Chapter 5.04
BUSINESS LICENSES
Sections:
5.04.005 Chapter and purpose.
5.04.010 Power to license for regulation and/or revenue.
5.04.020 Definitions.
5.04.030 Business license required – Notices.
5.04.040 License fees.
5.04.050 Application and renewal.
5.04.060 Businesses located outside city.
5.04.070 Exemptions.
5.04.080 Investigations and background checks.
5.04.090 Nonconforming uses.
5.04.100 Inspections – Right of entry.
5.04.110 Denial, revocation or suspension of license – Generally.
5.04.120 Suspension or revocation procedure.
5.04.130 Appeal to the hearing examiner.
5.04.140 Mailing of notices.
5.04.150 Authority of finance director.
5.04.160 Disclaimer of city liability.
5.04.170 License fee additional to others.
5.04.180 Fee constitutes debt.
5.04.190 Assignment of licenses.
5.04.200 Penalties – Violations.
5.04.005 Chapter and purpose.
In order for the city to responsibly carry out the duties and authorities delegated to it by the Washington State Constitution and the laws of the state of Washington as a noncharter code city, maintenance of current information with respect to business, trade, service, commercial and professional activities carried on within the city is necessary and essential to the public health, safety and welfare. Such information can best be accumulated and maintained on a current basis through the establishment of a program for the licensing and registration of such activities. (Ord. 2225 § 1 (part), 2007)
5.04.010 Power to license for regulation and/or revenue.
The provisions of this chapter shall be deemed an exercise of the power of the city to license for revenue and to maintain current information with respect to business, trade, service, commercial and professional activities carried on within the city necessary and essential to the public health, safety and welfare. (Ord. 2225 § 1 (part), 2007)
5.04.020 Definitions.
In construing the provisions of this chapter, except when otherwise declared apparent or clearly from the context a different meaning is intended, the following definitions shall be applied:
“Business” or “occupation” shall mean and include all activities, occupations, trades, pursuits or professions located and/or engaged in, within the city, with the object of gain, benefit, profit or advantage to the person or business owner, or to another person or class, directly or indirectly, regardless of where their permanent location of business is located. Each business location shall be deemed a separate business.
“Director” means the city administrator, or any officer, agent or employee of the city designated to act on the city administrator’s behalf.
“Employee” means any person employed at any business enterprise that performs any part of their duties within the city, except casual laborers not employed in the usual course of business.
“Engaging in business” means commencing, conducting or continuing in any business, and also the exercise of corporate or franchise powers, as well as liquidating a business when the liquidators hold themselves out to the public as conducting such business.
“Finance director” means the Sumner finance director or his or her designee.
“Nonprofit” and “not-for-profit” means any activities and fund-raising sales carried on by religious, charitable, educational, benevolent, fraternal or social organizations which have been determined by the Internal Revenue Service (IRS) of the United States to be exempt from the payment of income tax or corporations registered as nonprofit by the Secretary of State’s Office.
“Person” means any individual, firm, partnership, company, corporation, association, receiver, consignee, trustee in bankruptcy, trust, estate, joint venture, club, joint stock company, business trust, society, or any group of individuals acting as a unit.
“Person or business owner” includes any person who engages in business or who is required to have a business license hereunder, or who is liable for the collection of any license fee hereunder, or who performs any act for which license fee is imposed by this chapter. (Ord. 2225 § 1 (part), 2007)
5.04.030 Business license required – Notices.
It is unlawful for any person, firm or corporation to engage in any business, occupation or pursuit, as defined in SMC 5.04.020, in the city without first having obtained a business license therefor as provided in this chapter. The business license provided for in this chapter shall be posted in a conspicuous location at the place of the business. Such business license is nontransferable. (Ord. 2225 § 1 (part), 2007)
5.04.040 License fees.
A. There is hereby levied upon and shall be collected from every person engaging in business in the city an annual license fee to identify and register businesses that are active in the city and for the privilege of engaging in business. The annual license fee shall be $40.00. The license will expire 12 months from the date of issuance.
B. If any person or business owner required by the terms and provisions of this chapter to pay a license fee for any period fails or refuses to do so, that person shall not be granted a license for the current period until such delinquent license fee, together with penalties, has been paid in full. (Ord. 2225 § 1 (part), 2007)
5.04.050 Application and renewal.
A. Application for a business license or renewal thereof shall be made by filing a master application and city addendum form through the state Department of Licensing’s Master License Service, in coordination with the finance director, giving such information as is deemed reasonably necessary to enable the enforcement of this chapter. Persons applying for a license must pay a fee as established by the city council and the Master License Service’s handling fee.
