HomeMy WebLinkAbout1474ORDINANCE NO. 1474 (2005 Series)
AN ORDINANCE OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
ESTABLISHING A BUSINESS LICENSE PROGRAM
WHEREAS, the Council wants to provide for necessary regulation of lawful businesses
being conducted within the City in the interest of the public health, safety and welfare of the
people of the City; and
WHEREAS, the Council wants to ensure that due diligence will be exercised in
reasonably assuring that businesses operating in the City are doing so in compliance with the
City's policies, regulations and ordinances; and
WHEREAS, the Council of the City of San Luis Obispo conducted a public hearing on
June 21, 2005, for the purpose of considering changes to the Municipal Code to implement a
business license program for this purpose.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. New Chapter 5.01 (Business License Program) of the Municipal Code is
hereby established as follows:
ARTICLE 1. GENERAL PROVISIONS
5.01.101 Purpose. The purpose of the City's business license regulations is to provide for
necessary regulation of lawful businesses being conducted within the City in the interest of the
public health, safety and welfare of the people of the City. While due diligence will be exercised
in reasonably assuring compliance with all City policies, regulations and ordinances before
issuing a business license, the primary focus of the City's business license regulations is to
provide reasonable assurance that businesses operating in the City are doing so in compliance
with the City's planning and building policies, regulations and ordinances; and in compliance
with the City's business tax provisions as set forth in Chapter 3.01 of the Municipal Code.
5.01.102 Business License Required. It shall be unlawful for any person to transact and carry
on any business in the City not otherwise exempt without first having procured a business license
from the City and complied with all of the applicable provisions of this chapter.
5.01.103 Definitions. For the purposes of this chapter, unless otherwise apparent from the
context, certain words and phrases used in this chapter are defined as follows:
A. "Business" shall mean and include professions, trades, vocations, rentals, leases, enterprises,
establishments and occupations, and all and every kind of calling, any of which is conducted
for the purpose of earning in whole, or in part, a profit or livelihood, whether or not a profit
or a livelihood actually is earned thereby, whether paid in money, goods, labor or otherwise,
and whether or not the business has a fixed place of business in the City.
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Ordinance No. 1474 (2005 Series)
Page 2
B. "Finance Director" shall mean the individual designated by the City Administrative Officer to
issue business licenses pursuant to the provisions of this chapter. The Finance Director may
designate others to perform these duties on her or his behalf.
C. "Person" shall mean and include all domestic and foreign corporations, associations,
syndicates, joint -stock corporations, partnerships of every kind, clubs, Massachusetts trust,
business and other common law trusts, societies and individuals transacting and carrying on
any business in the City, other than an employee.
D. "Sworn statement" shall mean an affidavit sworn to before a person authorized to take oaths
or a declaration or certification made under the penalty of perjury.
5.01.104 Illegal Occupations. A business license issued pursuant to this chapter does not
authorize, permit or allow the license holder to do any act or conduct any business of any kind
which is otherwise prohibited by City policies, regulations or ordinances; or any state or federal
statute, law, rule, order or regulation.
5.01.105 Planning and Building Regulations. Before issuing a business license, the Finance
Director shall exercise due diligence in providing reasonable assurance that the business is in
compliance with City planning and building policies, regulations and ordinances. This will
include establishing procedures as needed to ensure appropriate review by staff in the City's
Department of Community Development before issuing or renewing business licenses.
5.01.106 Exemptions. The following persons and organizations are exempt from the provisions
of this chapter:
A. Minors Under the Age of Eighteen. Businesses owned and conducted by minors under the
age of eighteen years shall be exempt from the business license provisions of this chapter
where all of the following conditions exist and legal documentation is provided to support
that:
1. All persons engaged in the operation of the business are under the age of eighteen years.
2. All persons engaged in the operation of the business have a bona fide ownership interest
in the business.
B. Charitable, Religious and Nonprofit Organizations. The provisions of this chapter shall not
be deemed or construed to require the issuance of a business license to conduct, manage or
carry on any business, occupation or activity of any institution or organization recognized by
a tax board of the state with a "Statement of Domestic Non - Profit Organization" or the
Internal Revenue Service of the United States, which is conducted wholly for the benefit of
charitable, religious or nonprofit purposes, and from which profit is not derived, either
directly or indirectly, by any person.
