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HomeMy WebLinkAbout08395ORDINANCE NO. 8395 AN ORDINANCE AMENDING CHAPTER 4 OF TITLE XIV OF THE PUEBLO MUNICIPAL CODE BY THE ADDITION OF SECTION 14-4-51 RELATING TO CRIMINAL LIABILITY OF AN INDIVIDUAL FOR CORPORATE CONDUCT AND PROVIDING PENALTIES FOR VIOLATIONS THEREOF BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: (brackets indicate matter being deleted, underscoring indicates new matter being added) SECTION 1. Chapter 4 of Title XIV of the Pueblo Municipal Code, as amended, is hereby amended by the addition of a new Section 14-4-51, which shall read as follows: Sec. 14-4-51. Criminal Liability of an individual for corporate conduct. A person is criminally liable for conduct constituting a violation of this Code which he performs or causes to occur in the name of or in behalf of a corporation, including a limited liability company, to the same extent as if that conduct were performed or caused by him in his own name or behalf. SECTION 2. Any violation of this Ordinance or other provision of Chapter 4 of Title XIV of the Pueblo Municipal Code, as amended, shall be punished as provided in Section 1- 2-1 of the Pueblo Municipal Code, as amended. SECTION 3. This Ordinance shall become effective upon final passage and approval. INTRODUCED September 26, 2011 BY: Leroy Garcia COUNCILPERSON PASSED AND APPROVED: October 11, 2011 Background Paper for Proposed ORDINANCE DATE: AGENDA ITEM # S-1 September 26, 2011 DEPARTMENT: Finance Department Sam Azad, Director TITLE AN ORDINANCE AMENDING CHAPTER 4 OF TITLE XIV OF THE PUEBLO MUNICIPAL CODE BY THE ADDITION OF SECTION 14-4-51 RELATING TO CRIMINAL LIABILITY OF AN INDIVIDUAL FOR CORPORATE CONDUCT AND PROVIDING PENALTIES FOR VIOLATIONS THEREOF ISSUE Should the City Council pass and approve the proposed Ordinance relating to criminal liability of an individual for corporate conduct which conduct is punishable as provided in Section 1-2-1 of the Pueblo Municipal Code? RECOMMENDATION Approval of this Ordinance. BACKGROUND The common law of the State of Colorado recognizes that an officer of a corporation through whose acts the corporation commits an offense is himself also guilty of the same offense. The proposed Ordinance clarifies that such liability will be enforced for violation of the sales and use tax code. Although the City can cite a corporation for violations, the citation of a responsible corporate officer will be more effective in bringing a delinquent taxpayer into compliance. FINANCIAL IMPACT None