A8 ADMINISTRATIVE REPORT Date: November 12, 1996 Dept. File No.: PRA/96-061 TO: Vancouver City Council FROM: Chief Constable SUBJECT: Amendment to the License By-law Postal Box Rental Services RECOMMENDATION A. THAT the License By-law be amended to require businesses operating a postal box rental service to verify the name and current residential address of every person who rents, leases, owns or has possession of a post box on the premises by means of requiring every person who rents, leases, owns or has possession of a post box on the premises to produce defined identification; and requiring the businesses operating a post box rental service to record the type of identification used. B. THAT the License By-Law be amended to include businesses operating a mail drop service. The amendment will include a requirement for the business operating a mail drop service to verify the name and current residential address of every person who for or on behalf of whom that business collects mails by means of requiring every person for or on behalf for whom that business collects mails to produce defined identification; and requiring the businesses operating a mail drop service to record the type of identification used. C. THAT the Director of Legal Services be authorized to bring forward the appropriate amendments. CHIEF CONSTABLE'S COMMENTS The Chief Constable RECOMMENDS approval of the foregoing. COUNCIL POLICY There is no applicable Council policy. PURPOSE This report recommends a change to the License By-law to make the by-law more effective in the regulation of the users of post boxes and mail drop services. BACKGROUND In 1982 the License By-law was amended to provide some measure of control over post boxes. The amendment arose out of concern that the boxes could be used by unknown persons to fraudulently receive money or orders in connection with an unlicensed business. The amendment required the operator of a post box rental service to maintain a record - 2 - of the people using the service; and that the record be available for inspection by the Chief License Inspector and Chief Constable. It also required the licensee to ensure that any person using the service for business holds a City business license. The Vancouver Police Department however, has not found the by-law to be an effective deterrent in preventing fraudulent use of the postal boxes by the users and have initiated a request to amend the by-law. DISCUSSION The Vancouver Police Department s Commercial Crime Unit spends a great deal of time on investigations surrounding persons establishing false businesses to take advantage of unsuspecting people. Criminals use legitimate businesses that offer mail services such as, postal box rental services or office rental services, to establish an address from which they can not be traced. This protects their anonymity from victims and the police. Police investigations are limited by the inaccurate information of the user of the postal box or service which is maintained by the operator of the business. Presently, there is no requirement for the person operating the business of a postal box rental service or office rental services to verify a person s name and address, using specific identification (identification will be defined as in the Second-hand Dealers By-law) and to record the type of identification used to verify same. A postal box rental service is a business that rents, leases or sells a receptacle or box for receiving mail. The user accesses their mail by a key. An office rental service provides various services to businesses or individuals such as: reception services, office space, e-mail and mail drop services. For a monthly fee the office rental service, provides an address, usually an actual office address as opposed to a post box number, to where the mail is delivered. The staff at that location sort the mail for their various customers. In most cases the mail is not placed in a physical box or receptacle, but rather the owner of the mail either physically picks it up or it is delivered by courier to the user. Amending the License By-law will act as a deterrent to fraudulent use of post boxes or mail drop service, once possible offenders become aware that proper identification is required. In addition, maintaining accurate user information aids the police when investigating an alleged fraud where the suspect has used a postal box or service to scheme or scam unsuspecting citizens. This also assists the Permits and Licenses Department in their regulation efforts. The same person who allegedly commits the fraud using the postal box or service invariably does not have a business license. When Permits and Licenses investigates a citizen complaint of this nature, they often find the addresses and names maintained by the Postal box or mail service are incomplete or false and; therefore, the investigation often ends at the business that provides the service. The proprietors running these services will benefit as its ensures their customers are providing accurate information. This type of by-law was enacted in Burnaby and it includes the same requirements that this amendment will have. Many of the same businesses that offer these services have businesses in Burnaby where they are already subjected to the by-law. The majority of persons who access these services are legitimately using the service, it is only a small percentage who - 3 - fraudulently use these services. That small percentage however, disproportionately tax the city s limited resources. This amendment is targeted at reducing that financial cost as well as taking a proactive approach to preventing crime. ENVIRONMENTAL IMPLICATIONS There are no environmental implications. SOCIAL IMPLICATIONS The by-law amendment will improve investigations and law enforcement of fraudulent users, which previously were extremely difficult if not impossible to follow-up. It will also improve the service response by the police to the public regarding these types of investigations. FINANCIAL IMPLICATIONS Permits and Licenses Department and the police have limited resources and trying to make efficient use of those resources is a priority by both departments. The amendment does not add any cost to the businesses providing the services defined under the by-law or the City. IMPLEMENTATION AND COMMUNICATION PLAN The recommended by-law amendment is a consequence of the inability and in some case reluctance of businesses to obtain current and correct information from the users of the postal boxes and mail services. Upon approval of the by-law amendments written notice will be communicated to the businesses affected by the amendments. CONCLUSION The recommended by-law amendment will prevent crime by acting as a deterrent to some offenders, as well as assist the police and Permits and Licenses Department in any required follow-up when investigating an allegation. * * * * *