, positive or negative that we need to know.

We can’t promise to resolve this but we can and will offer some solutions in the name(s) of lenders who may be able to help. One place to turn to is the Credit Union Dealer Link (CUDL) or call 800-972-0999. As we get more options, they will be posted on our website: piada.org.

If you’re looking for another healthcare option, please check our website. The details aren’t finalized as of this writing (June 2), but should be by the time you read this article. We hope you’ll take a look and see if our sponsor’s program can work for you and your dealership.

May you enjoy this meaningful day with your loved ones! Let us live the real essence of being an American and be of service to our nation with our whole hearts!. Independence Day is a day of freedom to express our pride in being a nation of hope and prosperity. Praying for safety and good health.

“In the truest sense, freedom cannot be bestowed; it must be achieved.”

-Franklin D. Roosevelt

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