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H-3 Massage Business Licensing0 CITY OF CHANHASSEN 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 Administration Phone: 952.227.1100 Fax: 952.227.1110 Building Inspections Phone: 952.227.1180 Fax: 952.227.1190 Engineering Phone: 952.227.1160 Fax: 952.227.1170 Finance Phone: 952.227.1140 Fax: 952.227.1110 Park & Recreation Phone: 952.227.1120 Fax: 952.227.1110 Recreation Center 2310 Coulter Boulevard Phone: 952.227.1400 Fax: 952.227.1404 Planning & Natural Resources Phone: 952.227.1130 Fax: 952.227.1110 Public Works 7901 Park Place Phone: 952.227.1300 Fax: 952.227.1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Web Site www.ci.chanhassen.mn.us H -3 TO: Todd Gerhardt, City Manager FROM: Laurie Hokkanen, Assistant City Manager , DATE: November 25, 2013 SUBJ: Massage Therapy Business Licensing PROPOSED MOTION "The Chanhassen City Council adopts an Ordinance Amending Chapter 10 of the Chanhassen City Code concerning Licensing Massage Therapy Businesses." Approval requires a simple majority vote. BACKGROUND Based on the feedback received from the City Council and businesses over three work session discussions, staff proposes to implement Massage Therapy business licenses via the attached ordinance. Key provisions of the ordinance: • One time $50 License Fee • One -time Background Check: Conducted by Carver County at a cost of $250 per business (regardless of the number of owners /general managers). A new background check would be required only if/when management or ownership changes. Staff will send an annual notice to inquire about such changes. No action will be necessary if there are no ownership or management changes. The background check will examine the following: • Subjects: Owner(s) and General Manager(s) • Must disclose all businesses owned currently or in previous 7 years • Provide 3 character witnesses within the State of Minnesota • Massage businesses located within a chiropractor's office are exempt from Chanhassen licensing according to state law. Home occupations are also exempt, but must comply with Chanhassen home occupation rules. • Only massage businesses are required to obtain a license. Individual employees working at a licensed business are not required to obtain a license. G: \Admin \LH\Massage Licensing\massage licensing adoption staff report Nov 25 13.doc Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow Mr. Todd Gerhardt November 25, 2013 Page 2 • Business owners are responsible for the following: • Maintain full name, DOB, and address of each employee. • Truthfully represent business operations. • A license is subject to revocation or suspension. A license holder may be summoned for an administrative hearing for the following reasons: • Content of advertising that calls into question the nature of the business. • Suspension or revocation of a license in another city. In order to assist with the implementation of this new program, and in recognition of the public safety benefits of doing so expeditiously, businesses that submit their applications prior to December 31, 2013 will pay a reduced fee of $25 for the license and $125 for the background check, for a total fee of $150. All businesses must have their application submitted prior to January 31, 2014. Full fees apply after January 1, 2014. New businesses are required to submit an application prior to opening. RECOMMENDATION Staff recommends adoption of the attached ordinance implementing Massage Therapy Business Licenses. ATTACHMENT 1. Proposed Ordinance AN ORDINANCE AMENDING CHAPTER 10 OF THE CHANHASSEN CITY CODE LICENSING MASSAGE THERAPY BUSINESSES ORDINANCE NO.________ THE CITY COUNCIL OF THE CITY OF CHANHASSEN ORDAINS: SECTION 1 . Chapter 10 of the Chanhassen City Code is amended by adding Article VIII to provide as follows: ARTICLE VIII. MASSAGE THERAPY BUSINESS LICENSING 10-216 POLICY; LICENSE REQUIRED; EXCEPTIONS : A. Findings; Policy. Massage Therapy Businesses are subject to abuses which are contrary to the morals, health, safety and general welfare of the community. Control of these abuses requires intensive efforts of the Sheriff, as well as City departments. These efforts exceed those required to control and regulate other business activities licensed by the City. This concentrated use of City services tends to detract from and reduce the level of service available to the rest of the community and thereby diminishes the ability of the City to promote the general health, welfare, morals and safety of the community. B. License Required. No person shall operate a Massage Therapy Business, either exclusively or in connection with any other business, without being licensed as provided in this Chapter. C. Exceptions. License Exceptions. The following people and businesses are exempt from the provisions