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HomeMy WebLinkAboutAmending Various Sections within Chapter 4 Requiring Electronic Reporting of Transactions by Precious Metals Dealers RegulatedORDINANCE No. 10287 -14 Passed by the Common Council of the City of South Bend, Indiana February 10, 20 14 Attest: Presented by me to the Mayor of the City of South Bend, Indiana February 11 20 14 City Clerk President of Common Council JUHN VOORDE Approved and signed by me f G u (' L�*r` Y 1 20 ' 1 City Clerk 1=1 Substitute Bill No. 69 -13 Ordinance No. 1 U2-0—t AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING VARIOUS SECTIONS WITHIN CHAPTER 4, ARTICLE 4 OF THE SOUTHBEND MUNICIPAL CODE REQUIRING ELECTRONIC REPORTING OF TRANSACTIONS BY PRECIOUS METALS DEALERS REGULATED IN SECTION 4 -44, BY SCRAP METAL DEALERS, JUNK DEALERS, VALUABLE METAL DEALERS AND RECYCLING OPERATIONS REGULATED BY SECTION 4 -51 AND BY SECONDHAND STORES REGULATED IN SECTION 4 -53 STATEMENT OF PURPOSE AND INTENT With the aid of the latest technology, there are much greater opportunities to track and recover stolen property. Online systems are now available where valuable personal property items such as cell. phones, electronics, cameras, GPS units, construction equipment, tools, manhole covers, bronze cemetery vases, jewelry and other valuables can be identified accurately from a database and viewed by participating law enforcement agencies throughout the country. The City Administration and the South Bend Common Council believe that the proposed changes addressed in this ordinance which would require persons who own or operate businesses who deal with precious metals, scrap metal, junk, valuable metals, and secondhand stores to participate in electronic reporting of their transactions are in the best interests of the city. Such participation would enable the South Bend Police Department to have rapid electronic access to transactions from reporting businesses. By daily monitoring such information, possible criminal activity can be identified in a proactive manner. When stolen property is located, valuables may be returned to the victim of the crime by using such electronic reporting systems more quickly. The Common Council notes that the Fort Wayne Police Department has successfully used LeadsOnline since 2007. FWPD reports that by using LeadsOnline that "...police have recovered thousands of dollars in stolen property for Fort Wayne and surrounding residents... with information provided by LeadsOnline, police track down thieves, develop leads in numerous cases and make arrests." Similar success stories are reported by the New York City Police Department, the Dallas Police Department and the San Francisco Police Department just to name a few. The South Bend Police Department has recommended to the Common Council that LeadsOnline would be the best electronic reporting service available. The Council has found that "LeadsOnline is the nation's largest online investigative system used by more than 3,000 law enforcement agencies to recover stolen property and solve crimes. Each day, millions of items are added to the LeadsOnline database by businesses including second -hand stores, scrap metal recyclers, pawnshops, and Internet drop -off stores across all 50 states. Those records are instantly available to law enforcement agencies, meaning crimes can be solved in seconds, not months." LeadsOnline is compatible with the National Crime Information Center (NCIC) which is a computerized index of criminal justice information available 24/7 to federal, state and local law enforcement agencies. It is an official eBay partner and helps prevent illegal transactions on the eBay website by giving law enforcement access to their transactions. For all of these reasons, LeadsOnline is the preferred provider and is so referenced to provide the services which are in the best interests of the City of South Bend. The South Bend Common Council believes it is important for the South Bend Police Department and South Bend citizens to have available, in a timely manner for law enforcement purposes, data regarding items pawned, sold, purchased or exchanged at by businesses required to be licensed as precious metal dealers, as scrap metal dealers, junk dealers, valuable metal dealers, recycling operators, and as secondhand stores. Electronic Reporting Ordinance Page 2 d er*6m &lcar4*wW *dee amm. (sbrc mffof the City of South Bend, Indiana, as follows: Section I. Chapter 4, Article 4, Section 4 -44 addressing Precious Metal Dealers of the South Bend Municipal Code is amended by changing paragraphs (c) and (e) to read in their entirety as follows and by adding new paragraph (i) which shall read as follows: (c) Electronic Reporting to Police and Records Required; Contents.