Transcript Regulated Industries Divison – KCMO

Kansas City Missouri’s Regulated Industries
Division regulates those businesses within the
community that provide a unique service which
require additional laws, rules and regulations to
oversee them. Based upon those additional
requirements, these unique businesses and
their employees are required to obtain specific
licenses, permits or certificates prior to serving
the public.
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Liquor licensed businesses
Commercial vehicles
Commercial amusement places
Adult entertainment businesses
Secondary metal recyclers
Short term loan establishments
Businesses that sell tobacco products
Day labor businesses
Tire dealers
Salvage yards
Various requirements must be met in order for
a business to receive a liquor license:
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Density study
Location from church or school
Zoning compliance
Retail sales by drink & retail sales by package
requirements met
Consent requirement met
Business in good standing
Conditional liquor license may be required
Once a license has been issued:
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The business is immediately placed on a six
month probationary period
The business must be maintained as an orderly
place (customer complaints/police reports)
Conduct various types of random inspections to
assure ordinances are being followed and
investigate any complaints received
Upon renewal of a license (restaurant/tavern),
proof of sales through tax receipts is required
What types of commercial vehicles are
regulated?
 Taxicab vehicles (6 passengers or less)
 Livery vehicles (6 passengers or less)
 Pedicabs & multi-passenger human powered
vehicles (pedal hopper)
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Sightseeing vehicles (horse driven carriages)
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Missouri Department of Transportation does not
regulate vehicles of 6 passengers or less
To provide citizen protection by conducting biannual and routine vehicle inspections
By conducting meter checks of taxicab vehicles to
ensure the fare is accurate
To assure that ordinances governing fares are being
followed (running the meter - not pre-arranging an
agreed upon price with the customer)
To assure that credit cards are being accepted
By conducting inspections at KCI to ensure livery and
taxicab operators are following the rules
By attempting to eliminate “gypsy” cabs from
operating within KCMO
What types of Commercial amusement places
are regulated?
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Dance halls
Billiard/Pool halls
Bowling alleys
Shooting gallery’s
Skating rinks
Haunted Houses
Amusement parlors or halls
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To provide for public safety as commercial
amusement places are frequented by the
public for recreational use
To ensure they are being maintained as an
orderly place
To prevent and ensure that alcohol is not
being sold or consumed on the premise
(underage dance clubs)
To prevent and ensure that Illegal drugs are
not being used or distributed on the premise
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Adult live entertainment business or adult
cabaret – a place that features a semi-nude
dance, performance or exhibition
Adult motion picture theater
Adult entertainment business – a place where
adult media (books, magazines, movies…) or
sexually oriented toys or novelties are sold
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Really?!!
To ensure for the public health, safety and welfare by providing
neutral regulations governing the conduct of adult businesses
To prevent the exploitation of minors by not allowing them to
work in adult entertainment businesses
Studies have shown that businesses providing adult live
entertainment are increasingly associated with ongoing
prostitution, disruptive conduct & other criminal activity which
constitutes a threat to the public peace, health & safety
Studies have shown that regulation of the adult live
entertainment industry is necessary to deter prostitution or
high-risk sexual conduct to limit the health hazards of specific
sexually transmitted diseases (syphilis, gonorrhea, herpes,
hepatitis-B and HIV/AIDS that may result)
Regulation of the adult live entertainment industry is necessary
because in the absence of such regulation, significant criminal
activity has historically and regularly occurred
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A secondary metal recycler is any person who
is engaged in the business of purchasing,
collecting, or soliciting regulated metal
property for the purpose of recycling or
operates a facility where regulated metal
property is purchased or kept for shipment,
sale, transfer, or recycling.
To help prevent secondary metal theft – ordinances governing
secondary metal recyclers include:
 Detailed records of transactions including video recordings
 72 hour holding period on purchases of motor vehicles (state law
change – 10 years)
 Restrictions on certain transactions (cannot purchase utility
access covers, historical markers, beer kegs, real estate signs…
without proof the seller is the verifiable owner or is an employee,
agent, or person authorized, in writing on company letterhead,
to sell the item on behalf of the owner:
 Amplified restrictions on purchases of catalytic converters and
HVAC components (Catalytic Converters - receipt for the removal
of the catalytic converter or the title of the car that from which it
was removed) (HVAC – purchased from a licensed business or
employee & verification form stating components legally
removed)
 All records maintained onsite for two years
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A business (other than a bank or a savings
and loan association) engaged in providing
short-term loans of money of an original
term of less than 31 days such as payday
loans, signature loans, title loans (to vehicles,
boats or other personal property, but not real
estate), check-cashing loans, small loans and
other similar loans
The payday loan industry is termed by many
as “predatory lending”
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Seriously?!!
Missouri Legislature passed laws that allow a lender to charge
fees and interest up to 75% of the amount of the loan - on a
two-week loan that translates into a 1,950% annual percentage
rate (APR) which is the highest allowed among the 43 states that
have either banned or set APR caps on payday loans.
