TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: CITY MANAGER AND CITY ATTORNEY

DATE: OCTOBER 7, 2003

SUBJECT: ORDINANCE AMENDING REGULATIONS APPLICABLE TO THE ISSUANCE OF BUSINESS PERMITS AND THE REGULATION OF MASSAGE ESTABLISHMENTS AND MASSAGE TECHNICIANS OPERATING IN THE CITY

RECOMMENDATION

Read Ordinance No. ___ "AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES REGARDING BUSINESS PERMITS AND REGULATIONS RELATING TO MASSAGE ESTABLISHMENTS AND TECHNICIANS AND AMENDING THE RANCHO PALOS VERDES MUNICIPAL CODE" by title only, waive further reading, and introduce the ordinance.

BACKGROUND

In early 2002, the City began a comprehensive update of its regulations governing massage establishments and massage technicians. Prior to commencing this process, the City’s regulations consisted of the provisions set forth in County of Los Angeles Ordinance No. 5860 ("Ordinance No. 5860") as amended and in effect on September 7, 1973. The City adopted Ordinance No. 5860 by reference after it incorporated in 1973. Although the County subsequently amended its regulations governing massage establishments and massage technicians, the City never adopted those amendments nor modified the regulations. Accordingly, Ordinance No. 5860 was no longer an effective tool for regulating massage establishments and lacked many of the provisions necessary to adequately address the unique concerns presented by these types of businesses.

In addition, the Municipal Code lacked a procedure to issue regulatory business permits. Unlike business licenses, which are a means to tax businesses operating within the City to raise revenue, business permits provide a process for regulating certain types of businesses so that they will not have an adverse impact upon the City and its residents.

Last year, the City explored several alternatives for regulating massage ordinance and ultimately opted to adopt the County’s regulations and permitting procedures by reference and to delegate the administration of the regulations to the County. On February 19, 2002, the City Council adopted Ordinance No. 373, adopting by reference the Los Angeles County Code provisions governing massage establishments and massage technicians, as amended (the Ordinance"). The Ordinance became effective March 21, 2002, and established a comprehensive regulatory scheme to license massage establishments and massage technicians within the City’s borders. On November 19, 2002, the City adopted Ordinance No. 384, which amended the County’s regulations by adding: (i) additional language to remove inherent ambiguities; (ii) a hardship waiver to allow the requirements of the Ordinance to be waived under certain circumstances; and (iii) expressly authorizing the County to administer oral and written tests to verify the credentials of massage technicians.

For the past year, the City has been in the process of securing agreements with the various County departments and/or agencies involved to implement these regulations. However, Staff has concerns that the County may not be able to provide the level of service the City needs. The County’s lack of resources (both funding and personnel) will make it difficult to get applications processed promptly and efficiently. Moreover, City Staff feels the County’s permitting process is overly lengthy and will add significant costs to the application process for massage establishments. The County’s process requires a formal public hearing in front of the Los Angeles County Business License Commission and, at a minimum, takes three to six months to complete. City staff believes it would be in the best interest of the City and its residents if the permitting and regulation of massage establishments and massage technicians were taken over by the City. The attached ordinance would accomplish this transition and would allow the City to implement a regulatory and permitting process more suited to the unique needs of Rancho Palos Verdes.

DISCUSSION

Government Code Section 51030 et seq. allows cities to enact regulatory licensing requirements for massage establishments and persons who provide massage services. The courts have unanimously concluded that operation of a massage establishment is not a fundamental right and may be regulated by laws that are rationally related to permissible governmental goals. The new City ordinance ("Revised Ordinance") would establish comprehensive regulations for massage establishments and massage technicians tailored to Rancho Palos Verdes’ unique needs in order to protect the public health, safety and welfare by: (i) imposing certain operating requirements to ensure that massage establishments maintain a clean and safe environment for providing massage services, and (ii) providing minimum standards for the education, training, and conduct of massage technicians. Compliance with the proposed regulations will reduce any potential negative impacts to the public health, safety and welfare that may result from unregulated individuals engaging in the operation of massage establishments.

The Revised Ordinance would repeal the County regulations and procedures adopted by reference and in their place add new Chapter 5.24 to the Municipal Code. Chapter 5.24 would establish a comprehensive regulatory scheme applicable to all massage establishments and massage technicians doing business within the City. The new regulations would require a permit for all massage establishments, establish specific application requirements (including mandatory background investigations and fingerprinting requirements), and impose operating requirements designed to ensure that all massage establishments operate and maintain a clean environment for providing massage services, limit their hours of operation to reduce potential impacts on neighboring properties, prohibit the sale of food and beverages on site, and employ qualified personnel to provide massage services.

Chapter 5.24 would further require a permit for all persons employed as massage technicians and establish minimum training and education requirements for massage technicians, prescribe acceptable attire, and prohibit physical contact between massage technicians and clients except for contact that meets the definition of massage services.

The new regulations retain the hardship waiver provisions previously added to the County’s regulations to allow the City to waive the regulatory requirements of new Chapter 5.24 if an applicant demonstrates (by evidence reasonably satisfactory to the Assistant City Manager) that the applicant’s facility lacks the physical space to meet the requirements set forth in said sections or that compliance with said requirements would work an undue financial hardship on the person. The hardship waiver provides the City with a mechanism to avoid unanticipated negative impacts to legitimate, existing businesses currently operating within the City and to relieve these businesses, under appropriate circumstances, from the undue hardship of complying with certain requirements of the Ordinance.

The new ordinance would also protect the public health, safety and welfare by ensuring that massage establishments will not conduct activities that fall within the definitions of adult entertainment, as defined in Section 5.10.010. In that regard, the ordinance adds definitions of various types of adult businesses and activities, so that the Code will be clear as to the type of conduct that is classified as an "adult business" and also will be clear that massage establishments cannot conduct adult activities on their premises, and massage technicians cannot perform any activity that falls within those definitions.

In addition to the regulatory provisions, the new ordinance would add a second new chapter to the Municipal Code establishing a procedure for issuing regulatory business permits (Chapter 5.10). This procedure is separate from the business licensing requirements set forth in Chapter 5.04, which were adopted solely to raise revenue for municipal purposes. The measures contained in the proposed new chapter are designed to regulate only those businesses that are subject to the provisions of the chapter. At this point, only massage technicians and massage establishments will be subject to the provisions of Chapter 5.10 and will be required to obtain a regulatory permit. However, Staff anticipates that early next year, amendments will be presented to the City Council that will expand the categories of businesses that will be required to obtain a regulatory permit, which will promote the public health, safety and welfare.

Under the procedures proposed in Chapter 5.10, the Assistant City Manager would issue business permits. Applicants would have the right to appeal any decision of the Assistant City Manager to the City Manager. Upon receipt of an appeal, the City Manager would be required to conduct an informal hearing and render a written decision. Under the proposed process, the decision of the City Manager would be final, and applicants would not have the right to appeal the decision of the City Manager to the City Council. However, any proceedings to modify, revoke or suspend a permit would be conducted by the City Council at a duly noticed public hearing.

CONCLUSION

The proposed ordinance repeals the County regulations adopted under Ordinance No. 373 and Ordinance No. 384 and replaces them with a comprehensive regulatory scheme and business permitting process to be administered by City staff, which is based upon similar regulations in the County and other jurisdictions. Staff recommends that the City Council read Ordinance No. ___ by title only, waive further reading, and introduce the ordinance.

Respectfully submitted,

Les Evans, City Manager Carol Lynch, City Attorney

Attachments: Draft Ordinance

ORDINANCE NO. ___

AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES REGARDING BUSINESS PERMITS AND REGULATIONS RELATING TO MASSAGE ESTABLISHMENTS AND TECHNICIANS AND AMENDING THE RANCHO PALOS VERDES MUNICIPAL CODE.

THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. Chapter 5.08 of Title 5 of the Rancho Palos Verdes Municipal Code is hereby amended by repealing Sections 5.08.060 through 5.08.210, inclusive, in their entirety.