B. The finance director shall, when appropriate, refer applications to the community development department, the police department, East Pierce fire department, or other governmental agencies for their review.
C. The filing of an application for a license, or the renewal thereof, or the payment of any application or renewal fee, shall not authorize a person to engage in or conduct a business until such license has been granted or renewed.
D. A licensee must report a change of location of the business to the Master License Service, in coordination with the finance director. A change of the location of a business requires approval by the city before business may commence at the new location, and may require submitting a new master application and payment of fees.
E. License renewals are handled by the Master License Service in coordination with the city. Renewal of the city license requires payment of fees including handling fees. The city is authorized but not required to mail forms for applications for licenses, but failure of the person or business owner to receive any such forms shall not excuse the person or business owner from making application for and securing the license required and payment of the license fee. (Ord. 2225 § 1 (part), 2007)
5.04.060 Businesses located outside city.
For those businesses located outside the city and furnishing or performing services within the city, the license requirement and fee herein shall be in accordance with SMC 5.04.030 and 5.04.040 to perform any part of their duties within the city. (Ord. 2225 § 1 (part), 2007)
5.04.070 Exemptions.
Upon approval of the finance director and further provided that all other provisions of this chapter are complied with, including without limitation the requirement to obtain and maintain a current business license, the requirement to pay license fees shall not apply to the following:
A. Nonprofit organizations as defined in SMC 5.04.020, including but not limited to religious, civic, charitable, benevolent, nonprofit, cultural or youth organizations which has received tax-exempt status under IRC 501(c)(3), 26 USCA 501(c)(3), as adopted or amended; provided, that a nonprofit organization or corporation shall be required to complete the license application form;
B. Any instrumentality of the United States, state of Washington, or any political subdivision thereof, with respect to the exercise of governmental functions;
C. Any farmer or gardener who sells, delivers or peddles any fruit, vegetables, berries, butter, eggs, or any farm produce or edibles raised, gathered, produced or manufactured by such person; provided, that this exemption shall not apply to any person selling, delivering or peddling any dairy products, meat, poultry, eel, fish, mollusk or shellfish;
D. Persons engaged in irregular, casual activities such as babysitting, delivery of newspapers, casual lawn mowing, casual car washing, and other similar activities or minors engaged in a de minimis entrepreneurial venture on private residential property including, but not limited to, a lemonade stand;
E. Persons engaged in commerce using an Internet website, hobbyists, and crafters who engage in sales that do not involve home visits or physical location in the city; and
F. Businesses meeting all of the following criteria:
1. Having no employees performing work other than delivery within the city;
2. Having no salespeople soliciting sales within the city;
3. Having no installers or contractors working within the city;
4. Having no offices, warehouses or other physical location(s) within the city; and
5. Having no inventory located within the city. (Ord. 2225 § 1 (part), 2007)
5.04.080 Investigations and background checks.
A. Any application for licenses may be investigated by such departments or officers of the city as the finance director may determine.
B. All applicants for a license may be subject to a criminal background check and the results of such check may be sufficient grounds for denial of a license. (Ord. 2225 § 1 (part), 2007)
5.04.090 Nonconforming uses.
There exists a need to identify and register businesses which are active in the city in order to protect the public health, safety and welfare of the community. The issuance of a business license by the city does not constitute either approval of a business or the use of any particular parcel in the city for a business purpose. By issuing a business license, the city shall not be precluded from taking enforcement action against any use which is not authorized in the zone in which it is occurring, and does not vest the licensee with any rights to continue a nonconforming use. (Ord. 2225 § 1 (part), 2007)
5.04.100 Inspections – Right of entry.
The director, or an authorized representative of the city or East Pierce fire district, is authorized, as allowed by law, to make inspections of any licensed premises during normal hours of operation of said business and take action as may be required to enforce the provisions of the Sumner Municipal Code. (Ord. 2225 § 1 (part), 2007)
5.04.110 Denial, revocation or suspension of license – Generally.
A. Pursuant to the provisions of this chapter, no license shall be issued to the following persons:
1. Any minor under 18 years of age.
2. Any person who, if licensed, is likely to present a danger to the public health, safety or welfare by reason of any of the following:
a. The applicant or his or her employees or agents have been convicted of a crime which relates directly to the specific occupation, trade, vocation, or business for which the license is sought, provided, the time elapsed between the violation and the date of license application is less than three years for a felony conviction, or less than one year for a misdemeanor conviction;
b. Procured by fraud, false representation or material omission of fact, or for the violation of, or failure to comply with any of the provisions of this chapter by the person holding such license, or any of his/her servants, agents or employees, while acting within the scope of their employment or violates any applicable city, state or federal law;
c. The applicant has had a similar license revoked or suspended pursuant to the provisions of SMC 5.04.120.