[ (1) Every dealer shall maintain a physical precious metal report. Each dealer shall keep and preserve data on or through an electronic or computer data system database on a daily basis for the preceding 24 -hour period of all purchases of any precious metal items. Such information shall be sent via electronic forms of transmission to the South Bend Police Department using the Records Management System being used by the South Bend Police Department for the Preceding 24 -hour period on a daily basis. The reports must contain the seller's full legal name, physical address, date of birth, gender, race, height and weight, as well as the price paid for each item, the purchase date and time, a description of each article purchased, including identifying marks, engravings, and the manufacturer (where known), and the seller's driver's license number or the number or any other identification issued by a governmental authority bearing the seller's photograph. The form shall also bear digital photographs of the items being purchased and a clear, inked or digital impression of the seller's right thumb print and the same transaction number as recorded in the dealer's record book as required by paragraph (2) below. If the right thumb is missing any of the customers' fingerprints may be used with an identification of what finger is used in the right thumb's absence written adjacent to the inked or digital fingerprint on the form. The inked or digital fingerprint shall be made in a manner readable by the Police Department and shall not be blurred or obliterated. (2) The dealer shall also record the seller's physical description and a description of the property purchased, as required in this section, and shall retain the physical precious metal report and information for three (3) years from the date of the last purchase recorded therein. The physical precious metal report and information can be stored, by the dealer, in either printed or digital form as long as a printed physical precious metal report is available to the police department upon request within the three (3) years from the date of the last purchase recorded therein. (3) Any records required to be kept or maintained under this section shall be available at all times for inspection by the Police Chief or person duly authorized by him or her to inspect the records. (e) Precious metals to be held before resale by dealer. All precious metals purchased by a dealer must be held for thirty (30) days in the. dealer's possession, before being resold, exchanged, melted or altered in any manner. All such precious metals must be held at the precious metal dealer's permanent ' LeadsOnline is the largest online investigative system used by law enforcement agencies to recover stolen property and solve crimes and is compatible with the National Crime Information Center (NCIC). Electronic Reporting Ordinance Page 3 place of business where the purchase occurred. if the items piire,ased are held ar st a other than the dealer's premises lieensed under this seetien, the leeation of these goods and the holder's pufokase. All goods required to be held under this Section shall be available at all times for inspection by the Police Chief or a person duly authorized by the Police Chief to inspect the goods .2 (i) It shall be unlawful for any precious metals dealer to take, purchase or receive any precious metals from any person who is under the age of eighteen (18) years. Section II. Chapter 4, Article 4, Section 4 -51 addressing Scrap Metal Dealers, Junk Dealers, Valuable Metal Dealers and Recycling Operations of the South Bend Municipal Code is amended by changing paragraph (k) to read as follows: (k) Electronic Report to Police and Records Required for Inspection and Holding Requirements for Scrap Metal and /or Valuable Metals; Ferrous and/or Nonferrous Metal. (1) Every dealer or operator shall maintain a physical sales report of scrap metal and /or valuable metals. Each dealer or operator shall keep and preserve data on or through an electronic or computer data system database on a daily basis for the preceding 24 -hour period of all purchases of any scrap metal and valuable metal items, unless exempted by this section. Such information shall be sent via electronic forms of transmission to the South Bend Police Department using the Records Management System being used by the South Bend Police Department for the preceding 24 -hour period on a daily basis. The data shall include the time of purchase of any article of any scrap metal and/or valuable metals and include whether any is marked with a serial number or marked with an owner's engraving or mark. The reports must contain the seller's full legal name, physical address, date of birth, gender, race, height and weight, as well as the price paid for each item, the purchase date and time, a description of each article purchased, including identifying marks, engravings, the manufacturer of the item, model number of the item, the serial number of the item, and the seller's driver's license number or the number of any other identification issued by a governmental authority bearing the seller's photograph with the dealer or operator being required to make a photocopy of the photographic identification presented at the time of transaction. Every dealer or operator is further required to record the motor vehicle license number of the vehicle or conveyance that delivered the valuable metal came the address from where the valuable metal was located before being brought to the dealer or operator, and a photograph of the valuable metal being sold as well as a photograph of the person from whom the valuable metal is being purchased. The form shall also bear a digital photograph of the items bring purchased and a clear, inked, or digital, impression of the seller's right thumb print and the same transaction number as recorded in the dealer's record book as required by paragraph (2) below. If the right thumb is missing any of the customers' fingerprints may be used with an identification of what finger is used in the right thumb's absence written adjacent to the inked or digital fingerprint on the form. The inked ' Indiana Code §244 -19 sets forth the State of Indiana's regulations addressing "Precious Metal Dealers" which took effect on January 1, 2014. Local regulations are supplemental to the state law provisions. 