259574. W�TY CLERK �:
PINK FjNANCE GITY OF SAINT PALTL Council
CANqRY -DEPAF7TMENT � `
BLU'E - MA:OFt ' Flle N O. V
•• t' _� � Orclin�nce
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' f��• � �,����� Ordinance N 0. `��S��
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Presented By salie L. Butler, Council President �
� Referred To Committee: Date _
Out of Committee By Date '
r An ordinance establishing an o£fice of consumer affairs and establishing
the duties, pow�rs a�d �t�thority of that office.
THE COUNCIL OF THE CITY OF SAINT PAUL DOES ORDAIN:
Section 1. Office of Consumer Affairs. There is hereby created in the
office of the city attorney a division relating to consumer protection to be
known as the "Office of Consumer Affairs." The head of this division shall be
the director of the Office of Consumer Aff'airs and shall be appointed by the
city attorney.
Section 2. Duties of the Division of Consumer Affairs. It shall be the role
of the division of consumer .affairs to protect the consumer and business
interests and ensure complianee wizh all consumer laws through civil and criminal
proceedings. In order to fulfill this ro1e, the division of consumer protection
shall undertake the following duties:
(1� To report to appropriate governmental agencies having �urisdiction
over consumer protection matters any information concerning violation of any
consumer protecti.on laws and to refer complaints, where the city does not have
�urisdiction, to the appropriate agency for action.
(2) To represent the interests of consumers before administrative and
regulatory agencies and legislative bodies at the direction of the Mayor or
City Council.
(3) To assist, advise, and cooperate with 1oca1, state, and federal
agencies and officials to protect and promote the interests of the City of
Saint Paul and consumer public. .
COUIVCILMEN Requested by Department of:
Yeas Nays
Hunt
Konopatzki In Favor
Levine
Meredith A ga1 ns t BY
Sprafka
Tedesco
Mme.President Butler
Form Approved by City Attorney
Adopted by Council: Date �
Certified Passed by Council Secretary BY
By
Approved by Mayor: Date Approved by Mayor for Submission to Council
By By
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�EVSNE
�:ER:DIi:�i
• �SPRr'1f�"iCr'� �
�.Z'EDESCO
�P�'une P��SIDENT (BUTL�R)
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(4) To coordinate the development of programs of consumer education
and information through public hearings, meetings, publications and other
materials prepared for distribution to the consumer public of the City of
Saint Paul.
(5) To undertake activities to encourage local business and industry
to maintain high standards of honesty, fair business practices, and public
. responsibility in the production, promotion, and sale of consumer goods and
services, in the extension of credit, and in the collection of consumer debts.
(6) To exercise and perform such other functions and duties consistent
with the purposes or provisions of this ordinance which may be deemed necessary
or appropriate to protect and promote the welfare of the consumers, businesses,
and citizens of the City of Saint Paul.
(7) To render annual reports and such other reports as may be requested
to the Mayor of the City of Saint Paul and to the Council of the City of
Saint Paul as •to the number of complaints filed, nature thereof, and the
disposition thereof, and other relevant activities of the division undertaken
during the previous year. The annual report shall include recommendations,
if any, made by the Advisory Committee.
(8) To prepare and publish rules and regulations for the conduct of
activities of the division. At least one public hearing shall be held before
rules and regulations are adopted.
(9) To investigate and seek appropriate relief on behalf of the City
of Saint Paul for any damages suffered as a result of the establishment or
maintenance of an unlawful monopoly or combination in restraint of trade.
Section 3. Powers and Authority of the Division of Consumer Affairs.
In order to ensure compliance with the consumer protection laws and to carry
out the provisions of this act, the division of consumer protection, through
its director, shall have the following powers and authority:
(1) To receive and investigate complaints and initiate its own inves-
t igation of deceptive or unfair trade practices against consumers; to hold
hearings, ci�tp�l the attendance of witnesses by subpoena upon order from
the district court, to administer oaths, to take the testimony of any person
under oath and in connection therewith require the production of any evi�lence
relating to any matter under investigation or in question by the division
through subpoena, also obtained by order of the district court upon application.
At any hearing, all parties shall have the right to be represented and advised
by counsel during such hearing. Hearings mav hP ��n���^�-^-' t-- `' " "'�"' �^�s
`"' �' � ro riate by the director, or if requested by.either party,
, .;� or, i f deem e d epp p ar in s �°
the director sha11 appoint a board of three persons to con g ���
on his behalf. �" —
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��� ro issue summons and subpoenas, upon order of the di,s`tr. � ,court,
to compel the attendance of witnesses and the production of documents, papers,
books, records, and other evidence in any matter over which this ordinance
applies.
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(3) After hearing to issue cease and desist orders with respect to
consumer practices declared to be in violation of the consumer protection
laws of the City of Saint Paul by the division.
(4) The director may adopt such rules and regulations as may be
necessary to carry out the purposes of this ordinance. At least one public
hearing shall be held after 10 days published notice before rules and reg-
ulations are adopted. Such rules and regulations may supplement but shall
not be inconsistent with the rules, regulations and decisions of the Federal
Trade Commission, the federal and state courts, or any federal, state or city
la�.
(5) At the direction of the city council or the mayor, or at the
discretion of the director, the division may prepare and recommend ordinances
to the city council for its adoption, and prepare and recommend legislation
to the city council for the purpose of introduction to the Legislature
of the State of Minnesota. ,.
(6) (a) The division upon direction of the city council shall have
the power to require registration of all vendors of goods and services who
conduct business within-the city, and the division shall have the power to
recommend to the city council, through the city council license committee,
the revocation of any licenses for vendors which are found to be in violation
of the consumer protection laws of the City of Saint Paul. Registration
shall include the name and business address of the vendor and such other
pertinent information as requested by the director. No fees shall be charged
for registration unless otherwise provided for by the city council.
(b) It shall be the duty of the division to notify by publication
or other reasonable means all vendors who are required to register their
businesses pursuant to this ordinance. Failure to register after proper
notice is given shall be deemed a violation of the consumer protection laws '
of the city and the violation shall be sub��ect to all penalties provided
therefor.
