Item 2: Ordinance on Used Merchandise Dealer Provisions

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Public Hearing: An Ordinance Concerning Used Merchandise Dealer Provisions and Amending Sections 4.989 and 4.990 of the Eugene Code, 1971 Meeting Date: November 19, 2012 Agenda Item Number: 2 Department: Eugene Police Staff Contact: Det. Randy Berger www.eugene-or.gov Contact Telephone Number: 541-682-5645 ISSUE STATEMENT This public hearing provides the community an opportunity to comment on a proposal to change the regulations for second-hand dealers, to be consistent with recently adopted state legislation, as required by that legislation. BACKGROUND In 2006, the Eugene City Council amended the Used Merchandise Dealer Ordinance contained in sections 4.989 and 4.990 of the Eugene Code. In 2012, the State adopted HB 4108 which regulates Precious Metal Dealers, currently regulated under the City’s Used Merchandise Dealer regulations. The State permits cities to modify their existing regulations to be consistent with the state regulations. If the local jurisdiction does not make the necessary changes, the state legislation will be in effect. The City of Eugene’s regulations are more comprehensive; this draft ordinance amends the existing City ordinance, so it is not pre-empted by the less-desirable state legislation. Additional changes are also proposed that are based on the experience of implementing and overseeing these regulations since adoption in 2006. It should be noted that the current regulations as well as the proposed changes specifically address businesses which purchase “regulated property,” or lend money on security of “regulated property.” Regulated property includes precious metals, gems, watches, jewelry, AV equipment, photo equipment, firearms and other property which is historically and traditionally the subject of property crimes. Regulated property does not include collectable trading cards, glassware, furniture, clothes, home appliances, or collectables. While most of Eugene’s used merchandise dealers strive to cooperate with law enforcement and comply with both state and local laws governing their business practices, used merchandise businesses are frequently used by criminals to dispose of stolen property. In 2009, property valued at $3.5 million was lost in burglaries or robberies, while only five percent ($170,000) was recovered. In subsequent years, the experience is similar, with $2.3 million stolen and four percent recovered in 2010, and $2.3 million stolen and two percent recovered in 2011. These regulations are intended to locate and recover stolen property, and identify individuals involved in the sale of stolen property to businesses who buy regulated property. S:\CMO\2012 Council Agendas\M121119\S1211192.doc