§ 9-2. Automatic tip regulations.

(a)

Each establishment shall disclose that any automatic tip is voluntary, and do so in a manner that notifies customers that it has been added to the amount of the bill by distinguishing it from all other amounts on the bill. Such manner may include, but shall not be limited to:

(1)

Text indicating the automatic tip that is a different color from all other text on the bill.

(2)

A decal or stamp indicating the automatic tip that is affixed or stamped upon the face of the bill.

(3)

Text indicating the automatic tip on the bill in a typeface that is at least 1.5 times larger than all other text on the bill.

(b)

The automatic tip amount is a disclosure only, and payment of the automatic tip in the suggested amount must not be mandated by the establishment. However, an automatic tip for groups of six or more customers may be mandatory if the other requirements of subsection (a) are met.

(c)

The Village Manager may develop administrative procedures and timelines for the initial implementation and enforcement of this section. Implementation and enforcement will begin no later than February 1, 2018.

(d)

Enforcement and penalties.

(1)

Each new establishment shall attach a sample copy of a bill displaying the automatic tip to its application for issuance of its certificate of use under section 21-32(b) and first business tax receipt issued pursuant to article II of chapter 9, beginning February 1, 2018, and an affidavit that states it will comply with the regulations of this section by utilizing the format reflected on the sample copy of the bill submitted with the application until its business tax receipt expires.

(2)

The enforcement procedures outlined herein are cumulative to all other remedies authorized by law. Nothing in this section shall prohibit the village from enforcing this section by any other means. Citation for violation of this section may be issued by the Village Manager or designee to the establishment, in accordance with the following schedule of penalties:

a.

First violation: the Village Manager or designee shall provide a warning that the establishment has committed a violation of this section and shall provide said establishment five days to correct the violation.

b.

Second violation: a civil infraction in the amount of $250.00 for a violation of this section may be issued if, upon personal investigation, the Village Manager or designee finds that the establishment has not corrected the violation within five days.

c.

Third violation: a civil infraction in the amount of $500.00 may be issued should the village manager or designee find that the establishment remains in violation of this section five days after the initial civil infraction of $250.00 was issued. Violations occurring more than a year following a prior warning or citation will be deemed a first violation by the establishment.

d.

Habitual offender: an establishment that is found to have violated this section after having received a civil infraction for a third violation of this section shall be issued a written notice to appear before a special master for a hearing on the violation in accordance with the applicable requirements of article V "Code Enforcement" of chapter 2 "Administration" of this Code. At such hearing, if the special master finds that the establishment is guilty of violating this section, the special master shall proceed to impose fines in the amount of $500.00 per day. A fine imposed pursuant to this part shall continue to accrue until the establishment comes into compliance. In addition to or in the alternative of the per day fines, the special master may order that the establishment's business tax receipt be revoked by the village.

e.

[Failure to disclose: each bill which fails to include the disclosure required by sections 9-2(a) and (b) will constitute a violation of this section.

(Ord. No. 599, § 2, 10-24-17)