B. The finance director shall have the power and authority to suspend or revoke any registration or license issued under the provisions of this chapter. The finance director shall notify such licensee in writing by certified mail of the suspension or revocation of its license and the grounds therefor. Any license issued under this chapter may be suspended or revoked based on one or more of the following grounds:
1. The registration was procured by fraud or false representation of fact.
2. The licensee has failed to comply with any provisions of this chapter.
3. The licensee has failed to comply with any provisions of the Sumner Municipal Code.
4. The licensee is in default in any payment of any license fee or tax under this title.
5. The licensee or employee has been convicted of a crime involving the business.
6. Licensee’s continued conduct of the business for which the license was issued will result in a danger to the public health, safety, or welfare by reason of any of the following:
a. The licensee, licensee’s employees or agents have been convicted of a crime which bears a direct relationship to the conduct of the business under the license issued pursuant to this chapter.
b. The licensee, or licensee’s agents or employees, have, in the conduct of the business, violated any law or ordinance relating to public health or safety.
c. The conduct of the business for which the license was issued has resulted in the creation of a public nuisance as defined in the SMC or in state law.
C. Upon revocation, said or similar business shall not be granted a license, upon any new application that may be made, for a period of 60 calendar days from date of revocation. The period of suspension shall be fixed by the finance director for up to and including 10 days for the first suspension and up to and including 30 days for any subsequent suspension within 12 calendar months of a prior suspension.
D. It is unlawful for any person whose license has been revoked or suspended to continue operations of the business enterprise, or to keep the license issued to him/her in his/her possession and control, and the same shall immediately be surrendered to the finance director. When revoked, the license shall be canceled, and when suspended, the finance director shall retain it during the period of suspension.
E. Upon denial of a license, the finance director shall, by certified mail, give written notice of such action to the applicant, which notice shall include a written report summarizing the complaints, objections and information received and considered by the finance director and further stating the basis for such action.
F. Any person, including city officials, may submit complaints or objections to the finance director regarding the application of a license, and the finance director is additionally authorized to request and receive information from all city departments as will tend to aid him/her in determining whether to issue or deny the license. Such information shall be confidential unless a hearing is requested on the application, or if the applicant shall request the information in writing. All information, complaints or objections shall be investigated and considered by the finance director prior to issuing, denying or renewing any license. (Ord. 2225 § 1 (part), 2007)
5.04.120 Suspension or revocation procedure.
A. Actions to suspend or revoke any license shall be commenced by filing with the finance director a written complaint setting forth in specific terms the basis therefor. The finance director shall also have authority to initiate suspension or revocation action on his or her own without a complaint. Upon receipt of such complaint, the finance director shall review the allegations set forth in the complaint and perform a preliminary review of the facts as deemed appropriate under the circumstances to determine if the allegations in the complaint may constitute cause for suspension or revocation. If the finance director determines that the allegations in the complaint may constitute cause for suspension or revocation, a copy of such complaint shall be mailed by certified mail to the licensee at his/her last address as shown by the license records of the finance director, and shall be accompanied by a notice that the license may be suspended or revoked.
B. The licensee shall, within 10 working days after receiving any such complaint, mail by certified mail to the complainant and file with the finance director his/her written answer which shall admit or deny the allegations of the complaint. The licensee may provide other information with the answer licensee deems relevant for consideration by the finance director.
C. Upon failure of any licensee to file an answer as provided in this section or in the event that no hearing is requested, as set forth below, the finance director shall investigate the allegations of the complaint and, if cause exists therefor, may recommend suspension or revocation of the license, or otherwise he/she shall dismiss the complaint; provided, that if the finance director finds upon a sufficient showing that the conduct complained of has been corrected and is unlikely to be repeated, he/she may dismiss such complaint; and provided further, that the complaint shall be dismissed where the conduct complained of has been corrected.
