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HomeMy WebLinkAbout8420-93 Amending Section 4-60 Regarding Transient Merchant Licenses • • ORDINANCE No. 8420-93 Passed by the Common Council of the City of South Bend, Indiana. October 11 Yq 93 Attest: `�"`� City Clerk IRENE K. GAMMON Attest: _�. -_. • - - - President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana October 12 19 93 /;' City Clerk IRENE K. GAMMON Approved and signed by me /0/15 5 r9(3 Mayor i ORDINANCE NO. 020' 93 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING SECTION 4-60 OF THE SOUTH BEND MUNICIPAL CODE REGARDING TRANSIENT MERCHANT LICENSES STATEMENT OF PURPOSE AND INTENT The purpose of this ordinance is to amend Chapter 4 of the Municipal Code to ensure that section 60 meets all constitutional and statutory requirements, to more clearly define the licensing procedures that transient merchants must follow, and to provide better protection for the citizens of South Bend against unlawful and unfair business practices by transient merchants . NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS : Section I . Section 4-60 of the South Bend Municipal Code is amended to read as follows : Sec . 4-60 . Transient Merchants . (a) Definitions . (1) Transient merchants shall mean any person, firm, partnership, association or corporation which engages in the sale of merchandise in any place in the City on a temporary basis and does not anticipate becoming an established business merchant for a continuous period of time of sixty (60) days or longer. A transient merchants includes anyone who for himself or as an agent for another, rents, erects, purchases, uses, or occupies any vehicle, room, building, or other structure, including but not limited to those located in or along parking lots, shopping centers, sidewalks, or other areas for the purpose of purchasing, selling, or offering for sale anything of value at such location without becoming an established business merchant . A Ttransient merchants shall not include an "open-air businesses" which are is regulated under Section 4-38 of this Code, or a "peddlers" or "canvassers" which s-e is regulated under Section 4-43 of this Code. (2) Established business merchants shall mean any person, firm, partnership, association or corporation which engages in the sale of merchandise and anticipates becoming a business merchant for a continuous period of time of sixty (60) days or longer in the City. (3) Group event shall mean vendors or including, A "group event" shall occur when two general public. Group events shall not include events which are not open to the general public or where there may be on-floor sales which may occur that are not the primary purpose of the event . (b) License Required. Everyone Anyone who anticipates selling merchandise as a transient merchant shall, before engaging in business in the City, obtain a license from the City Controller' s Office . (c) Application. Application forms shall be provided by the City Controller' s Office . Completed forms must be filed no later than thirty (30) days prior to the first date asp on which the applicant intends to do business . Said application shall require but not be limited to the applicant' s providing the following information: (1) The name under which the business will be conducted. (2) The name (s) , address (es) , and telephone number (s) , social security number (s) , and birth date (s) of the applicant (s) . If the business include& is owned or operated by more than one (1) person all principal partners and owners must be listed by name, address, and telephone numbers, social security numbers, and birth dates . (3) The location (s) where the applicant intends to do business and a description of the facilities or premises to be used. (4) The dates and times for which the applicant intends to do business . (5) A description of the types of merchandise intended to be sold or contracted for. (6) A copy of all proposed advertisements intendede--be used on the radio, television, newspapers or other media, including handbills . (6) A brief statement of the nature of the advertising proposed to be done for the business . (7) The name, address and telephone number of the contact person who will be available for a period of time of not less that sixty (60) days following the last date of business who will respond to consumer complaints . Said information must be included in all written advertisements prior to engaging in business . (8) The applicant' s Indiana State Retailer License Number. (9) A notarized statement or copy of signed where the transient merchant anticipates selling merchandise has agreed-to- lease said location for the dates and times indicated, and that the a lesst-e to have a valid transient merchant ponsoring organization, agency, group, or person of all proposed participants in the group event . . . . _ _- place, and one (1) bond or property liability insurance policy shall be filed by the sponsoring organization on behalf of all participants . A listing of all participants by name, address, telephone number, and Indiana State Retailer' s License Number shall be attached to said application when filed by the sponsoring organization. The name, address, and telcphonc _ persons required by this section. All applicants who intend to sell any type of merchandise sold by weight or measure must file a copy of a current and valid certificate signed by the Sealer of Weights and Measures of the City of South Bend that all scales and measures to be used by the applicant in his business have been tested written application. All applicants who intend to sell any type of merchandise by weight or measure must state such intent to the licensing clerk at the time of filing the application. The applicant will then be required to obtain a valid certificate signed by the Sealer of Weights and Measures of the City of South Bend that all scales and measures to be used by the applicant in his business have been tested and approved. All applications and accompanying information shall then be referred to the Police Department for review and recommendation to the Board of Public Works . Said review shall address a background investigation of the applicant and any other owners or operators of the business . All proposed locations must be properly zoned for the proposed business activity, and any building used must be safe for public occupancy. Therefore a copy of the completed application form shall be referred to the Building Commissioner or his designee for review and recommendation to the Board of Public Works . Said review shall address but not be limited to the following: adequacy of ingress and egress, parking requirements, zoning requirements, and related health and building safety requirements of this Code. The licensing clerk shall also refer all applications to the Bureau of Fire Prevention for review and recommendation to the Board of Public Works . Said review shall address the compliance of the proposed building to be used for the sale with fire safety requirements established by state • include an inspection , of all refrigeration equipment to be used in the business and ensure that the business meets the minimum sanitation requirements established by state and local law. (d) Additional provisions for group events . (1) If the application is for a group event, the sponsoring organization, agency, group, or person shall complete one (1) application form on behalf of all proposed participants in the group event . For such group events, one (1) fee shall be required of the sponsoring organization and one (1) public liability insurance policy shall be filed by the sponsoring organization or person on behalf of all participants . (2) A listing of all participants in the group event by name, address and telephone number shall be maintained by the sponsoring organization or person for a period of not less than two (2) years after the conclusion of the group event . During that time period, the sponsor shall provide the name, address and telephone number of any individual participant to the City of South Bend or any member of the public upon request . This provision is not intended to require the sponsor to disclose the entire vendors list, but to ensure that any individual vendor may be located to address consumer complaints or claims that may occur. (d) (e) Licensing procces . Application Approval Procedures . (1) Upon receipt of the written reports of an applicant recommendations from the Police Department andL the Building Commissioner, the Bureau of Fire Prevention, and the County Health Department and Bureau of Weights and Measures, if appropriate, the Clerk of the Board of Public Works shall submit to the Board for its review and action a copy of said reports, the application, and all other required documents filed by the applicant . (2) The Clerk of the Board shall set a date for the public hearing on said application with the Board and notify the applicant of the date and time of said hearing. (3) The applicant, or a proper designee, must be present at said hearing and be available to and capable of answering answer any questions propounded by the City or the public with regard to the proposed business activity. (4) The Board shall make all licenses _ • -_ _ _applicant' s filing a bond or property public liability insurance policy. Said bond or policy hundred thousand dollars ($300, 000) for injury to following provision: "The City, through the Office of the City Controller, shall be given fifteen (15) days of notice prior to the effective date of the cancellation or material change of this policy. " (5) Upon favorable review by the Policc . - _. ••- - , . -4 1. : - = 1--,-- - - : - - ' V - - Board of Public Works, and the