Section 2. Title 5 of the Rancho Palos Verdes Municipal Code is hereby amended by adding new Chapter 5.10 thereto to read as follows:

"Chapter 5.10

BUSINESS AND OCCUPATION PERMITS

Sections:

5.10.010 Definitions.

5.10.020 Permit required for certain businesses.

5.10.030 Permit issuance procedure.

5.10.040 Grounds for denying permit application.

5.10.050 Presentment of permit.

5.10.060 Permit renewal procedure.

5.10.070 Business permit transfers and changes.

5.10.080 Permit modification, suspension and revocation procedure.

5.10.090 Grounds for modifying, suspending or revoking permit.

5.10.100 Conditions of approval.

5.10.110 Refund of fee.

5.10.120 Business license required.

5.10.130 Judicial review.

5.10.010. Definitions.

For the purpose of this chapter, unless it is plainly evident form the context that a different meaning is intended, the following definitions shall apply:

(a) ‘Adult entertainment business’ means any of the following:

(1) Adult arcade. An ‘adult arcade’ means any place to which the public is permitted or invited wherein coin-operated, slug-operated, or for any form of consideration, electronically, electrically, or mechanically controlled still or motion picture machines, projectors, computers, video or laser disc players, or other image-producing devices are maintained to show images to five (5) or fewer persons per machine at any one time, and where the images so displayed are distinguished or characterized by the depicting or describing of specified sexual activities or specified anatomical areas.

(2) Adult bookstore, adult novelty store or adult video store. An ‘adult bookstore,’ ‘adult novelty store,’ or ‘adult video store’ means an establishment which as a regular and substantial course of conduct offers for sale, rent, or viewing for any form of consideration either adult entertainment material, adult entertainment merchandise, or both. A commercial establishment may have other business purposes that do not involve the offering for sale or rental of adult entertainment material and/or adult entertainment merchandise and still be categorized as an adult bookstore, adult novelty store, or adult video store. Such other business purposes will not serve to exempt such commercial establishments from being categorized as an adult bookstore, adult novelty store, or adult video store so long as the establishment offers for sale, rent or viewing as a regular and substantial course of conduct either adult entertainment material, adult entertainment merchandise, or both.

(3) Adult cabaret. An ‘adult cabaret’ is an establishment that serves food or beverages and that, for any form of consideration, as a regular and substantial course of conduct presents:

(A) persons who appear nude or semi-nude; or

(B) live performances which are characterized by specified sexual activities.

(4) Adult Model Studio. An ‘adult model studio’ means a business which provides, for any pecuniary compensation, monetary or other consideration, hire or reward, figure models who, for the purposes of sexual stimulation of patrons, display specified anatomical areas to be observed, sketched, drawn, painted, sculptured, photographed, or similarly depicted by persons paying such consideration. ‘Adult model studio’ does not include schools maintained pursuant to standards set by the State Board of Education.

(5) Adult motel. An ‘adult motel’ means a hotel, motel or similar commercial establishment which:

1. Offers accommodations to the public for any form of consideration; provides patrons with closed-circuit television transmissions, films, motion pictures, video cassettes, slides, or other photographic reproductions which are characterized by the depiction or description of specified sexual activities or specified anatomical areas; and has a sign visible from the public right of way which advertises the availability of this adult type of photographic reproductions; or
2. Offers a guest/sleeping room for rent for a period of time that is less than ten hours; or
3. Rents, leases or lets any single guest/sleeping room more than twice in any twenty-four hour period;
4. Allows a tenant or occupant of a sleeping room to sub-rent the room for a period of time that is less than ten hours.

(6) Adult motion picture theater. An ‘adult motion picture theater’ is an establishment which, for any form of consideration, as a regular and substantial portion of conduct, offers films, computer-generated images, motion pictures, video cassettes, slides, or other photographic reproductions to six or more persons which are characterized by an emphasis upon specified sexual activities or the exposure of specified anatomical areas.

(7) Adult theater. An ‘adult theater’ is an establishment which regularly features persons who appear nude or semi-nude, or presents live performances that are characterized by an emphasis upon specified sexual activities.

(8) Sexual Encounter Center. A ‘sexual encounter center’ means a business or commercial enterprise that, for any form of consideration, as one of its principal business purposes, offers either of the following:

(A) Physical contact in the form of wrestling or tumbling between persons of the opposite sex; or

(B) Activities between male and female persons and/or persons of the same sex when one or more of the persons is nude or semi-nude.

(9) Other. Any business or establishment that, for any form of consideration, as a regular and substantial portion of conduct, offers to its patrons products, merchandise, services or entertainment characterized by an emphasis upon specified sexual activities or the exposure of specified anatomical areas.

(b) ‘Adult entertainment material’ means any book, periodical, magazine, photograph, drawing, sculpture, motion-picture film, videotape recording, or other visual representation, characterized by an emphasis upon specified sexual activities or the exposure of specified anatomical areas.

(c) ‘Adult entertainment merchandise’ means adult entertainment implements or paraphernalia, such as, but not limited to: dildos; auto sucks; vibrators; edible underwear; benwa balls; inflatable orifices; anatomical balloons with orifices; simulated vaginas and similar adult entertainment devices that are designed or marketed primarily for the stimulation of human genital organs or sadomasochistic activity.

(d) ‘Characterized by an emphasis upon’ means the dominant or essential theme of the object described by such phrase.

(e) ‘Constitutionally protected expressive activity’ means any activity protected by the First Amendment to the United States Constitution or Article 1, Section 2 of the California Constitution.

(f) ‘Director’ means the assistant city manager or his or her designee.

(g) ‘Entertainer’ means a person who, for any form of consideration, performs at an adult entertainment business. Such persons shall constitute ‘entertainers’ regardless of their legal relationship (e.g., employee, owner or independent contractor) with the adult entertainment business.

(h) ‘Massage establishment’ means any place of business where any person engages in, conducts, or carries on, or permits to be engaged in, conducted or carried on, any business of giving a massage.

(i) ‘Massage’ and ‘massage services’ means and includes any method of treating the external parts of the human body for remedial, health or hygienic purposes by means of pressure on or friction against, or stroking, kneading, rubbing, tapping, pounding, manipulation, or stimulating the external parts of the body, with or without the aid of any mechanical or electrical apparatus or appliances, and with or without supplementary aids such as water, rubbing alcohol, liniments, antiseptics, oils, powder, creams, lotions, ointments, or other similar preparations.

‘Massage’ and ‘massage services’ shall further include any bath, shower, electric tub, sponge bath, facial massage, fomentations, massage, electric or magnetic treatment, acupressure, shiatsu, alcohol rubs, and Russian, Swedish, Japanese or Turkish baths.

(j) ‘Massage technician’ or ‘masseuse’ means any person who administers to another person, for any form of consideration, massage or massage services. ‘Massage technician’ shall include a student at a recognized school of massage who administers a massage to any person for payment whether the payment is received by the student, school, or a massage establishment. A ‘massage technician’ also includes any person hired or employed by a person or facility listed in Section 5.24.310 of this title to administer a ‘massage’ or provide ‘massage services,’ unless the massage technician also is included within one of the exceptions specified in Section 5.24.310.

(k) ‘Nude,’ ‘nudity,’ or a ‘state of nudity’ means the showing of the human male or female genitals, pubic area, vulva, anus, anal cleft or cleavage with less than a fully opaque covering, the showing of the female breast with less than a fully opaque covering of any part of the nipple, or the showing of the covered male genitals in a discernibly turgid state.

(l) ‘Permittee’ means any person with a permit to operate a massage business or to work as a massage technician.

(m) ‘Person’ means any individual, firm, business, partnership, corporation, cooperative, company, association, joint stock association, church, religious sect, religious denomination, society, organization, or league and shall include any trustee, receiver, assignee, agent, solicitor, or other similar representative thereof.

(n) ‘Recognized school of massage’ means any school or institution of learning which teaches the theory, ethics, practice, profession, or work of massage, which has been approved pursuant to the California Education Code. A school offering a correspondence course not requiring attendance shall not be deemed a recognized school. The city shall have a right to confirm that the applicant has actually attended class in a recognized school.

(o) ‘Regular and substantial course of conduct’ and ‘regular and substantial portion of business’ means that any of the following conditions exist:

(1) At least twenty percent (20%) of the stock-in-trade is devoted to adult entertainment material, adult entertainment merchandise, or both; provided, however, that this criteria shall not apply to mail order businesses or wholesale businesses with no patrons on the premises.

(2) At least twenty percent (20%) of the total display area is devoted to adult entertainment material, adult entertainment merchandise, or both; provided, however, that this criteria shall not apply to mail order businesses or wholesale businesses with no patrons on the premises.

(3) The business presents any type of entertainment, live or otherwise, characterized by an emphasis on specified sexual activities or featuring any nude or semi-nude person on any four (4) or more separate days within any thirty (30) day period.

