STAFF REPORT TO COUNCIL LEGAL AND REGULATORY SERVICES

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1 STAFF REPORT TO COUNCIL LEGAL AND REGULATORY SERVICES DATE: September Patricia Boulevard, Prince George, B.C., V2L 3V9 TO: FROM: SUBJECT: MAYOR AND COUNCIL WALTER BABICZ, DIRECTOR OF LEGAL & REGULATORY SERVICES Regulation of Video Games under Second-Hand Dealers and Pawnbrokers Bylaw ATTACHMENT(S): Schedule A Staff Report to Council dated June 27, 2008 Schedule B - City of Prince George Second-Hand Dealers and Pawnbrokers Bylaw No. 8098, 2008 RECOMMENDATION(S):. PURPOSE: 1. That Council receive this report for information. The purpose of this report is to provide City Council with information regarding the history of the Second-Hand Dealers and Pawnbrokers Bylaw, and set out options for amending the bylaw in regard to its regulation of used video games, as requested by Council. POLICY / REGULATORY ANALYSIS: History of City of Prince George Second-Hand Dealers and Pawnbrokers Bylaw No. 8098, 2008 The history of the Bylaw is set out in the Staff Report to Council dated June 27, 2008, attached to this Report as Schedule A. The first draft of the Bylaw was considered by Council in After extensive community consultation, two public hearings, and several resulting amendments, a revised version of the Bylaw was eventually adopted by Council on September 8, The intent of the Bylaw is to assist in the prevention of crime by establishing clear rules respecting how second-hand dealers and pawnbrokers operate their businesses, including certain requirements to collect, record, and transmit to the RCMP a complete and accurate record of all goods purchased or taken in pawn. The Bylaw restricts the goods purchased or taken in pawn from being sold, exchanged or otherwise disposed of for 30 days, in order to allow the RCMP sufficient time to review all the records of items taken in. The Bylaw is intended to benefit the community by reducing the chance that legitimate second-hand dealers and pawnbrokers will be used by thieves to dispose of their stolen property. Earlier this year, Council amended the Bylaw to exclude metal dealers and recyclers from its application, since metal dealers and recyclers are now regulated under a comprehensive provincial program, pursuant to the Metal Dealers and Recyclers Act.

2 Public Hearing Requirement The Community Charter requires that a public hearing be held in regard to any proposed amendments to the Bylaw. OTHER CONSIDERATIONS: Game Quest Delegation At the August 25, 2014 regular Council meeting, the owner of a used video game store business called Game Quest made a presentation to Council regarding the implications and effects of Sections 2.6, 2.7 and 2.11 of the Bylaw on the operation of his business. The owner of Game Quest requested: that Section 2.6 be changed to allow for the purchase of second hand merchandise outside of the location of his business license; that Section 2.7 be changed to allow for purchase of second hand merchandise until midnight rather than 8:00 p.m.; and that Section 2.11 be changed to reduce the holding time of second hand merchandise to be seven (7) days rather than (30) days. At the conclusion of the presentation, Council passed a resolution directing Administration to return a report outlining the options and implications of making changes to the Bylaw. Analysis Administration has reviewed and compared the City s Bylaw with bylaws from the following seven (7) B.C. municipalities in regard to the issues raised by the owner of Game Quest: City of Kelowna, City of Vernon, City of Kamloops, City of Nanaimo, City of Surrey, City of Port Coquitlam, and City of Abbotsford. The City of Prince George Bylaw defines second-hand dealer as a person who carries on the business of buying, selling, taking in trade, procuring, offering for sale or accepting in pawn second-hand property, or who operates a second-hand dealer s premises, and for clarity, second-hand dealer includes a pawnbroker, but does not include an auctioneer or metal dealer or recycler. The City s Bylaw further defines second-hand property as used or pre-owned goods, chattels, wares and merchandise bought, sold, procured or taken in pawn, and without limiting the foregoing, includes: a) jewellery, other than costume jewellery; b) electronic home entertainment products, equipment and accessories including televisions, stereos, MP3 players, computers, phones, cameras and audio and visual equipment; c) small household appliances including blenders, toasters, coffee makers, vacuums; d) construction tools, machinery and parts; e) metal salvage including pipes, wires, chains, beams, railings, tubes; f) Compact Disks, Digital Video Disks and other optical disk storage; g) musical instruments; h) bicycles; and i) collectibles; but does not include: a) clothing, shoes, boots and personal accessories; b) furniture;

