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ORDINANCE NO. 3238

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHANDLER,
ARIZONA AMENDING THE CODE OF THE CITY OF CHANDLER,
CHAPTER 19 REGARDING ESCORT AND INTRODUCTORY SERVICES
AND DECLARING EMERGENCY.

BE IT ORDAINED by the City council of the City of Chandler, Arizona, as follows:

SECTION 1. That the Chandler City Code, Chapter 19, is amended to read as set forth in Exhibit "A" attached hereto.

SECTION 2. Whereas, the immediate operation of the provisions of this Ordinance is necessary for the preservation of the public peace, health, life and property of the City of Chandler, an emergency is hereby declared to exist, to wit: contuining criminal activity that victimizes citizens of Chandler fosters prostitution, extortion and robbery, and this ordinance shall be in force and effect from and after passage, adoption and approval of the Mayor and City Council of the City of Chandler, and is hereby exempt from the referendum provisions of the Constitution of the State of Arizona.

PASSED AND ADOPTED by the City Council of the City of Chandler, Arizona, this 8th day of February 2001.

ATTESTING: City Clerk and Mayor

Certified by the City Clerk

Approved as to Form by City Attorney

Published 2/14/01 and 2/21/01

CHAPTER 19
ESCORT AND INTRODUCTORY SERVICES

19-1. Purposes and intent.

It is the purpose and intent of the City Council of the City, by the adoption of this chapter, that the operation of an escort service or introductory service, as defined in this chapter, should be regulated for the protection of the public from the perils of fire, hazard to health, to prevent prostitution and other crimes, and for the preservation of the peace and welfare of the community.

19-2. Definitions

As used in this chapter, the following terms shall have the following meanings, unless the context clearly indicates that a different meaning is intended:

