H.F. _____ Section 1. Section 714.27A, subsection 2, paragraphs b and 1 c, Code 2023, are amended to read as follows: 2 b. For a business transaction in which the person selling 3 the catalytic converter operates a business at a fixed location 4 in this state, the person shall provide to the purchaser a 5 copy of the person’s valid sales tax permit issued pursuant to 6 chapter 423 or a copy of the person’s valid business license 7 or permit . For a business transaction in which the person 8 selling the catalytic converter operates a business at a fixed 9 location in another state and is authorized to conduct a 10 business transaction in this state, the person shall provide 11 to the purchaser a copy of the person’s valid sales tax permit 12 issued pursuant to chapter 423 , if the person has such a 13 permit, or a copy of the person’s valid business license or 14 permit from the other state. If a person is unable to provide 15 the documentation required in this paragraph, the person shall 16 instead comply with paragraph “c” . 17 c. For transactions other than business transactions, the 18 person selling the catalytic converter shall provide to the 19 purchaser an original receipt or invoice for a replacement 20 catalytic converter purchased fewer than thirty days before 21 the person sells the replaced catalytic converter, a signed 22 affidavit attesting to the seller’s valid ownership of the 23 catalytic converter, or a junking certificate for a vehicle 24 that was issued fewer than thirty days before the person sells 25 the catalytic converter. 26 (1) The receipt, invoice, affidavit, or junking certificate 27 presented by the person to the purchaser must be unmarked by a 28 purchaser pursuant to subsection 3 . 29 (2) This paragraph does not apply to a transaction if the 30 person presents proof, unmarked pursuant to subsection 3 , to 31 the purchaser that the sale is approved by the sheriff of the 32 county in which the vehicle from which the catalytic converter 33 was removed is registered. 34 Sec. 2. Section 714.27A, subsection 3, paragraph b, Code 35 -1- LSB 2534HC (3) 90 th/ns 1/ 4

H.F. _____ 2023, is amended to read as follows: 1 b. A person who purchases a catalytic converter shall mark 2 the receipt, invoice, affidavit, junking certificate, or proof 3 of sheriff approval presented under subsection 2 to indicate 4 the catalytic converter has been sold. The person shall take a 5 photograph of the catalytic converter that clearly identifies 6 the item as a catalytic converter. 7 Sec. 3. Section 714.27A, Code 2023, is amended by adding the 8 following new subsection: 9 NEW SUBSECTION . 4A. a. A person shall not purchase a 10 used catalytic converter unless the person is registered as an 11 authorized purchaser with the department of revenue. The fee 12 for an authorized purchaser registration is one hundred dollars 13 and such authorization is valid for one year. A person who 14 conducts a business transaction on behalf of another person 15 shall be considered an authorized purchaser if the other 16 person on whose behalf the person is making a purchase is an 17 authorized purchaser. 18 b. The fees collected under this subsection shall be 19 deposited in the general fund of the state. 20 c. The department of revenue may adopt rules pursuant to 21 chapter 17A to implement and administer this subsection. 22 Sec. 4. Section 714.27A, subsection 6, unnumbered paragraph 23 1, Code 2023, is amended to read as follows: 24 A person, including a person who conducts a business 25 transaction on behalf of another person, who intentionally 26 violates this section shall be subject to a civil penalty as 27 follows: 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanation’s substance by the members of the general assembly. 31 Under current law, for a business transaction, as defined 32 in Code section 714.27A, in which the seller of a catalytic 33 converter operates a business at a fixed location in this 34 state, the seller must provide to the purchaser a copy of the 35 -2- LSB 2534HC (3) 90 th/ns 2/ 4

H.F. _____ seller’s valid sales tax permit issued pursuant to Code chapter 1 423. This bill authorizes such a seller to alternatively 2 provide a copy of the seller’s valid business license or 3 permit. The seller of a catalytic converter operating a 4 business at a fixed location in another state is authorized to 5 provide a copy of the person’s valid business license or permit 6 from the other state under current law. 7 For transactions other than business transactions under 8 current law, the person selling the catalytic converter is 9 required to provide to the purchaser an original receipt or 10 invoice for a replacement catalytic converter purchased fewer 11 than 30 days before the person sells the replaced catalytic 12 converter, or a junking certificate for a vehicle that was 13 issued fewer than 30 days before the person sells the catalytic 14 converter. The bill authorizes a seller to provide a signed 15 affidavit attesting to the seller’s valid ownership of the 16 catalytic converter instead of the original receipt, invoice, 17 or junking certificate. The bill requires a purchaser to mark 18 an affidavit in the same manner the purchaser must mark other 19 acceptable forms of proof of ownership under Code section 20 714.27A. 21 The bill prohibits a person from purchasing a catalytic 22 converter unless the person is registered as an authorized 23 purchaser with the department of revenue (DOR). The fee 24 for an authorized purchaser registration is $100 and such 25 authorization is valid for one year. The fees collected must 26 be deposited in the general fund of the state. A person who 27 conducts a business transaction on behalf of another person 28 is considered an authorized purchaser if the other person on 29 whose behalf the person is making a purchase is an authorized 30 purchaser. 31 A person, including a person who conducts a business 32 transaction on behalf of another person, who violates Code 33 section 714.27A is subject to a civil penalty ranging from 34 $1,000 to $10,000 based on the number of violations that occur 35 -3- LSB 2534HC (3) 90 th/ns 3/ 4

H.F. _____ within a two-year period. The bill requires that a person must 1 intentionally violate Code section 714.27A to be subject to the 2 corresponding civil penalty. 3 Under current law, proof that a person, including a person 4 who conducted a business transaction on behalf of another 5 person, violated Code section 714.27A(2) or 714.27A(3) is 6 evidence from which the court or jury may infer culpability 7 relating to the theft of a catalytic converter. The bill does 8 not add an intention element to violations for purposes of this 9 provision. 10 -4- LSB 2534HC (3) 90 th/ns 4/ 4