[Ord. No. 2384-13]
The purpose of this section is to provide a uniform set of procedures
for applications by and licensing of an applicant seeking to operate
and administer a Shop Local Program within the Township.
[Ord. No. 2384-13]
As referred to in this section and all applicable subsections,
the following terms shall have the following meanings:
Shall mean the entity seeking a license to design, operate
and administer a Shop Local Program to stimulate local commerce by
providing property tax credits or other such rewards in connection
with purchases by taxpayer consumers made at participating merchants,
as defined herein. The term "applicant" may also refer to a licensee
after a license is awarded to an applicant pursuant to the terms of
this section.
Shall mean business(es) with a location in the Township,
or located outside the Township but not competing with any local business,
which voluntarily register and enter into an agreement with applicant
to participate in the Shop Local Program.
Shall mean any program whereby taxpayer consumers make purchases
at participating merchants and earn property tax credits to satisfy
a taxpayer consumer's property tax obligations to the Township, or
earn credits for check rebates for purchases made at participating
merchants.
Shall mean Township property owners, residents, residents
of other municipalities who work in the Township, or any individual
who voluntarily registers and enters into an agreement with the applicant
to participate in the Shop Local Program and qualifies for receipt
of tax credits or rebates.
[Ord. No. 2384-13]
No person or entity shall operate a Shop Local Program within
the Township unless the entity seeking to operate same is licensed
pursuant to the terms of this section.
[Ord. No. 2384-13]
a.
Application Information. Applications for a license to operate a
Shop Local Program shall be made to the Township Clerk on forms provided
by the Township Clerk. The form(s) to be used for the application
shall be approved by the Township Council and may set forth additional
requirements, terms and conditions, other than those enumerated in
this section, which the Township Council deems necessary and proper
to the efficient and effective administration of the Shop Local Program.
Applications shall be verified by oath or affirmation. Applications
by a corporation shall be verified by all officers and directors and
all persons holding more than 10% of the corporation's common stock,
as well as the corporation itself.
b.
Review of License. Upon receipt of the license application, the Township
Clerk shall review the application to ensure that it has been properly
completed. The Township Clerk shall thereafter submit all properly
completed applications to the Township Council for determination as
to whether to grant or deny the license.
c.
Factors Considered. In determining whether to grant or deny the license
to the applicant, the Township Council shall take into consideration,
among any other factors it considers relevant, the following:
1.
The applicant's ability to properly conduct the licensed activity.
2.
The moral character of the applicant, whether a corporate entity
or other such partnership. If a corporation, the Township Council
shall consider the moral character of each officer, director, manager,
supervisor and/or shareholder. If a partnership, the Township Council
shall consider the moral character of each partner.
3.
The business responsibility of the applicant, including but not limited
to community service work or other such charitable endeavors.
4.
The criminal history of the applicant, whether an entity or individual
owner, director, manager, supervisor, officer or shareholder. A copy
of the applicant's criminal history record, obtained from the New
Jersey State Police, shall be submitted with the application. If the
applicant is a corporation, a criminal history record from the New
Jersey State Police shall be submitted for all officers and directors
of the corporation, all shareholders owning more than 10% of common
stock, and any other employee who will be an authorized signatory
on any bank account where taxpayer consumers' monies will be deposited.
If the applicant is a partnership, a criminal history record from
the New Jersey State Police shall be submitted for all partners.
5.
Prior experience in the financial industry, although a lack of prior
experience shall not necessarily be a factor militating against issuance
of a license.
d.
Issuance of License. If the applicant's request for a license is approved by the Township Council, the Township Clerk shall issue a license to the applicant within 10 business days of the approval. The contents of an applicant's license to operate a Shop Local Program shall contain the information required pursuant to Subsection 5-33.4 of this section.
[Ord. No. 2384-13]
The first license granted to an applicant shall be for a term of two years from the date of issuance of the license by the Township Clerk (the "Initial Term"), after Township Council approval. After the expiration of the initial term, the license may be renewed for subsequent terms of three years, provided that applicant submits a request for renewal to the Township Clerk in accordance with Subsection 5-33.7, and same is approved by the Township Council. The three year term shall commence from the date of issuance of the license renewal by the Township Clerk.
