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independent contractor, other than a single receptionist, is at the business or any member of the public is in any room other than the reception and waiting area. This requirement will help ensure compliance with the Massage Ordinance's operating requirements. Record Inspection: The proposed ordinance requires that each massage business keep records of the name of the client and massage therapist, services provided, amount paid, including the tip, and the date and time. The records must be available for inspection by the Police Department for the sole purpose of ensuring compliance with the Massage Ordinance. The records must be maintained for three years. List of Services: The proposed ordinance requires that each massage business post a list of the services available and the cost of such services in the business's reception and waiting area. Insurance: The current ordinance requires that City permittees provide proof of liability insurance in an amount not less than $1 million. The proposed ordinance requires a $2 million dollar general liability insurance minimum per occurrence. The increase reflects the standard minimum amount provided by prominent massage therapy associations. No Alcohol: The proposed ordinance prohibits alcohol on the premises of the massage business. The massage community does not recommend drinking alcohol in connection with a massage due to health concerns. In addition, the consumption of alcohol by customers or massage establishment personnel during a massage may lead to unlawful activities. Unlocked Doors: The proposed ordinance requires that the massage business's front door remain unlocked during business hours unless the owner is a sole proprietor and providing a client a massage, or the owner is the only person in the business. The proposed ordinance also provides that a locking mechanism may not be placed on massage room doors. Other Regulations: The proposed ordinance includes other regulations and restrictions to curtail illicit activities. The proposed ordinance prohibits hanging or displaying undergarments on the premises of a massage business. The proposed ordinance prohibits massage businesses from being used for residential or sleeping purposes. The proposed ordinance requires that massage businesses post a notice developed by the California Department of Justice concerning slavery and human trafficking. The proposed ordinance prohibits neon signs within a massage business and visible from the business's exterior. The proposed ordinance prohibits blocking visibility from exterior windows into interior reception and waiting areas. The proposed ordinance also prohibits massage businesses from publishing any advertising that suggests unlawful services are offered at the massage business. Finally, the current and proposed ordinances both prohibit minors from being employed in a massage establishment. Page 5 of 6