filing of all documents and fees reed by the City, the City Controller' s Office shall issue a transient merchant license. (4) The Board shall approve the issuance of the license unless the investigation of said transient merchant' s application or evidence adduced at the hearing discloses tangible evidence that the conduct of the applicant' s business would pose a threat to the public health, safety, or general welfare. The following will constitute valid reasons for disapproval of a license . Tangible evidence that applicant (s) , owner (s) , or operator (s) : (i) have been convicted of a crime of moral turpitude; or (ii) have made willful misstatements in the application; or (iii) have committed prior violations of statutes or ordinances pertaining to transient merchants, peddlers, solicitors, and the like; or (iv) have committed prior fraudulent acts; or (v) have a record of multiple breaches of solicited contracts . (5) The Board shall make approval of all licenses issued hereunder subject to the filing of proof of insurance with the Board of Public Works, which covers the transient merchant activity within the City. Said policy shall provide coverage for personal injury, including death, and property damage to members of the public in the amount of not less than three hundred thousand dollars ($300, 000) per person and one million dollars ($1, 000, 000) per occurrence. The certificate of insurance filed must contain a provision that the City of South Bend, Board of Public Works, shall be given no less than fifteen (15) days notice prior to the effective date of cancellation or material change of the policy. (6) Any applicant may appeal denial of a license pursuant to the procedures set forth in Section 4-16 of this Code. (e) (f) Display of License and Other Documents Required. name, address, and telephone number of the contact person for consumer complaints in a conspicuous location near the entry of the facilities or premises used for the sale. (2) Said documents must remain posted throughout the duration of the = - ' - - - - license was issued. transient merchant activity within the City. (f) License Fees . shall be as follows : (i) Three hundred fifty dollars ($350 . 00) for proposed business operations of three (3) consecutive days or less . (ii) Five hundred dollars ($500 . 00) for proposed business operations of more than three (3) consecutive days but less than fourteen (14) total days of operation. (iii) One thousand dollars ($1, 0000 . 00) fourteen (14) total days, but lcss than one (1) year of any licensing year. (iv) Thirty dollars ($30 . 00) for proposed business operations during the months of November and/or Dc-ewer, which only sell live and/or natural Christmas trees (q) License Fees . (1) The license fee for a transient merchant shall be three hundred dollars ($300 . 00) for a continuous period of not more than fifty-nine (59) days of operation at the location approved by the Board of Public Works . Operation at another location within the City during the fifty-nine (59) day period shall require the issuance of a separate license. (2) Transient merchants obtaining a license for proposed business operations during the months of November and/or December, which sell only live or natural Christmas trees or natural wreaths, shall pay a license fee of thirty dollars ($30 . 00) . (g) (h) Exemptions . Any person who has filed and received a charitable solicitation permit pursuant to Section 4-55 of this Code shall be exempt from the provisions of this section. (h) (i) Penalties . (1) Anyone doing business as a transient merchant who has not posted or is unable to produce a valid license as required by this section when requested to do so by an enforcement pursuant to subparagraph (1) herein above shall be required to pay a license fee of twice the amount listed in subsection (f) (q) herein for the specific category listed. (3) In addition to the foregoing, the City violation citation to anyone who violates any individual provision of this s-ection for each violation committed. (4) The City may also utilize its powers under Section 1 23 of this Code. (3) In addition to the foregoing, anyone violating a provision of this section shall be subjected to a fine in an amount not exceeding two thousand five hundred dollars ($2, 500 . 00) per violation. Every day any violation of this section continues shall constitute a separate offense. (1) (j) Suspension or Revocation of Licenses . The City may suspend or revoke any license issued under this section pursuant to Section 4-16 of this Code. (j) (k) Citation Against Property Owner. The City may issue a fifty dollar ($50 . 