(4) At least twenty percent (20%) of the gross receipts of the business are derived from the sale, trade, rental, display or presentation of services, products, materials or entertainment which is characterized by an emphasis on specified sexual activities or the exposure of specified anatomical areas.

(p) ‘Semi-nude’ means a state of dress in which clothing covers no more than the genitals, pubic region, buttocks, areola and nipple of the female breast, as well as portions of the body covered by supporting straps or devices.

(q) ‘Show’ includes a carnival, tent show, or show in the open air, or in a hall or building not specifically constructed for theatrical purposes.

(r) ‘Solicitor’ means a person engaged in soliciting as it is defined in Section 5.20.010 of this title. Any person exempt from the permit requirements in Chapter 5.20 of this title, by virtue of Section 5.20.030, is exempt from the definition of solicitor in this section and in this chapter.

(s) ‘Specified anatomical areas’ means the following:

(1) Less than completely and opaquely covered human (i) genitals or pubic region; (ii) buttocks; and (iii) female breast below a point immediately above the top of the areola;

(2) Human male genitals in a discernibly turgid state, even if completely and opaquely covered;

(3) Any device, costume or covering that simulates any of the body parts included in subparagraphs (1) or (2) above.

(t) ‘Specified criminal activity’ means any of the following offenses:

(1) Prostitution or promotion of prostitution; dissemination of obscenity; sale, distribution or display of harmful material to a minor; sexual performance by a child; possession or distribution of child pornography, public lewdness; indecent exposure; indecency with a child; engaging in organized criminal activity; sexual assault; molestation of a child; gambling; distribution of a controlled substance; or any similar offenses to those described above under the criminal or penal code of other states or countries;

(2) For which:

(A) Less than two years have elapsed since the date of conviction or the date of release from confinement imposed for the conviction, whichever is the later date, if the conviction is of a misdemeanor offense;

(B) Less than five years have elapsed since the date of conviction or the date of release from confinement for the conviction, whichever is the later date, if the conviction is of a felony offense; or

(C) Less than five years have elapsed since the date of the last conviction or the date of release from confinement for the last conviction, whichever is the later date, if the convictions are of two or more misdemeanor offenses or combination of misdemeanor offenses occurring within any 24-month period.

(3) The fact that a conviction is being appealed shall have no effect on the disqualification of the applicant or a person residing with the applicant.

(u) ‘Specified sexual activities’ means the following, whether performed directly or indirectly through clothing or other covering:

(1) The fondling or other erotic touching of human genitals, pubic region, buttocks, anus, or female breast;

(2) Sex acts, actual or simulated, including intercourse, oral copulation, or sodomy;

(3) Masturbation, actual or simulated;

(4) Excretory functions as part of, or in connection with, any of the other activities described in subparagraphs (1) through (3) of this paragraph.

5.10.020. Permit required for certain businesses.

(a) No person shall commence, conduct or purport to commence or conduct, the following business activities within the boundaries of the City of Rancho Palos Verdes without possessing a valid business permit issued pursuant to this chapter:

1. Massage establishment.*
2. Massage technician.*

* indicates the applicant is required to be fingerprinted by the Los Angeles County Sheriff’s Department.

(b) No person may advertise or announce a business activity located in the City of Rancho Palos Verdes for which a business permit is required by this Code until her or she has obtained a business permit, when required by this Code. For the purposes of this chapter, ‘advertising’ or ‘announcement’ includes, but is not limited to, disseminating pamphlets or handbills, publishing newspaper announcements, and broadcasting advertisements on radio, television, the Internet, or by any other communication device.

(c) When any person is engaged in more than one business activity for which a business permit is required in a single location, that person shall be deemed to be conducting each business activity separate and apart from each other business activity even if the separate business activities constitute a single business.

(d) No business permit issued by the city pursuant to this chapter shall be construed as authorizing any business activity that is prohibited under the laws of the United States or the state of California, the federal and state constitutions, this code, or any other applicable law, ordinance, rule or regulation. Any such business permit shall be void.

(e) The director shall keep all applications and related records for business permits under this chapter.

5.10.030. Permit issuance procedure.

(a) Application. Applications for business permits shall be filed with the director and shall comply with the following requirements:

(1) Applications shall be filed a minimum of fifteen (15) calendar days prior to the date requested for issuance of the permit.

(2) Applications shall be accompanied by a fee in an amount prescribed by resolution of the city council.

(3) Applications shall be completed on a form designated by the city, and shall be signed by the applicant under penalty of perjury.

(4) The applicant shall authorize the city, its agents and employees to seek information and conduct an investigation into the truth of the statements set forth in the application.

(5) The applicant shall obtain all other required permits or approvals from the city, including, but not limited to, a business license pursuant to the provisions of Chapter 5.04 of this Title, prior to or contemporaneously with submitting the application to the director.

(b) Contents of Application Form and Renewal Application Form. Applications for business permits and renewal application for business permits shall contain the following information:

(1) Identification of the applicant, including the name of the business and the name of all owners of the business. Where the applicant is a corporation, association, partnership, limited partnership or other legal entity, "applicant" shall mean each partner, officer, director, and each shareholder owning or controlling more than ten percent of such entity. Rules and regulations governing the procedure for fingerprinting and photo identification, where such fingerprinting and photo identification is required by an application for a particular business permit, shall be established by the Los Angeles County Sheriff’s department, license detail. A business permit may be issued to a corporation or to a person operating under a fictitious name who has complied with all of the applicable provisions of the Business and Professions Code of this state. In all other cases, a business permit must be obtained in the true name of the individual, or individuals, so applying;

(2) A complete description of the business activity proposed to be operated, and the location of such proposed business activity, including the address, telephone number and zone;

(3) The name(s), address(es) and telephone number(s) of the property owner(s);

(4) The previous use of the property or business, the length of time the building was vacant, and whether there are existing signs on the building;

(5) Any changes in signage proposed by the applicant;

(6) The number of parking spaces and handicap spaces;

(7) The presence and type of landscaping;

(8) The presence of trash enclosures;

(9) The number of employees;

(10) The date the business is expected to open;

(11) The proposed hours of operation; and

(12) Any additional information required for the permitting of a particular business when such additional information is specifically required pursuant to other provisions of Title 5.

(c) Review by director.

(1) An application that is not complete shall be returned to the applicant along with a list of the deficiencies within fifteen (15) calendar days of receipt of the application. The application shall be deemed abandoned if, within ten (10) calendar days from the first class mailing of any notice from the city, the application is not received by the city with all of its defects entirely corrected. As a courtesy to the applicant, upon request of the applicant, the director shall grant the applicant an extension of time of ten (10) business days to complete the application properly. The time period for granting or denying the requested permit shall be stayed during the period in which the applicant is granted an extension of time. Unless the applicant requests an extension of time pursuant to this subsection, nothing in this paragraph (1) shall be construed to relieve the director of the duty to make a decision within the time limits set forth in subsection (d) of this section.

(2) Once a completed application is filed, and the applicant pays the prescribed fee, the director shall initiate an investigation of facts for each business permit application with the appropriate city and county agencies designated to review such applications. This departmental review process shall ensure that the action on each business permit application is consistent with the intent and purpose of this title. Upon completion of the investigation, the director shall review, and either approve or deny, the application. If the application is denied, the grounds for denial shall be based upon the provisions of Section 5.10.060 of this chapter, and the director shall attach to the notice a statement of the reasons for the denial. Notice of the director’s decision shall be mailed by certified or registered mail or personally delivered to the applicant within three (3) business days of the date of the decision. For businesses involving constitutionally protected expressive activities, the decision to approve or deny the application shall be made within fifteen (15) calendar days after the filing of a completed application. For business activities that do not involve constitutionally protected expressive activities, the decision to approve or deny the application shall be made within thirty (30) calendar days after the filing of the completed application. The time periods specified herein shall not be extended except upon the written consent of the applicant.

(d) Appeal of director’s decision.

(1) Within thirty (30) calendar days after the date of the director’s decision, any interested person may appeal the decision to the city manager. The appeal shall set forth the ground(s) for the appeal and shall be accompanied by an appeal fee in an amount prescribed by resolution of the city council. A timely appeal accompanied by the required fee shall automatically entitle the aggrieved party to a hearing before the city manger.

(2) The hearing shall be held and action taken not less than fourteen (14) days nor more than thirty (30) calendar days after the timely filing of a complete appeal, unless the applicant requests an extension.