[Ord. No. 2384-13]
a.
Application Fee. In order to submit an application for a license
pursuant to this section, the applicant shall remit a nonrefundable
application fee of $50 to the Township Clerk. This application fee
shall not apply to applications for license renewals.
[Ord. No. 2384-13]
All license renewals shall be put to the Township Council for
consideration. Failure to request a license renewal, in writing, within
30 days prior to expiration of a license term shall render the applicant's
license void at the conclusion of the term.
An applicant's license may be renewed contingent upon payment
of the applicable nonrefundable license fee and the filing of:
a.
A sworn statement filed with the Township Clerk that there have been
no changes in the information contained in the initial application,
which shall be filed with the Township Clerk no later than 30 days
prior to the expiration of a term; or
b.
In the event of any change in information submitted with the applicant's
initial application, submission of a renewal application to the Township
Clerk for consideration by the Township Council no later than 30 days
prior to the expiration of a term.
[Ord. No. 2384-13]
An applicant's license may be revoked or suspended pursuant to the terms of this Subsection 5-33.8. In addition to the causes for revocation or suspension specified herein, the Applicant's license may be revoked or suspended by the Council after notice and a hearing for any of the following reasons:
a.
Applicant fails to timely remit payments to the Township to satisfy
obligations due to the Township from taxpayer consumers.
b.
Applicant does not satisfy its obligations to the Township, as set
forth in the terms of this section or in the terms and conditions
set forth in the license application as approved by the Township Council.
c.
The Township learns of the existence of entry of a judgment, or an
unsatisfied judgment of record, entered against the licensee or applicant
in any suit arising from or in relation to the operation of any Shop
Local Program;
d.
Applicant fails to comply with any and all applicable laws of the
State of New Jersey, the ordinances of the Township, or the rules
and regulations adopted in accordance with this section;
e.
The Township learns of the intentional misrepresentation of information
on an application for a license or a request for a renewal.
[Ord. No. 2384-13]
a.
Sole Responsibility of Applicant. The Shop Local Program shall be
administered and managed solely by the applicant. Upon licensing,
it shall be the licensee's independent responsibility to oversee the
Shop Local Program, register taxpayer consumers, and/or contract with
interested participating merchants. The applicant shall not represent
in any manner that it is an agent or representative of the Township.
b.
Written Descriptions of Program. It shall be the applicant's sole
responsibility to ensure that taxpayer consumers have access to a
written description of the gross percentage of credits that will be
paid to the Township towards the taxpayer consumer's real property
taxes upon a purchase made at all participating merchants. Licensee
shall make its best effort to ensure that all participating merchants
post a sign in its front window or in another conspicuous location,
indicating that the participating merchant is a "Participating Member
of Shop West Orange Property Tax Reward Program." Every participating
merchant shall be responsible for making available to taxpayer consumers
patronizing its business a written description of the percentage of
each transaction which shall be paid to the Township and/or credited
to the taxpayer consumer.
c.
Review of Participating Merchant's Applications To Participate In
Program. The applicant shall coordinate, receive and review all applications
by local businesses to become a participating merchant. In the event
that the applicant receives an application to become a participating
merchant from a business located outside the Township, the licensee
shall review same, and any approvals shall be subject to the review
and approval of the Township's Chief Financial Officer and/or Business
Administrator, which approval shall not be unreasonably withheld.
[Ord. No. 2384-13]
a.
Proof of Insurance. In conjunction with the submission of an applicant's
application or renewal notice to operate a Shop Local Program, an
applicant must provide proof of a valid and current general commercial
liability insurance policy with a company duly licensed to transact
business under the insurance laws of this State. The policy or policies
shall provide coverage for a sum of not less than $1,000,000 against
loss by reason of general commercial liability, not less than $250,000
to satisfy any claim for damages to property negligently caused by
the applicant, and not less than $2,000,000 in the aggregate. Applicant
shall also be required to maintain in force, for the duration of the
licensing period, insurance policies for workers compensation coverage
for its employees, officers, agents, and/or partners, as required
by applicable workers compensation laws, and shall provide a Certificate
of Insurance to the Township to evidence such coverage. The applicant
must provide a current Certificate of insurance listing the Township
as an additional insured. All insurance must cover any acts of defalcation
of Township funds.
b.
