HomeMy WebLinkAboutItem 2 - Ai Hong Li AppealDATE: June 14, 2016
TO: Honorable Chairman and Business Permit and License Review Board
FROM: Jim Kasama, Community Development Administrator
By: Silva Vergel, Business License Officer
SUBJECT: APPEAL OF A BUSINESS LICENSE REVOCATIONS FOR
NONCOMPLIANCE WITH THE CITY OF ARCADIA MASSAGE
THERAPIST AND BUSINESS LICENSE REGULATIONS BY AI HONG LI
AT 28 EAST DUARTE ROAD
Recommendation: Uphold Revocations and Deny Appeal
SUMMARY
At the request of the Arcadia Police Department, the Business License Office on May
16, 2016, revoked the Business Licenses issued to Ms. Ai Hong Li, an independent
massage therapist and esthetician that was licensed to work at Arcadia Spa at 28 E.
Duarte Road. Her licenses were revoked for noncompliance with the City of Arcadia
Massage Therapist and Business License regulations. The revocation notice is attached
as Exhibit ‘A’. Ms. Li filed an appeal of the revocations on May 17, 2016. The appeal
letter is attached as Exhibit ‘B’. The Police Department revocation request and the face
page of the Police Report are attached as Exhibit ‘C’. It is recommended that the
Business Permit and License Review Board uphold the revocations and deny the
appeal.
BACKGROUND
Ordinance No. 2263 was adopted on December 1, 2009 and designates the Planning
Commission as the Business Permit and License Review Board (Board). The Board
serves to hear appeals of business license application denials, and license revocations,
and is the first arbiter of appeals. The Board’s decision may be appealed to the City
Council.
On March 30, 2004, a business license was issued to Ms. Ai Hong Li as an independent
contractor, to work as a massage therapist at Arcadia Spa at 28 E. Duarte Road. On
March 1, 2010, a second license was issued to Ms. Li to work as an esthetician at the
same establishment.
Since the business has been in operation, staff has conducted multiple inspections.
Most recently inspections were conducted on April 17, 2014, December 8, 2014 and
August 27, 2015. There were violations of the Arcadia Municipal Code (AMC) observed
Appeal of Business License Revocation
Ms. Ai Hong Li – 28 E. Duarte Road
June 14, 2016 – Page 2 of 5
on April 17, 2014, and December 8, 2014. The violations were a massage therapist not
having a business license, and a lack of Records of Treatment for clients. These
violations were for the operation of the business and not related to Ms. Ai Hong Li.
On March 31, 2016, the Police Department arrested Ms. Li at Arcadia Spa for
performing illegal acts and transported her to the Arcadia Police Department Jail.
On May 5, 2016, the Police Department requested that the Business License Office
revoke the business licenses for Arcadia Spa and Ms. Ai Hong Li. The face page of the
Police Report and the requests for revocation are attached as Exhibit ‘C’.
On May 16, 2016, the Business License Office revoked the licenses for Arcadia Spa
and for Ms. Ai Hong Li.
On May 17, 2016, Ms. Ai Hong Li, the massage therapist/esthetician appealed the
revocations. This letter is attached as Exhibit ‘B’.
DISCUSSION
The business licenses issued to Ms. Ai Hong Li as an independent contractor to work as
a massage therapist and esthetician were revoked on May 16, 2016, at the request of
the Arcadia Police Department for violations of the Arcadia Municipal Code (AMC). Per
AMC Section 6216.7.(3), the licenses are subject to suspension or revocation. The
following is a summary of the violations:
• The holder of the license has violated any of the conditions of said license, or has
violated or permitted to be violated any law or laws of the United States or the
State, or any ordinance applicable to the premises where the business covered
by said license is conducted, or in connection with said business.
The appellant was in violation of multiple portions of AMC Sections 6418.19;
Prohibited Activities, and 6418.20 Operations.
