Item 4: Ordinance on Used Merchandise Dealer Provisions

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Action: An Ordinance Concerning Used Merchandise Dealer Provisions and Amending Sections 4.989 and 4.990 of the Eugene Code, 1971 Meeting Date: November 26, 2012 Agenda Item Number: 4 Department: Eugene Police Staff Contact: Det. Randy Berger www.eugene-or.gov Contact Telephone Number: 541-682-5645 ISSUE STATEMENT The State of Oregon has made changes to the regulations of certain Used Merchandise Dealers. This proposed ordinance brings the City’s regulations into compliance with the state regulations, and proposes other changes aimed at strengthening the regulations to increase the likelihood of returning stolen property. 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, so this draft ordinance amends the existing City ordinance, so it is not preempted 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. A public hearing was held November 19, 2012. Testimony was provided in support and opposition of the ordinance. Several non-substantive changes are proposed to the ordinance as presented at the public hearing, highlighted in the attached draft with double strike-through and double-underline. The proposed changes are in response to public comments received at the hearing, and clarification of original intent. It should be noted that the current regulations as well as the proposed changes address specifically 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 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 S:\CMO\2012 Council Agendas\M121126\S1211264.doc