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(7) The division of consumer protection and the license inspector of
the city sh�ll cooperate in conducting investigations and in the registration
of all vendors pursuant to this ordinaace.
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(g) The division shall have the power, after hearing, to levy a civil ,
fine upon any vendor found to be in violation of the consumer} protection =�: ;
laws of the City of Saint Paul in an amount not to exceed $300 for each �"`
violation, which amounts shall be deposited in the general revenue fund of the
City.
(9) The div�,.sia�:� k�s�: 1 have the power, after t�,, ; to recover any
costs incurred byr�t�ie � ` f Saint Paul in any case `��y person or
persons are fourid� to be in violation of the consumer pro ection laws qf
the City of Saint Paul.
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(10) The division shall have the power ta;,;bring any action provided
for in this ordinance against any officer of a corporation if the corporation
is found to be in violation of the consumer protection laws of the City of
Saint Paul.
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(11) The division shall have the power to institute criminal pro-
ceedings for violations of the consumer protection laws of the City of
Saint Paul.
Section 4. Hearings. The procedure for conducting all hearings
pursuant to violations of the consumer protection laws of the City of
Saint Paul shall be as follows:
(1) The hearing shall be conducted by the director until such time as
a hearing board has been appointed as set forth in Section 3(1) .
(2) A Notice of Complaint shall be served upon the alleged violator
at least ten days prior to the hearing or, upon good cause shown, an extension
may be granted by the director.
(3) The notice of complaint shall be served personally or by registered
mail and sha11 state the date, place of hearing, and the ground or grounds
constituting the basis of the alleged violation.
(4) For the purposes of this ordinance, the directar may administer
oaths, take testimony, subpoena witnesses and compel the production of books,
papers, recorc�s and documents deemed pertinent to the subject of investigation.
(5) The director shall state his findings and order, if any, in
writing within ten days after the hearing. Copies of such reports sha11 be
immediately sent to all parties to the hearing and filed with the City Clerk .
Section 5. Advisory Committee.
(1) The Mayor shall appoint an Advisory Committee on Consumer Affairs.
'I'his committee shall consist of eleven members, whose terms shall be
staggered for two and four years, and such appointment shall be subject
to confirmation by the city council. The chairman of the Advisory Committee
on Consumer Affa�r� shall be designated by the Mayor. The membership shall
reflect a cross-section of consumer and business interests. —
(2) The committee shall have the power to adopt its own by-laws
` necessary for the conduct of its business.
(3) The committee shall meet on ca11 by the chairman as frequently
as required to perform its duties.
(4) The committee shall advise the division of consumer protection
and recommend rules and regulations in carrying out its duties and functions
under this ordinance. '
(5) The committee shall submit an annual report of its findings and
activities to the mayor and the city council.
WHI7E -�CITY CLERK �� �
PINK -F�NA'10E CO1111C11
CAI�ARY - DEPARTMENT ' GITY OF SAINT PAITL
BLUE - =}MRYOR��� � Flle NO. ,
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+�. '�•v �, Ordin�nce Ordinance N 0. ��"ale� ,
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Ptesented By
Referred To Committee: Date
Out of Committee By Date
Section 6. In order to better serve the needs of the citizens, the office
shall be located in the city and county court house and sha11 be made as
accessible as possible to the use of the general public of the city.
Section 7. Severability. In case anq section of this ordinance is held
invalid by a court of competent jurisdiction, the invalidity sha11 extend only
to the section affected, and other sections of this ordinance shall continue
in full force and effect.
Section 8. Coding. This ordinance shall be deemed a part of the Saint Paul
Administrative Code and shall be incorporated therein and given an appropriate
chapter and/or section number at the time of the compilation of said
Administrative Code.
COUIVCILMEN Requested by Department of:
Yeas Nays
Hunt
Konopatzki In Favor
Levine p�
Meredith (J Against BY
Sprafka ,
Tedesco
Mme.President Butler
oEL' 8 1972 Fotm Approved by City Attorney
Adopted by Council: Date
Cert' ied ssed by�cil tary � BY
By�
Approve M or. Date 1 1 �972 Approved by Mayor for Submission to Council
By By
PUBLISHED DEC 16 1912
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PROPOSED }3C`]�GE"f' — OFFICT O[�' CONSiJ�1LR AFF�IRS
In i-tiall�, to sc�t up the prngraru ��re ��oulc� sug�;est eLnp3oy—
ment o�' personnel as folloivs :
A director� (title to be es-tablis_zed) at
a salary o� approximately �14; 5p0
�i Lebal. Research E1�2alys-t at a salary
level o� appro�imately �p�g!�!�
A Clerl:-S-�eno II , to hanlle clerical work 6 , 1�?7
Salaries to total - �3� , 7i-�
`Po equip the persorY�el at the beginning or minir�a� level oF
operation, �t•he follo�ain� woulc� be neetled in capital ou�lay.
Two eYecutive desks , approsimately � 2ztg
T�ao �;xecutive chairs 100
One steno desk 110
One ste�.o chair 35
File cat�inets �,��
Typeirriter - 1f85
Total capital outlay aopro�imately � 1 , 2�g
Addi-tionally, fu�ds s�ould be provided for public informa-
tion purposes an.cl miscellaneous sllpplies as �ollows :
Public in�for�-aation � 2 , 500
Miscellaneous s�ipplies �fl
Su'�to�a_l � 3 , OU�
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TOTAL ��S , 0,�9
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PROPOSED BL'DGET - OFFICE OF CONSIIM�R AFFAIRS
Initiaily, to set up the �.rogram i,re ��oultl su�ges t e�ploy-
r.�ent of personnel as �ollows :
A director� (title to be estabiis_zed) at
a salary o� approximately �14; 500 .
