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HomeMy WebLinkAbout09050 ORDINANCE NO. 9050 AN ORDINANCE AMENDING CHAPTER 2 OF TITLE I OF THE PUEBLO MUNICIPAL CODE TO SPECIFICALLY DEFINE CRIMINAL LIABILITY FOR BUSINESS ENTITIES AND PROVIDING PENALTIES THEREFOR BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: (brackets indicate matter being deleted, underscoring indicates new matter being added) SECTION 1. Chapter 2 of Title I of the Pueblo Municipal Code is hereby amended by the addition of Section 1-2-11 to read as follows: Sec. 1-2-11. – Business entities and criminal liability. (a) A business entity may be convicted of or plead guilty or nolo contendere to any violation of this Code or any secondary code adopted herein. (b) A business entity is guilty of an offense if: 1. The conduct constituting the offense consists of a failure to discharge or perform a specific duty of affirmative performance imposed on such entity by law; or 2. The conduct constituting the offense is engaged in, authorized, solicited, requested, commanded, or knowingly tolerated by the officer(s), director(s), or by a managerial agent acting within the scope of the person’s employment or on behalf of the corporation. (c) As used in this Section, “agent” means any partner, director, officer or employee of a business entity, or any other person who is authorized to act on behalf of the corporation. “Managerial agent” means an agent in a position of comparable authority with respect to the formulation of corporate policy or who supervises any employees or contractors of the entity. (d) “Business entity” or “entity” means any corporation, limited liability company, association, firm, joint venture, estate, trust, business trust, syndicate, partnership, body politic and corporate or any other group or combination of persons or entities. (e) A person is individually criminally liable for conduct constituting a violation which he or she performs or causes to occur in the name of or on behalf of a business entity, to the same extent as if the conduct were performed or caused by that person in the person’s own name or behalf. SECTION 2. Any person who violates Section 1-2-11 of the Pueblo Municipal Code as amended hereby or violates this Ordinance as related thereto, shall be guilty of a municipal offense and shall be punished as provided by Section 1-2-1 of the Pueblo Municipal Code, as amended. SECTION 3. The officers of the City are directed and authorized to perform any and all acts consistent with the intent of this Ordinance to effectuate the policies and procedures described herein. SECTION 4. This Ordinance shall become effective immediately upon final passage and approval. INTRODUCED September 26, 2016 BY: Ed Brown PASSED AND APPROVED: October 11, 2016 City Clerk’s Office Item # R-6 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: September 26, 2016 TO: President Stephen G. Nawrocki and Members of City Council CC: Sam Azad, City Manager VIA: Gina Dutcher, City Clerk FROM: Lisa Macchietto, Assistant City Attorney SUBJECT: AN ORDINANCE AMENDING CHAPTER 2 OF TITLE I OF THE PUEBLO MUNICIPAL CODE TO SPECIFICALLY DEFINE CRIMINAL LIABILITY FOR BUSINESS ENTITIES AND PROVIDING PENALTIES THEREFOR SUMMARY: Attached is an Ordinance amending Chapter 2 of Title I to add Section 1-2-11 which specifically defines criminal liability for business entities. PREVIOUS COUNCIL ACTION: None. BACKGROUND: Currently, the Pueblo Municipal Code does not specifically define criminal liability for business entities. It is often difficult for Code Enforcement and Law Enforcement to hold businesses or property owners responsible for violations of Code because the business or property is held in the name of a business entity. A business entity can only act through its officers, directors, employee or agents; however, the current Code allows these individuals to hide behind the business entity and avoid responsibility. Business entities can more easily avoid collection of fines and penalties and cannot be jailed. Citing a business entity for violation of Code does not hold the actual bad actor(s) accountable. The proposed Ordinance would allow the City to hold officers, directors, employees or agents personally liable for any criminal offense which the person performs or causes to occur on behalf of the business entity. FINANCIAL IMPLICATIONS: There are no financial implications for the City. BOARD/COMMISSION RECOMMENDATION: None. STAKEHOLDER PROCESS: Not applicable for this Ordinance. ALTERNATIVES: City Council may choose not to approve this Ordinance in which case, the City will be required to continue trying to hold business entities responsible for criminal liability under the current Code. RECOMMENDATION: Approval of the Ordinance. ATTACHMENTS: None.