Report for Community Services Committee October 23, 2000 Meeting

Report for Community Services Committee October 23, 2000 Meeting

Escort Licensing Bylaw

Purpose

The purpose of this Bylaw is to establish a system of licensing escorts and escort agencies in order to:

  1. prohibit the conduct of these businesses until a license has been granted;
  2. help protect the safety, health and welfare of people engaged in, or receiving the services provided by, these businesses; and
  3. establish license fees that reflect, at a minimum, the costs associated with administering and regulating these businesses.

Readings

Bylaw 12452 is ready for Three (3) Readings.

This Bylaw is authorized under the Municipal Government Act. A majority vote of City Council on all three readings is required for passage.

If Council wishes to give three readings during a single meeting, then prior to moving Third Reading, Council must unanimously agree “That Bylaw 12452 be considered for Third Reading”.

Report Summary

This bylaw repeals Bylaw 10397 and substitutes a system of licensing escort and agency businesses consistent with the recommendations in the final report of the Dating and Escort Services Task Force.

Previous Council/Committee Action

At the City Council meeting on July 20, 1999 the following resolution was passed:

  1. That the recommendations of the final Report of the Dating and Escort Services Task Force be supported (Attachment 1 of the June 14, 1999 Dating and Escort Services Task Force report).
  2. That the Administration prepare an amending Bylaw for Council’s approval, through the Community Services Committee.
  3. That the Administration provide a report to City Council, through the Community Services Committee, describing the additional resources that would be required to properly implement this bylaw and the steps that must be taken to provide these resources (this report should be provided simultaneously with the new bylaw).

Report

The final report of the Dating and Escort Services Task Force received by Council in July, 1999, contained seven recommendations.

Several of these recommendations involve significant amendments to Bylaw 10397, A Bylaw of the City of Edmonton to License, Regulate and Control Dating and Escort Services. In lieu of performing such major surgery on the current bylaw, Bylaw 12452, the Escort Licensing Bylaw has been prepared for consideration by Council. This bylaw attempts to incorporate, where possible, the recommendations of the Dating and Escort Services Task Force, provides additional, complimentary, licensing provisions, and repeals Bylaw 10397.

In this report, each of the recommendations will be discussed in turn. There will then be a brief description of certain additional provisions contained in Bylaw 12452. The discussion of Budget/Financial Implications will be contained in a further report to be presented simultaneously, as directed by Council in the third paragraph of the resolution passed July 20, 1999.

Recommendation 1

That a bylaw to license, regulate and control dating and escort services be retained.

Bylaw 12452 contains provisions to license, regulate and control escorts and escort agencies.

Recommendation 2

That all employees and owners of escort agencies as well as all individuals under contract with agencies undergo a security clearance from Edmonton Police Service prior to their involvement with the dating and escort services business.

Part IV of Bylaw 12452 requires every application for the issue or renewal of a license (escort or agency) to be referred to the Chief of Police. The Chief may then make any investigations reasonably required to determine whether the issue or renewal of the license would endanger the safety, health or welfare of people, or the protection of people or property. Such investigations must include but are not limited to, a criminal record check of all individuals named anywhere in the application. Pursuant to the bylaw’s application requirements, those individuals include: any individual applicant, any partner, any shareholder, director and officer of any corporation and any person employed, whether by direct employment, independent contract, or otherwise.

Recommendation 3

That all licensees receive an orientation from the Edmonton Police Service, which would deal with legal, tax and health issues.

The orientation contemplated by this recommendation need not be contained in the bylaw itself. It is suggested this recommendation be implemented at the administrative level. This allows the administration flexibility with respect to the design of the program, the dedication of resources, and budgeting.

Recommendation 4

That independent escorts be eligible for licenses.

Bylaw 12452 permits escorts to be licensed and operate independently. An Independent Agency License is defined as a license issued to an agency providing introduction services to only one escort. This is distinct from an Agency License not only in the number of escorts receiving introduction services, but also in the amount of the license fee. The annual fee for an Agency License will be $4,000.00 while the annual fee for an Independent Agency License will be $1,500.00. An escort operating under an Independent Agency License will still require an escort license, with an annual fee of $100.00.

A person holding an Independent Agency License is subject to the same referral and reporting requirements as a person holding an Agency License.

Land Use issues are discussed under Recommendation 5.

Recommendation 5

That the existing provision of the Bylaw restricting locations of agencies would not change, but independents would be allowed to maintain minor home occupations/office support from their residences, excluding “in call” services.

This bylaw regulates the conduct of a particular type of business through a system of licensing. It does not attempt to regulate land use under the ambit of licensing. Regulation of land use is appropriately contained in a land use bylaw passed pursuant to Part 17 of the Municipal Government Act. However, as part of the referral process associated with licenses issued pursuant to this bylaw, there is a requirement for any applicant to satisfy the City Manager of compliance with the provisions of the City’s Land Use Bylaw.