A Legal Research A�zalyst . at a salary
level of approximately 20,844
A Clerk-S-teno II, to handle clerical cvork 6 , If27
Salaries to total - �.32 ,7%1
To equip the person�el at the beginning o.r niiniinal level oF
operation, �Ghe follo�vin� z�ould be needed in capital outlay:
Two e��ecutive c�esks , approximately � 248
Two �xecutivs chazrs 100
One steno desk 210
One steno chair 35
File cat�inets �j�p
Typewriter - t�g5
Total capital outlay aoproximately � 1 ,278
Aciditiflnally, fu�.ds s:�oulcl be provided for publie infor�a-
tion purposes an.d misc�llaneous siipplies as folloivs :
Public in�o��ation � 2� 5pp
rliscellaneous suPplies pp
Su'�total � 3 , OOt�
TOTAL v��, 049
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A��m,se��
CITY OF SAIN'r PAUL
OFFICFi, OF THE CITY COUNCIL
CITY HALL AND COURT HOU8E
VICTOR J. TEDESCO SAINT PAUL. MINNESOTA 55102 MICHAEL H. SIRIAN
Councilman p x o iv� 6 1 2 / 2 2 3-4 4 3 1 Legislative Aide
November 24, 1972
Members of the City Council:
The Community Services Committee re-submits to your honorable
body Council Fi.Ies Numbers 259574 and 259575, "Consumer Protection
Ordinances," as amended, with the recommendation that said ordinances
be adopted.
Amendments to said ordinances are enclosed under separate cover.
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Victor J. Tedes , Chairman
Community Services Committee
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Councilman Tedesco moves to amend Council File No . 259574 in
the following particulars :
In Section 5 , strike subparagraph 1 and substitute in lieu and
in place thereof the �ollowing : .
(1 ) The Mayor shall appoint within a reasonable time
after adoption of this ordinance an Advis�ory �
Committee on Consumer Affairs . This Committee
shall consist of eleven members , whose terms
shall be staggered for two and four years ,
and their appointment shall be subject to
confirmation by the City Council . The member-
ship shall re�lect a cross-sec-tion of consumer
and bus iness interests .
In Section 5 , strike subparagraph 4 and substitute in lieu and
in place thereof the following :
(4) The Committee shall advise the Office of
Consumer Affairs and recommend rules and
regulations in carrying out its duties and
functions under this ordinance . ,
In Sectiori 5 , strike subpa_ragraph 5 and substitute in lieu and
in place thereof the following :
(5 ) The Committee shall submit an annual report
of its findings and activities to the Mayor
and the City Counc il . This repo,rt shall
contain an appraisal of the performance of
� the Staff.
�__.�rr�j E. Marshall Aibert 6. Olson
City Clerk¢nd �.P Council Recorder
„ Co�nzh�isiA�acr of Registration � � . n�\'-�
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OFFICE OF THE CITY CLERK
CITY OF SAINT PAUL
BUREAU OF RECORDS
3R6 City Hall
St. Paul,1Vlinnesota 55102
November 24, 1972
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All Councilmer�:
" Attached for your informatior_ is a copy of the recc,csnen�uai;i.�r:
of the Community Services Committee on the two Ccnsumer Prctec-
tion ordinances and also copies of tt;e prcposed arner.��erts te
the ordinances, Third Reading and proposed arr�endr.2ents to these
ordinances will be considered on Friday, December l.
Very truly yours,
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City C� rk
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CITY OF SAIN'r PAUL
O FFIC E OF` '1`HE CITY COUNCIL
CITY HaLL <1ND COURT HOUSE
VICTOR J. TEDESCO SAt1�TT PAUL. MINNESOTA 55102 MICHAEL H. SIRIAN
Councilman P H O N F 6 1 2 / 2 2 3-4 4 3 1 Legislative Aide
November 24, 1972
Members of the City Council:
The Community Services Committee re-submits to your honorable
body Council Files Numbers 259574 and 259575, "Consumer Protection
Ordinances," as amended, with the recommendation that said ordinances
be adopted.
Amendments to said ordinances are enclosed under separate cover.
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Victcir J. Tedes�, Chairman
Community Services Committee
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.' ee meeting Nov. 21, 1972
- ' ' � �ervices Committ
�ments aPProved CommunitY
� (Atnenc 259574 ln
mo` e� to amend Council �'�lle N� � �
an Tedes�O cul�rs : in lieu and
�o�aticilm j�1T1� Par�ti substitu�te
t Yie f o l l 0 1 and
e subparagraph
strik fallowing : �
Iil �ec tion 5 � the easonable time
in plaCe theTeof within a r
a oint Advisory
shall PP ordinance an
1 The Ma3'or of this This Committee
� ) af�ter adoption Affairs . �erms
ttee on Consumer metnbers , whose
' Commi of eleven and four Years ,
shall consist two to
� stab�eTed �orshall be subject
I shall be The member-
� and their appoin�hencity Council . �onsumer
ation bY a cross-section �f
confirm re�lect •
Ship shall and
and business interests . in lieu
a�agra�h tf and substitute
strike subp
In Sectio thereof the following : of
in Pi�Ce advise the OffiCeand
t tee shall end rules
�4� The Commi and recomm its duties and
Consumer A�fairs
in carrying �ut
regulati�nunder this ordinance . and
funetions and substitute in lieu
Strike subparagraph 5
In Section 5 � the follo��ing ' repor�
ir pl��e thereof t an annual
shall submi to the MaYor
The Committee activitieS Shall
(5) findin�s and This repo,rt of
of its coUnCil . the performance
ana the C it Y o f
�ontain an appraisal
.�he �taff .
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' CENTRAL M ANOR
26 EAST EXCHANGE STREET
� LEAGUE OF WOMEN VOTERS ST. PAUL, MINNESOTA ss,o,
222-3178
Decernber l, 1�72
T0: President Rosalie Butler and members of the �ity �ouncil
FROi�2: P�irs Tiertyce T�llayne, Acting President
The St Paul �,eague of Y�omen iloters has examined the proposed
ordinance #259574 establishing an Office of Gonsumer Affairs and
has compared it with the substitute being pro�osed by President
Butler establishing a �itizen Service Center.
a�e would like to ask some questions which will help us to
have a better understanding of these ordinances.
Section 1 of both ordinances states that "the head of this
division shall be the Director. . . .and he shall be appointed by
the City Attorney" .