00) ordinance violation transient merchant conducts business without a properly whether the property owncr acccpts cash or in kind property for the lcas-e of the prcmises used by said transient merchant . It shall be a violation of this Section for any property owner within the City to permit the operation of an unlicensed transient merchant business on the property owner' s real estate. Any owner of real estate where a transient merchant conducts business without a properly issued City license shall be subjected to a fine in an amount not exceeding five hundred dollars ($500 . 00) for each day that the owner has actual notice of violation. Section II , This Ordinance shall be in full force and effect from and after its adoption by the Common Council, approval by the Mayor and legal publication. Member of t Common Council mf sd only to Drovia€ �n opportunity for pub1ia (1i9;.19B,1o2 ,,,nee•SS#•ttt s �\1 II ,/1 'L ; ) \,\"7-1 j p' City of South Bend Joseph F. Kernan. Mayor x �' x < 1865 Department of Administration and Finance Kevin C. Horton September 20, 1993 Mr. Steve Luecke President South Bend Common Council 4th Floor, County-City Building South Bend, Indiana 46601 Re: Bill Amending Section 4-60 of the South Bend Municipal Code Regarding Transient Merchant Licenses Dear Steve: I am attaching for filing a bill amending Section 4-60 of the South Bend Municipal Code, which provides for the licensing of transient merchants . The primary changes that this ordinance would make are as follows : 1 . We have amended the definition of group shows to avoid imposing the requirements of the licensing ordinance on events not open to the general public, and on events, which are open to the general public, but do not have on-floor sales as their primary purpose. This change will reduce the burden placed on conventions and other events that pose no real threat to the citizens of South Bend. 2 . We have changed the transient merchant license application requirements to include Social Security numbers and birth dates for all owners and operators of each transient business . This information will enhance the effectiveness of our police background checks and aid us in our new, more stringent approval process . 3 . We have added to the approval process five categories of prior misconduct by a transient that will constitute valid reasons for license disapproval . These include County-City Building • South Bend, Indiana 46601 • 219/235-9216 Fax 219/235-9928 Catherine A.Hubbard Jeffrey A.Rinard Isabel Gonzalez Ronalda Minnis Gatha Vaughn Director Human Resources Finance Director Safety&Risk Manager Benefits Manager Barrett Law Mr. Steve Luecke September 20, 1993 Page 2 having been convicted of a crime of moral turpitude; having made willful misstatements in the application; having committed prior violations of statutes or ordinance pertaining to transient merchants, peddlers, solicitors or the like; having committed prior fraudulent acts; or having a record of multiple breaches of solicited contracts . 4 . Due to the requirements placed upon us by IC 36-1- 3-8 (5) , we have eliminated the graduated license fee system and moved to a fixed fee of $300 . 00 for a period of not to exceed 59 days of operation. IC 36-1-3-8 (5) states : A unit does not have the power to impose a license fee greater than that reasonably related to the administrative cost of exercising a regulatory power. While we are not required to calculate our exact costs, we must not charge more than a reasonable estimation of the expenses involved in performing the necessary background checks, building checks and other administrative procedures . Three hundred dollars is an amount that should be high enough to cover our expenses, yet low enough to withstand any legal challenges made by a transient merchant . We determined that it was necessary to eliminate the highly graduated license fee, because the administrative costs involved in issuing a transient merchant license is the same whether the merchant will be operating for three days or longer. I think that you will find that our proposed ordinance enhances consumer protection, provides local businesses with an equal playing field, and still manages not to discriminate in an unlawful manner against transients . Your support and favorable consideration of this bill is respectfully requested. Very truly yours, /4„Mt e• 32 Kevin C. Horton South Bend City Controller KCH\sb Enc. cc : Jenny Pitts Manier Sandra M. Parmerlee Pam Helwig All w/Enc . c: iluecke.kch I,//III/IIII/ ,, OUTH'? S �. o•'\\\Ii�III;lb/ 4,;:::4\ k \\RACE/j : a 71 R ,io 1865 IIIIII, Office of the City Clerk Irene Gammon, C.M.C. October 25, 1993 Mr. Robert L. Laslie Supplement Department Municipal Code Corporation P. 0. Box 2235 Tallahassee, FL 32316-2235 Dear Mr. Laslie: Attached please find a copy of Ordinance No. 8420-93 which amends the Municipal Code. Please acknowledge receipt of this ordinance. Thank you. Sincerely yours, Maureen Dabrowiak Deputy Attachment 455 County-City Building• South Bend,Indiana 46601 •219/235-9221 •Fax 219/235-9173 Jo Ann Harper Maureen Dabrowiak Chief Deputy Deputy