HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/17/2007 - FIRST READING OF ORDINANCE NO. 056, 2007, AMENDING ITEM NUMBER: 15
AGENDA ITEM SUMMARY DATE: April 17, 2007
FORT COLLINS CITY COUNCIL STAFF: Teresa Ablao
SUBJECT
First Reading of Ordinance No. 056, 2007, Amending Certain Sections of the City Code Relating
to Corporate Liability and Individual Liability for Corporate Conduct.
RECOMMENDATION
Staff recommends adoption of this Ordinance on First Reading.
EXECUTIVE SUMMARY
Under the current provisions of the City Code,a business entity's accountability for behavior which
is in violation of the Code is dependent upon whether the entity is a "corporation". The term
"corporation" is not defined in the City Code. Staff recommends that the Code be amended to
clarify that what is presently referred to as"corporate"liability should actually apply to liability on
the part of any kind of business entity.
ORDINANCE NO. 056, 2007
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CERTAIN SECTIONS OF THE CODE OF THE CITY OF FORT COLLINS
RELATING TO CORPORATE LIABILITY AND INDIVIDUAL LIABILITY
FOR CORPORATE CONDUCT
WHEREAS , under the current provisions of Section 1 -20 of the City Code, a business
entity ' s accountability for behavior that violates the Code is dependent upon whether the entity is
a "corporation" ; and
WHEREAS , the term "corporation" is not defined in the Code ; and
WHEREAS , City staff believes that Section 1 -20 of the Code should be amended to clarify
that when the requisite criteria contained in Section 1 -20 have been satisfied, a business entity
should be held accountable for the conduct of its officers, employees and agents, whether or not the
entity is a corporation; and
WHEREAS , Council finds the proposed amendments to the Code on this subject are in the
best interest of the City and promote the public health, safety and welfare of the citizens of the City
of Fort Collins .
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows :
Section 1 . That Section 1 -20 of the Code of the City of Fort Collins is hereby amended
to read as follows :
Sec. 1 -20. Liability of corpmationbusiness entity.
(a) A carporationbusiness entity is guilty of an offense or liable for an infraction
described in this Code if.
( 1 ) The conduct constituting the offense or infraction consists of an omisst a
failure to discharge a specific duty of affirmative performance imposed on
corporationssuch entity by law; or
(2) The conduct constituting the offense or infraction is engaged in, authorized,
solicited, requested, commanded or knowingly tolerated by the board of
directors or by a managerial agent acting within the scope of his or her
employment or on behalf of the corporationsuch entity.
(b) As used in this Section, agent means any partner, director, officer or
employee of a corporatiartbusiness entity, or any other person who is authorized to
act on behalf of the earporationentity. Managerial agent means an officer of
corporation or any other agent who is in a position of comparable authority
to formulate policy for the entity or the
ial capacity of who supervises any employees
or contractors of the entity.
(c) Business entity or entity means any corporation, association, firm, joint
venture, estate, trust, business trust, syndicate, partnership, body politic and
corporate or any other group or combination of persons or entities .
Section 3 . That Section 1 -21 of the Code of the City of Fort Collins is hereby amended
to read as follows :
Sec. 1 -21 . Liability of an individual for corporate conduct.
A person is guilty of conduct constituting an offense or liable for conduct
constituting an infraction described in this Code if he or she engages in such conduct
or causes such conduct to occur in the name of or in behalf of a carpura- tion usiness
entity to the same extent as if that conduct were performed or caused by him or her
in his or her own name or on his or her own behalf.
Introduced, considered favorably on first reading, and ordered published this 17th day of
April, A.D . 2007, and to be presented for final passage on the 1 st day of May, A.D. 2007 .
Mayor
ATTEST :
City Clerk
Passed and adopted on final reading on the 1 st day of May, A.D . 2007 .
Mayor
ATTEST :
City Clerk