To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Michael J. Hyman, Town Attorney
Jamie Authier, Revenue Manager
Title
Resolution Approving an Intergovernmental Agreement Relating to the Enforcement of an Ordinance Establishing Business Licensure Requirements to Regulate Massage Facilities Between the Board of County Commissioners of Douglas County and the Town of Castle Rock
Body
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Executive Summary
The proposed resolution approves an intergovernmental agreement (IGA) between the Board of County Commissioners of Douglas County (the “County”) and the Town of Castle Rock (the “Town”) to establish business licensure requirements to regulate massage facilities per Section 30-15-401.4, C.R.S. and Colorado Senate Bill 25-146. Pursuant to the IGA, the County will assume responsibility for issuing licenses and conducting background checks for massage facilities located within Town boundaries.
Discussion
Section 30-15-401.4, C.R.S., authorizes local governments to enact ordinances to regulating massage facilities within their boundaries through the issuance of licenses and the conducting of background checks. The purpose of this statute is to deter and shut down illicit massage businesses. In 2023, the County exercised its authority under the statute to enact an ordinance and establish a massage facility licensing authority (the “Licensing Authority”). See County Ordinance O-024-005. The County has also put into place a regulatory framework for the administration of massage facility licenses. See County Resolution No. 2024-124.
With the passage of House Bill 24-1371, rather than adopt its own ordinance and incur the expense of establishing a new regulatory framework, a municipality may enter into an agreement with the county in which it is located to have the county's massage licensing ordinance apply to massage facilities operating within the municipality. To this end, the County has invited the Town to enter into such an agreement. Further, the County is amending its ordinance and resolution to incorporate the changes made to Section 30-15-401.4, C.R.S., by House Bill 24-1371 for the purpose of accommodating these agreements. See County Ordinance No. O-026-001; Amended County Resolution No. 2026- ___.
According to the proposed IGA:
a) The County shall serve as the Licensing Authority for all massage businesses located within the Town;
b) The Town will provide the Licensing Authority information on any business within the Town that is subject to County licensing requirements or otherwise qualifies for an exemption;
c) The Town shall be responsible for determining whether the business is in compliance with Town business licensing and zoning requirements under the Castle Rock Municipal Code. Prior to taking any action with regard to a license application, the Licensing Authority shall refer the application to the Town for a determination that the business is fully compliant with Town requirements.
d) The Licensing Authority will provide notifications to the Town of the approval or denial of any applications or renewals of massage licenses.
e) The Licensing Authority will be responsible for conducting all required background investigations of license applicants and employees.
f) The Licensing Authority will submit any complaints of a criminal nature received related to the Town’s massage businesses licensed under this ordinance to the Town’s Police Department.
g) The Licensing Authority shall retain all fees and charges collected as a result of issuing massage licenses and enforcing the ordinance.
h) All records resulting from the enforcement of the ordinance within the Town will be managed and maintained by the Licensing Authority.
i) Both the County and the Town will retain responsibility for their respective obligations under the Colorado Governmental Immunity Act, and neither party shall be liable for the obligations of the other.
Budget Impact
There will be no financial impact for the Town of Castle Rock as applicants will pay Douglas County directly for all fees associated with license application, issuance, renewal, background check and fingerprinting.
Staff Recommendation
Town staff recommends that the Town Council adopt the resolution.
Proposed Motion
“I move to approve the Resolution on first reading as introduced by title.”
Attachments
Attachment A: Resolution
Attachment B: Intergovernmental Agreement