At present, applications for escort agency development permits are generally considered by the Planning and Development Department to fall under the commercial use class of “Professional, Financial and Office Support Services”. The definition for this use class is found in section 10.3(31) of the Land Use Bylaw. This use class is not a permitted use in any of the residential districts described in the Land Use Bylaw. Further, it only appears as a discretionary use in one type of residential district, RMX, or Residential Mixed Use. In this district there are additional development regulations (see section 240.6) including a requirement that single detached housing be developed only in accordance with the provisions of the RF1 district.

This bylaw would not change the land use class associated with the business of escort agencies. What the bylaw does, is create a new type of independent agency for which an Independent Agency License will be issued. The intent of this sort of license is to allow an escort to work on their own. Applicants for this type of license will still be required to obtain a development permit and will generally be considered by the Planning and Development Department to fall under the commercial use class of “Professional, Financial and Office Support Services”.

It is conceivable, however, that an applicant for this type of license will request the development officer to consider the alternative use class of “minor home occupation”. The definition of this class is found in section 10.2(7) of the Land Use Bylaw. To qualify for consideration as a minor home occupation an applicant must have a business:

  1. not requiring more than 1 business visit per day;
  2. purely secondary to the residential use of the building;
  3. with no aspects of the operations detectable from outside the property; and
  4. with no non-resident employees.

If Council desires to prohibit agencies from ever qualifying for a minor home occupation development permit, the appropriate action is to amend the Land Use Bylaw to create a new commercial land use class for this type of business (i.e. Escorts and Agencies), and disqualifying this use class from the definition of minor home occupation.

Such an amendment would still allow escorts to work within an independent agency structure but would require a business address in an area zoned for the new use class.

This bylaw does not allow escorts to use their homes for the purposes of prostitution. Using a residence for the purposes of prostitution is prohibited in the Criminal Code of Canada. A municipality cannot, through its powers of licensing, override the criminal offences contained in this legislation.

Recommendation 6

That stringent penalties be imposed for any individual, agency or entity that involves children under the age of 18.

Bylaw 12452 makes it an offence for any person to provide introduction services to an escort under the age of 18 years. The specified (and therefore minimum) penalty for this offence is a fine of $5,000.00. The maximum penalty is a fine of $10,000.00. Further, Part VIII of Bylaw 12452 requires a licensee who is convicted of an offence under the bylaw to appear before the City Manager at a hearing to show cause why any license held by that licensee should not be suspended or revoked.

Bylaw 12452 also makes it an offence for any person under the age of 18 years to engage in the business of or operate as an escort. The specified penalty for this offence is a fine of $500.00.

Pursuant to Parts II and III of Bylaw 12452 no license may be issued to any individual under the age of 18 years, any partnership with a partner under the age of 18 years, or any corporation with any shareholder, director or officer under the age of 18 years.

Recommendation 7

That adequate resources be allocated for ongoing enforcement of the Bylaw and monitoring of dating and escort activities.

A discussion of the resources required to properly implement this bylaw and the steps that must be taken to provide those resources is contained in the report to be presented simultaneously, as directed by Council in the third paragraph of the resolution passed July 20, 1999.

Other Licensing Provisions

In addition to incorporating, where possible, the recommendations of the Dating and Escort Services Task Force, Bylaw 12452 provides several significant complimentary licensing provisions. Briefly, these include:

  1. A requirement that all agencies provide monthly reports containing certain specified information. This results in a less expensive, more efficient system of enforcement by eliminating the need for inspections to obtain this information. The license of an agency failing to comply with the reporting requirements is immediately suspended pending a hearing.
  2. Several new requirements regarding advertising by agencies and escorts. All advertisements must be in a name provided to the City Manager (and with respect to agencies, registered at the Corporate Registry) must include the applicable license number, and must not contain contact information not provided to the City. These changes allow the activities of agencies and escorts to be monitored in a more effective manner.
  3. Increased specified penalties for offences. These penalties, contained in Schedule B, range from $500.00 to $7,500.00. An attempt has been made, in the case of each offence, to have the specified penalty reflect the relative gravity of the offence.
  4. Personal liability for directors, officers or agents of corporations committing offences if they direct, authorize, assent to, acquiesce in or participate in the commission of the offence. Again, this change should allow for more effective enforcement of the Bylaw.
  5. An automatic license hearing if a licensee is convicted of an offence under the bylaw, an automatic license suspension of at least three months upon a conviction for a subsequent offence, and an automatic license revocation upon a conviction for a third offence. Anyone having had a license revoked is not eligible to re-apply for a license for two years.

Budget / Financial Implications

The budget and financial implications are discussed in the report being prepared pursuant to the third paragraph of the City Council resolution passed July 20, 1999.

Background Information Attached

  1. Bylaw 12452

Background Information Available on Request

  1. Final Report of the Dating and Escort Services Task Force
  2. Bylaw 10397

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