Public Hearing Set for Draft of Village Business License
Mackinaw City Stresses Ethical Conduct
By Paul Gingras

Mackinaw City businesses may soon need a business license designed to ensure ethical business conduct. The village council reviewed a draft of the proposed license ordinance at its Thursday, July 3 meeting. The matter will be the subject of a public hearing in the multi-purpose room at Mackinaw City Public Schools Wednesday, July 23, at 7 p.m.

Mailings regarding the license went out to businesses this week, said Village Manager Jeff Lawson.

The license proposal was made in fall 2006 by Village Council Trustee Jeff Hingston, who chairs the Ordinance Committee.

"Basically, we have had a rash of consumer complaint issues, both in retail and hotel areas," Mr. Hingston told The St. Ignace News. "The village council is trying to be part of the solution."

According to the business license proposal, to maintain the license and the right to operate in the municipality, businesses must follow all local, state, and federal laws and ordinances pertaining to businesses, notably the Michigan Consumer Protection Act and the Michigan Retail Installment Sales Act.

The draft states that the license ordinance is intended to protect the community by establishing standards for business operation and allowing the village to gather information and conduct inspections to ensure that businesses are complying with the rules.

The draft states that "the ordinance recognizes that the local economy is heavily dependent on tourism and that a favorable public perception of the entire business community is essential to the health, safety, and welfare of village residents and business operators."

"Our visitors are our lifeblood," Mr. Hingston said. "What we are trying to do is to establish a new tool, a new deterrent to dishonest practices."

"It is not a cure all," he said. "The consumer needs to be involved," particularly in matters involving state or federal laws.

If a visitor felt he had been victim to false advertising or fraud, for example, he could file a complaint with the village. If the complaint pointed to the breaking of a state or federal law, he would make a report with the local police department, which would be forwarded to the county prosecutor or the state attorney general. If a business were found guilty of breaking a business conduct law, the owner could lose the Mackinaw City license, and therefore, the ability to operate in Mackinaw City.

Since the village has control over local ordinances, their enforcement is simpler, Mr. Hingston said. For example, if a contractor put up signs in town without permission, he could be fined for breaking the local sign ordinance and lose the right to do business in town.

The license replaces the village's transient merchant license. To operate the first year, all businesses in the village are required to obtain a transient merchant license, which does not require renewal, Mr. Lawson told The St. Ignace News. If the council approves the new ordinance, businesses will have to renew annually to continue operating.

The cost proposed by the village is $250 for the first year and $75 for renewals.

Businesses affected if the ordinance is enacted range from retail to skilled trades. It covers operations with buildings in town as well as any contractor that requires a permit.

The only businesses allowed to operate in the village without the new license would be those exempt by state or federal law, or which are licensed under another village ordinance.

Under the ordinance, if a business receives a letter stating that its license is to be revoked, the owners will be allowed public hearings to contest the case.

In addition to losing the right to conduct business in the village, the proposal calls for violators to face misdemeanor charges punishable by a fine of no more than $500, 30 days in jail, or both.

Business licenses of the kind being proposed are common, Mr. Hingston said.

The creation of this license involved more than two years of study. The committee analyzed more than 24 licenses, several from Michigan, and several from other states. The main reference for Mackinaw City's proposal was a business license required by the City of Mackinac Island, he said.