It is our understandina that the Director is to be a lawyer from
the City Attorney' s of�ice. Shouldn't this be sta�ted in the ordinance?
Sectior_ 3 (Power and ALthority) of both ordinances states that
"Hearings may be conducted by the director alone. . .or he may appoint
a �, board consisting of three members which may conduct hearings on
his behalf't .
To whom is the director accountable? tiVhat mechanisr� is available
to keepacheck on the direction of activities? Does the three member
board consist of lawyers frorn the city attorney's office`? If this
latter is so, should it be stated in the ordinance? It is also our
understanding that it is expected that many cases can be satisfactori-
ly concluded through negotiation and discussion with the parties
involved. Shouldn't so�me statement like the ability "to enter
into a set�lement agreement" be included?
Section 5 (Advisory �omr�.ittee) . In ordinance �259574 in item
(4) it states that the committee "shall advise the office of Consur.�.er
Affairs in carrying out its duties and functions under this ordinance" .
In the proposed substituf'e in item ( 4) it states that the committee
"may advise the section of consumer protection and recommend rules
and reo lations in carrying out its duties and functions under this
ordinance" .
The wording change suggests a less active role for the Advisory
committee in the proposed substitute. �'Tould such a cor.lmittee in
both ordinances be privy to cases and decisions, and would the
corrir.littee have a two vvay relationship with the director; that is,
would he infor�n them of the division's policies as well as receive
and discuss their suggestions? Also, in the proposed substitute
the fifth item under Section 5 has been omitted, "The Committee
shall submit an annual re�ort of its findings and activities to
the T:Tayor and �ity Council." �:'Ve would think that such a re�ort
could be of value to the l4iayor and City Council. 1
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� CENTRAL M ANOR
� �4�r� 26 EAST EXCHANGE STREET
LEAGUE OF WOMEN VOTERS ST PAUL, MINNESOTA ss,o,
222-3178
Pa�e 2
December l, 1972
Section 6 (?�roposed substitute only) Duties of Section
of Citizen Affairs and Inforr:lation.
It is our understanding that at the present time the ��iayor' s
office has a �erson who funnels questions and com�laints to the
proper departments and aoencies. VJe believe that such an informa-
tion and complaint center is an important part of city government.
However, such a center deals solely with matters concerning
operating de�artr�ents and should, in our o�inion, remain in the
mayor's office and be separate from the director of consumer affairs.
Further, the enforcement ordi ance #259575 does not concern itself
with the Section of Citizen A�fairs and Information.
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CITY OF SAINT PAUL
OFFICE OF THE CITY ATTORNEY
November 30, 1972 KENNETH J. FITZPATRICK
To the Iionorable Council of tihe City of Saint Paul:
Recently, concern hae been expressed regarding the sufficiency
of due process protection to citizens under the hearing process
in the progosed consumer protection ordinances as amended,
�pecifically C.F. 259574.
The council has communicated this concern to the Off ice of the
City Attorneq for appropriate comunent and opinion.
The hearing procedure as outlined in Section 4 and the power to
hold heariags as outlined ia Section 3 of C.F. 259574 are the
sections ia question. Generally, the courts have determined
that conetitutional due process requirements are met if the
hearing procedure is set forth in sufficient detail and if such
procedures are fundamentallq fsir.
It is my opinion that the protections outlined in Section 3 and
4, specif ically, the right to be represented by counsel, the
right to notice of the alleged violation, the right to have
stated in writing the basis for the allegation, tihe right to a
hearing, Che right to request a hearing boarc�, the right to
xequire the preseace of witnesses and the right to exsmine the
witneasea are suff icient to satisfy the due proceas requirements
of the constitution.
Further, the courts require that the hearing examiner or hearing
board be without apecial iaterest in the Eindings of the hearin�.
The proposed ordinances ae amended are desi�ned to meet this
requirement by establishing an independent tribunal which is not
a representative of either consumer or business interests to the
exclusion of the other. The purpose of the hearing is to take
testimony and gather evidence to determine if a violation of the
consumer protection laws of the eity has occurred. It ahall be
the responaibilitq of the director or hearing board to aet forth
in writing Che findings which result from that impartial inquiry.
City Hall, Saint Paul, Minnesota 55102
612 223-5121
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Honorable Council of the City of Saint Paul
Page Two
Nnvember 30, 1972
Once the administrative hearing procedure has been completed
the aggrieved party has a 1ega1 right to appeal the decision
to the District Court for review. mhere exists tihe right to
judicial review of all administrative decisions and the
adminiatrative decisions of the director or hearing board
under the proposed ordinances would be included.
Verq trulq qnurs,
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KENN��H J. FITZPATRICK
Citq Attorney
KJF:cg
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(f'lmendments approved Community Services Committee meeting Nov. 21 , 1972 ;
Cotzricilrnan Tedesco moves to amend Council F'ile No . 259574 in
the followin� particulars :
In Section 5 , strike subparagraph 1 and substitute in lieu and
in place thereof the following :
(1 ) The Mayor shall appoint within a reasonable time
after adoption of this ordinance an Advis�ory �
Committee on Consumer Affairs . This Committee
shall consist of eleven members , whose terms
shall be staggered for two and four years ,
and their appointment shall be subject to
confirmation by the City Council . The member-.
ship shall re�lect a cross-section of consumer
and bus iness interests .
In Section 5 , strike subparagraph 4 and substitute in lieu ancl �
in place thereoF the following :
(4) The Committee shall advise the Office of
Consumer Affairs and recommencl rules and
regulations in carrying .out its duties and
funetions under this orclinance. ,
In Section 5 , strike subparagraph 5 and substitute in lieu and
in place thereof the following :
(5 } The Committee shall submit an annual report
of its findings and activities to the Mayor
and the City Counc il . This repqrt shall
contain an appraisal of the performanc.e of
. the Staff.
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CITY OF SAINT PAUL
OFFICE OF THE CITY ATTORNEY
October 30, 19'72 KENNETH ). FITZPATRICK
To the Honorable Council
of the City of Saint Paul :
As the Council proceeds forward with its consideration
of the proposed consumer protection ordinances , there
have been several questions raised by members of the
Council for which answers have not yet been given.