1. Applicant - The person owning, operating, and/or conducting the business to be permitted, including all persons financially interested in the business, the Manager(s) or other individual(s) principally in charge of the operation of the business, and the responsible managing officer designated pursuant to this section.
2. Consideration - Money or money's worth, payment, reward or anything regarded as a return given or suffered by one for the act or promise of another.
3. Escort - means any person whom, for any pecuniary compensation:
A. Escorts, accompanies or consorts with other persons to, from or about social affairs, entertainment, places of public assembly or places of amusement located or situated within the City; or
B. Escorts, accompanies or consorts with other persons in or about any place of public or private resort or within any private quarters located or situated within the City; or
C. Escorts, accompanies of consorts with other persons in or about any business or commercial establishment, or part or portion thereof, located or situated within City.
4. Escort Bureau - Any person who for a fee, commission, profit, payment or other monetary consideration, furnishes, refers, or offers to furnish or refer escorts, or provides, or offers to introduce, patrons to escorts.
5. Escort Bureau Runner - Any person, not an escort, who for a salary, fee, hire, reward, or profit, as the agent for either an escort bureau or a patron, contacts or meets with escort patrons or escort bureaus at any location other than the established open office, as defined hereunder, whether that person is employed by the escort bureau or any business, or is self-employed.
6. Escort Service - means any business, agency, or self-employed or independent escort who, for a pecuniary compensation, furnishes or offers to furnish escorts.
7. Introductory Service - means a service offered or performed by any person for pecuniary compensation, which assists a customer to meet another person or persons for dating or social purposes. A party, dance, or other social gathering is not an introductory service.
8. Open Office-An office at the permitted escort bureau address from which escort business is transacted: to qualify as an open office it is required that:
A. Business Hours be established and posted and that the office be open to the public and patrons or prospective patrons during such business hours and that the office be accessible to the business invitees, business permit officials and law enforcement officers through a security system during all other hours that escorts are working:
B. The office be managed by the owner of a management employee of the owner having authority to bind the bureau to escort and patron contacts and adjust patron and consumer complaints;
C. All telephone lines and numbers listed to the escort bureau, or advertised as escort bureau numbers, terminate at the open office and at no other location.
D. An index of all employees and escorts be kept in the open office;
E. All business records be kept in the open office including records of escort calls and referrals, stating the name and address, including hotel or motel room, of the patron, the date and time of the referral, name of escort sent and whether the referral resulted in an escort service and the total fee received from the patron.
9. Offer to Provide Acts of Sexual Conduct - To offer, propose or solicit to provide sexual conduct to a patron. Such definitions would include all conversations, advertisements and acts which would lead a reasonably prudent person to conclude that such acts were to be provided.
10. Patron - Any person who agrees, arranges, contacts, pays or attempts to hire the services of an escort or escort bureau.
11. Person - Any individual, or any firm, partnership, corporation or association of any kind.
12. Profit Interest - means any interest or share in the present or prospective benefit profit of an escort or introductory service.
13. Prostitution - Engaging in or agreeing or offering to engage in sexual conduct with another person under a fee arrangement with that person or any other person.
14. Service Oriented Escort - An escort who:
A. Operated from an open office; and
B. Does not employ or use an escort bureau runner; and
C. Does not advertise that sexual conduct will be provided or work for an escort bureau which so advertises; and
D. Does not offer, solicit, agree to provide, or provide sexual conduct.
15. Service Oriented Escort Bureau - An escort bureau which:
A. Maintains an open office at an established place of business; and
B. Does not use an escort bureau runner; and
C. Does not advertise, offer, solicit, agree to, or provide sexual conduct to a patron; and
D. Employs or provides only escorts who possess escort identification cards.
16. Sexual Conduct, Sexual Gratification, Sexually Oriented Acts - Engaging in or the commission of an act of sexual intercourse, oral-genital contact, or the touching of the sexual organs, pubic region, buttock or female breast of a person for the purpose of arousing or gratifying sexual desire of another person.
17. Sexually Oriented Escort - An escort who:
A. Employs an escort bureau runner as an employee, agent or independent contractor; or
B. Works for, as an agent, employee or independent contractor, or is referred to a patron by a sexually oriented escort bureau; or
C. Advertised that sexual conduct will be provided, or works for as an agent, employee or independent contractor, or is referred to a patron by an escort bureau which so advertises; or
D. Solicits, offers, agrees to provide or does provide acts of sexual conduct to an escort patron; or
E. Accepts an offer or solicitation to provide acts of sexual conduct for a fee in addition to the fee charged by the escort bureau.
18. Sexually Oriented Escort Bureau - An escort bureau which:
A. Engages in advertising to make the prospective patron believe that acts of sexual conduct or sexual stimulation will be provided; or
B. Uses as escorts persons known to have violated the law regarding prostitution; or
C. Does not maintain an open office; or
D. Employs as an employee, agent or independent contractor, or uses an escort bureau runner; or
E. Advertises that sexual conduct will be provided or that escorts which provide such sexual conduct will be provided, referred, or introduced to a patron; or
F. Solicits, offers or agrees to provide or does provide acts or sexual conduct to a patron; or
G. Employs, contracts with or provides or refers escorts who do not possess escort identification cards as required herein;
H. Does not deliver contracts to every patron or customer; or
I. Employs, contracts with, or refers or provides to a patron, a sexually oriented escort.
19. Sexual Stimulation - To excite or arouse the prurient interest or to offer or solicit acts of sexual conduct as defined under "offer to provide acts of sexual conduct."

19-3. Escort and/or introductory services permit required.

It is unlawful for any person to engage in, conduct or carry on, in or upon any premises or real property located or situated within the City, the activities of an escort or introductory service, unless there has been granted to such person a valid permit, pursuant to the provisions of this chapter. A separate permit shall be required for each location within the City at which an escort service or introductory service is to be established.

It shall be unlawful for any person to work or perform services as, conduct, manage, operate, or maintain an escort bureau unless permitted pursuant to this section.

It shall be further be unlawful for any person to operate a business, which has been permitted under this section while the permit for that business is suspended or revoked.

19-3.1. Permit term.

The term of an escort service or introductory service permit shall expire one year from the date of issuance and may be renewed annually.

19-3.2. Permit renewal.

An escort service or introductory service permit, issued pursuant to the provisions of this chapter, which has not been suspended or revoked, may be renewed for a period of not to exceed one (1) year on written application to the Management Services Director made at least ninety (90) days prior to the expiration date of the current valid permit. The application for renewal of a permit shall contain all of the information required by section 19-3.4 of this chapter.

19-3.3. Exceptions.

The requirements of this chapter shall have no application and no effect upon and shall not be construed as applying to employment agency services.

19-3.4. Permit application; contents; required fees.