Since enactment of these laws, payday loans made to consumers
average more than 400% APR according to the state’s Division of
Finance
The lax payday loan laws in Missouri have made the state
attractive to lenders. Among the nine states that border Missouri,
only Tennessee has more payday loan locations (1,481) than
Missouri (1,275) with the next highest being Kentucky with 785
The APR allowed by Missouri’s statutes of 1,950% based on a
two-week loan of $100 is by far the highest of the nine states
that border Missouri. The next highest is Arkansas which allows
an APR of 520%.
The Consumer Federation of America says that “payday loan
borrowers are typically female, make around $25,000 a year, are
renters, and more likely to be minorities than the general
population.”
The KCMO City Council found and concluded:
 That lending and marketing practices of short term loan establishments
can result in serious financial hardships to some of its citizens,
particularly its elderly and low income citizens, from which they cannot
extract themselves, perpetuate poverty and the dependency upon public
financial assistance, housing, health care and social services
 The proliferation over the past several years of short term loan
establishments in certain areas of the city cause or contribute to the
deterioration of those commercial and residential areas
 The patterns of this proliferation suggest the industry's targeting of lowincome citizens who are most likely to suffer financial hardship as a
result of the lending practices offered by short term loan establishments
 The further regulation of short term loan establishments is necessary for
the promotion and protection of the public health, safety and welfare of
its citizens and the the city's interests to maintain the quality of its
commercial and residential neighborhoods
 Short term loan establishments in KCMO must pay $1000 per year for a
permit, cannot be located within one mile of another short term loan
establishment or pawnshop, and cannot be located within 1,000 feet of
a property which has been designated as a landmark or historic district.
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To ensure that cigarettes are not being sold
to minors – Regulated Industries began
conducting minor compliance checks in
March of 2013 – To date, minor compliance
checks have been made at 144 businesses
and 47% of those businesses sold tobacco
products to minors
To prevent individual cigarettes from being
sold to the public
To prevent synthetic drugs from being sold to
the public
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Before anyone can work in KCMO as a driver
of a commercial vehicle, work as a waiter,
waitress or doorman where alcohol is sold, or
work as an adult entertainer or adult
entertainment manager at an adult
entertainment facility, they must apply for
and receive the corresponding permit or
certificate and pass a background check
The requirements for passing a background
check vary for each industry and are in place
to provide for public safety
Although summonses can be written,
Regulated Industries has found it to be most
effective by using other methods to deal with
ordinance violations which include:
 Initial warning
 Informal Disposition
 Suspension of license, permit or certificate
 Revocation of license, permit or certificate
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Typically given to any first time offender of a
particular violation
A face to face meeting is generally held between
the R.I. manager and the offender
The manager discusses the violation with the
offender and explains what will happen if there is
a repeat violation in the future
A face to face meeting assures that the offender
fully understands the severity of the violation,
understands what is expected of them in the
future and what the punishment will be if there is
a repeat violation
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As written in ordinance, an informal disposition
is the stipulation, consent order or default, or
agreed upon settlement of a contested case
between the manager and the violator
An informal disposition works best if you have an
ordinance in place to allow for this option
Must have a system in place of adjudicating the
case otherwise – a board or hearing officer that
can listen to any disputed violation or case
A far superior method of handling violations as
opposed to issuing a summons and getting a
maximum conviction of $500 - restaurant in
KCP&L district
By far the most powerful tool in your tool belt
when dealing with ordinance violations
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A suspension allows you to deal directly with the
violator rather than going through the court system
Should have set guidelines in place prior to dealing
with ordinance violations – example: A second
violation of minors purchasing alcoholic beverages =
2 day full closure of business, or, 6 day suspension,
or, agreed upon assessment of $1,500, or, hearing
for 12 day suspension
The suspension offered should be reasonable and fit
the crime – that is a 45 day suspension for a first
time sale of alcoholic beverages to a minor would be
extreme
Don’t bark unless you can bite – Fully understand the
extent of the violation and be confident that the
suspension you present is reasonable
Be prepared to have a hearing
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The revocation of a license, permit or certificate should
only occur through a hearing before a board or hearing
officer
You should only seek a revocation after you have tried on
multiple occasions to correct the violations through a
suspension or some other sort of disciplinary action –
warning, multiple suspensions, probationary period…
Before you decide to move for revocation of a license or
permit, reach out to the community and all other possible
resources (Police Department, Fire Department, Health
Department, Codes Administration…) to see if there are
any other ongoing issues with the business
Review your case to make sure you feel that the request
for a revocation is reasonable
Make sure you can live with the consequences of losing a
hearing to revoke a license or permit – Holiday
Convenience hearing
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Free up the police department from directly
overseeing and dealing with the issues that surround
unique businesses
Create experts in house to deal with those unique
businesses and fully understand the ordinances that
regulate them which leaves them better prepared to
deal with the challenges those businesses may
present
Provide citizens with a specific agency to answer
questions and handle complaints involving those
businesses and you have staff readily available to
investigate those complaints and have the ability to
report back to citizens within a quick time frame
Create the ability to deal directly with the employees
and owners of the business without going through
the court system