This bill creates a new federal offense under title 18, United States Code, to prohibit the trafficking of catalytic converters. It targets individuals who knowingly possess or purchase catalytic converters that have been removed from motor vehicles, particularly when there is an intent to distribute, sell, or dispose of the converter or its valuable precious metals. This measure aims to combat the rising theft of these components. Violations of this prohibition carry significant penalties. A first offense can result in a fine of up to $100,000, imprisonment for up to five years, or both. For a second or subsequent offense, the penalties increase to a fine of up to $200,000, imprisonment for up to ten years, or both, underscoring the seriousness of the crime. The bill provides several affirmative defenses to ensure legitimate activities are not criminalized, provided State and local identification and record-keeping requirements are met. These defenses apply to motor vehicle owners removing their own converters and to authorized personnel of motor vehicle manufacturers, distributors, or dealers acting in their official duties. Additionally, motor vehicle repair facilities are exempt when performing diagnosis, service, or repair, as long as they do not extract precious metals, remove identification, or sell the converter. Furthermore, metal recycling entities are protected if they acquire catalytic converters from specified legitimate sources, such as licensed automotive wrecking yards, registered recyclers, or licensed repair facilities.