(A) Pursuant to federal law, the Federal Trade Commission adopted identity theft rules requiring the creation of certain policies relating to the use of consumer reports, address discrepancy and the detection, prevention and mitigation of identity theft;
(B) The Federal Trade Commission regulations, adopted as 16 CFR § 681.2, require creditors, as defined in 15 U.S.C. §1681a(r)(5) to adopt red flag policies to prevent and mitigate identity theft with respect to covered accounts;
(C) 15 U.S.C. § 1681a(r)(5) cites 15 U.S.C. §1691a, which defines a “creditor” as a person that extends, renews or continues credit, and defines “credit” in part as the right to purchase property or services and defer payment therefor;
(D) The Federal Trade Commission regulations include utility companies in the definition of “creditor;”
(E) The City of Polo could be considered a creditor with respect to 16 CFR § 681.2 by virtue or providing utility services or by otherwise accepting payment for municipal services in arrears;
(F) The Federal Trade Commission regulations define “covered account” in part as an account that a creditor provides for personal, family or household purposes that is designed to allow multiple payments or transactions and specifies that a utility account is a covered account;
(G) The Federal Trade Commission regulations require each creditor to adopt an Identity Theft Prevention Program which will use red flags to detect, prevent and mitigate identity theft related to information used in covered accounts;
(H) The city provides water, sewer and garbage services for which payment is made after the product is consumed or the service has otherwise been provided which by virtue of being utility accounts are covered accounts;
(I) The duly elected governing authority of the city is the Mayor and Council thereof; and
(J) The City of Polo adopts this chapter as its Identity Theft Prevention Program.
(Ord. 09-09, passed 4-20-09)