Because the City Attorney' s office was principally
responsible for the research and final drafts which
have been submitted to the Council , I feel it proper
at this time to present to the Council some additional
background information which may prove to be helpful
in response to the speci�ic questions which have been
raised.
A. What contacts have been made by the City of Saint
Paul with other consumer offices?
Our office , in July of this year, sent two staff inembers
to Washington, D. C. to meet with the personnel of Publie
Interest Research Group, a Nader-founded organization.
In addition, meetings were held with the Assistant Direc-
tor of the Maryland County, Maryland, Consumer Office ,
and, more importantly, a visit was made to the Nassau
County, New York, office, which is considered by most
consumer groups to be the most successful local office
in the Country.
Our office has also corresponded with local offices es-
tablished in Boston, Chicago , Columbus , New York City,
Virg.inia Beach, Virginia, Dade County, Florida, Prince
George ' s County, Maryland, Camden, New Jersey, and Long
Beach, New York, to learn of their office structure ,
currently enacted legislation, and the experience which
each office encountered while commencing similar programs .
B. What contact has been made with the State Office of
Consumer Affairs?
City Hall, Saint Paul, Minnesota 55�02
612 223-5121
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To the Council
Page Two
October 30, 1972
This office made contact with Sherry Chenoweth, Director,
requesting that the State office be represented at a pub-
lic hearing to answer any questions which may be asked
by members of the Council . Mrs . Chenoweth expressed her
opinion that the ordinances as proposed were strictly a
local matter, and that because of staff and time limita-
tions the State office wo uld be unable to involve itself
in this matter.
C. What contact has been made with the Attorney General ' s
Office?
Our office contacted Attorney General Warren Spannaus and
requested that the Attorney General ' s Office be represented
at a public hearing. It was the Attorney General ' s opinion
that that office would not take a position on this matter,
as , again, it was considered to be entirely local in nature .
D. What contact has been made with other consumer groups
or agencies in this area2
This office has held several meetings with the Minnesota
Public Interest Research Group in an effort to take ad-
vantage of MPIRG' s background and experience in consumer
affairs , and MPIRG has been especially cooperative and
helpful in the preparation of these ordinances . Also ,
this office has been in constant contact with Ramsey
Action Programs and its consumer affairs staff in an
effort to take advantage of R.AP' s experience . This
office has also represented the City of Saint Paul on
the Consumer Affairs Committee of the Federal Executive
Board and shall continue to do so. Additionally, this
office has consulted with Alderman Sam Sivanich of
Minneapolis , who proposed several ordinances in this
area to the City Council of Minneapolis . We have also
discussed common legal questions with the City Attorney' s
office of Minneapolis .
E. What types of consumer complaints are most commonly
received?
This office has studied in great depth the types of com-
plaints which offices similar to the one here proposed
have received. Much of this information was mimeographed
:
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To the Council
Page Three
October 30, 1972
and presented to the members of the Council at the second
reading of these ordinances .
In summary, the most common complaints are concerned with
automobiles , door-to-door solicitation and sales , home
improvement contracting, and undelivered merchandise .
The ordinances have been drafted in an attempt to pro vide
a mechanism to put the consumer and the vendor on equal
footing in attempts to solve any disputes . The key to
this mechanism is the mediation role played by the office
of consumer affairs . It is the opinion of this office
that a structure of this type is the most successful yet
designed to solve consumer problems .
F. Does this service duplicate efforts of the State
Office of Consumer Affairs or the Attorney General ' s
Office?
It is the opinion of this office that no effective relief
is available to the individual consumer who has been sub-
jected to fraudulent business practices . Minnesota Statutes ,
Sections 325. 78 through 325.80, are the applicable sections
of state law. However, the only remedy available is an
action for injunction which must be brought by the Attorney
General or the County Attorney. Nowhere is there a provi-
sion for an action by an individual consumer to have the
complaint satisfied under the Consumer Fraud Statute .
The ordinances as proposed are designed to remedy an in-
dividual complaint if found to be a violation of the
unfair trade practices ordinance .
Should mem bers of the Council have any further questions
relative to this matter, please do not hesitate to contact
me .
Yours very truly,
=�i
�.�.�.�--�� `��� ,.;�-�`-•_:
KENNETH J. FITZPATRICK
City Attorney
RWM:bl
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CITY OF SAINT PAUL
OFFICE OF THE CITY ATTORNEY
October 27 , 1972 KENNETH J. FITZPATRICK
To the Honorable Council
of the City of Saint Paul :
On September 28 and October 19, 1972, the Community
Services Committee held public hearings on the proposed
consumer protection ordinances. At those hearings ,
several amendments were offered for council considera-
tion and referred to the eity attorney ' s office for
study and legal advice . This office has now completed
such inquiry and makes the following specific comments .
A. Councilman Tedesco moves to amend the unfair trade
practices ordinance as follows :
Under UNFAIR TR.ADE PR.ACTICES, add to Section 5 ,
Settlements , a new subsection (3) which shall
read as follows :
(3) If the vendor stipulates or otherwise
agrees to make restitution to the consumer,
such restitution shall be in the same form as
the original payment . Should cash be the form
of original payment , the consumer shall be re-
imbursed in cash. Should the consumer make ,
payment for the purchase by credit or eharge
account , a credit to the account shall be made .
If the account has been paid in full for the
purchase , the consumer shall receive restitu-
tion in cash, and the substitution of any other
method of restitution without prior approval
of the consumer shall be deemed a violation of
this ordinance .
It is the opinion of this office that this amendment
be considered as drafted herein, and that no legal
barrier exists to prevent its adoption and enforcement .
B. 1 ) Councilman Konopatzki has suggested that consumer
protection be developed as a joint city-county
project. This suggestion was referred to the
City Hall, Saint Paul, Minnesota 55�02
612 223-5121
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To the Council
Page Two
October 27, 1972
County Attorney' s office , for his opinion as to
whether the County had legal authority to under-
take such a project. Attached is a copy of a
letter from H. A. Gregg, Assistant County Attorney,
to Mayor Lawrence Cohen, which says that the
County does not have the power to enact a
county-wide consumer protection ordinance .