Based on investigative resources, on March 31, 2016, the Police Department visited the
business to determine if acts of prostitution were taking place at this location. The Police
Department arrested Ms. Ai Hong Li, a massage therapist and esthetician for having
performed illegal acts and transported her to the Arcadia Police Department Jail. Mr.
Bao Gui Sun, the business owner was not present at the time. The business and the
therapist violated the following Sections of the AMC. The face page of the Police Report
is attached as Exhibit ‘C’.
• Arcadia Municipal Code Section 6418.19.(A). Prohibited Activities –
Expose/Touch Genitals - It is unlawful for any massage therapist, employee,
patron, or any other person present where massage therapy services are being
offered or performed, to expose or touch the genitals or anal area, or the breast
of any female, whether his or her own, or those of another person.
• Arcadia Municipal Code Section 6418.19.(B). Prohibited Activities –
Perform/Engage in Sexual Activity - It is unlawful for any massage therapist,
Appeal of Business License Revocation
Ms. Ai Hong Li – 28 E. Duarte Road
June 14, 2016 – Page 3 of 5
employee, patron, or any other person present where massage therapy services
are being offered or performed, to engage in any sexual activities.
• Arcadia Municipal Code Section 6418.19.(C). Prohibited Activities – State of
Nudity - It is unlawful for any massage therapist, employee, patron, or any other
person present where massage therapy services are being offered or performed,
to be in a state of nudity or semi-nudity.
• Arcadia Municipal Code Section 6418.20.(E). Operations – Covering. Each
massage therapist shall provide to all patrons clean, sanitary and opaque
coverings capable of covering the patron's specified anatomical areas, including
the genital, anal and female breast area. Reuse is prohibited unless the covering
is adequately cleaned.
• Arcadia Municipal Code Section 6418.20.(J). Operations – Lighting. The lighting
in each massage room shall be at least one (1) sixty-watt white light bulb and
shall be activated at full wattage at all times (no dimming) while a patron is in
such room or enclosure. No strobe flashing lights may be used. No colored lights
shall be used nor shall any coverings be used which change the color of the
primary light source.
The Arcadia Police Department requested that the Business License Office revoke the
licenses issued to Ms. Ai Hong Li. The business licenses for Ms. Li were revoked on
May 16, 2016. Ms. Li appealed the revocations on May 17, 2016. The revocation notice
and appeal letter are attached as Exhibits ‘A’ and ‘B’.
Revocation and Appeal Process
Per Arcadia Municipal Code Section 6216.7, the Business License Officer may suspend
or revoke any business license upon receipt of information from any source that any of
the following has occurred:
(1) The holder of the license, or his or her employee, agent, partner, director, officer,
controlling stockholder or manager has knowingly made any false, misleading or
fraudulent statement of material facts in the application for the license or permit, or
in any report or record required to be filed with the City’s Police Department,
County Health Department, or any other City Department or office in connection
with the operation of the business; or
(2) The business has been expanded, or partially or wholly converted to another
business without the required City approvals and permits; or
(3) The holder of the license has violated any of the conditions of said license, or has
violated or permitted to be violated any law or laws of the United States or the
State, or any ordinance applicable to the premises where the business covered by
said license is conducted, or in connection with said business; or
(4) The holder of the license, or his or her employee, agent, partner, director, officer,
controlling stockholder or manager has, in the conduct of the same or any similar
business, been guilty of fraud, misrepresentation or conduct detrimental to the
Appeal of Business License Revocation
Ms. Ai Hong Li – 28 E. Duarte Road
June 14, 2016 – Page 4 of 5
public welfare which includes operations or activities that do not comport with the
peace, health, safety and convenience of the public such as (a) operation of a
business prohibited by local or state law (b) allowance of activities that are or
become a public nuisance which includes the disruptive conduct of business
patrons whether on or immediately off the premises where such patrons disturb the
peace, obstruct traffic, damage property, engage in criminal conduct, violate the
law and otherwise impair the free enjoyment of life and property.
