Ordinance No. 1059

WHEREAS, the registration and licensing of all businesses operating within the corporate boundaries of the Town of Speedway, Indiana (the "Town") is necessary to regulate the operation of businesses, crafts, professions, and occupations within the Town, pursuant to Indiana Code § 36-8-2-10, and which thereby provides for the safety of the public, the protection of public morals, the protection of public health, and the protection of the property rights of the citizens of the Town; and

WHEREAS, the establishment of certain standards for the licensure of businesses, commercial and industrial activities, conducted within the corporate limits of the Town, is necessary to effectively regulate the operation of businesses, crafts, professions, and occupations within the Town; and

WHEREAS, pursuant to Indiana Code § 36-8-2-4, the Town may regulate the conduct, use, or possession of property, that might endanger the public health, safety, or welfare; and

WHEREAS, pursuant to Indiana Code § 36-1-3, the Town Council (the "Town Council") of the Town has the authority and responsibility to provide for the public health and welfare of all its residents.

NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF SPEEDWAY, INDIANA, as follows:

SECTION 1. Chapter 5.30 of the Speedway Municipal Code (the "Code"), concerning hotels, motels, and places of public lodging, is hereby repealed in its entirety, and new Chapter 5.30 is added to read as follows:

"CHAPTER 5.30 HOTELS, MOTELS AND PLACES OF PUBLIC LODGING.

5.30.010 Definitions.

For the purpose of this chapter, the following terms shall have the following meanings:

(a) "Applicant" means the person or entity who makes application for a license or permit, and who will be the licensee or permittee if the license or permit is granted.

(b) "Application" means the written form provided by the Town Manager, and maintained on file with the Clerk-Treasurer, upon which an applicant may apply for a license or a permit.

(c) "Clerk-Treasurer" shall mean the person elected to serve as the Town clerk and the Town fiscal officer, pursuant to I.C. 36-5-6, or any deputy or employee appointed by the Clerk-Treasurer with the approval of the Town Council, pursuant to I.C. 36-5-6-7 and section 2.16.030 of the Speedway Municipal Code.

(d) "Code Enforcement Officer" shall mean an officer specifically designated by the Town of Speedway to enforce the Speedway Municipal Code and the Consolidated City and County Code, to the extent that the Consolidated City and County Code applies within the corporate boundaries of the Town.

(e) "Financial interest" means (a) ownership; or (b) any of the legal rights of ownership or beneficial interest in the profits of a business; or (c) any portion of the legal rights of ownership in any partnership, corporation or other legal entity having any portion of such rights or beneficial interest; equal to or greater then five percent (5%) of the whole. "Financial interest" includes, but is not limited to, that interest held by stockholders and officers of corporations or similar business entities.

(f) "Hotel" means all places and rooms where the general public is furnished lodging, either regularly or occasionally, for private profit. "Hotel" includes, but is not limited to, a hotel, motel or similar establishment offering public accommodations for any form of consideration.

(g) "Hotel Room" means each separate room of any hotel which is offered to the public for lodging in exchange for any form of consideration.

(h) "License" means the privilege of carrying on the business of a hotel within the town.

(i) "Permit" means a hotel room permit issued under this chapter, authorizing the offering of a hotel room to the public for any form or consideration.

(j) "Premises" means all real estate (including structures and fixtures affixed thereto) used in the business of the hotel together with all equipment, vehicles, furnishings and other personal property used in connection therewith.

(k) "Town" means the civil town of Speedway, Indiana.

(l) "Town Manager" means the individual responsible to the Town Council for the proper administration of all the affairs and administrative duties of the town acting pursuant to section 2.08.110 of the Code and Indiana Code § IC 36-5-5, or such agent designated by the Town Manager to perform any of his/her duties.

(m) "Nuisance" means a condition, conduct, or activity on real property that is: (1) injurious to health; (2) indecent; (3) offensive to the senses; or (4) an obstruction to the free use of property; so as essentially to interfere with the comfortable enjoyment of life or property.

5.30.020 License required; renewal of license.

(a) It shall be unlawful for any person to maintain and operate a hotel in the town without first procuring a License from the Town. No person shall operate or permit the operation of a hotel when the License therefor has been suspended, revoked or expired.