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The exemption provisions of this section shall not be construed to extend to any person,
business, corporation, or organization receiving a fee, wage, stipend, salary, remuneration,
compensation, or pay for the performance of any business, occupation or activity related to
exempt organization activities. Any such person, business, corporation or organization shall
be subject to the business license provisions of this chapter and shall obtain a business license
prior to any business, occupation or activity being undertaken.
C. Conflicts with Federal and State Laws or Contractual Agreements. The provisions of this
chapter shall not be construed to require a person to obtain a business license prior to doing
business within the City if such requirement conflicts with the applicable statutes, laws or
constitution of the United States or the State of California or other contractual obligations or
franchise agreements. The Finance Director may develop administrative guidelines
concerning exemptions, apportionment and any other matters which she or he determines as
necessary for the lawful and effective implementation of this chapter.
ARTICLE 2. FEES
5.01.201. Fees for Initial Applications and Renewals. Fees for processing applications for
initial issuance and renewal of business licenses will be set by resolution of the Council.
ARTICLE 3. APPLICATION AND RENEWAL
5.01.301 Business License Initial Applications. Every person required to have a business
license pursuant to the provisions of this chapter shall make a written application to the Finance
Director and submit the following information:
A. The nature or kind of business for which the business license is requested.
B. The place where the business is to be conducted and, if the business is not to be conducted at
a permanent location, the residence address, identified as such, of the owners of the business.
C. If the application is made for the issuance of a business license to a person to do business
under a fictitious name, the names, social security numbers, and residence addresses of the
owners of the business.
D. If the application is made for the issuance of a business license to a corporation or
partnership, the names, franchise tax number, and residence addresses of the officers or
partners thereof.
E. Any further information that the Finance Director may require to enable the issuance of the
business license.
The Finance Director will not issue the business license unless the applicant has paid the
appropriate fee as required under this chapter as well as the business tax amount due under
Chapter 3.01 of the Municipal Code.
Ordinance No. 1474 (2005 Series)
Page 4
5.01.302 Business License Renewals. Unless otherwise specifically provided, all business
licenses required by the provisions of this chapter shall be renewed on July 1 of each year. Any
fees due in order to process the renewal shall be paid by July 31 of each year, and will be
delinquent after July 31.
No renewal of a business license shall be processed or issued until payment in full of all current
and delinquent business license fees as well as current and delinquent business tax amounts due
under Chapter 3.01 of the Municipal Code, including accrued interest and applicable penalties
thereon is received by the City. It shall be the responsibility of the applicant to ensure renewal of
the business license.
ARTICLE IV. BUSINESS LICENSE ISSUANCE
5.01.401 Content. Each business license shall state upon the face thereof the following:
A. Name of the person to whom the business licensed is issued.
B. Type of business.
C. Location or address of the business.
D. Date of the expiration of the business license.
E. Possession of the business license does not authorize, permit or allow the person to do any
act which such person would not otherwise be lawfully entitled to do.
5.01.402 Posting and Keeping. All business licenses issued pursuant to the provisions of this
chapter shall be posted and kept in the following manner:
A. Any persons transacting and carrying on business at a fixed location in the city shall keep
such business license posted in a conspicuous place upon the premises where such business is
carried on.
B. Any persons transacting and carrying on business, but not operating at a fixed location in the
City, shall keep such business license upon them at all times while transacting and carrying
on such business.
5.01.403 Duplicates. A duplicate business license may be issued by the Finance Director to
replace any business license issued pursuant to the provisions of this chapter, which business
license has been lost or destroyed, upon the filing of a statement of such fact and the payment of
a duplicate fee set by resolution of the Council.
5.01.404 Branch Establishments. A separate business license shall be issued for each branch
establishment or location of business; provided, however, warehouses and distributing plants
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Page 5
used in connection with, and incidental to, a business licensed pursuant to the provisions of this
chapter shall not be deemed to be separate places of businesses or branch establishments; and
provided, further, any person conducting two or more types of businesses at the same location
and under the same management, or at different locations, but which businesses use a single set
or integrated set of books and records, may elect to pay only one business tax calculated on all
the gross receipts of the businesses, except that a fee set by resolution of the Council shall be
paid upon issuance for each additional branch or location.
5.01.405 Change of Location. No business license issued pursuant to the provisions of this
chapter shall be transferable; provided, however, where a business license is issued for a person
to transact and carry on a business at a particular place, such person, upon an application
therefore and the payment of a fee set by resolution of the Council, may have the business license
reissued for transacting and carrying on of such business at some other location to which it is to
be moved, subject to the same terms and conditions as the original license.