3 c) household items such as dishes, pots, pans, cooking utensils and cutlery; d) books, papers, magazines, vinyl records, long playing records and audio cassettes; e) recyclable cardboard, plastics, glass, paper, bottles, food cans and similar household goods; f) large household appliances including washers, dryers, fridges, stoves, and dishwashers; g) motor vehicles or motor vehicle parts; h) motorized personal watercraft such as jet skis, waverunners and sea-doos, or parts from the same; i) household electronic equipment and accessories procured for the purposes of recycling without an exchange or promise of consideration. The definition of a second hand dealer and second hand property in the Bylaws from the other seven municipalities are similar, but there is no standard definition. None of the Bylaws reviewed from other municipalities exempted video games, or video game systems from the definition of second hand property. Section 2.6 of the City of Prince George Bylaw states: A second-hand dealer must not carry on the business of buying or selling second-hand property or the taking in pawn of any second-hand property except at the premises designated in the license issued the City of Prince George Business Regulation and Licensing Bylaw No It appears that this is a standard provision, and similar requirements are in place in all of the other jurisdictions reviewed. Business Licensing staff and the RCMP are of the view that changes to this requirement would open the door for other businesses to ask for the same consideration, and may also open the door to potential abuses. Section 2.7 of the City of Prince George Bylaw states: A second-hand dealer must not purchase or take in pawn any second-hand property from any person between 8 p.m. of one calendar day and 8 a.m. of the next calendar day. This provision varies from community to community. The City of Prince George Bylaw is not the most restrictive. The Cities of Kelowna and Vernon have the same restrictions as the City of Prince George. The City of Kamloops allows purchases until 9 p.m., while the Cities of Abbotsford and Surrey allow sales only until 6 p.m. The City of Port Coquitlam allows sales until 7 p.m., and the City of Nanaimo allows sales until midnight. Section 2.11 of the City of Prince George Bylaw states: Each second-hand dealer, with respect to each item of second-hand property that is purchased or taken in pawn, must: a) not alter, sell, exchange, or otherwise dispose of the second-hand property; and b) not suffer or permit any other person to alter, sell, exchange, or otherwise dispose of the secondhand property for a period of 30 calendar days from the date the item is purchased or taken in pawn. The 30 day holding period is intended to assist in preventing stolen property from changing hands. The objective of the hold time is to protect both the purchasing store and the original property owner, and to allow the RCMP sufficient time to investigate stolen property crimes. With the exception of the City of Port Coquitlam, which has a seven (7) day holding period, all other municipalities reviewed have a 30 day holding period. Administration contacted Bylaw Services staff in Port Coquitlam to enquire about the background and rationale for the seven (7) day holding period in their Bylaw. Administration did not receive any information indicating why a seven (7) day holding period was selected in Port Coquitlam, but were advised by Bylaw Services staff from that municipality that they have not been made aware of any problems the seven (7) day hold time has created.

4 RCMP Consultation Bylaw Services requested comments from the local RCMP regarding the requested changes to the Bylaw. The RCMP advises that it would not recommend any changes to the Bylaw that would hinder the chances of recovering stolen property or identifying suspects in a stolen property investigation. Specifically, the RCMP is of the view that reducing the 30 day hold time, allowing for business to be done outside any licensed establishment, or extending business hours to midnight, would each hinder the RCMP in their efforts to reduce stolen property crime. Administration is advised that from January 1, 2014 to August 27, 2014, there have been 452 break and enters reported to the local RCMP. Of that number, 17 have been confirmed as involving video games, game consoles or accessories being stolen. These figures do not include data from other thefts, such as thefts from vehicles or shoplifting, which may have also involved these items. Administration is advised that when break-ins and thefts are reported to the RCMP, it regularly takes seven (7) days for the information on what specific items were stolen to flow to the RCMP member responsible to monitor property acquired by second-hand stores and pawn dealers. Administration is further advised that other factors may further delay the process, including other duties that members are responsible for, and delays in the victim reporting the theft to the RCMP. For example, it is not uncommon for a victim to be away from their residence on vacation for seven (7) days or more, and be unaware that their property was even stolen. Regarding the issue that video game discs or cartridges do not have serial numbers and are therefore not likely to be identifiable, the RCMP advises that often multiple games are taken during a break and enter, and while individual games may be difficult to identify, the combination of games taken in by a second-hand dealer may match the record of a theft, and that may allow the RCMP to link and follow up on that information. The RCMP would also not recommend the proposed changes to permit doing business outside of the licensed location, or to allow purchases until midnight. In their view that may open the door for abuses, encourages a lack of record keeping, and may give thieves an easier option to dispose of stolen items. OPTIONS: The following options are presented, should Council wishes to consider amendments to the Bylaw to address one or more of the concerns raised by the recent delegation: 1. Direct Administration to return an amendment bylaw to exclude video game discs/cartridges from the definition of second-hand property, and treat them in the same manner as books, vinyl records or cassette tapes. 2. Direct Administration to return an amendment bylaw to reduce the holding period for video game discs/cartridges to 7 or 14 days rather than 30 days. 3. Direct Administration to return an amendment bylaw to allow an individual business to apply to the RCMP for particular items to be exempted from the holding period on a case by case basis. The City of Port Coquitlam bylaw contains this clause. 4. Direct Administration to return an amendment bylaw to allow a business to apply to the RCMP for an exemption to receive items after 8 p.m. on a case by case basis. This may address a business holding a special event after hours. 5. Direct Administration to return an amendment bylaw to identify a minimum monetary value of individual transactions for video game discs/cartridges that are required to be reported to the RCMP. For example, the bylaw could exclude transactions less than $25.00 from the RCMP reporting requirement.

SUMMARY AND CONCLUSION: Administration has provided this report to explain the history of the Second-Hand Dealers and Pawnbrokers Bylaw, and to set out some options for amending

5 SUMMARY AND CONCLUSION: Administration has provided this report to explain the history of the Second-Hand Dealers and Pawnbrokers Bylaw, and to set out some options for amending the bylaw in regard to its regulation of used video games, as requested by Council. Respectfully submitted: Walter Babicz Director, Legal and Regulatory Services To: Mayor and Council

THE CORPORATION OF THE CITY OF PORT COQUITLAM BYLAW NO. 3774

THE CORPORATION OF THE CITY OF PORT COQUITLAM BYLAW NO. A Bylaw to regulate the conduct of business by persons purchasing, taking in barter, or receiving used or second hand goods. Whereas the Community