3 Indiana Code §25 -37.5 sets forth the State of Indiana's regulations addressing "Dealers in Valuable Metals" which includes provisions updated by the passage of Public Law 224 - 2013.. Local regulations are supplemental to the state law provisions. Electronic Reporting Ordinance Page 4 or digital fingerprint shall be made in a manner readable by the Police Department and shall not be blurred or obliterated. (2) Any dealer or operator who is required to be licensed under this section and who has a record with the City of having violated any of the provisions of this section within the past calendar year, shall be required to place a hold on all ferrous and /or nonferrous metal purchased for a minimum period of one (1) five 5 business days after notification to the local law enforcement agency required by subsection above, with any additional holding period required for enforcement and investigative purposes being determined on a case by case basis by the South Bend Police Department. The license issued under this section shall specify the amount of time the items are to be held. (3) The dealer or operator shall also record the seller's physical description and a description of the property purchased, as required by this section, and shall retain the physical sales report and information for three (3) years from the date of the last purchase recorded therein. (4) Any records required to be kept or maintained under this section shall be available at all times for inspection by the Police Chief or person duly authorized by him or her to inspect the records. Section III. Chapter 4, Article 4, Section 4 -53 addressing Secondhand Stores of the South Bend Municipal Code is amended by changing paragraphs (d), (e) (f) to read in their entirety as follows; and by deleting paragraph (g) in its entirety and re- lettering the paragraphs affected by this deletion: (d) License fee. The applicant for a second hand store license shall pay an annual fee of one hundred fifteen dollars to the Controller, upon approval of the Board and Police Department and issuance of the license. (e) Electronic Report to Police and Records Required; Contents. (1) Every dealer shall maintain a physical secondhand sales report. Each dealer shall keep and preserve data on or through an electronic or computer data system database on a daily basis for the preceding 24 -hour period of all purchases of any secondhand items. Such information shall be sent via electronic forms of transmission to the South Bend Police Department using the Records Management System being used by the South Bend Police Department for the preceding 24 -hour period on a daily basis. The data shall include the time of purchase of any article of firearm, electronic items, appliances, equipment, tools or other item originally marked with a serial number or marked with an owner's engraving or mark. The reports must contain the seller's full legal name, physical address, date of birth, gender, race, height and weight, as well as the price paid for each item, the purchase date and time, a description of each article purchased, including identifying marks, engravings, the manufacturer of the item, model number of the item, the serial number of the item, and the seller's driver's license number or the number of any other identification issued by a governmental authority bearing the seller's photograph. The form shall also bear a digital photograph of the items bring purchased and a clear, inked, or digital, impression of the seller's right thumb print and the same transaction number as recorded in the dealer's record book as required by paragraph (2) below. If the right thumb is missing any of the customers' fingerprints may be used with an identification of what finger is used in the right thumb's absence written adjacent to the Electronic Reporting Ordinance Page 5 inked or digital fingerprint on the form. The inked or digital fingerprint shall be made in a manner readable by the Police Department and shall not be blurred or obliterated. (2) The dealer shall also record the seller's physical description and a description of the property purchased, as required by this section, and shall retain the physical secondhand sales report and information for three (3) years from the date of the last purchase recorded therein. The physical precious metal report and information can be stored, by the dealer, in either printed or digital form as long as a printed physical precious metal report is available to the police department upon request within the three (3) years from the date of the last purchase recorded therein. (3) Any records required to be kept or maintained under this section shall be available at all times for inspection by the Police Chief or person duly authorized by him or her to inspect the records. (f) Secondhand Purchased Items