Any person desiring to obtain a permit, or renew an existing permit, to operate an escort or an introductory service, shall make application to the Management Services Director of the City ("Director"). An application for an escort or introductory service business permit or permit renewal shall be accompanied by a nonrefundable application fee in an amount established by Council resolution and non-prorated annual permit fee, established by Council resolution. The annual permit fee will be refunded if the permit is denied. Neither the filing of an application for a permit thereof, nor payment of an application or renewal fee, shall authorize the conducting of an escort or introductory service until such permit has been granted or renewed. Each applicant for an escort or introductory service permit, or renewal thereof, shall furnish the following information:
A. The present or proposed address where the business is to be conducted.
B. The full true name under which the business will be conducted.
C. The full true name and any other names used by the applicant.
D. The present residence and business addresses and telephone numbers of the applicant.
E. Each residence and business address of the applicant for the five-year period immediately preceding the date of filing of the application and the inclusive dates of each such address.
F. State driver's license or identification number and social security number of applicant.
G. Applicant's birth date together with acceptable written proof that the applicant is at least eighteen (18) years of age.
H. The business, occupation or employment history of the applicant for the three-year period immediately preceding the date of the filing for the application.
I. The permit or permit history of the applicant, for the five-year period immediately preceding the date of the filing of the application, including whether such applicant, in previously operating in this or any other City, county, state or territory, has ever had any similar license or permit issued by such agency revoked or suspended, or has had any professional or vocational license or permit revoked or suspended, and the reason or reasons therefor.
J. All criminal convinctions of the applicant, including ordinance violations, but excepting minor traffic offenses not involving alcohol (any traffic offense designated as a felony shall not be construed as a minor traffic offense), stating the date, place, nature and sentence of each such convinction.
K. If the applicant is a corporation, the name of the corporation shall be set forth exactly as shown in its articles of incorporation or charter, together with the state and date of incorporation. The applicant shall provide all of the information listed above for each of its current officers and directors and of each stockholder holding more than five (5) percent of the stock in the corporation. If the applicant is a partnership, the applicant shall set forth all of the information listed above for each of the partners. If the applicant is a limited partnership, it shall furnish a copy of its certificate of limited partnership, filed as required by law: and the names and addresses of each of its current officers and directors, if any, and of each limited partner holding an interest of more than five (5) percent of the limited partnership. The Applicant Corporation or partnership shall designate one of its officers or general partners to act as its responsible managing officer. Such designated person shall complete and sign all application forms required of an individual applicant under this chapter, but only one (1) application fee shall be charged. Finger print cards will be sent to the Department of Public Safety Identification Section for a criminal history check.
L. A detailed description of the service to be provided.
M. The true names and residential addresses of all persons employed or intended to be employed as escorts.
N. Such other identification or information as the chief of police may require in order to discover the truth of the matters required to be set forth in the application.
O. Each owner, managing partner or officer regulated by this chapter for which the permit is requested shall submit to fingerprinting and photographing at the Chandler Police Department. The applicant shall be responsible for the cost of fingerprinting and photographing.
P. The name, including any aliases, business trade names or styles.
Q. Height, weight, color of eyes and hair and date of birth.
R. Two (2) current 2" x 2" photographs.
S. A certificate from a medical doctor licensed to practice in the state of Arizona stating that the individual applicant has within thirty (30) days immediately preceding the date of the application been examined and found to be free of any contagious or communicable disease.

19-3.5. Changes to be reported.

When any change occurs regarding the written information required by subsection 19-3.4 of this section which is required to be included in the application, the applicant or permit holder, as the case may be, shall give written notification of such change to the director within twenty-four (24) hours after such change.

19-3.6. Investigation.

The chief of police shall have a reasonable period of time in shich to investigate the application and background of the applicant. The chief of police/designee, shall, within sixty (60) days after the date of the filing of the application, render a written recommendation to the director as to approval or denial of the application for the permit or renewal thereof.

19-3.7. Decision.

