Chapter 5.02
BUSINESS LICENSES*
Sections:
5.02.010 Business license required.
5.02.020 Exercise of licensing authority.
5.02.030 Definitions.
5.02.040 Special sales.
5.02.050 Notification of exemption or termination of business activities.
5.02.060 Agents responsible for obtaining license.
5.02.070 Separate license for branch establishments.
5.02.080 Joint license.
5.02.090 Exemptions from license requirement.
5.02.100 Exemptions for nonprofit community festivals.
5.02.110 Exemptions—Fee waiver.
5.02.120 Issuance—Fee collection.
5.02.130 Enforcement.
5.02.140 Forms.
5.02.150 Review and endorsement.
5.02.160 Investigations.
5.02.170 Compliance with Ocean Shores tax code.
5.02.180 Notification of applicant.
5.02.190 Information confidential.
5.02.200 Application required.
5.02.210 Form.
5.02.220 Contents.
5.02.230 Fees.
5.02.240 Duration—License renewal—Procedure.
5.02.250 Duplicate—Procedure.
5.02.260 Information required.
5.02.270 Denial, suspension or revocation of business license.
5.02.280 Reinstatement procedures and standards for reviewing an application for reinstatement.
5.02.290 Illegal operation—Judicial remedy.
* Prior ordinance history: Ord. 473.
5.02.010 Business license required.
Unless otherwise exempted by this chapter, every person engaged in business within the corporate limits of Ocean Shores is required to have a city business license. (Ord. 818 § 1 (part), 2006)
5.02.020 Exercise of licensing authority.
This chapter is an exercise by the city of its authority to license business activities for the purpose of regulation and revenue pursuant to the provisions of RCW 35A.82.050 and 82.14A.010, et seq. (Ord. 818 § 1 (part), 2006)
5.02.030 Definitions.
Where used in this chapter, the following words and terms shall have the meanings as defined in this section, unless, from the context, a more limited or different meaning is clearly defined:
A. “Business” means all activities, occupations, pursuits, or professions located and/or engaged in within the city, with the object of gain, benefit, or advantage to the person engaging in the same, or to any other person or class, directly or indirectly, including home occupations.
B. “City” means the city of Ocean Shores, Washington.
C. “City council” means the city council of Ocean Shores, Washington.
D. “Employee” means any person who performs work, labor, or services for a business and is on the payroll of the business. For the purpose of this chapter, the term “employee” also includes self-employed persons, sole proprietors, owners, managers, partners, and all full-time, part-time and temporary employees or workers which are paid by, employed by, or are in any way compensated by the business, if those persons are not independent contractors.
E. “Engaging in business” means commencing, conducting, or continuing in any business within the city, whether or not an office or physical location for the business lies within the city. This definition includes home office occupations, the performance of services by contractors, consultants, representatives, agents, or other persons within the city, even though the office location of the contractor, consultant, representative, agent, or other persons is not within the city limits; the exercise of corporate or franchise powers, as well as the liquidation of business when the liquidator holds itself out to the public as conducting such business.
F. “Business license clerk” means the person or his or her designee appointed by the city manager to act in such capacity.
G. “Person” includes the singular and the plural, and also means and includes any natural person over the age of eighteen years, firm, corporation, association, club, partnership, society, or any group of individuals acting as a unit.
H. “Special sales” includes but is not limited to sidewalk sales, and off-site vending.
I. “Nonprofit community festival” includes but is not limited to any festival or event sponsored by a not-for-profit entity, or a nonprofit corporation, which is open to the entire community.
(Ord. 818 § 1 (part), 2006)
5.02.040 Special sales.
This chapter shall apply to all business in the nature of special sales, and it is unlawful for any person, either directly or indirectly, to conduct any such sale except in conformity with the provisions of this chapter unless specifically exempt therefrom. (Ord. 818 § 1 (part), 2006)
5.02.050 Notification of exemption or termination of business activities.
A. Every person who has obtained a business license required by this chapter and who thereafter ceases to engage in business within the city shall, prior to the end of the calendar year during which business operations have been terminated, notify the business license clerk in writing that the business activities have ceased. Any business for which a license has been issued shall be presumed to continue in operation within the city unless notice of termination of business activities has been given as provided above.