Therefore , consumer protection, if undertaken,
must be accomplished by the City alone .
2) Councilman Konopatzki has also suggested an
amendment which would require unit pricing of
all commodities . This office has reviewed unit
pricing, and it is our opinion that to effectively
draft and propose a unit pricing ordinance and
to assure its enforcement , additional studies
should be made . Unit pric ing is an area wh ich
involves technical complexitieS which must be
thoroughly studied and reviewed. However, the
concept of unit pricing can effectively be
incorporated into the unfair practices ordin-
ance as proposed at a later date .
3) Councilman Konopatzki has also proposed that
no packaging shall be done in a misleading or
deceptive manner. It is the opinion of this
office that the unfair trade practices ordin-
ance as proposed would prohibit misleading
packaging. Section 1 of the ordinance pro-
hibits unfair trade practices , and Section 2
defines such unfair or deceptive practices as
follows :
(2) "Deceptive trade practice . " Any
false , falsely disparaging, or misleading
oral or written statement , visual descrip-
tion or other representation of any kind,
which has the capacity, tendency or effect
of deceiving or misleading consumers and
is made in connection with the sale , lease ,
rental or loan of consumer goods or ser-
vices ; the offering for sale , lease , rental
or loan of consumer goods or services ; the
extension of consumer credit ; or the col-
lection of consumer debts . Deceptive trade
trade practices include but are not limited
to � � � "
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To the Council
Page Three
October 2'7 , 1972
It is my opinion that prohibitions against misleading
or deceptive packaging can be enforced under the pro-
visions of the above section. However, future specific
deceptive packaging or labeling can be prevented by
the adoption of additional rules or regulations as
provided in Section 3 of the ordinance establishing
the office .
C. Karim Ahmed, Research Director of MPIRG, proposed
three amendments to Section 5 of the Ordinance estab-
lishing the office. Copies of the amendments with
the reasons as submitted by MPIRG are attached.
There are no legal prohibitions to enactment of these
amendments .
D. Richard Nadler, staff inember of Legal Assistance of
Ramsey County, has proposed two amendments to Section
1 of the unfair trade practices ordinance as follows :
(1) No person shall engage in unconscionable trade
practice in a sale , lease , rental , loan of money,
or loan of any consumer goods or services in ex-
tension of consumer credit , or in the collection
of consumer debts , by the principal., or a�ent
of the principal .
(2 ) No person shall engage in any deceptive or unfair
trade practice in the sale, lease, rental , loan
of mone.y, or in the offering for sale , lease ,
rental , loan of money, or loan of any consumer
goods or services , in extension of consumer
credit , or in the collection of consumer debts,
bv the principal , or a�ent of the principal .
These amendments extend coverage of the ordinance to
include the principal or agent of the principal who
makes financial loans and are designed to prohibit
such lenders from engaging in any unfair or deceptive
practice as outlined in the ordinance .
There are no legal barriers to adoption of these amend-
ments , and the Council can consider them for their
adoption.
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To the Council
Page Four
October 27 , 1g�2
Should members of the Council have any further requests
of this office , or any further questions relative to this
matter, please contact me .
Yours very truly,
� �-�� -x.J,,�:�C� � -� 'c��� ��� �.
KENNETH J. FITZPATRICK
City Attorney
RWM:bl
Attachments
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t ~� ` �" i92b Nicoliet AvenuB, IYlinneapotis, I1�innesota 55403 (512} 376-7554
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TESTIf�tONY OF KARTP4 A�N1ED, RESEARCH DIRECTOR, hIPIRG
BEFORE: Community Services Corr�nittee, St. Pau1 City Council ,
_ October,l9, 1972.
CO�iCERNING: Amendments to the proposed Ordinance estabiishing an
Office of �onsumer Af-Fairs, St. Paul . .
At the last hearing before this �committee ori September 28,
we testified in general support of the proposed ordinance creatir+g an
Office of Consumer Affairs for the City of St. Paul . Nowever, at the
same time we suggested a- few changes that would,;in our opinion, improve
and modify the description �and charges to the Citizen's Advisory CommTttee
as outlined in the proposed legislation. ��1e are, therefore, submitting
the fo7lowing amendments to the com�nittee: �
A. Section 5 (1 ): Amended ta read " - - - This Committee shali con-
sist of eleven members, whose terms shall b� staqqered for two and four
ears, �nd their appo�ntment - - -
Reasons: 4!e believe that though a seven member committee is a more �
close7y-knit and worlcab�e group, expanding the membership to eleven mem-
b�rs wil7 improve representation from all segments of the community.
Stag�ered terms of otfices on the committee wi11 provide more continuity
- - - - and follow through, and provide for changes every two years to reflect
changes in the Office of the Mayor and the City Council .
B. Section 5 (4): Amended to read °Th� Committee sha11 advise the
� Office of: Consumer Affairs and recommend rules and requlations in carrying
ou� its �uties and functions under this ordinance.
;,
Reason: It is necessary to spell out the charg� to the committee mare
expl,c�t y, and therefore confer it with greater responsibility in all °
rule-making procedures. _ ___ ___
_ C. Section 5 (5) : Am�nded to read "The Committee sha11 submit an annual
report of its findings and activities to the i�layor and the City Council .
This report shall coniain an appraisaT of the performance of the Staff."
Reason: Even though the committee may under the presentIy drafted
language in the ordinance perform the above proposed function, it is
--- --again necessary to state this clearly and unequivocally in the ordinance.