(b) Each License issued by the Town Manager, or his or her designee, pursuant to this section shall be valid for one (1) year from the date of issuance. A License issued pursuant to this section is renewable on or before the expiration of such License, and all renewal Licenses shall be dated on, or as of, the date the License would have otherwise expired.

(c) A licensee shall pay the annual fee for the renewal of a License on or before the expiration date of such License.

(d) A License issued under this chapter shall be automatically renewed by the Town Manager and without application for renewal by the licensee, subject to (i) payment of the annual fee to the Clerk-Treasurer as required by section 5.30.070; and (ii) a determination by the Town Manager that the licensee is still in compliance with section 5.30.040, section 5.30.050, section 5.30.080, section 5.30.150, section 5.30.160, and any other applicable provisions of the Code.

(e) However, notwithstanding the preceding subsection, the Town Manager may deny the automatic license renewal if the Town Manager determines that any of the following events has occurred or conditions exist:

(i) the License at the time of renewal has been revoked or suspended;

(ii) a permit of the Licensee at the time of renewal has been revoked or suspended;

(iii) any material information contained in the License application pursuant to section 5.30.060 is no longer correct; or

(iv) any of the conditions or events set forth under section 5.30.150 or section 5.30.160 has occurred or exists at the time of renewal.

(f) If a licensee has already submitted the annual fee to the Clerk-Treasurer and the Town Manager subsequently determines that a License should not be automatically renewed, then the Town shall retain twenty dollars ($20) of the annual fee paid for the purpose of defraying the Town's cost of reviewing a licensee's compliance with the Code. The remainder of the annual fee paid shall be returned to the licensee whose License renewal was denied.

(g) This subchapter shall not be construed as giving a licensee under this chapter the privilege of offering a hotel room to the public for any form of consideration, unless the licensee has obtained a valid hotel room Permit for such room from the Town, as provided herein.

5.30.030 Duty to keep register.

Any person owning, operating or managing any hotel shall keep a permanent record of each guest receiving lodging and the date or dates thereof, which record shall be made available upon demand for inspection by any police officer, the Town Manager or employees of other departments of the town government or other appropriate units of government.

5.30.040 General qualifications of licensees.

In order to obtain a License as required by this chapter, the applicant shall meet the following requirements:

(a) The applicant and all persons having a financial interest in the applicant or the associated premises must not have had a License to operate a hotel revoked or suspended because of the conduct and operation of the hotel or because of the violation of any law or regulation while maintaining and conducting that hotel within the twelve (12) months preceding the date of the application.

(b) The applicant must agree to comply with all laws, provisions of this chapter and other ordinances, all regulations promulgated thereunder and the orders and decisions of all public officials which pertain to the hotel and premises and shall also agree that the hotel and premises will not be used for any unlawful purposes.

(c) If not a natural person, the applicant shall be organized and controlled by the laws of the State of Indiana or be authorized and qualified to engage in business in the state of Indiana.

5.30.050 Requirements of License.

(a) Every act or omission of whatsoever nature, constituting a violation of any of the provisions of this chapter by any officer, director, manager or other agent or employee of any licensee shall be deemed and held to be the act of such licensee; and such licensee shall be punishable in the same manner as if such act or omission had been done or omitted by the licensee personally.

(b) Every licensee shall:

(1) Permit inspections of the hotel and its premises by public authorities acting pursuant to law;

(2) Conduct, maintain and supervise the hotel and its premises in such a manner as not to create a nuisance or be or become inimical to the public welfare;

(3) Keep the hotel and its premises clean and free from any sort of rubbish or combustible or explosive material;

(4) Not permit any sort of illegal activity, conduct or practices to take place within the hotel or on its premises or in the conduct and provision of its business and services;

(5) Provide the Town Manager with written notice of any additions or changes in the information given in the license application within thirty (30) days of any such additions or changes.