The director, within sixty (60) days after receiving the application and aforementioned recommendation from the chief of police, shall grant the permit, or renewal thereof, only if he finds that all of the following requirements have been met.
A. The required application fees have been paid.
B. The application conforms in all respects to the provisions of this chapter.
C. The applicant has not knowingly made a material misrepresentation of fact in the application.
D. The applicant has fully cooperated in the investigation of the application.
E. The applicant, if individual, and each of the directors, officers, or stockholders with an ownership of five (5) percent or more of a corporation, and each of the partners, including limited partners with an ownership of five (5) percent or more, and the Manager or other person principally in charge of the operation of the existing or proposed escort or introductory service, or a natural person employed or contracted with to be an escort or to provide escort services, have not been convicted of, or pleaded guilty or nolo contendere to, in a court of competent jurisdiction, within the last five (5) years, a felony or any offense, including misdemeanor, involving fraud, prostitution, pimping, pandering, lewd conduct, indecent exposure, pornography, or any other offense involving moral turpitude; and have not permitted, through an act of omission or commission, his or her employee or agent to engage in any type of criminal offense involving moral turpitude or sexual misconduct, whether a misdemeanor or felony (under such circumstances, the conduct of the employee or agent, if such resulted in a conviction or a plea or nolo contendere or guilty, will be considered imputed to the principal and shall be grounds for denial);
F. The applicant has not had an escort bureau/service, introductory service or escort permit or other similar license or permit denied or suspended or revoked for cause by this City or any other city or county located in or out of this state within the five-year period immediately preceding the date of the filing of the application.
G. The escort or introductory service, as proposed by the applicant, would comply with all applicable city, county and state laws, including, but not limited to, health, zoning, fire, and safety requirements and standards.
H. The applicant, Manager or other person principally in charge of the operation of the business is at least eighteen (18) years of age.
I. The applicant has furnished an acceptable medical certificate in compliance with subsection 19-5.4.B.(1) of this section.

19-3.8. Denial.

If the director does not find that all of the requirements set forth in this chapter have been met, the director shall deny application. Written notice of the director's action shall be given to the applicant, specifying the ground or grounds if denied, by personal service or by certified mail with postage prepaid and addressed to the applicant at the residence address set forth in the application for the permit or renewal thereof.

19-3.9. Transfer or sale.

A permit shall be a purely personal privilege, good for not to exceed one (1) year after issuance unless sooner revoked as in this chapter provided, and shall not constitute property, nor shall it be subject to attachment, garnishment or execution, nor shall it be alienable or transferable, voluntarily or involuntarily, or subject to being encumbered or hypothecated. Such permit shall cease upon the death of the permittee and shall not descend by the laws of the testate or intestate devolution.

19-3.10. Suspension or revocation of permit.

If the director finds that any person holding an escort or introductory service permit or an escort permit has violated any of the provisions of this chapter or conducts such business or activity in such a manner as would have been grounds for denial of a permit under this chapter, the director shall suspend or revoke the permit. To deny, suspend or revoke a permit, the management services director/designee shall deliver or mail by certified mail to the business address as shown by the permit application, a written notice that said permit is denied, suspended or revoked and which lists the grounds therefor. A suspended or revoked permit shall be surrendered to the management services director/designee on demand.

19-4. Additional regulations for escort and introductory services.

19-4.1. Change of location or name.
A. A change of location of any premises where a permitted escort or introductory service is conducted may be approved by the director provided all requirements of this chapter and all ordinances and regulations of the City are complied with and upon payment of the change of location fee established by council resolution.
B. No permit holder shall operate an escort or introductory service under any name or designation not specified in the permit.

19-4.2. Employment and activities of escorts.
A. No holder of an escort or introductory service permit shall employ as an escort any person under eighteen (18) years of age.
B. No holder of an escort or introductory service permit shall furnish any escort or introductory service to or accept employment from any patron, customer or person to be escorted or introduced, who is under eighteen (18) years of age.

19-5. Escorts, permit required.

It shall be unlawful for any person to act as an escort unless there has been granted to such a person a valid permit, pursuant to the provisions of this chapter. Such permit shall be issued to the address of the employer of the escort, who must in turn also hold a valid escort or introductory service permit issued by the City pursuant to the provisions of this chapter. Any person accompanying an escort or working as an escort runner will have a current copy of a valid escort permit in his possession while functioning as an employee or agent of the same escort bureau. It shall also be unlawful for any person to work or perform services as a sexually oriented escort, regardless of permit.

19-5.1. Term of escort permit.

The term of an escort permit, unless sooner suspended or revoked, shall expire one year from the date of issuance.

19-5.2. Manifesting an attempt to commit prostitution.

It shall be unlawful for any person to engage in any activities, which would lead a reasonable person to believe that the other is intending to commit an act of prostitution.

The following acts serve as inferences for this code:
Is a known prostitute.
Touches or gropes undercover officer or witness.
Engages in conversation to establish if customer is a law enforcement officer.
Engages in conversation, which leads a person to believe that he or she will perform sexual services for "tips" (gratuity).
Admits to working or dating.
Any acts articulated by a peace officer showing the attempt to commit a prostitution act, such as location, mannerism, attire, and actions.

19-5.3. Escort permit identification card.

Each escort permit holder shall be issued an identification card, which will also serve an escort permit. The permit holder shall carry such card upon his or her person when acting as an escort and produce the same for inspection upon request. Each permit holder shall immediately surrender, to the management services director, any escort permit issued by the City upon the suspension, revocation or expiration of such permit.

