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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.