5.30.060 Applications for License; procedure; issuance.

(a) All applications for Licenses shall be made to the Clerk-Treasurer on forms prescribed by the Town Manager and maintained on file in the Clerk-Treasurer's Office. Upon receipt of an application, the Clerk-Treasurer shall forward such application to the Town Manager for his or her review, in accordance with this chapter. The application for a License required by this chapter shall include the following:

(1) Name and address of the applicant and former addresses for the past three (3) years;

(2) The name and address of the business;

(3) Telephone numbers of the applicant and business;

(4) The state of incorporation (where applicable);

(5) If the applicant is a corporation, a certificate from the Secretary of State of Indiana certifying that the applicant is a corporation in good standing under the laws of the state and is certified to do business in the state;

(6) The names of partners or corporate officers and their home addresses (where applicable);

(7) The resident agent and principal office of the corporation (where applicable);

(8) The length of time the business has been in the town or State of Indiana;

(9) Any previous location or location change of the business within two (2) years;

(10) The names, addresses, Citizenship and designations of each person connected with the applicant's establishment;

(11) Whether or not the applicant or any partner or corporate officer for the applicant business has ever been denied a hotel license, by the Town or had such License revoked or suspended;

(12) Whether or not the applicant or any partner or corporate officer of the applicant business has been convicted of a felony;

(13) Whether all town, county and state taxes have been paid;

(14) A statement that the applicant agrees to conduct, maintain, and supervise the hotel and its premises so as to not create a nuisance, or permit conduct or activity at the hotel or on its premises that endangers the public health or welfare;

(15) A statement that the applicant has, or will implement, policies and procedures reasonably calculated to ensure that no illegal conduct or practice will take place at the hotel or on its premises;

(16) A statement that any previous applications for a hotel license filed by the applicant with the town are accurate to the applicant's knowledge, and do not contain any material omissions and/or materially false or misleading information; and

(17) A statement that the applicant certifies the accuracy of all information contained in the license application, and that it does not contain any material omissions and/or materially false or misleading information.

(b) Upon receipt of a completed license application, the payment of the annual fee, and the review of the application by the Town Manager, as required by this chapter, the Town Manager may issue a hotel license.

5.30.070 Annual Fee; Application Fee; License Fee.

All applications for a hotel license submitted by an applicant to the Clerk-Treasurer under this chapter shall be accompanied by an annual fee of one hundred dollars ($100.00), twenty dollars ($20.00) of which represents a non-refundable application fee for the purpose defraying the costs of reviewing the application and ensuring an applicant's compliance with the Code, and eighty dollars ($80.00) of which represents the hotel license fee.

5.30.080 Hotel Room Permit Required; application; issuance.

(a) It shall be unlawful for a licensee to offer a hotel room for public accommodation, unless the licensee has obtained a valid hotel room permit for that hotel room from the Town.

(b) All applications for a hotel room permit shall be made to the Clerk-Treasurer on forms prescribed by the Town Manager and maintained on file in the Clerk-Treasurer's Office. Upon receipt of an application, the Clerk-Treasurer shall forward such application to the Town Manager for his or her review, in accordance with this chapter. The application for a permit under this chapter shall include the following:

(1) The name and address of the applicant;

(2) The name and address of the business;

(3) Telephone numbers for the applicant and business;

(4) Proof of a valid hotel license issued by the Town;

(5) The number of hotel rooms for which the applicant seeks hotel room permits;

(6) A statement that the applicant agrees to conduct, maintain, and supervise the hotel and its premises so as to not create a nuisance, or permit conduct or activity at the hotel or on its premises that endangers the public health or welfare;

(7) A statement that the applicant has, or will implement, policies and procedures reasonably calculated to ensure that no illegal conduct or practice will take place at the hotel or on its premises;

(8) A statement that any previous applications for a hotel license or hotel room permit filed by the applicant with the town are accurate to the applicant's knowledge, and do not contain any material omissions and/or materially false or misleading information; and

(9) A statement that the applicant certifies the accuracy of all information contained in the hotel room permit application, and that it does not contain any material omissions and/or materially false or misleading information.

(c) Each hotel room permit issued by the Town shall be valid for one (1) year from the date of issuance. A hotel room permit issued pursuant to this section is renewable on or before the expiration of such permit, and all renewal permits shall be dated on, or as of, the date the permit would have otherwise expired.

