Financial and Administrative Services City of Greensboro

May 13, 2013

TO: FROM:

Jim Westmoreland, Deputy City Manager Rick Lusk, Finance Director SUBJECT: Privilege License Processing Issues Massage Businesses

According to City Ordinance 14.5-4, persons or entities applying for a massage business privilege license are required to submit a North Carolina Employer ID number along with a list including the name, address and North Carolina drivers license number or picture ID issued by the North Carolina DMV of each employee, contract worker or hiree who is to perform massage or bodywork therapy. They are also required to submit a copy of the current State of North Carolina massage and body work therapy license issued to each employee, contract worker or hiree. Based on recent inquiries regarding licensing documentation for certain massage businesses, we have determined that the Collections Division has not consistently obtained the information required to be submitted by City ordinance for such businesses on new or renewal license applications (the required information is noted in the business application instructions). Staff supervision has been relying on a long-standing practice of receiving approvals from Police, Fire, Building Inspections and Zoning prior to issuing a new license, while failing to determine if businesses had provided the required identifying information and state licenses when applying for or renewing their business license. Finance management has taken steps to correct the situation, including but not limited to, initiating corrective action and staff development, modifying renewal application procedures to include obtaining updates of all initial required information for each license year, checking license documents issued by the State of North Carolina, and proactively making information requests to verify any changes or revocations of any State issued licenses before a business privilege license is issued. On May 10, 2013, staff mailed letters to each of the forty-four (44) massage businesses currently licensed in the City to request that current required information described herein be submitted to the Collections Division within fourteen (14) days. Staff will follow up with business owners, as necessary to ensure compliance.

RLL/md

One Governmental Plaza, PO Box 3136, Greensboro, NC 27402-3136 336-373-CITY (2489)