HomeMy WebLinkAboutOrdinance 79- 1029, Adds Ch. 3.70, boilerroom licensing 1„G17
ORDINANCE NO. 1029
AN ORDINANCE OF THE CITY OF BOZEMAN ADDING SECTION 3.70 PROPOSED
BOILERROOM OPERATIONS, TO THE LICENSING CHAPTER OF THE CITY CODE
OF THE CITY OF BOZEMAN
BE IT ORDAINED BY THE BOZEMAN CITY COMMISSION OF THE CITY OF BOZEMAN:
That Section 3.70, proposed Boilerroom Operations be added to the Licensing Chapter of
the City Code of the City of Bozeman, as follows:
SECTIONS:
Definitions
License - Required
License - Fees
License - Bond
License - Revocation
Violation - Penalty
DEFINITIONS:
A. "Boilerroom operation", as used in this Chapter, means and includes any of the
following:
1. Any mass telephone solicitation operated by any person, as defined in this section
using one or more telephones each operated by an employee whose principal duty is to solicit
by telephone, whether located in the same room or building or not, for the purpose, directly
or indirectly, of selling any product or service, or combination thereof, whatsoever, to the
general public for which any monetary consideration is charged to and received from the person
being so solicited;
2. The use of any automatic telephone device or devices to contact the general public
under any pretext whatsoever for the purpose, directly or indirectly, of selling any product
or service, or combination thereof, whatsoever, to the general public for which any monetary
consideration is charged to and received from the person being so contacting.
B. "Conduct", as used in this Chapter, means initiating telephone calls from without
the city and completing them within the city, as well as initiating telephone calls from
within the city.
C. "Person", as used in this Chapter, means natural person, partnership, corporation,
organization, or any combination of the same.
LICENSE - REQUIRED:
No person shall conduct any boilerroom operations within the city, without first obtaining
a business license therefore and paying in Application for such license shall be made to the
City Treasurer on forms to be provided by and retained by the City Treasurer. The license fee
shall be paid to the City Treasurer. Nonprofit organizations are excluded from this ordinance.
However, if the nonprofit organization retains any business or professional promoter to organ-
ize and/or assist in a boilerroom operation, that business or professional promoter must comply
with the provision of this ordinance. A background investigation of each person involved in
a boilerroom operation shall be conducted by the Police Department prior to the issuance of
any license. A background investigation fee of $100.00 per boilerroom operation plus Twenty-
Five Dollars ($25.00) per person investigated above one shall be paid to the City Treasurer
prior to the background investigation being conducted. The Police Department shall be allowed
up to ten (10) days to conduct background investigations of the applicants. If a license is
denied by city officials investigation the applicant may appeal to the City Commission for
a hearing on the application.
LICENSE FEES:
The license fee for such boilerroom operation shall be as follows:
A. One (1) to seven (7) telephones, Twenty Dollars ($20.00) per week for each week
of operation or portion thereof;
B. Eight (8) or more telephones, Fifty Dollars ($50.00) per week for each week of
ORDINANCE NO. 1029
4Jr. S
operation or portion thereof.
LICENSE - BOND
No license shall be issued by the City Treasurer until the applicant has answered
fully all questions on the application form provided by the City Treasurer and until the
applicant has placed on file with the Treasurer a surety bond executed by a surety company
duly licensed to do business with the state in the amount of One Thousand Five Hundred Dol-
lars ($1,500.00) conditioned that the license shall fully comply with the terms of this
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Chapter and shall pay any and all judgements which may be obtained against it or him on
the part of any person arising out of such boilerroom operation or the performance, or
breach, of any contract entered into as the result of such boilerroom operation. The bond
shall remain in effect either for the period of one (1) year from the expiration date of
the license issued or until all judgements arising out of any legal action instituted with-
in the one (1) year period and covered by the bond have been fully satisfied and paid,
which ever occurs last.
LICENSE REVOCATION:
Whenever the City Commission shall deem it in the public interest, it may, by res-
olution adopted by two-thirds (2/3) vote of all the members of the City Commission and
approved by the Mayor, refuse to authorize the issuance of or revoke any license issued
for a boilerroom operation.
VIOLATION - PENALTY:
Every person carrying or or engaging in the transaction of any boilerroom operation
without first procuring a background investigation providing misinformation upon application
for a license, shall be guilty of a misdemeanor and upon conviction shall be punished as
provided by Section 3.70 of the Bozeman City Codes. Every day that a business is conducted
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without a license shall constitute a separate offense.
This Ordinance shall become effective thirty days after its passage and adoption by
the City Commission of the City of Bozeman.
PASSED AND ADOPTED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, this 16th
day of May, 1979.
DMUND P. SEDIVY, Sr. --
ATTEST:
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ERNA V. HARDING, Clerk of the City Commission
State of Montana )
County of Gallatin)
City of Bozeman )
I, Erna V. Harding Clerk of the Commission of the City of Bozeman
do hereby, certify that the foregoing Ordinance No. 1029 was published
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by title an number in the Bozeman Daily Chronicle, a newspaper of general
circulation printed and published in said Bozeman in the issue of the
21st day of May, 1979.
IN WITNESS WHEREOF I hereunto set my hand and affix the corporate
seal of my office this 19th day of June, 1979.
Clerk of the Ctiy Commission
QRDlNANCE N9, 1029