(3) Notice of the hearing shall be given at least ten (10) calendar days prior to the hearing in the following manner:

(A) Notice of the appeal hearing shall be posted in city offices in accordance with the City’s standard procedures for posting agendas and notices and shall include the time, place and date set for hearing as well as the business activity proposed to be operated, and the location of operation of such proposed business activity.

(B) Notice of the appeal hearing shall be posted on the site where the proposed business activity is to be located and upon the street on which the proposed business activity is to be located. Such notice shall include the information specified in subsection (d)(3)(A) of this section.

(C) Notice shall be mailed, postage prepaid by the appellant, to the owners and tenants of the properties within a radius of five hundred feet of the exterior boundaries of the property involved in the application. For this purpose, the appellant shall provide a radius map, a mailing list and mailing labels that include the last known name and address of such owners as obtained from the last equalized assessment roll or from such other records of the county assessor or tax collector that contain more recent addresses. The appellant shall sign an affidavit verifying the authenticity and accuracy of the list.

(4) At the time set for the hearing, or at the date to which the hearing may be continued, the city manager shall hear the applicant, who may present any facts to show why the permit should be granted, and shall hear testimony from all other interested persons who attend the hearing to present reasons why the permit should or should not be granted. Any interested person, at any time after the filing of the appeal and before the close of the public hearing regarding such appeal, may file with the city clerk written letters of support or protest, for or against the granting of such application. Any interested person, including the applicant, has the right to be represented by legal counsel at the hearing. The city manager, in considering the application and the appeal, shall give consideration to all relevant documents filed and all relevant testimony given at the hearing.

(5) Within seven (7) calendar days after the conclusion of the hearing, the city manger shall adopt and issue a written decision approving or denying an application for business activities involving constitutionally protected expressive activities. For business activities which do not involve constitutionally protected expressive activities, the city manger shall adopt and issue a written decision approving or denying an application within thirty (30) calendar days after the conclusion of the hearing. Any decision to deny a permit application shall be based on the grounds set forth in Section 5.10.040 of this chapter. Notice of the city manager’s decision shall be mailed by certified or registered mail or personally delivered to the applicant.

(6) The decision of the city manager shall be final.

(e) Issuance of Permit. The operative date for a business permit shall be the date of final approval of the application by the director or city manager.

(f) Information required to be updated. The applicant is required to notify the director of any change in facts or information presented in the application within ten (10) calendar days after such change.

(g) Denial of Permit. If an applicant’s business permit application for a particular business activity has been denied, the director shall not process a new application by that applicant for that business activity for a one year period after the denial unless the director or city manager, at the time of the denial, states that the denial was without prejudice to the applicant’s right to file another application within the one year period or unless the director determines that the reason for the denial has been cured and no longer exists.

5.10.040 Grounds for denying permit application.

(a) Business Activities Involving Constitutionally Protected Expressive Activities. The city manager or director, shall approve a business permit application for business permit activities involving constitutionally protected expressive activities, or applications to manage such activities, unless any of the following findings are made:

1. The applicant has failed to complete the application.
2. The building, structure, premises, or the equipment used to conduct the business activity, fails to comply with all applicable health, zoning, fire, building and safety laws of the state of California or the city;
3. The applicant has knowingly made any false, misleading or fraudulent statement of material fact in the application for the business permit or in any report or statement required to be filed with the director or the city; or
4. The business is prohibited by any law, statute, rule or regulation, or prohibited in the particular location or zone by any law, statute, rule, or regulation.

(b) Business Activities Not Involving Constitutionally Protected Expressive Activities. The city manager or director shall approve a business permit application for business activities not involving first amendment activities, or applications to manage such activities, unless any of the following findings are made;

1. The applicant has failed to complete the application.
2. The building, structure, premises, or the equipment used to conduct the business activity, fails to comply with all applicable health, zoning, fire, building and safety laws of the state of California or the city;
3. The applicant has knowingly made any false, misleading or fraudulent statement of material fact in the application for the business permit or in any report or statement required to be filed with the director or the city;
4. The business is prohibited by any law, statute, rule or regulation, or is prohibited in the particular location or zone by any law, statute, rule, or regulation;
5. The applicant is found to have committed a crime involving moral turpitude that is substantially related to the business activity for which the permit is being sought;
6. The applicant, his or her agent or employee, or any person connected or associated with the applicant as partner, director, officer, stockholder, associate or manager, has committed, assisted in, or incited the commission of any act, or act of omission, which would be grounds for disciplinary action under this chapter if committed by a permittee;
7. The applicant has been subject to enforcement actions by another governmental agency in connection with his or her operation of a similar business activity for which the permit is being sought; or
8. The establishment of the business will be detrimental to the public health, safety or welfare of the community.

5.10.050 Presentment of permit.

(a) Posting. Every person required to have a business permit pursuant to the provisions of this chapter and who conducts, manages or carries on a business activity at a fixed location shall keep that valid original permit issued to the applicant posted and exhibited in a place of public view in the business.

(b) Carrying. Every person required to have a business permit pursuant to the provisions of this chapter and not having a fixed place of business shall carry the valid original permit issued to the applicant at all times when conducting the business activity for which such permit was issued.

(c) Presentation on Demand. Every person required to have a business permit pursuant to the provisions of this chapter shall produce and exhibit the permit when requested by any city official authorized to issue, inspect or collect permits and permit fees, or authorized to enforce the provisions of this chapter or of this code.

(d) Lost or Stolen Permits. A permittee must report the loss or theft of any permit to the director, whether in the form of a sticker, tag, card or paper, or otherwise. The director shall issue the permittee a duplicate permit and shall cancel the lost or stolen permit upon the payment of a prescribed fee.

5.10.060 Permit renewal procedure.

(a) Except as otherwise provided in this title, all business permits shall be issued for one year and must be renewed annually. Renewal permit applications, along with payment of the fee, shall be filed with the director a minimum of thirty (30) calendar days prior to expiration of any existing permit. When an applicant submits a timely business permit renewal application pursuant to this paragraph, if renewed, the permit shall be effective upon the expiration of the old permit.

(b) The director may accept an application for renewal after the time specified in subsection (a) of this section, if it is filed not later than sixty (60) calendar days after the expiration of the existing permit and the director finds that a serious illness that required hospitalization or confinement to bed, or other unforeseen and extraordinary circumstances, prevented a timely renewal application from being filed. When an application is submitted pursuant to this section, the fee shall be equal to the renewal fee established by resolution of the city council plus a late penalty of twenty-five percent thereof. Such application shall give the applicant no greater rights than the filing of an application for a new permit. If an applicant fails to submit a timely application, or if the director does not find that circumstances existed to justify the late filing of an application for renewal pursuant to this subsection, then the applicant shall cease operation of the business activity immediately.

(c) Except as otherwise provided for in this section, the director shall not accept a renewal application for a permit which has expired, or which for any other reason is not in full force and effect, at the time the application submitted. The applicant may apply for a new permit if not prohibited from doing so by any other provision of this chapter, accompanied by the required fee for a new permit.

(d) Notwithstanding any other provisions of this section, the director shall review a business permit renewal application in the manner prescribed in Section 5.10.030(c) of this chapter if the city has received a request for such review from one of the departments or officers of the city. Any interested person may appeal the director’s decision to the city manager in the manner prescribed in Section 5.10.030(d) of this chapter.

5.10.070 Business permit transfers and changes.

(a) Transfers of Ownership. A new business permit is required whenever there is a transfer in ownership of a business that is required to have a permit issued under Section 5.10.020 of this chapter. If there is no change in the nature or scope of business or in the business location, and if the previous owner has a valid business permit at the time of transfer, the new permit shall be issued upon filing of a complete application and payment of all required fees and taxes. For the purposes of the previous sentence, the director may issue a new permit even without obtaining the concurrence of other agencies. However, if the original business permit application process required the business owner or manager to be fingerprinted and/or a background investigation to be conducted, then the new business owner or manager must also be fingerprinted and the new permit shall be subject to the sheriff’s concurrence following a background investigation. The following transactions shall be considered transfers:

(1) The addition or withdrawal of a new partner or partners;

(2) The transfer of a business from one partnership to another;

(3) The transfer of a business from a partnership to a corporation;

(4) The transfer of a business from one corporation to another;

(5) The transfer of a business from a corporation to a partnership;

(6) The transfer of a business from a corporation to an individual, or vice versa, unless the corporation and the individual are the same person;

(7) The transfer of a business from a partnership to an individual, or vice versa; or

(8) The transfer of a majority share of stock in a corporation from one shareholder to another.

