§ 6.125.040. License application.

(A) In addition to the information required by the department of business license for a general business license, the applicant must provide to the director the following:

(1)

Copy of all sales presentations used by the applicant and its solicitors (in written form) including, but not limited to, the initial sales, verifications, and reorder sales presentations;

(2)

Copy of all advertising bulletins, announcements, circulars, brochures and all other promotional materials used by the applicant and sent to purchasers to promote, sell or advertise premiums of any kind;

(3)

The business name and address of each factor and supplier of premiums with which it will do business. An applicant for licensing as a factor must submit the same information for each seller and supplier of premiums with which it will do business;

(4)

A pro-forma statement prepared by a certified public accountant which sets forth proposed or actual costs of operation, estimated income and profit for the first year of business licensed pursuant to this chapter. The statement must further show a sufficient cash reserve to satisfy all cash deficiencies for six months in advance;

(5)

Any other pertinent documents or information which the director may require.

(B)

All applicants shall provide the following under oath:

(1)

Whether the applicant has ever been convicted by any state or federal court within the past ten years of any misdemeanor or felony other than minor traffic offenses;

(2)

A list of convictions, indictments and arrests for all thefts, fraud, obtaining money under false pretenses, embezzlement or any felony criminal convictions or adverse civil action judgments involving allegations pertaining to fraudulent advertising, sales or trade practices, or breach of contract and a detailed explanation of circumstances;

(3)

The address of the proposed business location in the county, with a copy of the deed, lease, or other document pursuant to which applicant occupies such premises;

(4)

The person or persons who will have custody of the business records at the business location;

(5)

Agent for service of process;

(6)

Applicant's family, residential, education, military, and criminal history background, covering at least a ten-year period immediately preceding the date of filing of the application;

(7)

A complete description of the exact nature of the business to be conducted, including office organization, advertising theme and method, and employee qualifications;

(8)

The federal employer's identification number and Nevada Industrial Insurance System policy number; and

(9)

Applicant's business and employment history stating whether or not the applicant, or applicant's manager, director, officer, partner or stockholder(s) have had any business license revoked or suspended and stating the details thereof including the reasons therefor.

(C)

(1)

If an applicant is a partnership or limited partnership, all application information listed in subsection (B) of this section shall be provided for all the partners, including, if applicable, limited partners, the same as if each were a sole proprietor and applicant.

(2)

If an applicant is a corporation, all application information listed in subsection (B) of this section shall be provided for each of the directors, officers and shareholders holding ten percent or more of the stock of the corporation the same as if each were a sole proprietor and applicant.

(3)

If applicant is a partnership or limited partnership, it shall provide a certified copy of an agreement or articles of partnership or limited partnership and certificate.

(4)

If applicant is a corporation, the application shall be accompanied by:

(a)

A copy of the certified articles of incorporation of such corporation and, if incorporated under the laws of another state, a certificate of qualification to do business in the state of Nevada; and

(b)

A current annual list of officers, directors, and resident agent of such corporation; and

(c)

A list of the stockholders, the last known residence address and telephone number of each, and their respective ownership interests in such corporation, certified as being true and correct by the secretary of such corporation; and

(d)

A certified copy of all minutes or resolutions by the board of directors of such corporation authorizing such license application and designating the officer to apply on such application and authorizing his verification thereof.

(5)

If such business is to be conducted under a name other than the legal name of the applicant, the application must be accompanied by a copy of the fictitious name certificate on file with the county clerk of Clark County, Nevada.

(6)

All officers, directors, shareholders which own, directly or constructively, ten percent or more of the outstanding stock of the corporation, and the managing agent of the corporation must be investigated for determination of suitability as set forth in this chapter.

(D)

The failure to truthfully disclose any of the information required by subsections (B) and (C) of this section, or the failure to make a full disclosure of all facts required, shall be grounds for denying the license or, if subsequent to issuance of a license it is discovered that any applicant or person required to be investigated has not been completely truthful or has withheld any facts in answering the above questions, such failure shall be grounds for denial or revocation of the license.

(E)

If the licensee makes any changes in the documents or goods which must be submitted to the director under this section, copies of the documents or other items as changed must also be submitted to the director within ten days of such change.

(F)

After the filing of a completed application and payment of all license fees, the applicant shall be referred to the metropolitan police department for fingerprinting, criminal background investigation and reporting thereof to the director. All applicants or other persons for which an investigation is required shall be investigated for determination of suitability pursuant to Section 6.08.110 and shall pay investigation fees as required by Section 6.08.115.

(G)

The result of the investigation shall be given to the director within thirty days or as soon thereafter as possible.

(H)

The director shall deny the license if:

(1)

The license application is incomplete so as to not contain all information required by this chapter; or

(2)

All license and investigation fees are not paid; or

(3)

The applicant or any of its principals has been convicted of a crime listed in subsection (B)(2) of this section or has been permanently enjoined in an adjudicated civil action from engaging in fraudulent advertising or sales or trade practices; or

(4)

The applicant or any of its principals does not possess, or does not have a reputation for possessing, a good moral character; or

(5)

The applicant or any of its principals has been convicted of a crime involving moral turpitude; or

(6)

The applicant does not have sufficient financial base or does not have sufficient experience in the telephone solicitation business to completely meet all business expenses and contractual and promised obligations to customers; or

(7)

The applicant or any of its principals has had a telephone solicitations license previously revoked or denied for any ground set out herein as grounds for denial; or

(8)

The applicant, or any of its principals, do not qualify for, or have not obtained work identification cards.

(I)

An applicant whose license has been denied by the director may appeal the director's decision within ten days to the board of commissioners by written notification to the director. The board shall hear the appeal by examination of:

(1)

The circumstances of the crime or civil action, past business experience, and plans, including financing, for operation of the proposed business; and

(2)

The applicant's criminal and civil court history, and business or employment history since the adjudications.

The board may sustain the director's denial or grant the license based on the evidence presented that the applicant does not present, and is not likely to present in the future, a threat to county safety, morals and welfare, and will operate the business in an honest manner as required by this chapter and in accord with the federal and state law. The board may grant a restricted or conditional license if in its discretion the facts presented merit such license, or may require the applicant to increase the bond sum, or file an additional bond for the benefit of the customers.

(Ord. 1136 § 4, 1989: Ord. 1065 § 14, 1988: Ord. 928 § 3, 1985: Ord. 925 § 1 (part), 1985)