(d) Following the receipt of a complete permit application, payment of the applicable permit fee, and a favorable inspection report, the Town Manager may issue a hotel room permit for each hotel room identified in the application.

5.30.090 Hotel Room Permit Fee.

All applications for hotel room permits submitted to the Clerk-Treasurer shall be accompanied by a hotel room permit fee of twenty-five dollars ($25.00) per hotel room, as set forth in the application, payable to the Clerk-Treasurer.

5.30.100 License and Permit Certificates.

(a) The Town Manager shall prescribe forms for the licenses and permits to be obtained and displayed by licensees pursuant to this chapter. The forms prescribed by the Town Manager shall be maintained on file in the Clerk-Treasurer's office. The Town Manager may change the design or form of the licenses or permits from time to time.

(b) All hotels shall post and maintain the License and permits at a conspicuous place in the licensed hotel where the License and permit can be seen easily at all times.

(c) No person shall alter, forge or in any way modify or deface a License or permit issued by the Town under this chapter.

5.30.110 Inspections.

All hotels shall be subject, on demand, to health, building, fire safety, zoning and all other lawful inspections by all governmental agencies having jurisdiction over the hotel and its location.

5.30.120 Right of Entry for Inspections and enforcement.

All employees of the town who have been authorized by the Town Manager to make inspections may enter any place of business of a licensee under this chapter to make inspections conducted in a reasonable manner and at reasonable times. The Town Manager may call upon town employees having police power to enforce the provisions of this chapter and the orders and decisions of the Town Manager.

5.30.130 Inspections of Hotels Required for Permit.

(a) Following the receipt of an application for a permit under this chapter, if the Town Manager determines that safety or planning concerns require an inspection by the fire, police, Code Enforcement Officer and/or Building Commissioner prior to the issuance of such License, the Town Manager shall refer such application to the proper office for making such inspection within thirty (30) days of the time of such receipt.

(b) The officer with the department charged with the duty of making an inspection shall make a report thereon, favorable or otherwise, to the Town Manager within ten (10) days after receiving the application or a copy thereof from the Town Manager requesting the inspection.

(c) The applicant or owner of the hotel shall be notified of a date and time that an inspection will take place.

(d) The Town Manager may have hotels licensed under this chapter inspected by public officials acting pursuant to law to ensure compliance with all applicable town ordinances and any applicable state laws. All boards and officials of the town shall issue the necessary orders to their respective employees to conduct the inspections required by the Town Manager pursuant to this section. However, a hotel shall be inspected no more than one (1) time each year, unless

(i) the Town Manager receives a substantiated complaint regarding the hotel, or

(ii) the Town Manager has reasonable cause to believe a violation of the Code exists at the hotel or on its premises.

(e) All violations of law observed during any inspection of a licensed hotel or observed by police, fire, health, building, zoning or other officials in the performance of their duties shall be immediately reported to the Town Manager.

5.30.140 Inspection Fees.

If the Town Manager determines that an inspection of a hotel is necessary pursuant to this chapter, the applicant or the licensee shall pay an inspection fee of the greater of fifty dollars ($50.00) or the actual time and expense of conducting the inspection, for the purpose of defraying the costs of inspecting the applicant or licensee's hotel and/or its premises to ensure compliance with the all applicable provisions of the Code and any applicable state laws.

5.30.150 Grounds for Denial of License or Permit Applications.

(a) The Town Manager before issuing any License or permit provided for in this chapter shall investigate, as determined by the Town Manager, the character of the applicant and the officers, directors and managers of the business if it is a corporation.

