Chapter 5.02
BUSINESS LICENSES GENERALLY*
Sections:
5.02.010 Purpose and intent – Definitions.
5.02.020 Required – Exemptions.
5.02.030 Separate license for each place of business – Scope – Exceptions.
5.02.040 Application – Contents required – Investigation fee(s).
5.02.050 Issuance – Prerequisites and procedure generally.
5.02.060 Issuance – Compliance with State and local regulations required.
5.02.070 Repealed.
5.02.080 Issuance – Void when.
5.02.090 Issuance – Approval of Police Chief required.
5.02.100 Denial of license – Criteria – Notice required.
5.02.105 Criminal conduct – Ineligibility for City licenses and permits.
5.02.110 Denial of license – Appeal – Hearing – Notice required.
5.02.120 Form and contents of license.
5.02.130 Use of fictitious name prohibited when.
5.02.140 Validity – License nonassignable and nontransferable.
5.02.150 Change of location permitted when – Fee.
5.02.160 Posting – Required.
5.02.170 Exhibition on demand required.
5.02.180 Revocation – Criteria.
5.02.190 Interstate commerce identification card required when – Application – Contents – Fee.
5.02.200 Unlawful activities not authorized – Licensing prohibited.
5.02.210 Certain machines and contrivances – Licensing prohibited.
5.02.220 Specific provisions of chapter to control.
5.02.230 Enforcement and inspection duty.
5.02.240 Failure to display license deemed violation.
* For statutory authority for cities to license businesses for purposes of revenue and regulation, see Gov. Code § 37101; for authority for cities to license businesses in the exercise of the police power, see Bus. and Prof. Code §§ 16000 – 16003.
CROSS REFERENCE: Business Energy Assessments, see Ch. 20.04 CVMC. Charitable Solicitations, see Ch. 9.21 CVMC. Obstructing Streets, see Ch. 12.12 CVMC. Building and Construction Permits, see CVMC Title 15. (Ord. 3119 § 2, 2008).
5.02.010 Purpose and intent – Definitions.
The provisions of CVMC Title 5 and CVMC 8.20.020 and 9.13.030, except as specifically noted, are enacted to raise revenue for municipal purposes. For the purposes of this chapter, the following words and phrases shall have the meanings respectively ascribed to them by this section:
A. “Average number of employees” means, for the purpose of determining the average number of employees employed during the year, that the number of persons employed at or near the fifteenth day of each month during the year in which business is transacted within the City shall be added together, and the sum total shall be divided by the number of months or fractions of months such business was in operation, fractions omitted.
B. “Business” includes every pursuit, trade, occupation, avocation, employment, business or calling.
C. “Employee” is defined as any person acting within the scope of the employer’s business within the limits of the City.
D. “Established place of business” is the place actually occupied either continuously or at regular periods by any person required to be licensed pursuant to this chapter and where such person’s books and records are kept and a large share of his business transacted.
E. “Occasional sale and delivery” is defined as those trips or deliveries beginning or ending at points within the City occurring not more than once in any given quarter during the calendar year.
F. “Peddler” includes any person, whether a resident of the City or not, who goes from house to house or from place to place conveying goods, wares or merchandise, or offering the same for sale, or making sales and delivering articles to purchasers. It does not include vendors of milk, bakery products, produce, groceries, ice cream or ice, who distribute their products to regular customers on established routes.
G. Rental Business. An owner will be deemed to be engaged in “rental business” if he holds out for rent or lease three or more residential units located on one parcel or on contiguous parcels of land.
H. “Retail business” or “retail sales” is deemed to include all sales of goods, wares, merchandise or services to a consumer.
I. “Solicitor” includes any person, whether a resident of the City or not, who goes from house to house or from place to place soliciting or taking orders for sales of goods, wares or merchandise, personal property of any nature whatsoever for future delivery, or for service to be performed in the future, whether or not such individual has, carries or exposes for sale a sample of the subject of such order or whether he is collecting advance payments on such orders; or who solicits, takes or attempts to take public opinion polls, consumer surveys or by such contracts attempts to secure similar information. Such definition includes any person who uses any building, motor vehicle or other place within the City for the primary purpose of exhibiting samples and taking orders for future delivery, or one who, as an invitee of a purchaser or prospective purchaser or otherwise, solicits a sale or who exhibits any sample or gives a demonstration or makes a delivery within this City after a purchaser or prospective purchaser has been solicited or contacted by telephone, correspondence or other method of communication from within the City. Such definition includes the term “canvasser”; provided, however, that said definition does not include insurance salesmen who are, by law, exempt from licensing requirements.
J. “Transient merchant” includes any person, whether a resident of the City or not, who engages in a temporary business of selling and delivering goods, wares and merchandise within the City and who, in furtherance of such purposes, leases, uses or occupies any building, motor vehicle, public room in a hotel, or shop or other place within this City for the exhibition and sale of such goods, wares and merchandise, either privately or at public auction; provided, however, that such definition shall not be construed to include any person who, while occupying such temporary location, does not sell from stock, but exhibits samples for the purpose of securing orders for future delivery only. The person so engaged is not relieved from complying with the provisions of this chapter merely by reason of associating temporarily with any local dealer, merchant or auctioneer, or by conducting such transient business in connection with, as a part of, or in the name of any local dealer, merchant or auctioneer.
K. “Wholesale business” or “wholesale sales” is deemed to include all sales of goods, wares, merchandise or services to a retailer.
L. “Vending vehicle” means a vehicle from which any goods, other than foodstuffs, are sold, given away, displayed or offered for sale at retail.
M. “Out-of-City delivery vehicle” includes all vehicles entering the City to deliver merchandise purchased outside of the City to a location within the City more frequently than once per quarter per year. (Ord. 2537 § 1, 1992; Ord. 1801 § 1, 1978; Ord. 1293 § 1, 1970; Ord. 1243 § 1, 1969; prior code § 18.1).
5.02.020 Required – Exemptions.
It is unlawful for any person, or for any person as agent, clerk or employee, either for himself or for any other person, within the corporate limits of the City, to transact, engage in, or carry on any business, show, exhibition or game hereinafter specified without first having procured a license therefor, as in this title and CVMC 8.20.020 and 9.13.030 required; provided, however, that insurance salesmen and brokers are not required to obtain a business license by virtue of lawful exemption from such provisions, and further, they shall not be required to obtain a solicitor’s identification card as set forth in this chapter. (Ord. 2537 § 1, 1992; Ord. 1801 § 1, 1978; Ord. 1243 § 1, 1969; prior code § 18.2).
5.02.030 Separate license for each place of business – Scope – Exceptions.
A separate license shall be obtained for each separate business, or each branch establishment or separate place of business in which a business, show, exhibition or game is transacted, conducted or carried on, and shall authorize the licensee to transact, conduct or carry on only that business, show, exhibition or game described in such license. Any person conducting more than one business in the same storeroom shall not be required to pay more than one license tax; provided further, that such additional business so conducted by him shall be one that is ordinarily and customarily conducted in connection with such other business. (Ord. 1801 § 1, 1978; prior code § 18.3).
5.02.040 Application – Contents required – Investigation fee(s).
Before any license is issued to any person, such person shall make written application therefor to the finance officer of the City. Such application shall:
A. State the nature or kind of business or enterprise for which the license is required;
B. State the place where such business or enterprise will be transacted or carried on;
C. State the following:
1. The name and address of the owner of the business or enterprise,
2. The ownership classification: sole proprietorship, partnership or corporation and the federal tax identification number of the business,
3. The date business commenced in the city of Chula Vista,
4. The number of persons employed by the business,
5. State license number(s) and state of California resale number of the business or person conducting the business;
D. Be signed by the applicant;
E. Contain, when intended as an application for a license as a solicitor, peddler or transient merchant, the following information:
1. Physical description of applicant,
2. Complete permanent home and local address of the applicant,
3. If employed, the name and address of the employer, together with credentials therefrom establishing the exact relationship,
4. The source of supply of the goods or property proposed to be sold, or orders taken for the sale thereof, where such goods or products are located at the time such application is filed, and the proposed method of delivery,
5. Two copies of a recent photograph of the applicant, such picture being approximately two inches by two inches and showing the head and shoulders of the applicant in a clear and distinguishing manner,
6. A statement as to whether or not the applicant has ever been convicted of any felony and if so the nature of the offense,
7. The last cities, not to exceed three, where applicant carried on business immediately preceding the date of application and the addresses from which such business was conducted in those cities,
8. At the time of filing the application, the required fee(s) shall be paid to the director of finance to cover the cost of investigation of the facts stated therein,
9. Where a written order or contract is used, the applicant shall attach to the application one copy of the proposed form of all such orders or contracts to be used or submitted to purchasers or prospective purchasers within the city,
10. At the time such application is filed, the applicant shall furnish his fingerprints to the police department of this city. (Ord. 2652A § 1, 1996; Ord. 2652 § 1, 1995; Ord. 2537 § 1, 1992; Ord. 2506 § 1, 1992; Ord. 2408 § 1, 1990; Ord. 1801 § 1, 1978; Ord. 970 § 1, 1966; prior code § 18.4).
