CR 2012-046 Business License Revocaton (901 - 1st Street North)May 31, 2012 ia Council Report 2012-046
Business License Revocation
Proposed Action .
Staff recommends adoption of the following motion: Based upon the arguments,
testimony, documents, and other evidence submitted, move to revoke the Massage
Therapy Establishment license issued to Yu Ying Chen at 901 1s, St N for violation of
State Statutes 609.321 and Hopkins Ordinance 1185 and adopt the findings of fact and
decision and authorize Mayor and City Clerk to complete same and provide to named
party.
Overview
On May 1, 2012, officers from the Hopkins Police Department and other departments
conducted an undercover operation of a massage business located at 901 1St St N. As
described in the attached memorandum, during the course of the massage an unlicensed
massage therapist initiated sexual contact with an undercover officer.
This conduct violated MN Statutes Section 609.321 and, by extension, Hopkins Ordinance
1185.19. The City Manager, using the authority granted him under Section 1185,19, Subd.
6, sent a letter to Yu Ying Chen informing her that her massage therapy establishment
license was being suspended for 21 days and that a hearing regarding revocation of her
license would be held on June 5 before the City Council. City Staff is now recommending
revocation of Yu Ying Chen's Massage Therapy Establishment License.
Primary Issues to Consider
• Does the evidence provided support the staff recommendation to revoke the massage
therapy establishment license?
Staff believes the accumulated evidence provided supports the recommendation to
revoke the massage therapy establishment license for Yu Ying Chen.
Supporting Information
• May 11, 2012 Memorandum to City Manager Mornson
• Ordinance 1185.19
• City Manager letter to Yu Ying Chen
• Massage establishment license
• Findings of fact and decision
Aze�,r
Michael J. Rey olds
Chief of Police
Memorandum
To: Mike Momson, City Manager
From: Michael Reynolds, Chief of police
Date: May 11, 2012
Re: Massage License at 901 1$` St. N.
On May 1, 2012, officers from the Hopkins Police Department, Brooklyn Center Police Department and
the Hennepin County Sheriff's Department conducted an undercover operation of the massage business
located at 901 1 st Street North. The intention of the undercover operation was a compliance check of this
business to make sure no prostitution was taking place. The reason this business was chosen was due in
part to citizens' complaints the police department received over the last several months.
The police department also confirmed the above complaints prior to the undercover operation by viewing
on-line sources commonly frequented by patrons of these types of establishments. These sources indicated
that illegal sexual activity was taking place for an additional charge over and above the initial massage
charge. Because of this information, an anticipatory search warrant was drafted for this location, which
was signed by a Hennepin County judge.
An undercover police officer from the Brooklyn Center Police Department did enter the business at 901
1' St N and negotiated a half-hour massage for $60. This officer was carrying a concealed recording
device that surveillance and back-up officers could monitor. At the end of the massage, the therapist
exposed the officer's penis and was asked, "You want me to help you out?" The officer asked how much.
The therapist, who was later, identified as Gui Hua Yang, stated, "You decide, I like tip." Yang then
proceeded to massage the officer's penis. It was at this point the back-up officers entered the business,
arrested Yang and executed a search warrant. Evidence was seized from the business which included three
massage beds and $876 to be held for forfeiture.
The actions described constitute prostitution under state law. This is a violation of Hopkins Ordinance
1185.19, Subd. 1, which requires the holder of a Massage Therapy Establishment License to supervise
Massage Therapists, employees, or independent contractors so as to prevent prostitution or prostitution -
related activities, or other violations of local ordinance or state or federal statute reasonably related to the
licensed activity.
Further, the individual arrested at that time, Gui Hua Yang, did not have a Massage Therapist License as
required by Hopkins Ordinance 1185.05. This establishes a separate grounds for revocation under
Hopkins Ordinance 1185.19, Subd. 1. City Staff is therefore recommending revocation of the Massage
Therapy Establishment License for 901 I st St N.
Hopkins City Code Section 1185.19 Revoking Suspending Denying or Not Renewing a License.
Subd. 1. The City Council may revoke, suspend, deny or decline to renew any Massage Therapist
license or Massage Therapy Establishment license issued under this Section. The basis for such
revocation, suspension, denial or non -renewal includes, but is not limited to, any of the following
circumstances:
a) The license was procured by misrepresentation of material facts.
b) The applicant or one acting in his/her behalf made oral or written misstatements
accompanying the application.
c) The applicant has failed to comply with any condition set forth in any other permits granted
by the City of Hopkins.
d) The activities of the applicant or any owner/agent create or have created a danger to the
public health, safety or welfare.
e) Failure to pay any application, penalty or reinstatement fee required by this Section and City
Council resolution.
f) Violation of any regulation or provision of the code reasonably related to the licensed activity
for which the license has been granted, or any other state or federal regulation or law so
related.
g) Failure of a holder of a Massage Therapy Establishment license to properly supervise an
employee or independent contractor who has violated any ordinance or state or federal statute
reasonably related to the licensed activity.
h) Failure of a holder of a Massage Therapy Establishment license to properly supervise its
Massage Therapists, employees or independent contractors so as to prevent prostitution or
prostitution -related activities, as defined in Minnesota Statutes Section 617.80.
i) Any violation of this Section 1185.
1185.05 License Required. Subdivision 1. It shall be unlawful for any person to practice as a massage
therapist or operate a massage therapy establishment in the City of Hopkins without first obtaining a
license to do so. However, no license is required for any massage therapist working for or as an
employee of a medical professional licensed under Minnesota Statutes Chapters 147 or 148.
MN Statute 609.321
Subd. 7.Promotes the prostitution of an individual.
"Promotes the prostitution of an individual" means any of the following wherein the person
knowingly:
(1) solicits or procures patrons for a prostitute;
(2) provides, leases or otherwise permits premises or facilities owned or controlled by the person
to aid the prostitution of an individual;
(3) owns, manages, supervises, controls, keeps or operates, either alone or with others, a place of
prostitution to aid the prostitution of an individual;
(4) owns, manages, supervises, controls, operates, institutes, aids or facilitates, either alone or
with others, a business of prostitution to aid the prostitution of an individual;
(5) admits a patron to a place of prostitution to aid the prostitution of an individual; or
(6) transports an individual from one point within this state to another point either within or
without this state, or brings an individual into this state to aid the prostitution of the individual.
Subd. 8.Prostitute.
"Prostitute" means an individual who engages in prostitution by being hired, offering to be hired,
or agreeing to be hired by another individual to engage in sexual penetration or sexual contact.
Subd. 9.Prostitution.
"Prostitution" means hiring, offering to hire, or agreeing to hire another individual to engage in
sexual penetration or sexual contact, or being hired, offering to be hired, or agreeing to be hired
by another individual to engage in sexual penetration or sexual contact.
Subd. 10. Sexual contact.
"Sexual contact" means any of the following acts, if the acts can reasonably be construed as
being for the purpose of satisfying the actor's sexual impulses:
(i) the intentional touching by an individual of a prostitute's intimate parts; or
(ii) the intentional touching by a prostitute of another individual's intimate parts.
May 11, 2012
Cz�1 �f �l�pkz71S
1010 !First Street South s Hopkim, MN 5.5343-7573 e Phone: 952-935-8474 • fax• 952-935-1834
Ned address: www.hop%(rrsrrm.com
Yu Ying Chen
1009 Lowry Ave. NE C(DFY
Minneapolis, MN 5541$
Re: 1) Notice of Massage Therapy Establishment License Revocation Hearing
2) Temporary Suspension (21 Day) of Massage Therapy Establishment License
Licensee: Yu Ying Chen
License No.: 2057
Address: 901 -1st Street, Hopkins, MN
Dear Ms. Chen:
This Notice is served on you because you are holder of the above -referenced Massage Therapy Establishment
License.
On or about May 1, 2012, there was an arrest and a later criminal charge for prostitution at your
licensed establishment at the above address. This is a violation of your duties under Hopkins
Ordinance 1185.19, Subd. 1(g) and (h), which requires you, as the holder of a Massage Therapy
Establishment License, to supervise your Massage Therapists, employees, or independent
contractors so as to prevent prostitution or prostitution -related activities, or other violations of
local ordinance or state or federal statute reasonably related to the licensed activity.
Further, the individual arrested at that time, Gui Hua Yang, did hot have a Massage Therapist
License as required by Hopkins Ordinance 1185.05. This establishes a separate grounds for
revocation under Hopkins Ordinance 1185.19, Subd. 1(i), for any other violation of Section 1185
of the Hopkins Code of Ordinances.
City Staff is recommending revocation of your Massage Therapy Establishment License by the City Council. This
matter is set on for a hearing before the Hopkins City Council on June 5, 2012 at 7:30 p.m., in the Council
Chambers at Hopkins City Hall, 1010 —1't Street South, Hopkins, Minnesota. The hearing will be governed by
Hopkins Ordinance 1185.19: The City Council will hear all relevant evidence and arguments, and will review all
testimony, documents, and other evidence submitted. You will have an opportunity to be heard and you may be
represented by counsel. The City Council will decide whether to revoke your Massage Therapy Establishment
License or to exercise any other lawful authority it may have over your license based on the evidence received at
that hearing.
Finally, pursuant to my authority under Hopkins Ordinance 1185.19, Subd. 6, your Massage Therapy
Establishment license Is suspended for 21 days, beginning Monday, May 14th. The conduct described above
violates the provisions of Section 1185 of the Hopkins Ordinances, or otherwise constitutes a crime of moral
turpitude related to the license. It is a crime for you to allow anyone to perform massage at your location while
this suspension Is in effect. if you violate the temporary suspension, you will be subject to criminal prosecution.