(b) Following the investigation, the Town Manager may deny an application for a License or a permit under this chapter if he/she determines that any of the following events has occurred or conditions exists:

(1) If applicant is a non-natural person, the applicant is not organized under the laws of the State of Indiana, is not controlled by the laws of the State of Indiana, or is not authorized and qualified to engage in business in the State of Indiana;

(2) The applicant has refused to permit an inspection of the hotel and its premises by public authorities acting pursuant to law;

(3) The applicant or any person having a financial interest in the applicant or associated premises have previously been connected with any hotel where the License or permit therefor has been revoked or any of the provisions of the law applicable to the establishments has been violated and not remediated after notice of the violation;

(4) The applicant, any person having a financial interest in the applicant or associated premises, or an employee of the applicant has previously been convicted of a felony in connection with the operation of any hotel;

(5) The hotel and/or its premises are conducted, maintained, or supervised in such a manner as to create a nuisance, or a threat to the public health or general welfare;

(6) The applicant, any person having a financial interest in the applicant or associated premises, or an employee of the applicant has been deemed to be aiding, abetting, encouraging, permitting, harboring, or engaged in criminal conduct or criminal activities at the hotel or on its premises;

(7) The applicant or any person having a financial interest in the applicant or associated premises has previously filed an application with the Town for a License under this chapter, and that such application contained material omissions and/or materially false or misleading information; or

(8) The applicant, any person having a financial interest in the applicant or associated premises, or the hotel and/or the premises sought to be so licensed has failed to comply in any manner with any Town ordinances, or state law applicable thereto, in addition to any provision of the revised code of the Consolidated City and County, Indianapolis/Marion County, Indiana (the "Consolidated City Code") and the revised code of the Health and Hospital Corporation of Marion County (the "Health and Hospital Code"), to the extent that the Consolidated City Code and the Health and Hospital Code apply within the corporate boundaries of the town.

(c) If the application is denied by the Town Manager, the applicant shall be notified in writing of the reasons for the rejection and shall have the right to appeal this decision to the Town Council as provided in section 5.30.170.

5.30.160 Grounds for Suspension or Revocation of License or Permit.

(a) A License or permit issued under this chapter may be suspended by the Town Manager if he/she determines that any of the following events has occurred or conditions exists:

(1) The licensee has failed to pay the annual fee required by section 5.30.070 for renewal of such License;

(2) The licensee fails to provide the Town Manager with any material additions, corrections, or changes to the information provided in the license application within thirty (30) days of such additions, corrections, or changes;

(3) The licensee fails to permit inspections of the hotel and its premises by public authorities acting pursuant to law;

(4) The licensee fails to keep the hotel and its premises clean and free from any sort of rubbish, combustible or explosive material, or any other conditions injurious to public health and the general welfare;

(5) If the licensee is a non-natural person, the licensee is no longer in good standing under the laws of the State of Indiana, or is no longer authorized and qualified to engage in business in the State of Indiana;

(6) Any application for a hotel license or hotel room permit filed by a licensee contains any material omissions and/or materially false or misleading information;

(7) The License or permit was obtained through fraud, duress, or illegality;

(8) The hotel and/or its premises are conducted, maintained, supervised, or operated in such a manner as to create a nuisance, or a threat to the public health or general welfare;

(9) The licensee, any person having a financial interest in the licensee or associated premises, or an employee of the licensee has been convicted of a felony in connection with the operation of the hotel;

(10) The licensee, any person having a financial interest in the licensee or associated premises, or an employee of the licensee has been deemed to be aiding, abetting, encouraging, permitting, harboring, or engaged in criminal conduct or criminal activities at the hotel or on its premises;

(11) The licensee has failed to implement or enforce policies and procedures governing employees, guests, and/or conduct and activities at the hotel or on its premises reasonably calculated to ensure that no illegal conduct or practice will take place at the hotel or on its premises;

(12) The licensee, any person having a financial interest in the licensee or associated premises, or the hotel and/or the premises so licensed has failed to comply in any manner with any Town ordinance, or state law applicable to the operation of the hotel or its premises, in addition to any provision of the revised code of the Consolidated City and County, Indianapolis/Marion County, Indiana (the "Consolidated City Code") and the revised code of the Health and Hospital Corporation of Marion County (the "Health and Hospital Code"), to the extent that the Consolidated City Code and the Health and Hospital Code apply within the corporate boundaries of the town; or

(13) The licensee has previously evaded the licensing provisions of this chapter.

