To: Honorable Mayor and Members of Town Council
From: Michael J. Hyman, Town Attorney
Title
Ordinance Amending Title 9 of the Castle Rock Municipal Code by the Addition of a New Section 9.09.050 Requiring Corporate Entities to Report Theft (First Reading - Continued from September 15, 2026)
Body
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Executive Summary
Councilmember Brooks has requested that the Town Attorney’s Office draft an amendment to the Castle Rock Municipal Code imposing a duty upon corporate retailers to report the theft of property to law enforcement.
Notification and Outreach Efforts
The Town Manager’s Office has contacted the Castle Rock Chamber of Commerce, the Castle Rock Economic Development Council and the Downtown Castle Rock Merchants’ Association regarding the proposed Ordinance.
History of Past Town Council, Boards & Commissions, or Other Discussions
September 1, 2026 -Town Council directs the Town Attorney’s Office to bring a proposed ordinance adding a new Section 9.09.050 to the Castle Rock Municipal Code requiring corporate entities to report theft to the September 15 meeting of Town Council for first reading.
September 15, 2026 - Town Council postpones first reading of the proposed ordinance for the purpose of looking at the following potential amendments:
(i) Limiting application of the ordinance to “large corporate retailers;” and
(ii) Limiting application of the ordinance to “high-dollar” thefts.
Discussion
The proposed ordinance:
• Imposes a duty upon corporate retailers to report the theft of property to law enforcement within 96 hours of becoming aware of such theft (Section 9.09.050.B);
• Makes it unlawful for a corporate retailer to fail to retain and provide photographic or video evidence of the theft to law enforcement (Section 9.09.050.C);
• Makes it unlawful for a corporate retailer to take adverse employment action against its employees for complying with this duty (Section 9.09.050.D);
• Makes it unlawful for a corporate retailer to adopt a policy prohibiting their employees from reporting theft to law enforcement (Section 9.09.050.E);
• Is similar in scope to the ordinance considered by the Douglas County Board of Commissioners earlier this year.
With regard to the potential amendments raised at the September 15 meeting, the Chief of Police and Town Attorney recommend against limiting application of the ordinance to “large corporate retailers,” primarily because of the difficulty of drafting a definition that would not violate existing laws protecting the confidentiality of Town sales tax information. The Chief of Police and Town Attorney, however, do recommend limiting application of the ordinance to thefts of property with a minimum value of $2,000 - (i.e., felony theft) - a limitation we believe will consistently achieve the objective of combatting organized retail crime.
Budget Impact
No direct impact.
Staff Recommendation
Town staff supports the objective of encouraging corporate retailers to report theft. It is within the province of Town Council to determine whether the proposed ordinance is the best means by which to accomplish this objective.
Proposed Motion
“I move to approve the Ordinance as introduced by title.”
Alternative Motions
“I move to approve the Ordinance as introduced by title, with the following conditions: (list conditions).
“I move to continue the Ordinance to the Town Council meeting on (date) to allow additional time to (list information needed).”
Attachments
Attachment A: Ordinance
Email Public Comments (Redacted)
Presentation