of this Chapter while performing activities covered by their professional licenses or professional affiliations: 1. People licensed by the State of Minnesota to practice medicine, surgery, osteopathy, chiropractic, physical therapy, occupational therapy, podiatry and nursing, and people working solely for and under the direction of those individuals; 2. Beauty culturists and barbers licensed by the State of Minnesota who do not hold themselves out to give massages, other than that customarily given in the field and limited to the face, neck and scalp for beautification purposes only; 3. Health care facilities; 172793v.3 1 RNK: 10/16/2013 4. Home occupations; 5. A person or organization providing temporary massage services such as "chair massage" is not required to obtain a massage business license. 10-217 DEFINITIONS: As used in this Chapter, the terms defined in this Section shall have the following meanings ascribed to them: Health Care Facility: A person, association, business, organization or institution providing medical, surgical, dental, chiropractic, osteopathic or physical therapy services where practitioners are licensed by the State of Minnesota. Massage Therapy: The rubbing, stroking, kneading, tapping or rolling of the body of another with the hands or objects for the exclusive purpose of physical fitness, relaxation, and beautification and for no other purpose. Massage Therapy Business: Any premises in which Massage Therapy is practiced, except a residence of the Massage Therapist that is used only by that Massage Therapist for the practice of Massage Therapy at the residence. 10-218 LICENSE; APPLICATION : Application for a Massage Therapy Business license shall be made on forms provided by the City Clerk. The application shall contain: A. The address of the property to be used; B. The names and addresses of the owner, lessee, if any, and the operator or manager; C. Such other information as the Carver County Sheriff may require for the purposes of conducting a background check. If the application is made on behalf of a corporation or a partnership, it shall be accompanied by appropriate business records showing the names and addresses of all individuals having an interest in the business and, in the case of a corporation, the names and addresses of the officers and shareholders. Applicants shall furnish to the City with their application documents establishing the applicant's interest in the premises on which the business will be located. Documentation shall be in the form of a lease, deed, contract for deed or any other document which establishes the applicant's interest. If the application is by a natural person, it shall be signed and sworn to by such person; if by a corporation, by one of the officers; if by a partnership, by one of the partners; and if by an unincorporated association, by the manager or managing officer thereof. 10-219 LICENSE AND INVESTIGATION FEES: The fee for a license is Fifty Dollars ($50.00). The fee for the required background investigation is Two Hundred and Fifty Dollars ($250.00) The application, investigation, and license fees shall be paid when the application is filed. In the event that the application is denied or if the issued license is revoked, canceled, suspended or surrendered, no part of the license fee shall be returned to the applicant unless by 172793v.3 2 RNK: 10/16/2013 City Council action. A separate license shall be obtained for each place of business. The licensee shall display the license in a prominent place in the licensed business at all times. 10-220 GRANTING OR DENIAL OF LICENSES : License applications shall be reviewed by the Sheriff’s office and Planning Department. The review shall include background checks of the owner(s) and general manager(s) for a license and inspection of the premises covered by the application to determine whether the premises conform to all requirements of this Chapter and the City Code. Licenses shall be granted or denied by the City Council subject to the provisions of this Chapter. 10-221 CONDITIONS GOVERNING ISSUANCE : A. No license shall be issued if the applicant or any of its owners, managers, employees or agents is a person of bad repute. B. Licenses shall be issued only if the applicant and all of its owners, managers, employees and agents are free of convictions for offenses which involve moral turpitude or which relate directly to such person's ability, capacity or fitness to perform the duties and discharge the responsibilities of the licensed activity. C. Licenses shall be issued only to applicants who have not, within seven (7) years prior to the date of application, been denied licensure or who have not within such period had a same or similar license revoked. D. Licenses shall be issued only to applicants who have provided all of the