At the highest level, dealers have two options to comply with SB 55:

• OPTION #01 The dealer marks the VIN on the catalytic converter prior to the sale and advertises the price of the vehicle, including any cost for the marking. In this option, catalytic converter marking would be treated in the same manner as any other additional pre-sale dealer-installed equipment (such as a tow hitch). 

If the vehicle is new, the dealer should use the supplemental/ addendum price sticker to notate any adjustment of the price of the vehicle above MSRP.

• OPTION #02 The dealer offers catalytic converter VIN marking as an optional product to the customer. The marking would be disclosed as a “theft deterrent device” in the Precontract Disclosure Statement, and the customer would sign the statement if they elect to purchase the option.

In Option 2 this can become dangerous very quickly as the FTC are starting to crack down on dealers that are using the  Precontract Disclosure Statement as a way out of marking their cars by having customers opting out.

Yes. It is recommended that all catalytic converters be marked unless the marking is offered as an optional product and the customer opts out.

Yes (unless you are offering the marking as an optional product and the customer declines the marking). That said, the law does not limit your ability to adjust the price of the product based on the complexity of the operation. In other words, if it is time-consuming or expensive for you to mark a hard-to-access converter, nothing prevents a dealer from passing along that higher cost to the customer.

SB 55 requires the marking to be on the catalytic converter, not a related component like the heat shield. Beyond requiring placement on the catalytic converter, SB 55 does not specify where the marking should be placed. Dealers should use their best judgment in the placement of the marking to reliability and permanently mark the entire VIN on the catalytic converter.

The bill does not address how a dealer may price the product, beyond requiring catalytic converter marking to be disclosed as a “theft deterrent device” in the event the dealer offers the service as an optional product. The legislature anticipated that dealers would likely pass this cost onto consumers, and that the price of the marking would vary based on the difficulty to mark a vehicle. Moreover, the legislature contemplated that the price of catalytic converter marking for difficult-to-mark vehicles may deter customers from purchasing catalytic converter marking for such vehicles. The Senate Rules Committee analysis on SB 55 notes: “By allowing dealers to either etch a converter or offer consumers the option to reject etching, this bill promotes converter etching for easy-to-access converters and allows consumers to decide if the cost of etching hard-to-access converters is worth the theft prevention and prosecution aid VIN etching may provide.”
Note that this is intended for educational purposes only and is not legal advice. If you require legal advice, contact competent counsel. If you have more questions, please call CatGuards at (945) CAT-GARD (945-228-4273).