(b) Change of Name. A new business permit is required whenever there is a change of name of a business that is required to have a permit under Section 5.10.020 of this chapter. If there is no transfer of ownership or change in the nature or scope of business or in the business location and if the permittee operating under the previous name has a valid business permit at the time of the change of name, the new permit shall be issued upon filing of a complete application and payment of all required fees and taxes. For the purposes of the previous sentence, the director may issue a new permit without obtaining the concurrence of other agencies.

(c) Change of Location. A new business permit is required whenever there is a change in location of a business that is required to have a permit under Section 5.10.020 of this chapter.

(d) Change in Business. A new business permit is required whenever there is a change in the nature or scope if the business that is required to have a permit pursuant to Section 5.10.020.

(e) Report to Director. A permittee shall notify the director of any transfer in ownership, change of name, change of location, or change in the nature or scope of the business within ten (10) calendar days after such transfer or change.

5.10.080 Permit modification, suspension and revocation procedure.

Any permit issued by the director or city manager under this chapter may be modified, suspended or revoked for cause by the city council pursuant to this section.

(a) A public hearing to determine whether or not an existing permit should be modified, suspended or revoked shall be initiated by a written statement of charges. Such statement may be initiated by any department of the city or any agency required to review or inspect the permitted activity for compliance with city regulations. Such statement shall be submitted to the director.

(b) If the director determines that the charges demonstrate that there may be an adverse impact of the business on the public health, safety or welfare, notice of the public hearing on the charges shall be given at least ten (10) calendar days prior to the hearing in the following manner:

(1) Notice of the public hearing shall be posted in the manner required by law and shall include the time, place and date set for hearing as well as the business activity proposed to be operated, and the location of operation of such proposed business activity.

(2) Notice of the public hearing shall be posted on the site on which the proposed business activity is to be located and upon the street on which the proposed business activity is to be located. Such notice shall include the information specified in subsection (d)(3)(A) of this section.

(3) Notice of the public hearing shall be mailed by certified or registered mail or personally delivered to the permittee. Notice of the public hearing shall also be mailed to the owners and tenants of the properties within a radius of five hundred feet of the exterior boundaries of the property involved in the application.

(c) At the public hearing, the permittee or legal representative of the permittee shall have the right to bring witnesses to testify on his or her behalf. Hearings need not be conducted according to technical rules relating to evidence and witnesses.

(d) Within thirty (30) calendar days after the conclusion of the public hearing, the city council shall adopt and issue a written decision. The decision shall contain a determination of the issues presented. Any decision to modify, suspend or revoke a permit shall be based on the grounds set forth in Section 5.10.090 of this chapter. Notice of the city council’s decision shall be mailed by certified or registered mail or personally delivered to the permittee.

(e) Whenever a permit is suspended or revoked by the city council, the director or Los Angeles County Sheriff shall take into possession the business permit for the subject business activity. The permittee shall surrender the business permit, permit stickers, or similar evidence of a permit to the director or to the Los Angeles County Sheriff. No business permit fee refunds shall be issued to any permittee upon suspension or revocation of a business permit.

(f) Upon revocation or suspension of a business permit, the permittee shall cease operation of the business activity immediately. Except as otherwise provided, in the event that the permit is suspended, the permittee may resume operation once the suspension period has expired.

(g) Upon revocation of any business permit under this chapter, no business permit to operate the same business activity shall be granted to the same person within one year after such revocation.

5.10.090 Grounds for modifying, suspending or revoking permit.

(a) Businesses Involving Constitutionally Protected Expressive Activities. The city council may modify, suspend or revoke a business permit for any business activity involving first amendment activities if the city council finds that one or more of the following conditions exist:

(1) The building, structure, premises or equipment used to conduct the business activity fails to comply with any applicable health, zoning, fire, and building and safety laws of the state of California or the city;

(2) The permittee has knowingly made any false, misleading or fraudulent statement of material fact in the application for a business permit, or in any report or statement required to be filed with the director or the city;

(3) The permittee, permittee’s employees, agents or manager has violated any statute or any provision of this Code resulting from any act performed in the exercise of any rights permitted by the issuance of the permit that is being considered for modification, suspension or revocation;

(4) The permittee, permittee’s employees, agents or manager, has violated any provision of federal or state law or any provision of this Code or any other rule or regulation on the business premises or relating to the permitted activity;

(5) The permittee, permittee’s employees, agents or manager has published, uttered or disseminated any false, deceptive or misleading statements or advertisements in connection with the permitted business;

(6) The permittee has failed or refused to notify the director of any change in facts as required by this chapter within ten (10) calendar days after such change;

(7) The permittee, permittee’s employees, agents or manager has violated any conditions or restrictions imposed on the permit; or

(8) The permittee, permittee’s employees, agents or manager has permitted, allowed or failed to prevent the use of the business as a base or magnet for unlawful or criminal activity, including, but not limited to, prostitution and drug trafficking.

(b) Businesses Which Do Not Involve Constitutionally Protected Expressive Activities. The city council may modify, suspend or revoke a business permit for any business activity not involving first amendment activities if the city council finds that one or more of the following conditions exist:

(1) The building, structure, premises or equipment used to conduct the business activity fails to comply with any applicable health, zoning, fire, and building and safety laws of the state of California or the city;

(2) The permittee has knowingly made any false, misleading or fraudulent statement of material fact in the application for a business permit, or in any report or statement required to be filed with the director or the city;

(3) The permittee, permittee’s employees, agents or manager has violated any statute or any provision of this Code resulting from any act performed in the exercise of any rights permitted by the issuance of the permit that is being considered for modification, suspension or revocation;

(4) The permittee, permittee’s employees, agents or manager, has violated any provision of federal or state law or any provision of this Code or any other rule or regulation on the business premises or relating to the permitted activity;

(5) The permittee, permittee’s employees, agents or manager has published, uttered or disseminated any false, deceptive or misleading statements or advertisements in connection with the permitted business;

(6) The permittee has failed or refused to notify the director of any change in facts as required by this chapter within ten (10) calendar days after such change;

(7) The permittee, permittee’s employees, agents or manager has violated any conditions or restrictions imposed on the permit;

(8) The permittee, permittee’s employees, agents or manager has been found to have committed a crime of moral turpitude that bears a substantial relationship to the conduct of the business activity;

(9) The permittee, permittee’s employees, agents or manager has been held liable or convicted of any offense involving the maintenance of a nuisance resulting from any act performed in the exercise of any rights permitted by the issuance of the permit;

(10) The permittee, permittee’s employees, agents or manager has violated any rule or regulation adopted by the city or any other governmental agency relating to the permittee’s business; or

(11) The permittee, permittee’s employees, agents or manager has conducted the permitted business in a manner contrary to the peace, health, safety and the general welfare of the public, including, without limitation, by allowing or failing to prevent the use of the business as a base or magnet for unlawful or criminal activity.

(c) Automatic Suspension Upon Lapse of Insurance. Whenever an applicant for any business permit is required to procure, post or maintain in effect any bond, undertaking, deposit, surety or policy of insurance, any business permit so issued is good only while such bond, undertaking, deposit, surety or policy of insurance is in full force and effect. The permit shall automatically be suspended without notice if at any time such bond, undertaking, deposit, surety or policy of insurance is not in full force and effect. The director shall notify the permittee in writing of any suspension pursuant to this section. Within ten (10) calendar days after the date of such notice, the permittee may request in writing a hearing before the city council. The city council shall hold a public hearing in a manner consistent with Section 5.10.080(b) of this chapter, and as indicated by the evidence received at the hearing, may modify or revoke the permit or terminate the suspension and restore the permit. If the permittee does not request a hearing, the permit is automatically revoked at the end of ten (10) calendar days following the notification of suspension.

5.10.100 Conditions of approval.

(a) The director or city council may condition any business permit if it finds that grounds for denial, modification, suspension or revocation of a business permit exist or that the manner in which the business has been conducted or operated is detrimental to the public health, safety and welfare in that:

(1) The permittee, the permittee’s agent, manager or employees has failed to maintain the premises in a neat and clean condition and have allowed the business premises to deteriorate and become blighted;

(2) The permittee, the permittee’s agent, manager or employees has allowed, or failed to prevent, the business premises to be used by its patrons as a magnet for criminal or otherwise unlawful activity;

(3) The permittee, the permittee’s agent, manager or employees has allowed or failed to discourage criminal or otherwise unlawful activity to occur on or immediately adjacent to the business premises;

(4) The permittee, the permittee’s agent, manager or employees has failed to provide adequate parking to serve the volume of patrons it generates, thus causing patrons to cruise on neighborhood streets, looking for parking, and causing other traffic related noise and disturbances; or

(5) The permittee, the permittee’s agent, manager or employees has failed to control the actions of the businesses’ patrons in and immediately adjacent to the business premises.