Bemidji Stare Col;age�Carleton College�College of Sf.Benedict�College oFSt.Catherine�Concordis College—M�orhesd�Concordia College-5t.Paul�H3mline
University�Macaletter Coflege�rdankato State College�Metropolitan State]unior College�Moonc�ad State College�St.Cluud State Col:ege�St.Ofat�CoiLga•
Snuthwest t3linnesota 5tate College�University of bfinnaota—Duluth�University of Minnesota—Minneapolis�Univarsity of Minnesota—Morris�Univrrsity of
Minnc�ota—St. Paul
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�eptember 12, 1972
Mr. Victor J. T�desco
Chsirma.n
Ca�tttl3.ty SerY�.CeB C�tt�4
City ��Iall
llear.r �ir,
`S'he City Council taday rePerred to the Ga�n3ty 5ervices
Comtn.i.t�ee an oxdin�nce, C.F. Na. 25957�+, �atablia�img an
affice Qf Cor�umer A�f+�irs and an ordinr�ce, C.F. No. 259575,
xelating to Unfair Tre�d�e Pract3ces in e�ta.blishing a proce-
dure fbr enforcement.
Youre very tru].y,
City Clerk
AB(?:�mv
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Nov�mber 21+, 1972
All Councilmen:
Attached for your informat�ion is a copy oP the recommendation �
of the Community Services Committee on �the two Consumer Protec�
tion ordinances and also copies of the proposed amendments to
the ordinances. Third Reading and proposed amendments to these
ordinances will be considered on Friday, December l.
Very truly you�s,
City Clerk
ABO:ml
l�ugust 3a, 197^
�on. Lawr.enc� D. Cohen
yor
�3u31ding
Dear a�r:
�rz� Cit�r Council tfl�ay �avE First Iteadin� t� two
ordinances providi� for the establishment of an
O;C.f'ice of Consumer Affairs AND providin� for a
procedure for enfox°cement� and they d�Lrected tha�
5�cond }tead3r�� be held on Se�tember Sth.
�
Th� Couracll ind3c�.�te3 they would like a presenta-
tion on the aeed for the aervice and financing of
the pragram.
Very truly youra��
City Clerk
AO�ng
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(8) To prepare and publish rules and regulations for the conduct of activities
of the office.
(9) To investigate anc� seel� appropria.te relief on behalf af the Citq of Saint
Paul for a.nq damages suffered as a resulti of the establiahment or maintenance of an
unlawful monoply or combination in restraint of trade.
Section 3. Powers and Autnority of the Office of Consumer Affairs.
Tn order to en e compliance with the consumer protection laws and to carry out
the provisions of thi act the Office of Consumer Affairs through its director shall
ha.ve tne following pa�s and ant'rwrities:
(1) To receive andd investigate caciplaints and initiate its own inveatigation
of deceptive or unfair Cr de practices a�ainst consumers; to hold hearings, compel
the attendance bf wits�esse by subpoena upon ��rder from the bistrict Court, to
administer oaths, to take t e testimony of atty �erson under oath and in connection
therewith requite the produc�i.on of any evidence relating to any matter under
investi�ation or in question i�y the office througn subpoen.s also obtaiued by �rder
. of the Di.strict Court upon app�,ication. At any hearing, the witness ahall have
the right to be advised by coun�el present during such hearing. Hearings may be
conducted by the director alone �;r, at any time herea.fter deemed appropriate by the
director, ne may appoint a boar�consistin� of three members which may conduct
neari.ngs on his behalf. ,
"�
(2) To issue summons and subpo�nas, upon Order of the District Court, to
compel the attenda,ace of witnesses an the production of documents, papers, books,
records, and other evidence in any mat er oner whici� this ordinance applies.
�
(3) To issue Cease and Desist orde s with resvect to consumer pracCicea
declared to be in violation of tne cons r protecti.on laws of the City of 5aint
Paul by the off ice.
.�+�
(4) The director may adogt such rules nd zegula�.ions as may be necessary to
carry out the purposes of this ordinance, in uding regula.tions defining speci£ic,
deceptive or unconscionable rrade practices. uch rules and regulations may aupple-
meat but sha.11 not be incoasis�ent with the ru�es, regulations and decisions of ehe
Federal Trade Comu�issi.on, Che Federal and State Courts, or any federal, state or
city law. ���
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(5) At the direction of the City Counci]. or �he Maqor or at the diseretion
of the director, the office shall prepare and rec ad ordinancea to the City
Council for its adoption, and to prepare and reco d legislation to the legis-
lative subco�cnittees of the City Council for the pur ose of introduction to the
legislature of the State of Minnesota. �
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(6) (a) The off ice shall have the power to requa�e registration of a11
vendors of goods and services who conduct business with�,n the city, and the office
shall have the pawers to recomtuend to the City Council t�ae revocation of any
licenses for vendors which are found to be in violation o� the conssumer protection
laws of the City of Saint Paul. Registration shall incluc� � name and business
address of the vendor and suci� other information as requirQd by the director.
i�o fees sha.11 be charged for registration unless otherwise provided for by the
City Council.
(6) (b) It sha11 be the duty of the off ice to natify by publication or other
reasonable means all vendors who are required to register their business pursuant
to this ordinance. Failure to register af ter proper notice is given shall be
deemed a violation of the cons�er protections ].aws of the City and the violation
s1�a.11 be subj ect to all penalties provided therefore.
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(7) The Office of Consumer Affairs and the Licease Inspectox of the City
shall cooperate in conducti.ng investigations and in tne registration of a11
vendors pursuaat to this ordinance.
(8) The office shall ha.ve Che power, upon prouer hearing, to levy a civil
fine upon any vendor found to be in violation of the consumer nrotection laws of
the City of Saint Paul in an araount not to exceed $300 for each violata.on, which
amounts sha.11 be �eposited in the general revenue fund of the City.
�
(9) The offic�, shall have the power, upon proper hes.riag, to r�cover any
costs incurred by the�.,,City of Saint Pau1 ia any case where any person or persons
are found to be in vio�,,ation of the consumer protection laws of the City of
Saint Paul. 4`�
a,�
(10) The off ice shallk ve the power to bring any action nrovided for in
this ordinance against any o ficer of a corporation if the corporation ia found
to be i.n violation of the con§�umer protection laj+rs of the City of 5ainC Paul.
(11) The off ice shall have he power to institute criminal proceec�ings for
violations of the consumer protec on laws of the City of Saint Paul.