Indemnification. The applicant shall indemnify, defend, and hold
harmless the Township, its officers, agents and employees, from any
and all claims, actions, liability or costs, including reasonable
attorneys' fees and other costs of defense, in connection with, arising
out of, or in any way related to the negligence of the applicant,
or its agents or employees, in the administration of the Shop Local
Program.
[Ord. No. 2384-13]
a.
Fiduciary Policy Required. The applicant shall provide to the Township,
in lieu of a cash or other bond, proof of a valid fiduciary policy
naming the Township as a loss payee in the amount of $50,000. The
amount required for the fiduciary policy may be amended from time
to time by resolution of the Township Council.
b.
Amendments to Fiduciary Policy. The Township specifically reserves
the right to require changes to the fiduciary policy amount during
a license term, based upon the volume and amounts of sales transactions.
The type of guarantee may be substituted with another form of security
acceptable to the Township, at the discretion of the Township Council.
[Ord. No. 2384-13]
a.
Weekly Deposits Required. A licensee under this section must maintain
a dedicated bank account for funds received in connection with the
Shop Local Program, unless the Taxpayer Consumer's property tax credit
funds will be immediately directed to and held in the Township's own
FDIC insured dedicated bank account, in which case the Administrator
need not establish such a bank account. A licensee shall hold in trust
and every week shall turn over all funds collected from the Shop Local
Program on behalf of taxpayer consumers, via electronic transfer,
to the Township's dedicated bank account. The cost of the wire transfer,
if any, shall be the responsibility of the applicant.
b.
Quarterly Reporting Required. Along with the weekly deposits required
under this subsection, within 10 business days of the expiration of
each calendar quarter, a licensee shall provide a report to the Township's
Chief Financial Officer, which must be certified and provide the following
information: (i) name of taxpayer consumer; (ii) amount of funds collected;
and (iii) the address and/or Block and Lot number of the Township
property which should be credited, if any.
c.
Payments to Tenants and Nonresidents. It will be the licensee's sole
responsibility to hold in trust and remit any and all monies to be
paid as rebates to taxpayer consumers who do not pay property taxes
to the Township, including but not limited to tenants, renters, nonresident
employees, visitors, or other such individuals authorized to participate
and register in the Shop Local Program. A licensee's sign-up form(s)
or agreement(s) with a taxpayer consumer shall conspicuously state
that the licensee will be solely responsible for handling and distributing
monies to tenants, renters, nonresident employees, visitors or other
such individuals who do not pay property taxes.
d.
Reports to Taxpayer Consumers. The licensee shall make available
to all taxpayer consumers a written statement of credits or rebates
earned by the taxpayer consumer. The licensee may provide this statement
via e-mail, or make same accessible via its website.
[Ord. No. 2384-13]
The Township will only provide credits to a taxpayer consumer's
property tax bill after payment is received from a licensee with respect
to the specific property tax account. If the Township does not receive
payment relating to a property tax credit, whether or not such rebates
were collected by the licensee, the taxpayer consumer will be responsible
for the full amount of the property tax liability as if the credits
were never provided by the participating merchant.
[Ord. No. 2384-13]
In addition to suspension and/or revocation of any license issued hereunder, and in addition to any applicable State penalties, any violation of the provisions of this section, or any violation of the terms and conditions of the applicant's application, shall be punishable as provided in Chapter 1, § 1-5 of the Revised General Ordinances of the Township of West Orange.
[Ord. No. 2384-13]
The Township shall establish the necessary reporting requirement
for any payment of taxes made to the Township by the vendor. The Township
shall not be responsible for any impact of program participation on
mortgage escrow calculations. The Township shall not be responsible
for any changes in property ownership.
The applicant shall have the right to surrender its license
to the Township at any time, so long as it provides 90 days' notice
to the Township Clerk and Business Administrator, in writing. In such
an event, the applicant agrees to the orderly phasing out of its involvement
in the Shop Local Program, including but not limited to remitting
the balance of any and all funds due to the Township in connection
with property tax credits which may have been retained by the applicant
on behalf of taxpayer consumers.