(b) Additional Conditions.

(1) Businesses Involving Constitutionally Protected Expressive Activities. The director or city council may impose conditions on the permit for any business activity involving first amendment activities if the director or city council finds that one or more of the conditions in Section 5.10.090(a) of this chapter exist.

(2) Businesses Which Do Not Involve Constitutionally Protected Expressive Activities. The director or city council may impose conditions on the permit as are reasonably necessary to protect the peace and tranquility of any residential area, mitigate traffic impacts, protect other uses in the area, and protect the public health, welfare and safety. Any person issued a permit pursuant to this chapter shall comply with all conditions that are imposed on the permit. Any violation of the conditions of approval is a misdemeanor and is subject to the penalties set forth in Section 1.08.010 of this code.

(c) Whenever the director or city council determines that unannounced inspections of the business premises are necessary to enforce the provisions of this chapter, it may impose as a condition of the permit that the applicant’s or permittee consent to entry of the applicant’s or permittee’s place of business at all reasonable times by any city officer or employee authorized to enforce the provisions of this chapter or this code. Upon presentation of proper credentials by any such officer or employee, the applicant or permittee shall comply with such inspection.

(d) Whenever the director or city council determines that noise from any establishment permitted under this chapter interferes with the right of persons dwelling in the vicinity of such establishment to the peaceful and quiet use and enjoyment of their property, or that the establishment permitted under this chapter is in violation of applicable noise ordinances it may impose as a condition of the permit that the premises of the business activity be soundproofed to eliminate the noise or reduce it to a reasonable and lawful level. In imposing a condition under this section, the director or city council must balance all of the interests of the respective parties, as well as the hardship that will result from the condition. If the director or city council finds that the noise complained of is of a minimum or inconsequential degree, no action shall be taken under this paragraph.

(e) The director or the city council may change, modify or eliminate any conditions previously placed on a permit upon written request of the permittee if it finds that the reasons for the original imposition of such conditions have been cured or no longer exist. Applications to change conditions shall be noticed and set for public hearing in a manner consistent with Section 5.10.030(d) of this chapter, if the condition(s) was imposed after a duly noticed public hearing. The Los Angeles County Sheriff’s license detail shall be notified of any such applications.

5.10.110 Refund of fee.

Unless otherwise stated in Title 5, the fee for filing any application for a permit or renewal of a permit shall be nonrefundable.

5.10.120 Business license required.

Nothing in this Article shall be construed to relieve any person from complying with the requirements of Chapter 5.04 of this Title regarding business licenses and taxes.

5.10.130 Judicial review.

(a) Any interested party may seek judicial review of a final city decision regarding a permit or license in accordance with the provisions of Sections 1085, 1094.5, et seq., of the California Code of Civil Procedure, and any claim filed in connection therewith, as is applicable to the particular case.

(b) Any interested party may seek judicial review of a final city decision regarding the issuance, revocation, suspension, or denial of a permit or license for an activity protected by the First Amendment of the United States Constitution in accordance with the terms and procedures provided by Section 1094.8 of the California Code of Civil Procedure."

Section 3. Title 5 of the Rancho Palos Verdes Municipal Code is hereby amended by adding new Chapter 5.24 thereto to read as follows:

"CHAPTER 5.24

MASSAGE ESTABLISHMENTS AND TECHNICIANS

ARTICLE 1. MASSAGE ESTABLISHMENTS.

5.24.010 Effect of adult entertainment activities.

5.24.020 Permit required.

5.24.030 Definitions.

5.24.040 Additional information required for application.

5.24.050 Additional criteria for issuance or denial of permit.

5.24.060 Operating requirements.

5.24.070 Permit nontransferable.

ARTICLE 2. MASSAGE TECHNICIANS.

5.24.200 Permit required.

5.24.210 Additional information required for application.

5.24.220 Verification of applicant qualifications.

5.24.230 Additional criteria for issuance or denial of permit.

5.24.240 Operating requirements.

ARTICLE 3. GENERAL REQUIREMENTS.

5.24.300 Grounds for modification, revocation or suspension of permit.

5.24.310 Exemptions.

5.24.320 Hardship waiver.

ARTICLE 1. MASSAGE ESTABLISHMENTS.

5.24.010 Effect of adult entertainment activities.

Any permittee who provides or allows to be provided any services which fall within any of the categories of "adult entertainment business," as defined in Section 5.10.010 of Chapter 5.10 of this title, shall immediately have his or her permit to operate a massage business or to work as massage technician revoked. No services conducted by a massage business or a massage technician will be permitted to continue upon revocation of the permit.

5.24.020 Permit required.

No person shall engage in conduct or carry on the business of a massage establishment or a recognized school of massage without a permit issued under the provisions of Chapter 5.10. If any of the provisions of Chapter 5.10 conflict with the provisions of this chapter, the provisions of this chapter shall prevail as to all matters and questions arising out of the subject matter of this chapter.

5.24.030 Definitions.

For the purposes of this chapter, unless it is plainly evident form the context that a different meaning is intended, the words and phrases set forth in Section 5.10.010 of this title shall have the meanings respectively ascribed to them therein.

5.24.040 Additional information required for application.

(a) In addition to the information required in Section 5.10.030(b) of this title, an applicant for a massage establishment permit shall furnish the following information:

(1) The full true name under which the business will be conducted;

(2) The applicant’s full, true name, any other names used, date of birth, California Drivers License number or California identification number, present residential address and telephone number. The sex, height, weight, color of hair, and color of eyes of applicant;

(3) The previous two (2) residences of the applicant and the inclusive dates at each address;

(4) The applicant’s business, occupation, and employment history for five (5) years preceding the date of application, and the inclusive dates of same;

(5) The permit history of the applicant, including whether such person has ever had any permit or license issued by any agency, board, city, county, territory, or state, the date of issuance of such a permit or license, whether the permit or license was revoked or suspended, or if a vocational or professional license or permit was issued, revoked, or suspended, and the reason(s) therefor;

(6) All convictions for any crime, except for minor traffic violations, and the reasons therefor;

(7) Two (2) photographs of the applicant, taken within six (6) months prior to the date of the application, that clearly show the applicant’s face. Any fees for the photographs shall be paid by the applicant;

(8) The applicant’s fingerprints in the manner prescribed by the Los Angeles County Sheriff’s Department. Any fees for the fingerprinting shall be paid by the applicant;

(9) A complete description of all services to be provided;

(10) The name, address, and date of birth of each massage technician who is or will be employed or trained in said establishment;

(11) The name and address of any massage establishment, or similar business, owned or operated by any person whose name is required to be given pursuant to this section wherein the business or profession of massage is carried on;

(12) Acceptable written proof that the applicant is at least eighteen (18) years of age;

(13) The applicant, if a corporation, or partnership, shall designate one (1) of its officers or general partners to act as its responsible managing employee. Such person shall complete and sign all application forms required of an individual applicant under this chapter, however, only one (1) application fee shall be charged. The corporation’s or partnership’s responsible managing employee must, at all times, meet all of the requirements established for a permittee by this chapter or the corporation or partnership permit shall be suspended until a responsible managing employee who meets such requirements is designated. If no such person is found within ninety (90) days, the corporation or partnership permit is deemed canceled without further notice and a new initial application for permit must be filed;

(14) A description of any other business to be operated on the same premises, or on adjoining premises, owned or controlled by the applicant;

(15) The name and address of the owner and lessor of the real property upon or in which the business is to be conducted. In the event the applicant is not the legal owner of the property, the application must be accompanied by a copy of the lease and a notarized acknowledgment from the owner of the property that a massage establishment will be located on his or her property; and

(16) The full true name and any other names used, current address, date of birth, California Drivers License or California identification number, and the information required by paragraphs (a) (6), (7), (8) and (12) of this section, of each on-site manager(s) of the businesses.

(b) The applicant or permit holder shall give written notification of any change of information required by this section to the director within five (5) business days after such change.

(c) A certificate of compliance from both the city’s building and safety division, and the Los Angeles County Health Department must be submitted prior to the approval of the application. Any required inspection fees shall be the responsibility of the applicant. If the certificates of compliance are not received by the Director within ninety (90) days of the date of filing, the application shall be deemed void. If any land use permit or other entitlement for use is required, such permit or use shall also be applied for and received prior to the massage establishment permit becoming effective.