Section 4. Hearings.
The procedure for conducting all�earinQs pursuant to vialations of the
consumer protection laws of the City of'�,5aint Paul sha.11 be as follows:
(1) The hearing shall be conducted tne director until such time as a
hearing board ha.s been appointed as set fo yh in Section 3 (1).
ti
,
(2) A Notice of Complain.t sha.11 be ser�d upon tne alleged violaCor at
least ten days prior to the hearings or upoa �od cause shown an extension may
be granted by the director. ,A
(3) Tne Notice of Cnmplaiut shall be servec�.�versoually or by registered
ma.il and shall state the date, place of hearing a�i the graund or grounds con-
stituting the basis of the alleged violation. t;
'��.
5
(4) For the purposes of this ordinance the dir�tor may administer oaths,
take testinony, subpoena witnesses and compel the prod�ctinn of boaks, papers,
records and documents deemed pertinent to the subject d�ff investigation.
�
��
(5) The director shall state his Fi.ndings and Ordei�;� if any, in writing
c�ritlzin ten days after the hea.ring.
Section 5. Advisory Committee.
(1) The Iftayor snall appoint witnin a reasonable time af�,er adoption of this
oxdinance an Advisory Committee en Caasumer Affairs. This Gomt�ittee shall con-
sist of seven members and their appointment sha.11 be subject ta conf irmaCion by
tihe City Council. The membership sha11 refl.ect a cross-section of consumer and
business interests.
(2) The Committee sha11 have tn.e power to adopt its own bql.�ws necessary
for the conduct of its business.
(3) The Comznittee shall meet on call by the Chairman as frequently as
required to perform its c�uties.
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o�stn.�to cti,c�
'`�� ' � � � � ORDINANCE 2�95'74
; . , ,
. �" !' .
'` ` �° COUNCIL FILE NO
PRESENTED BY ORDINANCE NO
(4) The Committee shall advisa the Office of Consumer Affairs in. carrying
out its duties and functions under this ordinance.
(5) The Committee sha.11 submit an annua.l report of its findings and
activities to the Mayor and the City Council.
Secti.on 6. Severability.
In ca.se an section of this ordi.nance is held i.nvalid by a court of competent
jurisdictiion, th invalidity sha11 extend only to the section affected, and other
sections af this o dinance sha.11 continue in fu11 foree and effect.
Section 7.
1
This nrdinance s 1 be deemed a part of ti�e 5aint Paul Administrative Code
and shall be incorporate therein and given an apnropriate chapter and/or section
number at the time of the compilation of sa.id Administratine Code.
Section 8.
This ordinance shall take effect and be in force thirty days from and after
its passage, �pproval and gubli tion.
�
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Yeas Councilmen Nays Paased by the Council
Butler
Carlson T�Favor
Levine
Meredith
Sprafka A gainst
Tedesco
Mr. President (McCarty) Approved:
Atteat:
City Clerk Mayor
��
Form approved Corpor�,tion Counsel By
Orisiwl*' 'it7 Cletk
. �`� � " ORDINANCE
�.
�-�� �j . 2595'��
F .- . COUNCIL FILE NO
. . . �
PRESENTED BY ORDINANCE NO
AN ORDINANCE ESTABLISHING Alv OFFICE OF CON5UM�R
A�'FAIRS At'�D T�IE DU�IES, POWER5 Ai�D A�TTIiORITY OF
THAT OFFIC�.
THE COUNCIL OE' THE CITY OF SAINT PAUL DOES ORDAIIv:
5ection 1. Office of Consum.er Affairs.
There is hereby, crea.ted in the office of the City Attarney a division relating
to consuner affairs rQ be known as the "Office of Consumer Affairs". The head of
this clivision sha11 be,the Director of the Office of Consumer Affgirs and he sha.11
be appointed by the Cit}�.,Attorney.
,
Section 2. Duties af the fffce of Consumer Af£airs.
�
It shall be the role of ` be Office of�Consumer Affairs to protect the consumer
and business i.nterests and ens re complia.nce with all coasumer laws through civil
and crimina.l groceedings. In o er to fulfill this role the Office nf Cnnsumer
Affairs shall undertake the foll ing duties:
(1) To repart to appropriate overnmental�encies having �ur�.sdictian oner
consumer protection mattera any info tiion concerning violation of anq con.sumer
protection 1aws.
(2) To represent the interest of c sumers before administrative and regulatory
agencies and 1e�islative bodies.
(3) Ta aasist, advise, and cooperate w th local, state, and federal agencies
and officials to protect and promote the inte sts of tne City of Saint Paul and
consumer public. �.
�.
(4) To assist, develop and conduct programs'�,,of consumer education and infornia-
tion through publ.ic hea.rings, �►eetings, publicatio�s and other materia.ls prepared
for distribution to the consumer public of the Gity��Of Saint Paul.
(5) To undertalce activities to encnurage local ^�siness and industry to main-
tain uigh atandards of honesty, fair business practice�„ and public responsfbi2ity
in the production, promotion, and sale of cons�er good�: and 8ervices, in the
extenaion of credit and in the collection of consrsmer de�ts.
(6) To exercise and perform such other fuactions aud��d.uties consistent with
the purposes or prov3.sions of this ordinance which may be d ed necessary or
appropriate to protect and promote the welfare of the cansum�s, businesaes aad
citizens of the City of Saint Paul. '��
(7) To render annual reports and such other reports as ma� be requested to
the i�Sayor of the City of Saint Paul and to the Council of the Ci of 5aint Paul
as to tne number of complaints f iled, na.ture thereof, and the dia osition thereof
and other relevant activities of the office undertaken during �he revious year.
The annua.l report shall include recommendations, if any, made by tih advisorp
committee.
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Yeas Councilmen ays Passed by the Counci� °
Butler
Carlson Tn Favor
Levine
Meredith A gainst
Sprafka
Tedesco
Mr. Preaident � Approved:
Attest:
City Clerk � �ORM APPR or
�� : .
Form approved Corpor�tion Counsel By
.CtTY ATTORNEY