Sincer y
'f Mike Monson
City Manager
CC: Roscoli Properties LLC, Property owner -901- Vt Street North
Partner4V wit& the Community to Enfw= die Qua(tq(osfLife
• Inspire 4 Educate • Involve • Connunicate •
License 2057
WHEREAS
has met all of the
THEREFORE
CITY OF HOPKINS Fee: $ 25.00
12a
LICENSE 2012
YU YING CHEN DBA YU YING CHEN
requirements of the State of Minnesota and the City of Hopkins
YU YING CHEN DBA
YU YING CHEN
is hereby licensed to operate the following business/sell the following controlled products:
MASSAGE ESTABLISHMENT LICENSE
at 901 1ST STREET Hopkins, Minnesota, beginning on March 8, 2012 and ending on June 30, 2012.
ATTEST:
di�e'-4 b Ci Seal
City Clerk y •
Findings of Fact and Decision of the Hopkins City Council
Concerning the Revocation of Massage Therapy
Establishment License #2057
This matter came on for hearing on June 5, 2012, at 7:30 p.m., in the Hopkins City Council Chambers located
at 1010 First Street South, in the City of Hopkins, Minnesota.
The License Holder (as defined below) was provided notice of the hearing according to the terms of Hopkins
Ordinance 1185.19, subd. 2.
The License Holder appeared did not appear and was was not represented by counsel,
attorney
The Hopkins City Council makes the following-
FINDINGS
ollowing
FINDINGS OF FACT
1. Yu Ying Chen (the "License Holder") is the holder of a Massage Therapy Establishment License (the
"License") for property located at 901 — 1st Street North, in the City of Hopkins, Minnesota (the
"Establishment'.
2. On May 1, 2012, an undercover police officer (the "Undercover Officer's travelled to the
Establishment as part of a police operation to investigate reports of prostitution and prostitution -
related activity.
3. The Undercover Officer is over 18 years of age.
4. The Undercover Office received a massage from a massage therapist, Gui Hua Yang (the
"Therapist").
5. At some point during the massage, the Therapist exposed the officer's penis and asked the
Undercover Officer, "You want me to help you out?" The Undercover Officer asked how much he
would have to pay. The Therapist stated, "You decide, I like tip." The Therapist then proceeded to
massage the Undercover Officer's penis.
6. The Undercover Officer immediately alerted nearby police officers who promptly entered the
Establishment and took the Therapist into custody.
The Therapist did not have a Massage Therapist license as required by Hopkins Ordinance 1185.05,
subd. 1.
8. Minnesota Statutes Section 609.321, subd. 12, defines a massage parlor as a "public place." The
Establishment is, therefore, a "public place."
9. Minnesota Statutes Section 609.321, subd. 8, defines "prostitute" as an "individual who engages in
prostitution by being hired, offering to be hired, or agreeing to be hired by another individual to
engage in sexual penetration or sexual contact."
10. Minnesota Statutes Section 609.321, subd. 9, defines "prostitution" as "being hired, offering to be
hired, or agreeing to be hired by another individual to engage in ... sexual contact."
11. Minnesota Statutes Section 609.321, subd. 10, defines "sexual contact" as "the intentional touching
by a prostitute of another individual's intimate parts."
12. Minnesota Statutes Section 609.324, subd. 6, states: "Whoever, while acting as a prostitute,
intentionally does any of the following while in a public place is guilty of a gross misdemeanor ...is
hired, offers to be hired, or agrees to be hired by an individual 18 years of age or older to engage in
sexual penetration or sexual contact."
13. Minnesota Statutes Section 609.324, subd. 6, is a state statute "reasonably related to the licensed
activity," for the purposes of Hopkins Ordinance 1185.19.
14. The Therapist engaged in prostitution on May 1, 2012 at the Establishment in violation of Minnesota
Statutes Section 609.324, subd. 6. The Therapist's conduct meets the definition of "Prostitution"
and "Prostitution Related Activity" contained in Minnesota Statutes Section 617.80, subd. 4.
15. The License Holder failed to properly supervise the Therapist to prevent violations of prostitution or
prostitution -related activities and other state statutes reasonably related to the licensed activity in
violation of Hopkins Ordinance 1185.19, subd. 1(g) and (h).
16. The License Holder employed an unlicensed massage therapist, a violation of 1185.19, subd. 1(�.
DECISION
1. The Hopkins City Council has decided that the License shall be REVOKED permanently, effective
immediately. The License Holder's license may not be reinstated.
2. The Establishment may not offer therapeutic massage in the City of Hopkins, or allow another to do
SO.
Dated:
Eugene J. Maxwell, Mayor
Dated:
Kris Luedke, City Clerk