50. Additional criteria for issuance or denial of permit.

The director shall grant the permit only if he or she finds that there is no reason to deny the permit under Section 5.10.040 and that all of the following requirements have been met:

(a) The applicant, if an individual, or any of the stockholders of the corporation, or any officers or directors, if the applicant is a corporation, or any partner if the applicant is a partnership, and any on-site manager of the business has not been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section 290 (or its successor), and has not been convicted for a violation of the provisions of California Penal Code Sections 266i, 314, 315, 316, 318, 647, California Health and Safety Code Sections 11054 to 11058, or their respective successors, or any other crime involving dishonesty, fraud, deceit, or moral turpitude;

(b) The applicant has not had a massage establishment, massage technician, or other similar permit or license denied, revoked, or suspended by the city, or any other state or local agency prior to the date of approval;

(c) An inspection reveals that the proposed location for the massage establishment complies with each of the minimum requirements set forth in Section 5.24.060 of this chapter.

(d) The applicant is at least eighteen (18) years of age; and

(e) The applicant complies with all of the provisions of this chapter.

5.24.060 Operating requirements.

(a) Employee reporting requirement. The holder of a permit required by Section 5.24.020 shall notify the director in writing of the name and address of each person employed as a massage technician or an on-site manager within five (5) business days of that person being employed.

(b) Employment of unlicensed massage technicians prohibited. It shall be unlawful for any owner, manager, operator, responsible managing employee or permittee in charge of or in control of a massage establishment to employ or permit a person to act as a massage technician who is not in possession of a valid, unrevoked massage technician permit issued pursuant to this chapter and which is worn clearly visible during working hours.

(c) Location authorization. Any permit to conduct a massage establishment shall specify the exact location(s) where massage services may take place, and no massage shall be given in a business or on premises that are not so authorized. No massage establishment shall send massage technicians off the premises for the purposes of administering a massage, nor shall the massage establishment or any part thereof be used by any employee, operator, manager, or owner to receive or accept such requests for off-premises massages at any location other than the location(s) expressly authorized by a permit granted pursuant to this chapter.

(d) Site requirements. No massage or massage services shall be given in a business or premises licensed pursuant to this chapter, or in an establishment providing acupressure, shiatsu, skin care, body wrap or the like, unless such business or premises complies with the following criteria:

(1) Doors. No massage services shall be provided in an establishment that provides such services in any cubicle, room, booth, or other area that is fitted with a door capable of being locked. The premises, exterior doors and the doors separating the waiting or reception area from the remainder of the premises, shall remain unlocked during business hours (including electric locking devices).

(2) Signs. A recognizable and readable sign shall be posted at the main entrance, identifying the establishment. A list of services available and the cost of such services shall be posted in an open public place within the premises, and shall be described in readily understandable language. No owner, manager, operator, responsible managing employee, or permittee shall permit, and no massage technician shall offer or perform, any service other than those posted. All signs shall comply with all requirements of this Code.

(3) Building code requirements.

(A) Minimum lighting shall be provided in accordance with the building code, and, in addition, at least one artificial light of not less than 40 watts shall be provided in each enclosed room or booth where massage services are being performed on a patron.

(B) Minimum ventilation shall be provided in accordance with the building code.

(4) Cleanliness.

(A) Adequate equipment for disinfecting and sterilizing instruments used in performing the acts of massage shall be provided.

(B) Hot and cold running water shall be provided at all times.

(C) Separate closed cabinets shall be provided for the storage of clean and soiled linen, and shall be plainly marked: ‘Clean Linen’ and ‘Soiled Linen,’ respectively.

(D) All walls, ceilings, floors, pools, showers, bathtubs, steam rooms, and all other physical facilities, shall be in good repair.

(5) Separate rooms for customers required. In an establishment where massage services are rendered only to members of the same sex at any one time, such persons of the same sex may be placed in a single separate room. If male and female patrons are to be treated simultaneously at the same massage establishment, a separate massage room or rooms shall be provided for male and female patrons.

(6) Bathing, dressing and toilet facilities. Adequate bathing, dressing, locker and toilet facilities shall be provided for patrons. A minimum of one tub or shower, one dressing room containing a separate locker for each patron to be served, which locker shall be capable of being locked, as well as a minimum of one toilet and one washbasin, shall be provided in every massage establishment; provided, however, that if male and female patrons are to be served simultaneously at the establishment, separate bathing, separate dressing and separate toilet facilities shall be provided for male and female patrons.

(7) Washbasins for employees. A minimum of one separate washbasin shall be provided in each massage establishment for the use of employees of any such establishment, which basin shall provide soap or detergent and hot and cold running water at all times, and shall be located within or as close as practicable to the area devoted to the performing of massage services. In addition, there shall be provided at each washbasin sanitary towels placed in permanently installed dispensers.

(e) Operational requirements generally. Every establishment licensed pursuant to this chapter shall be maintained and operated in conformity with the following criteria:

(1) Hours of operation. The permittee shall not conduct or operate a massage establishment between the hours of nine (9:00) p.m. and seven (7:00) a.m. of the following day, and shall exclude all customers, patrons and visitors therefrom between those hours.

(2) Recording of activities prohibited. No building or part thereof where massage or massage services are being conducted shall be equipped with any electronic, mechanical or artificial device used, or capable of being used, for recording or videotaping, or for monitoring the activities, conversation, or other sounds in the treatment room(s) or room(s) used by customers.

(3) Maintenance of premises and equipment.

(A) All walls, ceilings, floors, pools, showers, bathtubs, steam rooms and all other physical facilities for the establishment shall be in good repair and maintained in a clean and sanitary condition.

(B) Wet and dry heat rooms, steam or vapor rooms, or steam or vapor cabinets, shower compartments and toilet rooms shall be thoroughly cleaned each day the business is in operation. Bathtubs shall be thoroughly cleaned after each use.

(C) Clean and sanitary towels and linens shall be provided for each patron of the establishment or each patron receiving massage services. No common use of towels or linens shall be permitted.

(D) Standard or portable massage tables shall be used with a durable, washable plastic or other waterproof material as a covering. Foam pads more than four inches thick or more than four feet wide may not be used. Beds, mattresses and water beds may not be used in the administration of a massage.

(4) Persons using alcohol or drugs prohibited. A person shall not enter, be or remain in any part of a massage establishment while in the possession of, consuming or using any alcoholic beverage or drugs. The permittee, manager, and every supervising employee, shall not permit any such person to enter or remain upon such premises.

(5) Prohibited activity. No massage establishment shall place, publish or distribute or cause to be placed, published or distributed any advertising matter that depicts any portion of the human body that would reasonably suggest to prospective customers or clients that any service is available other than those services described in the definition of ‘massage’ in Section 5.10.010, nor shall any massage establishment employ language in the text of such advertising that would reasonably suggest to a prospective patron that any service is available other than those services as described in the definition of ‘massage’ in Section 5.10.010. No massage establishment shall sell or serve food or beverages or conduct any other business on the premises where the massage establishment is being conducted.

(6) Physical contact prohibited. No massage establishment shall permit any massage technician, in the course of administering any massage service, to expose his or her specified anatomical areas or buttocks or to make physical contact with the specified anatomical areas of any client. No massage establishment shall allow any client, in the course of receiving any massage service, to expose to view of other persons his or her specified anatomical areas or to make physical contact with the specified anatomical areas or buttocks of any massage technician or any other person.

(f) Inspections. The director, the Los Angeles County Sheriff, and the Los Angeles County Health Department, or their authorized representatives, shall have the right to enter the massage establishment for the purpose of making reasonable unscheduled inspections to observe and enforce compliance with applicable regulations, laws, and provisions of this chapter.

(g) Manager required. A massage establishment shall at all times the establishment is open have a responsible person acting as manager on the premises to ensure compliance with these provisions. The manager must be familiar with the requirements of this chapter and be capable of communicating the provisions of this chapter to employees and patrons of the establishment.

5.24.070 Permit nontransferable.

No massage establishment permit may be sold, transferred or assigned by the permittee, or by operation of law, to any other person or persons, and any such sale, transfer or assignment, or attempted sale, transfer or assignment, shall be deemed to constitute a voluntary surrender of such permit and such permit shall thereafter be deemed terminated and void. Such attempted transfers include, but are not limited to, the transactions specified in paragraphs (1) to (8) of 5.10.070(a).