to be Held Before Resale by Dealer. All secondhand purchased items, purchased by a dealer, must be held for fifteen (15) days in the dealer's possession, before being resold, exchanged, or altered in any manner. All such secondhand purchased items must be held at the secondhand dealer's permanent place of business where the purchase occurred. if the i4ems purehased are held or ster-ed at a leeatien e4her than the dealer's premises lieensed under this seetion, the leeatien of these goods and the holder's identifieation mus! be filed w4h the Peliee Chief within twenty four- ?4) hours €erm the tithe of ll goods required to be held under this section shall be available at all times for inspection by the Police Chief or a person duly authorized by the Police Chief to inspect the goods.4 Section IV. If any section, subsection, sentence clause or phrase of this Article is for any reason declared to be unconstitutional or otherwise invalid by a Court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. Section V. This ordinance shall be in full force and effect from and after its passage by the Common Council, approval by the Mayor, legal publicatio . r", Council Member Karen L. White Council Member at Large of the Common Council Council Member Tim Scott I" District Council Member of the Common Council John Voorde, City Clerk 4 Indiana Code § 24 -4 -14 sets forth the State of Indiana's regulations addressing "Used Jewelry Sales" which was updated by Public Law 222 -2013 effective January 1, 2014. Local regulations are supplemental to the state law provisions. Electronic Reporting Ordinance Page 6 0r&mz&Wby me to Pete Buttigieg, the Mayor of the City of South Bend, Indiana, on the I HL day of �ei;n� ww 2014, at I,l ;o0 o'clock g. m. AA Janice lboom, Deputy Clerk roaedandd"�y me on the 13 day of `f BR LA 14 Q, % , 2014 at S o'clock P .m. — 05W a Pete Buttigie Mayor City of South Bend, Indiana Filed In Ire : Office EJAN2 4 2019 JOND „ ..jtil)z CITY CLERK -0; 7K BEND, IN 9'sf PEADIFI5 11 -Z�J �i 3 PUBLIC HEARINGZ Lb_,L� O-j Sttu��� 3rd READING L_La —L 45 Su 7� NOT APPROVEC REFERRED PASSED 2 L 0 — �ti aS Sv 6 ` �^�' City of South Bend Common Council 441 County-City Building • 227 W. Jefferson Blvd South Bend, Indiana 46601 -1830 Oliver J. Davis January 23, 2014 President Members of the Common Council Derek D. Dieter 4h Floor County -City Building Vice - President South Bend, Indiana 46601 (574) 235 -9321 Fax (574) 235 -9173 htcp: //w ..southbendin.gov Valerie Schey Chairperson, Committee Re: Substitute Bill 140, 69 -13 Electronic Reporting Requirements for Precious of the Whole Metal Dealers, Scran Metal Dealers, Valuable Metal Dealers, and Secondhand Stores Tim Scott First District Dear Council Mera hcr:;: Henry Davis, Jr. At the December 9, 2ti i 3 rceting of the Health and Public Safety Committee mc<eting, Second District Bill No. 69 -13 received a favorabie recommendation subject to several requested Valerie Scbey changes. Third District We are filing Substitute ??ill No. 69 -13 .vor;'d corrects various scrivener's errors and Fred Ferlic which clarifies procedures. Each oi site changes has been bolded and underlined with the Fourth District changes appear on pa as , through .t on the attachment. Additionally, it brings the ordinance in compliance v is ; the var. ;us provisions of P.L. 222 -2013 and P.L. 224 -2013 David Varner passed by the Indiana . ;ereral Asse : bly which became effective on January 1, 2014. Fifth District Those state provisions have been listed in the footnote references in the Substitute Bill. Oliver J. Davis proposed Sixth District ro As noted in our November 19, 2013 cover letter and in the ordinance, those communities which have gone to electronic reporting requirements have experienced Derek D. Dieter more rapid results in recovering stolen property. The Fort Wayne Police Department has At Large used LeadsOnline .ir,e 2007. It has resulted in thousands of dollars in stolen property being recovered; :md -shutting down L: prolific burglary ring" as reported in FWPD Gavin Ferlic media releases. At Large Detective Kelly :r: aitc of the South erc: " "lice Department and the Council Al,omey At Large e Karen White will present the ! a; ;, --- Monday c r; and Public Safety Committee and Aso at the 7:00 p.m. Cote sit: tr,::N;ilg. W our support of this public safety initia,ive so that the Police Depart -n +• has in nfo,cemen. mechanisms to deter crirr.e and hopefully prevent jlleg� msaction,. 1 Council Member 1'.ar> ite .:.ica Member Tim Scott Council Member at L., e " District Council Member Attachment TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 69 -13 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING VARIOUS SECTIONS WITHIN CHAPTER 4, ARTICLE 4 OF THE SOUTH BEND MUNICIPAL CODE REQUIRING ELECTRONIC REPORTING OF TRANSACTIONS BY PRECIOUS METALS DEALERS REGULATED IN SECTION 4 -44, BY SCRAP METAL DEALERS, JUNK DEALERS, VALUABLE METAL DEALERS AND RECYCLING OPERATIONS REGULATED BY SECTION 4 -51 AND BY SECONDHAND STORES REGULATED IN SECTION 4 -53 Respectfully report that they have examined the matter and that in their opinion, this bill is being recommended to the full Council with a favorable recommendation as substituted. This bill was heard by the Health & Public Safety Committee. Valerie Schey Chairperson, Committee of the Whole