5.02.050 Issuance – Prerequisites and procedure generally.
Upon application therefor as provided in this chapter, it shall be the duty of the director of finance to prepare and issue a license pursuant to this chapter; provided, however, that the director of finance shall not issue any such license until it has been noted on the application therefor that the location of the proposed business has been reviewed by both the fire department and the planning department and any other department deemed appropriate by the finance director, and has been approved in accordance with the provisions of the building code, the zoning ordinance and any other applicable code.
The “duty” of the director of finance and other city officers, as specified above, shall not create a legal obligation, but merely means the city officer shall use reasonable efforts to ascertain that the issuance of the requested license will not result in a business operation which violates applicable local laws. The applicant for the license shall have the sole and continuing responsibility for assuring that the business operation complies with the applicable laws, including the provisions of the building and zoning ordinances. By approving and issuing a business license, the city is not certifying that the proposed business operation will in fact comply with applicable laws. (Ord. 2718 § 1, 1998; Ord. 2652A § 1, 1996; Ord. 2652 § 1, 1995; Ord. 2537 § 1, 1992; Ord. 2191 § 1, 1987; Ord. 1293 § 1, 1970; prior code § 18.5).
5.02.060 Issuance – Compliance with state and local regulations required.
No license issued under the provisions of this chapter shall be construed as authorizing the conduct or continuance of any illegal or unlawful business operated in contravention of any of the laws of the city or the state. An applicant for a business license shall have the responsibility for obtaining any required state license, and the issuance of a license by the city shall not relieve an applicant from obtaining any and all other permits or licenses required by state or local laws. (Ord. 2718 § 1, 1998; Ord. 2537 § 1, 1992; Ord. 1293 § 1, 1970; prior code § 18.6).
5.02.070 Issuance – Effect of prior licensing by state.
Repealed by Ord. 2718 § 1, 1998. (Prior code § 18.7).
5.02.080 Issuance – Void when.
If any city license has been issued through error, the same shall be void and of no force and effect. (Ord. 2718 § 1, 1998; prior code § 18.8).
5.02.090 Issuance – Approval of police chief required.
Licenses applied for under CVMC 5.02.040(E) shall be issued only upon written approval of the chief of police. (Ord. 2718 § 1, 1998; Ord. 1801 § 1, 1978; prior code § 18.9).
5.02.100 Denial of license – Criteria – Notice required.
The chief of police may deny the issuance of any license referred to in the preceding section to any applicant who in his reasonable discretion is not a fit and proper person to manage or conduct such business or occupation and/or if such business would be detrimental to the health, welfare or interest of the city. The director of finance shall notify the applicant of the denial of the license by delivering a notice of such denial to the applicant. Delivery of such notice may be made personally or by placing such notice in an envelope, properly addressed to such applicant, with postage prepaid, sealed and deposited in the United States mail. (Ord. 2718 § 1, 1998; prior code § 18.10).
5.02.105 Criminal conduct – Ineligibility for city licenses and permits.
A. Except as otherwise provided in this chapter, conviction (including pleas of guilty and nolo contendere) of a felony or misdemeanor shall be prima facie disqualification of an applicant for the following city licenses or permits: ambulances, amusement devices, art figure studios, auctions and auctioneers, automobiles for hire, billiards, bowling and poolhalls, cardrooms, circuses and shows, merchandise coupons, firearms sales, massage parlors, pawnbrokers, secondhand and junk store dealers, race tracks, and taxicabs.