B. Every person who engages in business in the city which is exempt or becomes exempt from the licensing provisions of this chapter under federal, state, or local laws shall notify the business license clerk in writing of the exemption, and the basis thereof.
C. Any business which is exempt from the provisions of this chapter, or which has terminated its business activities in the city shall not be entitled to a refund of any license fee paid under this chapter if such business has failed to provide written notice to the business license clerk as required by this section.
(Ord. 818 § 1 (part), 2006)
5.02.060 Agents responsible for obtaining license.
The agents or other representatives of nonresidents who are doing business in the city shall be personally responsible for the compliance with this chapter by their principals and of the businesses they represent. (Ord. 818 § 1 (part), 2006)
5.02.070 Separate license for branch establishments.
A license shall be obtained in the manner prescribed in this chapter for each branch establishment or location of the business engaged in, as if each such branch establishment or location were a separate business; provided, that warehouses and distributing plants used in connection with and incidental to a business licensed under the provisions of this chapter are not separate places of business or branch establishments. (Ord. 818 § 1 (part), 2006)
5.02.080 Joint license.
A person engaged in two or more businesses at the same location shall not be required to obtain separate licenses for conducting each of such businesses, but shall be issued one license which shall specify on its face all such businesses. (Ord. 818 § 1 (part), 2006)
5.02.090 Exemptions from license requirement.
The provisions of this chapter shall not apply to:
A. Any instrumentality of the United States, the state of Washington, or political subdivisions thereof with respect to the exercise of governmental functions.
B. Any farmer or gardener who sells or delivers any fruits, vegetables, berries, eggs, or any farm produce or edibles raised, gathered, caught, produced, or manufactured by such person within the state.
C. Newspaper carriers who are employees of the newspaper they distribute, and postal carriers.
D. Any person who merely delivers within the city any property purchased or acquired in good faith from a person at his/her regular place of business outside the city where that person is not otherwise subject to the licensing provisions of this chapter.
E. Any person, business, enterprise, firm, or corporation which the city is forbidden to tax under state or federal law.
(Ord. 818 § 1 (part), 2006)
5.02.100 Exemptions for nonprofit community festivals.
A. No license shall be required of any person who operates a business in conjunction with nonprofit community festivals, as approved by the business license clerk, provided all of the following criteria are met:
1. The business does not operate within the city for more than three consecutive days, or for more than twelve days in a calendar year; and
2. The business is authorized in writing to participate in the community festival by the sponsor of the festival.
B. Any person claiming the exemption set forth in this section shall register with the city, on a form prescribed by the business license clerk, each time she/he engages in business within the city, in order to track the number of days said person does business within the city.
(Ord. 818 § 1 (part), 2006)
5.02.110 Exemptions—Fee waiver.
The licensing provisions of this chapter shall apply to the following persons and organizations; however, the business license fees shall be waived for:
A. Any person or organization engaged in a not-for-profit (i.e., nonprofit) enterprise, either regularly or temporarily, when it is without private profit, for a public, charitable, educational, literary, fraternal, or religious purpose when such persons sufficiently demonstrate their not-for-profit status through Internal Revenue Service documentation;
B. Any person in business whose gross proceeds of sales or gross income from the business are less than two hundred dollars per month. Such persons shall provide the city with an affidavit at the beginning of each license year, confirming the income for the prior license year.
(Ord. 818 § 1 (part), 2006)
5.02.120 Issuance—Fee collection.
The business license clerk shall collect all license fees and shall issue business licenses in the name of the city to all persons qualified under the provisions of this chapter, and shall perform the duties set forth in Sections 5.02.130 through 5.02.190. (Ord. 818 § 1 (part), 2006)
5.02.130 Enforcement.
The city may promulgate and enforce reasonable rules and regulations as necessary and convenient to the operation and enforcement of this chapter. (Ord. 818 § 1 (part), 2006)
5.02.140 Forms.
The business license clerk shall adopt forms and prescribe the information to be given therein as convenient and necessary for processing the application. (Ord. 818 § 1 (part), 2006)
5.02.150 Review and endorsement.
The business license clerk shall submit all applications to appropriate departments for their review and endorsements thereon as to compliance by the applicant with city regulations, including city zoning codes. (Ord. 818 § 1 (part), 2006)
5.02.160 Investigations.
The business license clerk may investigate and determine the eligibility of any applicant for a license as prescribed in this chapter. (Ord. 818 § 1 (part), 2006)
5.02.170 Compliance with Ocean Shores tax code.
In receiving any business license, the applicant acknowledges that applicant’s business operation must be conducted in accordance with the Ocean Shores tax code, Title 3 of this code. (Ord. 818 § 1 (part), 2006)
5.02.180 Notification of applicant.
The business license clerk shall notify any applicant within fifteen business days of the acceptance or rejection of his/her application and shall, upon refusal of any license or permit, at the applicant’s request, state in writing the reasons therefor and forward them to the applicant. (Ord. 818 § 1 (part), 2006)
5.02.190 Information confidential.
The business license clerk shall keep all financial information furnished or secured under the authority of this chapter in strict confidence. Such information shall not be subject to public inspection, and shall be kept so that the contents thereof shall not become known, except to the persons charged with the administration of this chapter. (Ord. 818 § 1 (part), 2006)
5.02.200 Application required.
Every person required to obtain a license under the provisions of this chapter shall submit an application for such license to the business license clerk. New businesses shall submit an application within thirty days prior to commencement of business activities within the city, unless otherwise authorized by the city manager. (Ord. 818 § 1 (part), 2006)
5.02.210 Form.
The license application shall be upon a form provided by the business license clerk executed by the applicant upon a declaration under penalty of perjury that the information contained therein is true and complete to the best of the applicant’s knowledge and belief. (Ord. 818 § 1 (part), 2006)
5.02.220 Contents.
In addition to such other information deemed necessary by the business license clerk, the application shall require the disclosure of the number of employees at each location, and state whether the owner, or owners, work in the business at each specific location. If the applicant is claiming an exemption or deduction under the terms of this chapter, the application shall also include a full disclosure of those facts pertinent to the exemption or deduction. (Ord. 818 § 1 (part), 2006)
5.02.230 Fees.
The application shall be accompanied by the full amount of the fees chargeable under this chapter for such license. Business license fees shall be set by resolution of the city council as amended from time to time. Business license fees for special events shall be set by resolution of the city council. (Ord. 818 § 1 (part), 2006)
5.02.240 Duration—License renewal—Procedure.
The applicant for the renewal of a license shall submit an application for such license to the business license clerk, upon a form provided by the business license clerk. All licenses granted shall be for the calendar year and shall be renewed on or before the fifteenth day of February next succeeding their date of issuance accompanied by the appropriate license fee. If any licenses under this chapter are not so renewed, then a new application must be made subject to the original terms and conditions, and accompanied by the license fee and a penalty as follows:
Payment by March 15th—five percent penalty;
Payment by April 15th—ten percent penalty;
Payment by May 15th—fifteen percent penalty;
Payment by June 15th—twenty percent penalty;
Payment after June 15th—thirty percent penalty.
The penalty imposed by this section shall be in addition to such other remedies provided in this chapter. (Ord. 818 § 1 (part), 2006)
5.02.250 Duplicate—Procedure.
A duplicate license may be issued by the business license clerk to replace any license previously issued, which has been lost, stolen, defaced, or destroyed. (Ord. 818 § 1 (part), 2006)
5.02.260 Information required.
Each license issued under the provisions of this chapter shall state upon its face the following:
A. The name of the licensee and any other name under which the business is to be conducted; and
B. The kind and address of each business so licensed; and
C. The dates of issuance and expiration thereof; and
D. Such other information as determined by the business license clerk.
(Ord. 818 § 1 (part), 2006)
5.02.270 Denial, suspension or revocation of business license.
A. The city manager, or designee, may deny a license to any applicant, or may suspend or revoke any license issued under this chapter after it has been issued or any person’s privilege to do business in the city of Ocean Shores, when after investigation by city staff any one or more of the following grounds are found to exist:
1. Issuance of the license or permit without authority or power;
2. Issuance under an unauthorized ordinance or under an ordinance illegally adopted;
3. Issuance in violation of an ordinance;
4. The business license was procured by fraud or misrepresentation of facts;
5. When issued through mistake or inadvertence;
6. When the license application contains false or misleading statements, evasions, or suppression and/or omission of material facts;
7. Conviction of a prior offense involving business licensing;
8. Substantial violations of the terms and conditions on which a license or permit is issued;
9. Violation of ordinances or law authorizing or regulating the license or permit, or regulating the business, activity, or thing for which it is issued;
10. Violations of local, state, or federal laws;
11. Wrongful behavior of a substantial character and of a public nature and/or concern in relation to the licensed activity;
12. When reasonably necessary in the interest of protection of the public health, safety, peace, or welfare;
13. When a business becomes an instrument of or a cover for public disorder, crime, or other danger to public safety, peace, health, or welfare.
B. Before any such license or licensing privilege shall be canceled or revoked, the holder of such license or privilege shall be given ten business days’ notice of a hearing to be held by the city manager, at which time the applicant must show cause why such license and/or privilege to do business should not be revoked. The notice to be given the applicant shall state the grounds and the reasons for the forfeiture and revocation, and also the date set for the hearing thereon; provided, however, that the city manager may deny the issuance of a license or immediately revoke the license of any business for any of the grounds set forth herein, when any such license has been issued for a period of less than seventy-two hours; any such determination by the city manager shall be deemed conclusive unless the applicant appeals to the city council within five calendar days of notice of the revocation. Pending any such appeal to the city council, the business license shall remain revoked or denied. A decision on the appeal shall be made by the city council within fifteen business days of the date on which the appeal is filed by applicant.
C. The decision of the city council to revoke a business license or licensing privilege or to sustain the decision of the city manager/hearing examiner revoking a license on an appeal shall be supported by written findings of fact in support of the decision. Each decision of the city council to revoke a business license and/or the business licensing privilege shall set forth a minimum period of time for which the business license and/or business licensing privilege is to be revoked. The minimum time period for the duration of the revocation of a business license and/or the business licensing privilege shall be one year, unless the city council determines that extraordinary circumstances exist justifying a shorter period of time, in which case the justification for such decision shall be set forth by the city council in writing. In determining the minimum time of the revocation period, the city council will consider, among other factors:
1. The degree of the business owner’s culpability and the conduct leading to the revocation;
2. The criminal nature of the conduct, if any;
3. The conduct’s effect on the community.
(Ord. 818 § 1 (part), 2006)
5.02.280 Reinstatement procedures and standards for reviewing an application for reinstatement.
A. Procedures. At any time following the minimum time period for revocation of a business license and/or business licensing privilege set forth by the city council in its decision to revoke a license and/or business licensing privilege, reinstatement of the license and/or licensing privilege may be sought utilizing the following procedure:
1. A written application shall be completed on a form available from the business license clerk.
2. The application, when completed, shall be filed with the business license clerk, with copies to the city manager and the city attorney.
3. The city council shall set a public hearing date with at least two weeks’ notice to the applicant to consider the application for reinstatement.
4. The public hearing shall be advertised by the city clerk in a newspaper of general circulation in the city of Ocean Shores at least once, and at least ten days prior to the public hearing.
5. At the public hearing, the city council shall receive testimony from the applicant, from city staff, and from interested members of the public.
6. Upon conclusion of the public hearing, the city council shall decide, by motion, whether or not to grant approval of the application. Approval of the application shall require an affirmative vote by a majority of the members of the city council present and voting on the application.
7. All approvals or denials of an application shall be supported by written findings of fact.
B. Standards for Review. In making its determination on an application for reinstatement of a business license and/or the business licensing privilege, the city council shall consider all relevant factors brought to its attention, including, but not limited to:
1. The time since the revocation action was taken;
2. The degree of the applicant’s culpability, the conduct leading to the revocation, and the criminal nature of the conduct, if applicable;
3. The effect on the community of the conduct leading to the revocation and any lingering effects still experienced by the community;
4. The steps taken by the applicant to reform him/herself and/or to ensure that if placed in a similar business ownership position she/he would not revert to the same conduct which led to the revocation of his/her license and/or business licensing privilege; and
5. Any additional means by which the applicant can demonstrate to the city council that, if allowed a new business license, the prior wrongful conduct would not recur.
(Ord. 818 § 1 (part), 2006)
5.02.290 Illegal operation—Judicial remedy.
A. Any violation of the provisions of this chapter shall be a Class C offense as defined in Title 7 of this code.
B. In addition to all other penalties provided in this chapter, whenever a business is being operated without a valid business license, the city may seek to close down said business through any lawful process, including, but not limited to, injunctive measures through any court of competent jurisdiction.
(Ord. 818 § 1 (part), 2006)