ARTICLE V. ADMINISTRATION
501.501. Finance Director Adjustment Powers. The Finance Director shall have the power,
for good cause shown and documented by the Finance Director as a permanent record, to:
A. Extend the time for filing any required sworn statement.
B. Waive or reduce any penalties which would otherwise have accrued.
C. Adjust the amount of the business license due.
D. Make refunds or pro- rations of license fees paid.
5.01.502 Debt to City. The amount of any business license and penalty imposed by the
provisions of this chapter shall be deemed a debt to the City. A suit may be brought against any
person to enforce the collection of the debt described in this chapter in any court of competent
jurisdiction. The conviction of any person for transacting any business without a business license
shall not excuse or exempt such person from payment of any license due or unpaid at the time of
such conviction, and nothing herein shall prevent a criminal prosecution for any violation of the
provisions of this chapter.
5.01.503 Delinquencies and Penalties. For failure to pay the amount of the business license
required by the provisions of this chapter prior to the delinquency date, the Finance Director shall
add a penalty. The amount of this penalty shall be set by resolution of the Council.
5.01.504 Enforcement. The Finance Director and Police Chief shall enforce the provisions of
this chapter as follows.
A. Duties of the Finance Director and Chief of Police. It shall be the duty of the Finance
Director to enforce each and all of the provisions of this chapter, and the Chief of Police shall
Ordinance No. 1474 (2005 Series)
Page 6
render such assistance in such enforcement as may from time to time be required by the
Finance Director.
B. Inspections. The Finance Director, in the exercise of the duties imposed by the provisions of
this chapter, and acting through deputies or duly authorized assistants, shall have the right to
enter and examine all places of business free of charge during normal business hours to
ascertain whether the provisions of this chapter are being complied with.
C. Penalty for Violation. Any person who violates any provisions of this chapter by transacting
and carrying on any business in the City without first having procured a business license from
the City or without complying with all of the applicable provisions of this chapter is guilty of
an infraction and is subject to punishment as provided for in Chapter 1.12 of the municipal
code.
5.01.505 Evidence of Doing Business. When any person, by the use of a sign, circular, card,
telephone book, newspaper, other publication or advertising media, shall advertise, hold out or
represent that such person is in business in the City, or when any person holds an active license
or permit issued by a government agency indicating that such person is conducting a business in
the City, and such person fails to deny, by a sworn statement given to the Finance Director or
designee, that such person is not conducting a business in the City after being requested to do so
by the Finance Director or designee, then these facts shall be considered prima facie evidence
that such person is conducting a business in the City.
3.01.506 Remedies Cumulative. All remedies prescribed by the provisions of this chapter shall
be cumulative, and the use of one or more remedies by the city shall not bar the use of any other
remedy for the purpose of enforcing the provisions of this chapter.
5.01.507 Revocation of Issued or Renewed License. The Finance Director is authorized to
revoke any issued business license whenever she or he receives information that would be
sufficient grounds to deny issuance of a license under the provisions of this chapter.
A. Notice. The license holder must be informed in writing of the Finance Director's intention to
revoke the business license at least fifteen calendar days in advance of the proposed effective
date of revocation, during which time the holder of the license may contest the proposed
revocation before the Finance Director. The Finance Director's notice shall state the reason
for the proposed revocation.
B. No Refund of Fees. Upon the revocation of a license as provided in this section, no part of
the license fee paid therefore shall be returned.
C. Surrender of License. Whenever a license is revoked, the license holder shall render to the
Finance Director any license document previously issued by the City.
Ordinance No. 1474 (2005 Series)
Page 7
SECTION 2. A summary of this ordinance, approved by the City Attorney, together
with the names of the Council members voting for and against it, shall be published at least five
days prior to its final passage, in The Tribune, a newspaper published and circulated in this City.
This ordinance will go into effect at the expiration of thirty (30) days after its final passage.
INTRODUCED on June 21, 2005 AND FINALLY ADOPTED by the Council of the
City of San Luis Obispo on July 5, 2005, on the following vote:
AYES: Council Members Brown and Mulholland, Vice Mayor Ewan and Mayor
Romero
NOES: Council Member Settle
ABSENT: None
Mayor David F. Romero
ATTEST:
Audrey Ho er
City Clerk
APPROVED AS TO FORM:
Jon Vtha,. Lowell
City ey
I hereby certify thnt this document is a true
cod., of ?rdin nce No. 1 1
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that ihe rdina r .e was published
to Charter S &;:;ion 6u2. Pursuant
Dat City Clerk
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