ARTICLE 2. MASSAGE TECHNICIANS.

5.24.200 Permit required.

No person shall act as a massage technician without a permit issued pursuant to Chapter 5.10. If any of the provisions of Chapter 5.10 conflict with the provisions of this chapter, the provisions of this chapter shall prevail as to all matters and questions arising out of the subject matter of this chapter.

5.24.210 Additional information required for application.

In addition to the information required in Section 5.10.030(b), and 5.24.040(a)(2) through (8), an application for a permit required by this Article 2 of Chapter 5.24 also shall include:

(a) Written statements of at least five persons that the applicant is of good moral character;

(b) Written proof that the applicant is over the age of eighteen (18) years;

(c) Applicant’s height, weight, color of eyes and hair. The applicant may be required to have his or her height and weight confirmed by the Los Angeles County Sheriff’s Department;

(d) Business, occupation or employment of the applicant for the three years immediately preceding the date of the application;

(e) All convictions for any crime, except for minor traffic violations, and the reasons therefor;

(f) A certificate from a medical doctor stating that the applicant has, within thirty (30) days immediately prior thereto, been examined and found to be free of any contagious or communicable disease; and

(g) Such other identification and information reasonably necessary to discover the truth of the matters specified in paragraphs (a) to (f) of this Section 5.24.210.

5.24.220 Verification of applicant qualifications.

(a) The applicant shall furnish with his or her application for a permit to be a massage technician proof of one of the following:

(1) A diploma or certificate of graduation from a recognized school wherein the method, profession and work of a massage technician is taught; or

(2) A diploma or certificate from a school outside of the state of California which substantially complies with the educational requirements of Section 29025 of the Education Code of this state; or

(3) Other evidence showing not less than five years’ experience as a practicing massage technician; or

(4) Evidence of enrollment at a recognized school of massage.

(b) The director or his or her designee shall have the right to verify for authenticity the information supplied pursuant to this section. Such verification may include administering oral or written practical exams to an applicant for a massage technician license for the purpose of determining the applicant’s qualifications to perform the massage services that would be authorized by the license.

5.24.230 Additional criteria for issuance or denial of permit.

The director shall grant the permit only if he or she finds that there is no reason to deny the permit under Section 5.10.040 and that all of the following requirements have been met:

(a) The applicant has not been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section 290 (or its successor) and has not been convicted for a violation of the provisions of California Penal Code Sections 266i, 314, 315, 316, 318, 647, California Health and Safety Code Sections 11054 to 11058, or their respective successors, or any other crime involving dishonesty, fraud, deceit, or moral turpitude;

(b) The applicant has not had a permit or license or an application for a permit or license for a massage establishment, massage technician, or other similar use denied, revoked, or suspended by the city, or any other state or local agency prior to the date of approval;

(c) The applicant is at least eighteen (18) years of age;

(d) The applicant has not been registered in any state as a prostitute; and

(e) The applicant provides proof of education or experience as required in Section 5.24.220.

5.24.240 Operating requirements.

(a) Off premises massage prohibited. Permit--Limitations. No massage technician permitted pursuant to this Chapter may perform any massage or massage services in any location other than the location or locations specified in the permit.

(b) Attire. No massage or massage services may be administered unless the patron wears clothing which covers the patron’s genitals, and if the patron is female, the breasts. The massage technician shall at all times while on the premises of the establishment, be clean, and wear nontransparent outer garments covering the body from knee to neck.

(c) Identification card. All massage technicians must wear a picture I.D. issued by the City while working in a massage establishment.

(d) Physical contact prohibited. No massage technician shall, in the course of administering any massage service, expose his or her specified anatomical areas or buttocks or make physical contact with the specified anatomical areas of any client. Nor shall any massage technician allow any client, in the course of receiving any massage service, to expose to view of other persons his or her specified anatomical areas or buttocks or to make physical contact with the specified anatomical areas or buttocks of the massage technician or any other person.

(e) Employer compliance. No massage technician shall knowingly provide massage services at a massage establishment that does not comply with the operating requirements in Section 5.24.060 of this chapter.

ARTICLE 3. GENERAL REQUIREMENTS.

5.24.300 Grounds for modification, revocation or suspension of permit.

In addition to the grounds set forth in Section 5.10.090, any permit issued pursuant to this chapter may be modified, suspended or revoked if:

(a) The permittee has been convicted of or entered a plea of guilty or nolo contendere to any violation of California Health and Safety Code Sections 11054 through 11058, inclusive (or their respective successors), or any violation of California Penal Code Sections 647(b), 266(h), 266i, 315, 316 or 318 (or their respective successors); or

(b) The permittee has violated any provisions of this chapter.

5.24.310 Exemptions.

(a) The provisions of this chapter shall not apply to the following:

(1) Physicians, surgeons, chiropractors, osteopaths, physical therapists who are duly licensed to practice their respective professions in the state.

(2) Nurses registered under the laws of the state.

(3) Persons who are licensed to practice any healing art under the applicable provisions of the Business and Professions Code of the state of California or any other statute of this state who provide any treatment administered in good faith.

(4) Barbers, cosmetologists and electrolysists who are duly licensed under the laws of the state while engaging in practice within the scope of their licenses, except that this exemption shall apply solely to the massaging of the neck, face, and/or scalp of the customer or client.

(5) Hospitals, nursing homes, sanatoriums, or other health care facilities duly licensed by the state.

(6) Accredited high schools, junior colleges, and colleges or universities whose coaches and trainers are acting within the scope of their employment.

(7) Trainers of amateur, semi-professional or professional athletes or athletic teams.

(8) Any business duly licensed as a health club, provided only one massage table is used at such location and provided such use is incidental to the operation of the health club.

(b) Notwithstanding the provisions of subsection (a) of this section, no person or facility expressly exempted under this section from the application of this chapter shall hire or employ a massage technician unless such massage technician possesses a valid, subsisting license required by Article 2 of this chapter or any paramount state law.

320. Hardship waiver.

(a) Hardship waiver. Any person subject to the provisions of this chapter who provides massage services as a secondary service in connection with a business that was lawfully in existence at the subject location on February 1, 2002, where no more than one massage therapist provides massage services at said business at any one time, may apply for a hardship waiver relieving him/her from complying with the facilities requirements set forth in Section 5.24.060 under either of the following circumstances:

(1) the facility in question lacks the physical space to comply with the requirements set forth in Section 5.24.060; or

(2) compliance with the requirements set forth in Sections 5.24.060 would cause an undue financial hardship to the applicant.

(b) Application. Requests for a hardship waiver shall be submitted to the director on a form furnished by the City. The application shall be accompanied by a sworn affidavit, together with any supporting documents or materials, demonstrating to the reasonable satisfaction of the director or his or her designee that the facility complies with the requirements of paragraph (a) of this section and lacks the physical space to meet the requirements set forth in Section 5.24.060 or that compliance with said requirements would cause an undue financial hardship to the applicant.

(c) Findings. The director or his or her designee shall issue the hardship waiver or deny the request within fifteen (15) business days of receipt of the application. The director or his or her designee may issue a hardship waiver if he/she finds that the facility complies with the requirements of paragraph (a) of this section and that the supporting documentation submitted with the application demonstrates to his or her satisfaction that either: (i) the facility lacks the physical space to meet the requirements set forth in Section 5.24.060, or (ii) compliance with the requirements set forth in Section 5.24.060 would cause an undue financial hardship to the applicant who is requesting the hardship waiver. The director or his or her designee shall issue a written notice of determination and shall serve such written notice of determination on the person requesting the hardship waiver via certified mail, return receipt requested. If the application is denied, the notice shall set forth the reason(s) for the denial. The determination rendered by the director shall be final.

(d) Duration of Waiver. Any hardship waiver granted pursuant to this Section shall immediately terminate if the facility is sold or ownership of the facility otherwise changes."

Section 4 . The City Clerk shall cause this Ordinance to be posted in three (3) public places in the City within fifteen (15) days after its passage, in accordance with the provisions of Section 36933 of the Government Code. The City Clerk shall further certify to the adoption and posting of this Ordinance, and shall cause this Ordinance and its certification, together with proof of posting, to be entered in the Book of Ordinances of the Council of this City.

Section 5. This Ordinance shall go into effect and be in full force and effect at 12:01 a.m. on the first (1^st) day after its passage.

PASSED, APPROVED and ADOPTED this _______ day of _______________, 2003.

_____________________________

Mayor

ATTEST:

___________________________

City Clerk