HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/06/2004 - FIRST READING OF ORDINANCE NO. 111, 2004, AMENDINGAGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL
ITEM NUMBER: 23
DATE: July 6, 2004
STAFF: Hal Dean
SUBJECT
First Reading of Ordinance No. 111, 2004, Amending Chapter 15, Article VIII of the City Code
Relating to Pawnbrokers.
RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
EXECUTIVE SUMMARY
Chapter 15, Article VIII of the City Code contains various provisions regulating the operation of
pawnbrokers in the City in the interest of the public health, safety and welfare. In the most recent
legislative session, the General Assembly amended the state statutes pertaining to the regulation of
pawnbrokers by deleting the maximum "fixed period of time" for contracts for purchase and
imposed a minimum period of time. The City may enact ordinances more restrictive than state law
regulating pawnbrokers. However, to eliminate potential confusion among pawnbrokers regarding
their legal obligations, staff recommends that Sections 15-261 and 15-269 be amended to be
consistent with state law.
ORDINANCE NO. 111, 2004
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 15, ARTICLE VIII OF THE CODE OF THE
CITY OF FORT COLLINS RELATING TO PAWNBROKERS
WHEREAS, Chapter 15, Article VIII of the City Code contains various provisions regulating
the operation of pawnbrokers in the City in the interest of the public health, safety and welfare; and
WHEREAS, pawnbroker establishments in the City report a large number of purchase
transactions and contracts for purchase to the Fort Collins Police Services on a weekly basis; and
WHEREAS, a uniform and clear record keeping process needs to be established for
consistent use by all such businesses to promote compliance with both state and local regulations.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the definition "fixed period of time" as contained in Section 15-261 of
the Code of the City of Fort Collins is hereby amended to read as follows:
Fixed period of time shall mean that period of time, not to exceed ninety (90)
daysto be no less than thirty (30) days, set forth in a contract for purchase within
which the customer has the option to cancel the contract.
Section 2. That Section 15-268(b) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 15-268. Requirements for records.
. . . . .
(b) A copy of any record required to be kept under this Article, together with a
copy of the record of each contract for purchase or a receipt of the purchase
transaction, shall be made available to Police Services each day so that said Service
may maintain a complete record of all business transactions of the pawnbroker. It
shall be the responsibility of Police Services to pick up the copies from the
pawnbroker.
Section 3. That Section 15-269 of the Code of the City of Fort Collins is hereby amended
to read as follows:
Sec. 15-269. Maximum Minimum fixed period of time; maximum interest
rates; commissions prohibited fixed price.
(a) No contract for purchase shall be for a fixed period of time of more less
than ninety (90) thirty (30) days.
(b) No pawnbroker shall ask, demand or receive any fixed price that exceeds
the following limits: one-fifth (1/5) of the original purchase price for each month
plus the amount of the original purchase price.
(1) On contracts for purchase in the original amount of less than fifty dollars
($50.), the maximum fixed price shall be no more than one-fifth (1/5) of the
original purchase price for each month the contract for purchase is in effect,
plus the amount of the original purchase price; and
(2) On contracts for purchase in the original amount of fifty dollars ($50.) or
more, the maximum fixed price shall be no more than one tenth (1/10) of
the original purchase price for each month the contract for purchase is in
effect, plus the amount of the original purchase price.
Introduced and considered favorably on first reading and ordered published this 6th day of
July, A.D. 2004, and to be presented for final passage on the 20th day of July, A.D. 2004.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 20th day of July, A.D. 2004.
Mayor
ATTEST:
City Clerk