Item 4: Ordinance on Used Merchandise Dealer Provisions

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criminals to dispose of stolen property. In 2009, property valued at $3.5 million was lost in burglaries or robberies, while only 5% ($170,000) was recovered. In subsequent years, the experience is similar, with $2.3 million stolen and 4% recovered in 2010, and $2.3 million stolen and 2% recovered in 2011. These regulations are intended locate and recover stolen property, and identify individuals involved in the sale of stolen property to businesses who buy regulated property. The following changes are proposed to align the City’s regulations with state regulations: Section 4.989 (1) Adds definition of pawnbroker, pledge, and precious metal - Section 4.989 (3) Adds provisions for additional information that should be recorded when - items are purchased, and requires a photo be taken for all jewelry, gems and precious metals Section 4.989 (7b) Adds requirement that if the Police notify the used merchandise dealer - that jewelry is suspected of being stolen, the dealer cannot alter the piece The following changes are proposed which will strengthen the city’s regulations and increase the likelihood of returning stolen property. Section 4.989 (2) Adds language which prohibits someone from owning or operating a used - merchandise business if they have been convicted for burglary, theft I, manufacture of a controlled substance, or drug possession Section 4.989 (7a) Increases the amount of time that regulated property must be held from - the time of purchase, from seven to fourteen days Section 4.89 (10b) Adds provision that if used merchandise dealer has repeatedly and - substantively violated the regulations related to used merchandise dealers, the City Manager may initiate judicial proceedings for injunctive relief to prohibit the person from acting as used merchandise dealer, and to prohibit purchase and sale from that location Section 4.990 (10a) Increase the maximum fine for first violations up to $500 from $360 - Section 4.990 (10b) Increases the maximum fine after three previous similar convictions - up to $1500, from $360 Section 4.990 (10c) Increases the maximum fine after six previous similar convictions up to - $3000, from $360 Section 4.990 (10f) Specifies that violation of the rules related to this ordinance is subject - to the penalties Of the changes proposed, one change which may receive significant community comment increases the amount of time property is held from seven to 14 days. This change is requested to allow law enforcement more time to determine if the property is the subject of a theft or burglary. This delay will increase the likelihood stolen property can be recovered if the crime isn’t immediately reported; often, victims don’t have a complete list of stolen property at the time the report is taken, so supplemental reports are provided by the victim. This proposed change will have an impact on Used Merchandise Dealers because they will need additional storage space for items on hold, and it will increase their need for working capital, as assets are required to be held longer. Another change that may generate complaints is the recommendation to regulate who can own or operate as a Used Merchandise Dealer. Because this proposal is intended to curb the intentional S:\CMO\2012 Council Agendas\M121126\S1211264.doc