Ordinance Number 828347
URGENCY ORDINANCE NO. 828
AMENDING TITLES 3 AND 5 OF THE MUNICIPAL CODE -
BUSINESS LICENSE REVOCATION AND MASSAGE THERAPY
AN URGENCY ORDINANCE OF THE CITY OF SAN JUAN CAPISTRANO,
CALIFORNIA, AMENDING MUNICIPAL CODE SECTION 3-1.202 RELATING
TO REVOCATION OF BUSINESS LICENSES AND ADDING SECTION 5-24.04
RELATING TO REGULATION OF MASSAGE THERAPY
THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Code Amendment.
A. Subsections (6), (7) and (8) of Section 3-1.202(d) of Article 2 of Chapter 1
of Title 3 of the San Juan Capistrano Municipal Code are hereby repealed.
B. Article 2 of Chapter 1 of Title 3 of the San Juan Capistrano Municipal Code
is hereby amended by adding Sections 3-1.202(e) and 3-1.202 (f) to read as follows:
"(e) Application Procedures for Class "A" and Class 'B" Licenses.
Applications for Class "A" and Class "B" licenses shall be filed with the
Business License Administrator on forms provided by the City.
The City shall specify the amount of the fees for each application or license
or both. The fee shall be such as to compensate the City for costs incurred in the processing
of the application.
Each license shall be for a term as specified on the license.
Licenses may be denied where the applicant has not complied with specific
requirements of the Municipal Code, such as zoning requirements, or where the application
is found to be incomplete or contains misleading, false, or inaccurate information."
"(f) Suspension, Revocation and Appeal Processes.
1. Suspension and revocation authority. Subsequent to the issuance of
any business license under this Title, the City shall have the authority to initiate the
suspension or revocation of any business license for one or more of the following
reasons:
(i) The business conducted on the premises is not substantially
similar to that for which the business license was approved and issued; and/or
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(ii) The business does not comply with the specific requirements
of this Title, or Title 5, Chapter 24, Regulation of Massage Therapy, or Title
9, Chapter 3, Article 1, Establishment of Districts: Official Zoning Map;
and/or
(iii) The business licensee submitted false or misleading statements
or has submitted falsified information or certificates as part of the license
application; and/or
(iv) The business licensee or employee has been convicted of any
felony under the laws of the State of California; or has been convicted of any
offense of law in another state of the United States which California classifies
as a felony; or has pleaded no contest to felony charges in the State of
California; or has pleaded no contest to any offense of law in another state of
the United States which California classifies as a felony; and/or
(v) The business licensee or an employee has been convicted of
any crime in violation of California Penal Code Sections 647(a), 647(b), or
647(d), as amended.
2. Revocation process. Upon a determination that a licensee may have
violated any provisions of this chapter, the Business License Administrator shall schedule
a suspension or revocation hearing before the Business License Hearing Officer as
designated by the City Manager. The City shall provide notice to the business license
permittee of the time, date, and location of the revocation hearing. The notice shall specify
the grounds upon which the suspension or revocation is based. The City shall provide the
business license permittee with the opportunity to show cause as to why the City should not
suspend or revoke the business license. The hearing shall be an informal hearing. The
formal rules of evidence provided for in any state law are inapplicable to this hearing. Either
party may present witnesses or documents in support of their position. Following the
hearing, the Business License Administrator shall issue a determination in writing,
specifying the conclusions and supporting reasons therefor within ten (10) working days of
the hearing.
Any licensee, or any other person directly associated with the licensee
and the operation of the business leading to revocation, whose license has been revoked, may
not reapply for the same or similar business license within two (2) years from date of
revocation.
3. Appeals. Decisions of the Business License Hearing Officer to deny,
suspend, or revoke a license may be appealed to the City Manager by filing a written notice
of appeal with the City Clerk no later than fifteen (15) days after the date of the written
decision. The appeal shall specifically state the factual and legal basis of the appeal. Within
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ten (10) days of filing, the City Clerk shall schedule the appeal for consideration by the City
Manager, or his designee, who shall conduct an appeal hearing within thirty (30) days of
filing.
The City shall notify the appellant and licensee in writing of the date,
time and location of the hearing. The same hearing procedure rules set forth in subpart 2
above shall apply to the appeal hearing.
The City Manager shall notify the appellant of his decision, in writing,
within ten (10) days. The decision of the City Manager shall be final and binding. The
appellant or licensee may seek prompt judicial review of the administrative appeal action
pursuant to California Code of Civil Procedure Section 1094.5."
C. Section 5-24.04, entitled "Arousal Conduct Prohibited," is hereby added to
Chapter 24, Regulation of Massage Therapy, or Title 5, "Public Welfare" of the San Juan Capistrano
Municipal Code, to read as follows:
"Section 5-24.04. Arousal Conduct Prohibited.
It shall be unlawful for a massage business operator to allow, or for any
person performing massage activities, to administer any bath or baths or to give or administer
any of the other things mentioned in this article in a manner intended to arouse, appeal to or
gratify the lust or passions or sexual desires of any other person."
SECTION 2. Severability.
If any chapter, article, section, subsection, subdivision, sentence, clause, phrase or
portion of this Ordinance, or the application thereof to any person, is for any reason held to be
invalid or unconstitutional by the decision of any court ofcompetent jurisdiction, such decision shall
not affect the validity of the remaining portion of this Ordinance or its application to other persons.
The City Council hereby declares that it would have adopted this Ordinance and each chapter,
article, section, subsection, subdivision, sentence, clause, phrase or portion thereof, irrespective of
the fact that any one or more subsections, subdivisions, sentences, clauses, phrases or portions of the
application thereof to any person, be declared invalid or unconstitutional. No portion of this
Ordinance shall supersede any local, state or federal law, regulation or codes dealing with life safety
factors.
SECTION 3. Findines.
This Urgency Ordinance is enacted pursuant to Government Code Section 36937(b)
and is based upon the finding that there is a current and immediate threat to the public health and
safety posed by the lack of specific due process standards governing the suspension or revocation
of business licenses, including but not limited to, massage licenses. The Orange County Sheriffs
Department has presented reports to the City indicating that various prostitution activities are
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occurring within the City at massage and non -massage businesses, such as tanning salons, wherein
it may be necessary to suspend and revoke such businesses in the immediate near future. However,
the Municipal Code needs to be amended to provide more specific standards and appeal procedures
to accommodate such regulatory actions. This code amendment would achieve those purposes by
adding specific sections relating to the grounds to license revocation of any business and hearing and
appeal procedures to afford due process to all parties involved.
SECTION 3. Effective Date.
This Ordinance shall take effect and be in force immediately.
SECTION 4. City Clerk's Certification.
The City Clerk shall certify to the adoption of this Ordinance and cause the same to
be published once as required by law and posted at the duly designated posting places within the
City of San Juan Capistrano within fifteen (15) days after its passage.
ATTEST:
CITY CLE
PASSED, APPROVED AND ADOPTED this 17th day of November, 1998.
ie
YOR
351
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF SAN JUAN CAPISTRANO )
I, CHERYL JOHNSON, City Clerk of the City of San Juan Capistrano, Califoruia,
DO HEREBY CERTIFY that the foregoing is a true and correct copy of Urgency Ordinance No.
828, which was adopted at a meeting held on November 17, 1998, by the following vote:
AYES: Council Members Swerdlin, Greiner, Hart, Campbell
and Mayor Jones
NOES: None
ABSTAIN: None
ABSENT: None
(SEAL) ��� �/�✓�_
CHERYL JO O , CITY CLERK
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