information requested in the application, have paid the full license fee and have cooperated with the City in review of the application. E. If the applicant is a natural person, a license shall be granted only if such person is eighteen (18) years of age or older. [[300,2025,326,2082][12][,I,][Times New Roman]] 10-222 RESTRICTIONS AND REGULATIONS : A. Compliance with Law. The licensee and the persons in its employ shall comply with all applicable regulations and laws of the City and State relating to safety and morals. B. Person in Charge; Manager. If the licensee is a partnership or a corporation, the applicant shall designate a person to be manager and in responsible charge of the business. The manager shall remain responsible for the conduct of the business until another suitable person has been designated in writing by the licensee. The licensee shall promptly notify the Sheriff’s Department in writing of any such change indicating the name and address of the new manager and the effective date of such change. C. Hours. The licensed premises shall not be open for business nor shall patrons be permitted on the premises between the hours of 1:00 a.m. and 6:00 a.m. 172793v.3 3 RNK: 10/16/2013 10-223 REVOCATION AND SUSPENSION OF LICENSE : The license may be revoked, suspended or not renewed by the City Council upon a showing that the licensee has engaged in any of the following conduct: A. Fraud, deception or misrepresentation in connection with the securing of the license. B. Habitual drunkenness or intemperance in the use of drugs, including but not limited to the use of drugs defined in either Federal or State laws, barbiturates, hallucinogenic drugs, amphetamines, benzedrine, dexedrine, or other sedatives, depressants, stimulants, or tranquilizers. C. Conduct contrary to the interests of the public health, safety, welfare or morals. D. Acts demonstrating or involving moral turpitude. E. Failure to fully comply with the requirements of this Chapter. F. Conviction of prostitution or other offense involving moral turpitude by any court of competent jurisdiction. G. Engaging in any conduct which would constitute grounds for refusal to issue a license under this Chapter. SECTION 2. This ordinance shall be effective immediately upon its passage and publication. PASSED AND ADOPTED this ______ day of ____________, 2013 by the City Council of the City of Chanhassen, Minnesota. ATTEST: ________________________________ ________________________________ Todd Gerhardt, Clerk/Manager Thomas A. Furlong, Mayor (Published in the Chanhassen Villager on ________________, 2013). 172793v.3 4 RNK: 10/16/2013 CITY OF f CHANHASSEN 9� H ASS Massage Therapy Business License Application of Each representative of the business shall complete this application. If the owner is an individual, form must be completed by such person; if a corporation, by an officer, if a partnership, by one of the general partners; if an unincorporated association, by the manager or managing officer. Each person serving as a general manager for the business shall also complete an application. Full Name: DOB/ Last First Full Middle Residence Address: Street city State Zip Business Address: Street city State Zip Phone: ( ) Altetnate Phone: ( ) Fax: ( ) Email: Please list any massage businesses owned /operated or worked at by this individual in the past seven (7) years Business Name: Address: Years Owned /Operated (circle one): From (Month) (Year) to (Month) (Year) Please list any current massage business licenses held in the State of Minnesota: City: Business Name: City: Business Name: City: Business Name: Please list any criminal convictions you have: Please provide three character witnesses currently living in the State of Minnesota: Full Name: Last Residence Address: Street Phone: ( ) First Full Middle city State Alternate Phone: ( ) Zip City of Chanhassen Full Name: Last Residence Address: Street Phone: ( ) Full Name: Last Residence Address: Street Phone: ( ) Name of Property Owner Contact: Address: Street Phone: ( ) Fax: ( ) Massage Therapy Business License Application Page 2 First city Alternate Phone: ( ) Full Middle State zip First Full Middle City State Alternate Phone: ( } city Alternate Phone: ( ) Email: zip State zip I have familiarized myself with the Chanhassen City Code Chapter 10 (Massage Business Licensing) and subsequent ordinance amendments pertaining thereto, and will abide by the provisions contained therein. I declare that the information I have provided on this application is truthful and I understand that falsification of answers on this application will result in denial of the application. I authorize the Carver County Sheriffs Office to investigate and make whatever inquiries are necessary to verify the information provided. Applicant's printed name Applicant's signature Date