HomeMy WebLinkAboutA006 - Council Action Form dated April 14, 2015 ITEM # 58
DATE: 04-14-15
COUNCIL ACTION FORM
SUBJECT: ORDINANCE REQUIRING ELECTRONIC REPORTING OF
SECONDHAND GOODS TRANSACTIONS
BACKGROUND:
At the March 3, 2015 City Council meeting, the City Council directed staff to develop an
ordinance requiring electronic reporting of secondhand goods purchases. The attached
ordinance borrows largely from that used by other communities in incorporates the
following components:
Secondhand Good — This term has effectively been defined as previously owned
tangible personal property. "Tangible personal property" has been defined separately
using a list of common items that have value and are transacted among secondhand
dealers.
Electronic Reporting — Requires anyone buying secondhand goods to report their
purchases to an electronic records system designated by the Chief of Police. Chief
Cychosz intends to designate Leads Online as that system. Because itinerant dealers
do not always have ready access to the internet, those dealers have the option of
reporting electronically or continuing to bring their physical record books to the Police
Department for photocopying prior to leaving the area.
Dealer's Permits — Pawnbrokers and itinerant dealers are still required to obtain dealers
permits; other secondhand stores, such as stores that buy jewelry or electronics, do not
have to obtain a Dealer's Permit.
Records — Details of the items, seller, and transaction must be recorded. If an item lacks
a serial or model number, an overall photo of the item(s) must be submitted.
Reporting Exemptions — Numismatic coins, books and textbooks, and transactions
that take place at auctions or garage sales are not subject to the reporting
requirements. Additionally, transactions between private individuals not subject
to state taxes are exempted.
Holding Period — All items must be held for 10 days prior to sale or disposal. There are
two existing exceptions to this requirement: (1) when written permission is granted by
the Chief of Police, and (2) when a person who pawned an item reclaims it. A third
exception has been added to permit disposal of the item before ten days if the
item is bullion. Bullion has been specifically defined in the ordinance.
1
Intentional Misrepresentation of a Record — An additional prohibition has been added to
the ordinance to make it unlawful for a person to intentionally misrepresent or falsify any
of the information required to be reported.
Additionally, a handful of typographical errors in this section have been corrected.
The City Attorney's Office recommended that the fine of $50 for a first offense and $100
for a second offense be increased to $100 for a first violation and $200 for a repeat
violation. This brings the fine for violating this ordinance in line with other similar
offenses. Alternatively, any violation can be charged as a simple misdemeanor.
ALTERNATIVES:
1. Approve on first reading the attached ordinance regarding electronic reporting and
expanded reporting requirements for dealers of secondhand goods.
2. Direct staff to modify the ordinance.
3. Do not approve the attached ordinance.
MANAGER'S RECOMMENDED ACTION:
The City Council has directed staff to develop this ordinance revising the reporting
requirements for secondhand dealers. It modernizes the recordkeeping process and,
per the City Council's direction, eliminates the holding period for bullion and exempts
numismatic coins from the reporting and holding process.
City staff understands that opposition remains to this proposal from some of the
affected local businesses. Staff has worked to address some of those concerns
through modifications to the draft ordinance language. The attached draft is
consistent with the language found in other ordinances in Iowa communities. City
staff believes this is an enforceable, fair, and helpful tool for law enforcement to
address theft. If the City Council feels that exceptions or further modifications
should be made, it can direct staff to incorporate revisions into a new draft
ordinance.
Assuming the City Council intends to adopt an ordinance that uses language similar to
that of other communities in Iowa, it is the recommendation of the City Manager that the
City Council adopt Alternative No. 1, thereby approving on first reading the attached
ordinance regarding electronic reporting and expanded reporting requirements for
dealers of secondhand goods.