Subsequent to the issuance of a revocation and within ten (10) days, an applicant or
business licensee may file an appeal to the Business Permit and License Review Board
(Board) and within 30 days or as soon thereafter as possible, a hearing shall be
conducted by the Board. Any Board member who has any financial interest in the
outcome of the hearing or is unable to make a fair, impartial and unbiased determination
shall not participate in either the hearing or in any determination or recommendation
after the hearing.
Per Section 6216.8 of the Arcadia Municipal Code (AMC), during the hearing, all parties
involved shall have the right to offer testimonial, documentary, and tangible evidence
bearing upon the issues and may be represented by counsel. The Board shall not be
bound by the formal rules of evidence and may require the presentation of additional
evidence from any party involved. Any hearing under this Section may be continued for
a reasonable time for the convenience of a party or witness at the request of the
applicant or licensee, or any other party. Extensions of time or continuances sought by
an applicant or licensee shall not be considered delay on the part of the City and shall
not be deemed to constitute failure by the City to provide for a prompt decision.
At the conclusion of the hearing, the Board shall, by a majority vote of the members present
at the hearing, order that the license be revoked, suspended, reinstated, or reinstated
contingent upon the applicant or licensee performing some remedial action such as, but not
limited to, paying a fine or penalty. The Board may also prevent the holder of a revoked or
suspended license from applying for a new license within one (1) year or such other certain,
specified reasonable time period as the Board deems prudent.
Within ten (10) days of receiving notice of the Board’s decision, the holder of the
revoked license, any member of the City Council, any affected City Department Head,
or any other business or resident of the City may appeal the decision by filing an appeal
to the City Council.
FINDINGS
Based on the reports from the Arcadia Police Department, Ms. Ai Hong Li has violated
several municipal codes, and the regulations of the California Massage Therapy
Council.
RECOMMENDATION
It is recommended that the appeal be denied and the revocation of the business
licenses for Ms. Ai Hong Li be upheld, and that Ms. Li not be allowed to own or operate
a business, or work as a massage therapist or an esthetician in the City of Arcadia for a
period of one (1) year.
Appeal of Business License Revocation
Ms. Ai Hong Li – 28 E. Duarte Road
June 14, 2016 – Page 5 of 5
BUSINESS PERMIT AND LICENSE REVIEW BOARD ACTION
Approval of Appeal
If the Business Permit and License Review Board (Board) intends to approve the appeal
and overturn the revocation(s), the Board should approve a motion to sustain the appeal
and overturn the revocation(s) and state the reason(s) for the decision based on the
evidence presented. It is recommended that a reinstatement be subject to the following
conditions:
1. Any business owned and/or operated by the appellant, and the premises must at
all times be in compliance with the Arcadia Municipal Code, and all other
applicable County, State and federal regulations.
2. Should the appellant and/or any business owned and/or operated by the appellant
be found to have violated any applicable Arcadia Municipal Code or other
applicable regulation within the next 12 months, it may be brought directly to the
Board’s attention, at which time the Board may revoke the business license in
accordance with Sections 6216.7 and 6216.8 of the Arcadia Municipal Code.
Denial of Appeal
If the Business Permit and License Review Board (Board) intends to deny the appeal
and uphold the revocation(s), the Board should approve a motion to deny the appeal
and uphold the revocation(s) of the business license(s) for Ms. Ai Hong Li, and that Ms.
Li not be allowed to own or operate a business, or work as a massage therapist or an
esthetician in the City of Arcadia for a period of one (1) year.
If any Board Member, or other interested party has any questions of comments
regarding this matter prior to the June 14, 2016 hearing, please contact Business
License Officer, Silva Vergel at (626) 574-5430, or svergel@ArcadiaCA.gov.
Approved:
Attachments: Exhibit ‘A’ – Revocation Notice
Exhibit ‘B’ – Letter of Appeal
Exhibit ‘C’ – Revocation Request & Face Page of the Police Report