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Salem City Council moves forward proposal for business licensing – Salem Reporter

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Salem City Council moves forward proposal for business licensing – Salem Reporter

Salem city councilors voted 6-3 Monday to advance a conversation about a potential local business licensing program as a means to combat human trafficking.

The matter will now be examined by city staff who will eventually produce a report outlining what a possible business licensing program would entail, and what it would cost to develop, administer and enforce, said city spokesman Trevor Smith. 

City council will later make a decision on whether or not to accept a business license program.

Councilor Virginia Stapleton brought the idea to council. She said a business licensing program was a suggestion made during conversations she had with the FBI which she said is currently investigating human trafficking in Salem linked to illicit massage spas.

An FBI spokesperson in Portland said the agency could not provide a statement on the issue in time for Salem Reporter’s deadline. 

The idea of studying a licensing program got support from several members of the carpenters union who spoke in favor of it during public testimony. There was dissent on council and Salem Area Chamber of Commerce CEO Tom Hoffert spoke out against the idea prior to the vote. 

The motion to advance the idea passed 6-3, with support from Stapleton and Councilors Linda Nishioka, Micki Varney, Vanessa Nordyke, Trevor Phillips, and Mayor Chris Hoy. Councilors Julie Hoy, Deanna Gwyn, and Jose Gonzalez voted against moving forward.

Stapleton said getting the conversation started about the business licensing requirements is her way of using the limited time she has left on council before her term expires to help address a serious issue she was made aware of by her constituents. 

Prior to the vote, Stapleton said when she approached local authorities to learn more about human trafficking she and Mayor Hoy were put in touch with the FBI who briefed them on the matter. 

“I had another meeting with the FBI and we outlined some steps to move forward and this was the first step we came up with,” Stapleton said. “I want to be really clear that the majority of businesses are valuable members of our community and are not participating in human trafficking but it is up to us as a community to hold bad actors accountable. To do nothing would mean knowingly turning a blind eye to illegal activity and the suffering of others.” 

Stapleton said her interest in the matter intensified after she read about the growing issue with illicit massage spas across the Portland area. According to the September article from Willamette Week, Portland had 36 illicit massage spas in 2019 which were identified as trafficking undocumented women, typically from China. Five years later the number is at least 114, the article said. 

Despite licensing requirements with the Oregon State Board of Massage Therapists, many illicit spas in Portland the board receives complaints about are operating unlicensed, the article said.  

Stapleton said prior discussions about wage theft led to the recent implementation of transparency requirements for contractors doing business on Salem worksites as a measure to help protect workers from exploitation. New business licensing measures would be another mechanism to help protect workers and those who are being trafficked, she said. 

“Some say that the timing is off, that businesses can’t handle a small fee right now. But I can’t sit back and let human trafficking continue in the city when I had a chance to take steps to address the problem,” Stapleton said during Monday’s council meeting. “I cannot sit back and let human traffickers feel comfortable doing business in the city of Salem.” 

Business license fees were also proposed as a way to generate revenue by the city’s revenue task force which was convened in January to help come up with ideas for addressing the city’s multi-million dollar budgetary deficit. 

Stapleton said the program she’s proposing would be cost neutral, meaning the fees levied on local businesses would only cover the program’s operational costs, rather than being a tool to raise money for city operations. 

Gonzalez said he was not privy to the conversations with the FBI and said he does not believe a business licensing fee would help address human trafficking. He also said it would place an unnecessary burden on small local businesses while large corporations operating online would get away scot-free. 

“I just don’t believe it’s about human trafficking. I don’t believe that,” Gonzalez said prior to the vote. “The concept of a city business licensing fee has been brought up as a way to increase revenue even though there is this fancy word, ‘cost neutral.’ That is a play on words in my opinion.” 

Gonzalez said placing more fees on small businesses will only help create the perception that Salem is not a business-friendly city. He also pointed out that the Oregon Secretary of State’s office already requires businesses to register and that massage therapists are required to register with the Oregon State Board of Massage Therapists. 

“I think this is sort of a waste of time. To try to tackle human trafficking, it’s not going to solve it,” Gonzalez said. “I don’t know what the FBI is doing, I haven’t seen it. So, I am curious. But I don’t think that is going to work and to be burning bridges with our business community is the last thing we need.” 

Mayor Hoy said having access to more information and contact with local businesses would be beneficial for a variety of reasons including potentially for the purpose of addressing human trafficking. 

“I think that a business license is a good idea just in general,” Hoy told Salem Reporter. “This isn’t going to be a revenue producer. I don’t see that. I was taken aback a little bit by (Gonzalez’s) comments…It’s going to be cost neutral, at best. This is not about producing revenue.” 

Councilor Nordyke told Salem Reporter she supports looking into the matter more closely, and said it would make the most sense for a possible business licensing fee to be levied on businesses progressively. 

She also said she hopes the city will consider the concerns people have about the possible program, and answer some important questions about its efficacy in combating human trafficking. 

“I am very mindful of the fact that a lot of these businesses operate on a razor thin profit margin, so I am mindful how even seemingly small fees here and there can add up,” Nordyke said Monday at the council meeting. “Why is it that a city level ordinance could make a difference in human trafficking where statewide requirements for business licensing have not? I think that is a fair question. I think that is worth bringing forward.”

Contact reporter Joe Siess: [email protected] or 503-335-7790.

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Joe Siess is a reporter for Salem Reporter. Joe joined Salem Reporter in 2024 and primarily covers city and county government but loves surprises. Joe previously reported for the Redmond Spokesman, the Bulletin in Bend, Klamath Falls Herald and News and the Malheur Enterprise. He was born in Independence, MO, where the Oregon Trail officially starts, and grew up in the Kansas City area.

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