B. The chief of police, however, may disregard such conviction if it is found and determined by the chief of police that mitigating circumstances exist. In making such determination, the chief of police shall consider the following factors:
1. The type of business license or permit for which the person is applying;
2. The nature and seriousness of the offense;
3. The circumstances surrounding the conviction;
4. The length of time elapsed since the conviction;
5. The age of the person at the time of the conviction;
6. The presence or absence of rehabilitation or efforts at rehabilitation;
7. Contributing social or environmental conditions.
C. The chief of police shall give notice of disqualification to an applicant disqualified under this provision. Such notice shall be in writing and delivered personally or mailed to the applicant at the address shown on the application.
D. An applicant who is disqualified for a city business license or permit under this provision may appeal such determination of disqualification. Such appeal shall be in writing and filed with the city manager within 10 days of the date of the notice of disqualification. The city manager shall hear and determine the appeal within 90 days after it is filed. The determination of the city manager on the appeal shall be final.
E. Pursuant to Section 11105 of the Penal Code of the state, the following officers of the city are authorized to have access to and to utilize state summary criminal history information when it is needed to assist them in fulfilling licensing duties set forth in this section: city manager, assistant city manager, director of finance, chief of police, and city attorney. (Ord. 1743 § 1, 1977).
5.02.110 Denial of license – Appeal – Hearing – Notice required.
In cases where a business license or zoning permit is denied, the applicant shall have the right to appeal such denial of a license to the city manager. Such appeal shall be in writing and shall be delivered to the office of the city manager within 10 days of the notice of disqualification. The city manager, or official designee, shall hear and determine the appeal within 60 days after it is filed. The hearing shall be conducted in accordance with the provisions of Chapter 1.40 CVMC. The determination of the city manager or official designee shall be final. A fee as set forth in the master fee schedule shall be imposed by the city manager as a condition to filing any appeal. The fee shall not be greater than the anticipated cost of processing and conducting the appeal, and if the appeal results in issuance of the license, the appeal fee shall be reimbursed to the applicant in accordance with the provisions of Chapter 1.40 CVMC. (Ord. 2718 § 1, 1998; prior code § 18.11).
5.02.120 Form and contents of license.
All licenses issued under and by virtue of this title and CVMC 8.20.020 and 9.13.030 shall be printed in blank form and shall set forth the name of the party to whom the license is issued, the nature of the business that he is licensed to pursue, the location of the place of business, the length of time for which the same is granted, the date of issuance, the amount of tax paid therefor, and any conditions which have been imposed by the city. Such licenses shall be issued in duplicate, the original of which is to be delivered to the licensee. (Ord. 2537 § 1, 1992; Ord. 2065 § 1, 1984; Ord. 1801 § 1, 1978; prior code § 18.12).
5.02.130 Use of fictitious name prohibited when.
No license shall be issued to any person transacting business under a fictitious name, unless an affidavit is filed in the office of the county clerk showing the true name of the owners of such business; provided, however, that such license may be issued in the true names of all the owners of such business, show, exhibition or game without the filing of such affidavit. (Prior code § 18.13).
5.02.140 Validity – License nonassignable and nontransferable.
Each license granted or issued under the provisions of this title and CVMC 8.20.020 and 9.13.030 shall authorize the licensee to transact or carry on the business or calling therein designated, and at no other place, and such license shall not be assignable or transferable. (Ord. 2537 § 1, 1992; Ord. 1801 § 1, 1978; prior code § 18.14.)
5.02.150 Change of location permitted when – Fee.
A change of location shall be allowed to the owner of any license, under the provision of this title and CVMC 8.20.020 and 9.13.030, upon the payment to the director of finance of the required fee(s) and upon the approval of the director of planning. (Ord. 2537 § 1, 1992; Ord. 2506 § 1, 1992; Ord. 2408 § 1, 1990; Ord. 1801 § 1, 1978; prior code § 18.15).
5.02.160 Posting – Required.
All licenses issued under the provisions of this title and CVMC 8.20.020 and 9.13.030 shall be posted and kept in a conspicuous place at the place of business of the licensee named therein during the period such licenses are in force and effect, except as in the chapter otherwise specifically provided. (Ord. 2537 § 1, 1992; Ord. 1801 § 1, 1978; prior code § 18.29).
5.02.170 Exhibition on demand required.
Every licensee under the provisions of this title and CVMC 8.20.020 and 9.13.030 shall produce and exhibit the license issued to such licensee whenever requested to do so by any police officer, firefighter, fire marshal, business license enforcement officer, code enforcement officer, or designee of the director of finance of the city. (Ord. 2537 § 1, 1992; Ord. 2408 § 1, 1990; prior code § 18.30).
