Item B: Ordinance Concerning Used Merchandise Dealers

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Inconsistency in Used Merchandise ordinances and the associated processes of dealing with the reporting of secondhand dealers within the region (Eugene, Springfield and Lane County) has provided an opportunity for individuals involved in property crimes to commit their crimes in one jurisdiction and sell the proceeds from that crime at a neighboring jurisdiction’s secondhand store. The manual systems currently in place make it very difficult for detectives in one jurisdiction to identify stolen property that has been ‘pawned’ in another jurisdiction, or to identify patterns by criminals who are simultaneously ‘pawning’ large amounts of merchandise at different stores. EPD detectives conducted two sample examinations of secondhand dealer transactions from three local full-service secondhand stores during a two-month period in 2003 and 2004. These samples revealed that 40.9% of the secondhand transactions were conducted by customers who have prior local arrest histories for property or drug crimes, excluding arson and less than an ounce of marijuana arrests/citations. Automated Reporting Pilot Project In 2001, Eugene and Springfield Police, the LCSO and other law enforcement officials met to discuss possible improvements to increase the identification and recovery of stolen property before it is resold, and to identify and investigate individuals involved in the sale of stolen property. With that in mind the involved agencies examined automated reporting and the creation of a uniform secondhand dealer ordinance for the region, as possible solutions to these issues. Eugene, Springfield and Lane County initiated an automated reporting pilot project in October 2002. The pilot project has continued for three years with voluntary participation of several secondhand stores in Eugene, Springfield and Lane County. The project demonstrated the reliability, data integration, and effectiveness of automated reporting, compelling the three law enforcement agencies to draft a Used Merchandise Dealers Ordinance to ensure that all regulated secondhand stores in the region would be held to the same standards as stores in their neighboring jurisdictions. Attachment “A” is Eugene’s version of the proposed ordinance. Attachment “B” explains the process of automated reporting and data integration. During the development of the draft ordinance, the participating law enforcement agencies met with secondhand store owners and managers on two separate occasions for feedback on the proposed ordinance. Understandably, most store owners were not initially interested in enhancing governmental regulation of their stores. However, during the course of the information sessions many of the shop owners’ concerns were addressed and participants in the pilot project were able to communicate the benefits of the process to the merchants. As a result, few merchants are now opposed to the automated reporting model. On December 8, 2005, the Police Commission voted unanimously to support the updated Second Hand Dealer Ordinance including the automated reporting component. Following the success of the automated reporting pilot project, the police departments of Eugene and Springfield and the LCSO are now in the process of seeking the adoption of the draft Used Merchandise Dealers Ordinance for each of their respective jurisdictions. Although each of the agencies could independently contract to utilize automated reporting, the program is much more effective if all agencies can participate. This is because uniform adoption eliminates the ability of criminals to simply sell their stolen merchandise in another community or in the unincorporated areas of Lane County. The adoption of similar automated reporting programs is spreading throughout North America and other jurisdictions in Oregon are contemplating the adoption of an L:\CMO\2006 Council Agendas\M060111\S060111B.doc