Before a License or permit may be suspended, the Town Manager shall give written notice of the suspension to the licensee with the date of suspension effective thirty (30) days from the date of the notice. The suspension will remain in effect until all fees and penalties have been paid and the licensee is in compliance with this chapter. A suspension may be appealed to the Town Council as set forth in section 5.30.170.

(b) A permit issued under this chapter may be revoked by the Town Manager if:

(1) The permit has been suspended three (3) or more times;

(2) A suspension of the permit remains in effect for ninety (90) or more days; or

(3) The licensee's License has been revoked;

If the Town Manager revokes a permit, he/she shall provide written notice of the revocation to the licensee. A revocation of a permit may be appealed to the Town Council as set forth in section 5.30.170.

(c) A License issued under this chapter may be revoked by the Town Manager if:

(1) The License has been suspended three (3) or more times;

(2) A suspension of the License remains in effect for ninety (90) or more days;

(3) A suspension of any permit of the licensee remains in effect for ninety (90) or more days.

If the Town Manager revokes a License, he/she shall provide written notice of the revocation to the licensee. A revocation of a license may be appealed to the Town Council as set forth in section 5.30.170.

5.30.170 Appeal and review.

Whenever an applicant or licensee wishes to appeal any decision of the Town Manager (i) refusing to issue or renew a license; (ii) suspending or revoking a license; (iii) refusing to issue or renew a permit; or (iv) suspending or revoking a permit, the applicant or licensee must first appeal to the Town Council in compliance with the procedures set forth herein.

(a) An applicant or licensee may request in writing an informal hearing to dispute the claim, within ten (10) days after receiving notice of (i) a refusal to issue or renew a License; (ii) a suspension or revocation of a License; (iii) a refusal to issue or renew a permit; or (iv) a suspension or revocation of a permit. The written request to dispute the claim must be filed with the Clerk-Treasurer. The Clerk-Treasurer shall notify the Town Council.

(b) Following notification, the Town Council shall:

(1) set the appeal for a hearing;

(2) set a time, date, and location for such hearing; and

(3) notify the applicant or licensee and the Town Manager of the hearing time, date, and location at least five (5) working days prior to the hearing.

(c) The hearing shall be conducted by the Town Council or its designated officer; provided however, that the Town Manager shall not conduct such hearing.

(d) The Applicant or Licensee shall bear the burden of proof that the Town Manager's decision should be vacated. The Town Manager or person appointed by the Town Manager may present evidence at the hearing which supports the Town Manager's decision.

(e) Following a hearing, the Town Council may overturn or confirm the Town Manager's determination. The decision of the Town Council or hearing officers or his/her appointees shall be final and the decision, together with reasons thereof, shall be delivered in writing within thirty (30) working days from the close of the hearing to the person taking the appeal with a copy delivered to the Town Manager who shall keep all decisions on file in the Town Manager's office.

(f) All decisions shall become effective upon delivery to the Town Manager.

5.30.180 Penalty for violation.

Any licensee violating this chapter may have its License and/or permits revoked, after hearing, and shall be fined a sum of one hundred dollars ($100) per day, but not more than $2,500 and costs. Any person who is not a licensee violating this chapter shall be fined, after a hearing, the sum of the applicable license fee and permit fees, but not more than $2,500 and costs. Each day that the violation occurs or continues shall constitute a separate offense.

5.30.190 Payment of Fees; disposition.

In the absence of any provision to the contrary, all fees and charges generated from the licenses, permits, and inspections of hotels under this chapter shall be paid to the Clerk-Treasurer for deposit into the general fund of the town."

SECTION 2. This ordinance shall be in full force effective July 1, 2006 after adoption and in compliance with Indiana Code § 36-5-2-10.

SECTION 3. If any section, subsection, paragraph, sentence, clause or word of this Ordinance shall be held to be invalid, either on its face or as applied, the invalidity of such provision shall not affect the other sections, subsections, paragraphs, sentences, clauses or words of this Ordinance, and the applications thereof; and to that end the sections, subsections, paragraphs, sentences, clauses or words of this Ordinance shall be deemed severable.


PASSED AND ADOPTED by the Town Council of the Town of Speedway, Indiana this 22nd day of May, 2006.