D. Notice of the action of the finance director summarizing his/her findings and conclusions and recommended action to be taken on the permit, if any, shall be mailed by certified mail to the complainant and to the licensee. (Ord. 2225 § 1 (part), 2007)
5.04.130 Appeal to the hearing examiner.
A. In all cases in which a complaint is dismissed, other than upon a written agreement between the complainant and the licensee, or in which the license is denied, suspended or revoked, or related action as provided for herein is taken by the city, the aggrieved party may within 10 working days from the date of the mailing of the notice of the city’s action request a hearing before the hearing examiner. The request for a hearing must be in writing, filed with the finance director and accompanied by a check in the sum of $50.00. The finance director shall transmit the request for a hearing to the hearing examiner. If no request for a hearing is received within the time specified, the city’s action shall be final.
B. The hearing before the hearing examiner shall be held according to the applicable procedures set forth in chapter 2.58 SMC. When hearing an appeal of a denial, suspension or revocation of a business license, the hearing examiner shall be guided by the standards set forth in this section. The decision of the finance director shall be given substantial weight by the hearing examiner. The hearing examiner shall give at least 10 days’ written notice of the hearing to the appellant. No public notice shall be required. The hearing examiner shall issue a decision within 14 days following the closure of the record. The hearing examiner’s decision on such business license shall represent the final action by the city, unless an appeal is filed in the Pierce County superior court within 14 calendar days from the date of the final decision of the hearing examiner requesting a review of such decision.
C. When a hearing before the hearing examiner has been requested by a licensee in connection with the suspension or revocation of a license, the license shall remain in effect pending the determination made as a result of such hearing; provided, that in cases involving a substantial threat to the public health, safety or welfare, the license may be summarily suspended and in such case the date for the hearing before the hearing examiner shall be set within five days following the filing of the request for a hearing. (Ord. 2225 § 1 (part), 2007)
5.04.140 Mailing of notices.
Any notice required by this chapter to be mailed to any person or business owner shall be sent by ordinary mail, addressed to the address of the person or business owner as shown in the records of the finance director, or if no such address is shown, to such address as the finance director is able to ascertain by reasonable effort. Failure of the person or business owner to receive any such mailed notice shall not release the person or business owner from any fees or any penalties thereon, nor shall such failure operate to extend any time limit set by the provisions of this chapter. (Ord. 2225 § 1 (part), 2007)
5.04.150 Authority of finance director.
The director shall have the power, and it shall be the director’s duty, from time to time, to adopt, publish and enforce rules and regulations not inconsistent with this chapter or with the law for the purpose of carrying out the provisions hereof, and it is unlawful to violate or fail to comply with any such rules or regulations. (Ord. 2225 § 1 (part), 2007)
5.04.160 Disclaimer of city liability.
The city of Sumner expressly finds and requires that responsibility for compliance with the provisions of this chapter rest with license applicants and their agents and that no action, inaction, or omission of the city or any of its agents or employees shall serve to assume or shift responsibility for compliance with the provisions of this chapter to any other party, including the city. Furthermore, issuance of a license pursuant to this chapter does not constitute the creation of a duty by the city to indemnify the licensee for any wrongful acts against the public, or to guarantee the quality of goods, services or expertise of a licensee. The issuance of a license does not shift responsibility from the licensee to the city for proper training, conduct or equipment of the licensee or their agents, employees or representatives, even if specific regulations require standards of training, conduct or inspection. (Ord. 2225 § 1 (part), 2007)
5.04.170 License fee additional to others.
The license fee herein levied shall be additional to any license fee imposed or levied under the law of any other chapter of the city except as herein otherwise expressly provided. (Ord. 2225 § 1 (part), 2007)
5.04.180 Fee constitutes debt.
Any license fee due and unpaid under this chapter, and all penalties thereon, shall constitute a debt to the city and may be collected by court proceedings in the same manner as any other debt in like amount, which remedy shall be in addition to all other existing remedies. (Ord. 2225 § 1 (part), 2007)
5.04.190 Assignment of licenses.
No license may be assigned or transferred. In accordance with the provisions of this chapter, a new license and payment of fees shall be required for any form of ownership change. (Ord. 2225 § 1 (part), 2007)
5.04.200 Penalties – Violations.
A. Violations. It shall be unlawful for any person to violate any of the provisions of this chapter and such person shall be subject to the penalties detailed below. Additionally, the license of the business in which a violation occurs may be revoked for such violation, whether the owner knew of or encouraged the violation.
B. Monetary Penalties.
1. Penalties. Any person who operates a business without a license or fails to renew a business license issued pursuant to this chapter shall be deemed to have committed an infraction and shall be assessed a maximum penalty of $250.00. This penalty shall be in addition to the required license fee.
2. Collection. