cover
TO: Mayor Richard C. Irvin
FROM: Jennifer Stallings, City Clerk
DATE: October 29, 2024
SUBJECT:
An Ordinance Amending Chapter 6 of the Code of Ordinances, Specifically Sec 6-5 Application for License, Sec 6-7 Term of License; Renewals and Sec 6-20 Manager, Officer or Ownership Change.
PURPOSE:
To remove the requirement that location managers of liquor licensed businesses submit to fingerprints/background checks and update fingerprints/backgrounds every three (3) years.
BACKGROUND:
Chapter 6 of the code of ordinances and the Illinois Liquor Control Act identify specific criminal violations that preclude persons from acting as owners, officers or managers of a liquor licensed business. The Illinois Liquor Control Act gives each municipality the authority, if they choose, to conduct fingerprinting to screen potential and current owners, officers and managers for prohibitive offenses but does not require a municipality to fingerprint/background check applicants. While there is significant value in obtaining fingerprints/background checks for owners and officers of applicants and license holders every three (3) years, it has been brought to our attention that the requirement that managers obtain fingerprints/background checks is an expensive, time-consuming and unnecessary process for some business owners who are liquor license holders in Aurora and it was requested that we review our policy with regard to managers.
DISCUSSION:
From the licensee perspective, this policy can be expensive and duplicative if they also conduct their own pre-employment background check prior to employing managers. It appears a background check through a licensed agency for our liquor licensing purposes may cost approximately $65.00 (to meet the City requirement) in addition to any costs incurred in obtaining a background check for their own purposes. The argument has been made that the requirement for all managers to obtain fingerprints/background checks every three (3) years is unduly burdensome on the business owners. For many of the smaller businesses, the owners also serve as the managers so the requirement may not particularly impact them. For many of the larger businesses, such as chain restaurants, they are accustomed to varying municipal requirements throughout the country and haven't vocalized objection to this requirement. It seems to be the mid-sized locally based businesses with more management turnover that may feel more negative effects of this policy. A review of other municipalities revealed the following:
St. Charles: requires owners over 5%, partners, officers and directors to be fingerprinted and an affidavit submitted regarding the criminal history of managers;
Batavia: requires an affidavit for officers, managers, directors, stockholders over 5% and agree to fingerprints upon request;
Joliet: requires background checks for all owners over 5%;
Rockford: requires background checks for primary applicant, managers/agents, owners of 5% and over, all corporate officers and directors;
North Aurora: requires an affidavit regarding the criminal history of responsible parties (principals, directors, officers, members/managers, partners and location managers).
From the perspective of staff in the City Clerk's Office, keeping track of the moving target of location managers and their background check requirements is a big job and with 208 liquor licenses, it's difficult to maintain control over the fingerprint/background check requirements for the owners and officers without including location managers. Removal of this requirement would lessen the workload of the Clerk's Office staff.
From the perspective of the public, we would look at the benefit to the public of expending staff resources on tracking background checks of managers. With a safeguard in place that the business owner must submit proof that their application is submitted truthfully (via affidavit) after the business owner has done their due diligence to vet their managers, this requirement can likely safely be removed to save staff time and business resources with little negative effect on the public.
Input from the Illinois Liquor Control Commission (ILCC) was sought and received on this matter. Specifically, the ILCC advised that the Illinois Liquor Control Act does not require fingerprinting to be conducted, however, the Liquor Control Act does require truthful submission of applications, and all licenses are subject to the provisions of the Liquor Control Act. Since the Liquor Control Act permits a local municipality to conduct fingerprinting, each municipality is free to conduct its own background checking policies which are not inconsistent with the Act.
Based on guidance from the ILCC, the City is free to remove the requirement that managers obtain fingerprints/background checks to prove eligibility for a license so long as there is another safeguard in place, such as an affidavit, to ensure businesses are submitting truthful applications.
IMPACT STATEMENT:
This change will enable businesses to conduct their own background checks on their location managers without duplicating efforts and fees to satisfy the city requirement. This change will reduce the Clerk's Office workload and allow staff to focus on other licensing details.
RECOMMENDATIONS:
Staff requests approval of the proposed changes.
cc: Rules, Administration and Procedures Committee
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance Amending Chapter 6 - Sections 6-5, 6-7 and 6-20 of the Code of Ordinances.
body
WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the Illinois Liquor Control Act prohibits individuals with certain criminal offenses in their backgrounds from acting as a manager of a liquor licensed business; and
WHEREAS, the City of Aurora requires all managers to obtain fingerprints/background checks every three (3) years as a requirement of their employer's liquor license application and/or liquor license renewal application; and
WHEREAS, the requisite lack of a criminal history can be determined by sworn affidavit of the business owner instead of expending the time and expense required to obtain manager fingerprints/background checks every three (3) years or for each new manager; and
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
Section One: That Sections 6-5, 6-7 and 6-20 of Chapter 6 of the Code of Ordinances shall be and hereby are amended as set forth in Exhibit A.
Section Two: That this Ordinance shall be in full force and effect, and shall be controlling, upon passage and approval.
Section Three: That all Ordinances or parts of Ordinances in conflict herewith are hereby repealed insofar as any conflict exists.
Section Four: That any section, phrase or paragraph of this Ordinance that is construed to be invalid, void or unconstitutional shall not affect the remaining sections, phrases or paragraphs of this Ordinance which shall remain in full force and effect.
Section Five: That Corporation Counsel and the City Clerk are authorized to correct scrivener's errors that do not substantively alter the meaning of the ordinance.