Item 4: Ordinance on Used Merchandise Dealer Provisions

Home Browse Search

or unintentional trafficking of stolen merchandise, the recommendation is to prohibit people convicted of some felony drug offenses and felony property crimes from owning or operating a Used Merchandise Business. For these regulations, a Used Merchandise Business is strictly defined as a business which purchases or lends money on property which is “regulated”, or property with a higher likelihood of being stolen property. The recommended change prohibits certain convicted felons from operating a business which is frequently used to commit property felonies. The final proposed change which may result in comments involves the increase in the amended fine schedule. The current penalty for violating the Used Merchandise Dealer ordinance is $360.00 per violation. The proposal is to increase this to $500 for a first offense, and up to $3,000 for a sixth and subsequent offense. This increase is needed because the $360 flat fine amount is inconsequential compared with the profit reaped by flagrant violators. Recently EPD contacted a business operator that had previous violations for dealing stolen property. The owner committed that he was no longer buying regulated property. After a six month investigation, the dealer was cited for 125 violations for unlawful transactions from which he gained $90,000 in revenue. His conviction on those charges resulted in fines amounting to only $5,600. The increased penalties are not intended to affect stores that make random errors in reporting or compliance. Rather these penalties are for those stores currently in operation who repeatedly violate the regulations, and behave in a manner consistent with criminal fencing operations, and the Presiding Judge will determine fine amounts, based on the totality of the circumstances. RELATED CITY POLICIES This topic relates to the following:  Council Goal - Safe Community Vision: A community where people feel safe, valued and welcome, with decreased property crime. COUNCIL OPTIONS 1.Approve the ordinance as presented. 2.Amend the ordinance. 3.Table or end the work on the proposed ordinance, and allow state regulations to cover precious metal dealers. CITY MANAGER’S RECOMMENDATION The City Manager recommends that the ordinance be approved. SUGGESTED MOTION I move that the City Council approve Council Bill 5080 concerning used merchandise dealer provisions and amending Sections 4.989 and 4.990 of the Eugene Code, 1971. S:\CMO\2012 Council Agendas\M121126\S1211264.doc