19-6. Prohibited activities by escorts.

No holder of an escort permit shall escort, offer to escort or perform any activity described in this chapter to any person under the eighteen (18) years of age.

19-7. Appeal Process.

19-7.1. Request for hearing.

Upon written request within ten (10) days of the date of the notice, by any applicant or permittee whose permit has been denied, revoked, or suspended, the management services director/designee shall hold a hearing on the merits of such denial, suspension or revocation. If a hearing is not requested within ten (10) days of the date of the notice, the suspension or revocation shall take effect on the eleventh day after the date of the notice. If a hearing is requested, the suspension or revocation shall not take effect until after the hearing and service of a new notice from the management services director/designee, setting forth the management services director/designee's final decision to suspend or revoke the permit. Appeal of the management services director's decision to the City Manager may not be made prior to such a hearing. Failure to request a hearing within ten (10) days of the date of the notice of decision of management services director's decision to the City Manager may not be made prior to such a hearing. Failure to request a hearing within ten (10) days of the date of the notice of decision of management services director shall constitute a full waiver of the right to such a hearing and a waiver of the right to appeal the decision to the City Manager.

19-7.2. Appeal.

Any parties aggrieved by the final decision of the management services director/designee with regard to the permits required by this chapter may within ten (10) days of the date of notice of such decision, give written notice to the City Clerk of intention to appeal to the City services director/designee. Appeals will be heard in accordance with the provisions set forth in chapter 1. Failure to appeal in writing within the prescribed time constitutes a waiver of the right to appeal. The decision of the City Manager/designee shall be final.

19-8. Non-profit corporation, or organization exemptions.

An organization which is qualified for exemption from taxation of income under A.R.S. 43-1202, paragraph 1, 2, 4, 5, 6, 7, 10 or 11, and all professions, occupations and businesses which are permitted by the state of Arizona or any political subdivision thereof pursuant to the specific statute or ordinance, and all employees employed by a business so permitted, and which perform and escort or escort bureau function as a service merely incidental to the primary function of such organization, profession, occupation or business and which do not hold themselves out to the public as an escort or escort bureau, are exempt from permitting pursuant to this section. Any employment agency, licensed by the state, which provides escorts as defined herein, must, however, obtain a permit as required by the chapter.

19-9. Escort bureau duties.
A. The escort bureau shall provide to each patron a written contract and receipt of payment for services. The contract shall clearly state the type of services to be performed, the length of time such services shall be performed, the total amount of money such services shall cost the patron, and any special terms or conditions relating to the service to be performed.
B. The escort bureau shall maintain an open office at the permitted location. The address of that office shall be included in all patron contracts. Private rooms or booths where the patron may meet with the escort shall not be provided at the open office or at any other location by the escort bureau.
C. The escort bureau, in terms of permitting consequences, is responsible and liable for the acts of all its employees and subcontractors including but not limited to, telephone receptionists and escorts who are referred by that bureau while the escort is with the patron.

19-9.1. Advertising without a permit.

It is unlawful to advertise or hold out to the public the availability of an escort or escort bureau without obtaining a permit therefore as provided in this section, whether the actual business of escorts or escort bureau as defined in this section is performed. The escort bureau permit number must be prominently displayed in such advertisements and prefaced with the letters COC to indicate a City of Chandler permit number. This number will be displayed in all written, audio or electronic media advertisements.

19-10. Information update.

Any changes in information required to be submitted by this section must be given to the Management Services Director within ten (10) days of any such change.

19-11. Grounds for revocation of permit.

A permit issued pursuant to this section shall be revoked upon any one more of the following grounds:
A. The permittee has been convicted, subsequent to the issuance of any permit of a crime, which is either a felony or misdemeanor involving moral turpitude or has offered or agreed to or rendered the service of a sexually oriented escort.
B. The permittee is a corporation and is not or is no longer qualified to transact business in the State of Arizona.

19-12. Mandatory fines and sentences.

A person who is convicted for a violation of this ordinance or a violation of any other state or local statute, that would otherwise constitute a violation of this statute, and;
A. A person convicted of any offense listed in this chapter shall be fined not less than $500.00 dollars on the first conviction.
B. A person convicted of a second violation (occurring within a 3-year period of the first offense) shall be fined not less than $1,000.00 dollars.
C. A person convicted of 19-5.2 shall be fined $250.00 for a first offense and $500.00 for a second offense.

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