S.F. _____ Section 1. Section 714.27A, subsection 2, paragraphs b and 1 c, Code 2024, 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 6399XC (1) 90 th/ns 1/ 3

S.F. _____ 2024, 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, subsection 6, unnumbered paragraph 8 1, Code 2024, is amended to read as follows: 9 A person, including a person who conducts a business 10 transaction on behalf of another person, who intentionally 11 violates this section shall be subject to a civil penalty as 12 follows: 13 Sec. 4. Section 714.27A, subsection 7, unnumbered paragraph 14 1, Code 2024, is amended to read as follows: 15 Proof that a person, including a person who conducted a 16 business transaction on behalf of another person, intentionally 17 violated subsection 2 or 3 shall be evidence from which the 18 court or jury may infer any of the following: 19 EXPLANATION 20 The inclusion of this explanation does not constitute agreement with 21 the explanation’s substance by the members of the general assembly. 22 Under current law, for a business transaction, as defined in 23 Code section 714.27A, in which the seller of a used catalytic 24 converter operates a business at a fixed location in this 25 state, the seller must provide to the purchaser a copy of the 26 seller’s valid sales tax permit issued pursuant to Code chapter 27 423. This bill authorizes such a seller to alternatively 28 provide a copy of the seller’s valid business license or 29 permit. The seller of a catalytic converter operating a 30 business at a fixed location in another state is authorized to 31 provide a copy of the person’s valid business license or permit 32 from the other state under current law. 33 For transactions other than business transactions under 34 current law, the person selling the used catalytic converter 35 -2- LSB 6399XC (1) 90 th/ns 2/ 3

S.F. _____ is required to provide to the purchaser an original receipt or 1 invoice for a replacement catalytic converter purchased fewer 2 than 30 days before the person sells the replaced catalytic 3 converter, or a junking certificate for a vehicle that was 4 issued fewer than 30 days before the person sells the catalytic 5 converter. The bill authorizes a seller to provide a signed 6 affidavit attesting to the seller’s valid ownership of the 7 catalytic converter instead of the original receipt, invoice, 8 or junking certificate. The bill requires a purchaser to mark 9 an affidavit in the same manner the purchaser must mark other 10 acceptable forms of proof of ownership under Code section 11 714.27A. 12 Under current law, a person, including a person who 13 conducts a business transaction on behalf of another person, 14 who violates Code section 714.27A is subject to a civil 15 penalty ranging from $1,000 to $10,000 based on the number 16 of violations that occur within a two-year period. Proof 17 that a person, including a person who conducted a business 18 transaction on behalf of another person, violated Code section 19 714.27A(2) or 714.27A(3) is evidence from which the court or 20 jury may infer culpability relating to the theft of a catalytic 21 converter. The bill requires that a person must intentionally 22 violate Code section 714.27A to be subject to the corresponding 23 civil or criminal penalty, as applicable. 24 -3- LSB 6399XC (1) 90 th/ns 3/ 3