Staff recommends Council approve the proposed ordinance regulating massage and spa facilities through business licensing criteria on second reading.

On April 12, 2021, Council held a public hearing on the First Reading of An Ordinance of the City of Billings, Montana, Regulating Massage and Spa Facilities Through Business License Criteria, Providing Exemptions, Authorizing the City Administrator or Designee to Administratively Deny, Suspend, or Revoke Business Licenses and Allowing an Appeal From Such Action and Providing for Criminal and Civil Penalties Upon Conviction of a Violation in Order to Combat Human Trafficking and to Promote the Health and Welfare of the Billings Community.  This Ordinance was passed on first reading following a public hearing. 

Billings has a significant problem with illicit businesses operating under the guise of being massage or spa facilities. Federal Bureau of Investigations (FBI) data from 2017 tracked commercial sex ads in Montana. Bozeman and Missoula had nearly 5,000 ads, while other MT cities had between 2,000 and 3,000 and Billings had nearly 20,000. These illicit businesses are considered to be a primary source of these ads. Over the past five years, there have been between 15 and 27 illicit businesses disguised as massage facilities operating within our City on any given night. 

This illegal activity is contributing to the City's crime problems. Criminal investigations of human trafficking are expensive and time-consuming. The proposed ordinance requires a massage or spa facility to submit an application for a business license. The proposed ordinance contains requirements for operation of the facility and any violation of the terms and conditions of the ordinance may result in fines or suspension/revocation of the business license.  This ordinance is a low cost, yet effective, tool to chase these illegal businesses out of our community. There is no simple solution or approach that will eradicate this from our community. However, with proper implementation and enforcement, this ordinance will result in a significant reduction of these illegal businesses in our community.

City Council may:

• Approve; or,
• Not Approve

 

If properly implemented and enforced, this ordinance will reduce human trafficking by making it more difficult for illicit businesses to operate under the guise of being massage or spa facilities. Additionally, it will save resources for law enforcement by providing the City an alternative process to shut down these illicit businesses, and it will drive away criminal enterprises masquerading as legitimate businesses in exchange for low cost, nominal regulation.