5.02.180 Revocation – Criteria.
Every license issued under and by virtue of the provisions of this title and CVMC 8.20.020 shall be subject to revocation by the director of finance, and such revocation shall be based upon a failure to comply with any term or terms of this code. Such revocation shall be subject to a right to appeal to the city manager or designee, using the process set forth in CVMC 5.02.110. Following such revocation, no new license shall be issued for one year from the effective date of revocation. If, subsequent to revocation, the director of finance finds that the basis for the revocation has been corrected or abated, the applicant may be granted a license if at least 90 days have elapsed since the effective date of the revocation. (Ord. 2718 § 1, 1998; Ord. 2191 § 1, 1987; Ord. 1801 § 1, 1978; prior code § 18.31).
5.02.190 Interstate commerce identification card required when – Application – Contents – Fee.
None of the license taxes provided for by this title and CVMC 8.20.020 shall be so applied as to occasion an undue burden upon interstate commerce and no solicitors who are engaged in interstate commerce shall be required to obtain a license as required herein; provided, however, that all solicitors as defined in CVMC 5.02.010 are required to register with the chief of police and to obtain an identification card. Applicants for such police identification cards shall be required to furnish an application containing the following information:
A. Permanent home address and full local address of the applicant;
B. A brief description of the nature of the business and goods to be sold;
C. A photograph of the applicant, taken within 60 days immediately prior to the date of the filing of the application, which picture shall be two inches by two inches, showing the head and shoulders of the applicant in a clear and distinguishing manner;
D. The fingerprints of the applicant;
E. A statement as to whether or not the applicant has ever been convicted of any crime or misdemeanor, and if so, the details in general of such convictions, and specifying the particular crimes or misdemeanors involved and the dates and places of such convictions.
The required fee(s) shall be charged by the chief of police. The identification card shall be valid for one year. (Ord. 2506 § 1, 1992; Ord. 2408 § 1, 1990; Ord. 1961 § 1, 1982; Ord. 1801 § 1, 1978; Ord. 970 § 1, 1966; Ord. 942 § 1, 1965; prior code § 18.34).
5.02.200 Unlawful activities not authorized – Licensing prohibited.
This title and CVMC 8.20.020 shall never be construed or held as licensing or permitting the carrying on of any unlawful trade, calling, occupation, game or amusement, and every such trade, calling, occupation, game or amusement is prohibited, and no license shall be granted or issued therefor. (Ord. 1801 § 1, 1978; prior code § 18.35).
5.02.210 Certain machines and contrivances – Licensing prohibited.
Nothing in this title and CVMC 8.20.020 shall permit or authorize the issuance of a license for any machine or contrivance within the city which is prohibited under the provisions of CVMC Title 9. (Ord. 1801 § 1, 1978; prior code § 18.36).
5.02.220 Specific provisions of chapter to control.
All specific provisions of this title and CVMC 8.20.020 shall control over general provisions thereof. (Ord. 1801 § 1, 1978; prior code § 18.37).
5.02.230 Enforcement and inspection duty.
All police officers, firefighters, fire marshals, business license enforcement officers, code enforcement officers, and designees of the director of finance of the city shall have and exercise the power to enter free of charge for inspection of licenses, at any time during regular business hours, any place of business for which a license is required by this chapter, and to demand the exhibition of such license for the current term by any person engaged or employed in the transaction of such business, all in accord with the right-of-entry provisions at CVMC 1.16.010, and if such person shall then and there fail to exhibit such license, such person shall then be liable to the penalty provided for a violation of this chapter.
All police officers, firefighters, and fire marshals shall have and exercise the power to cause complaints to be filed in a court of competent jurisdiction against all persons violating any of the licensing provisions of this chapter. (Ord. 2718 § 1, 1998; Ord. 2537 § 1, 1992; Ord. 2408 § 1, 1990; prior code § 18.38).
5.02.240 Failure to display license deemed violation.
Failure to display a license as provided in this title and CVMC 8.20.020 and 9.13.030 shall constitute a violation of this chapter. (Ord. 2537 § 1, 1992; Ord. 1801 § 1, 1978; prior code § 18.72).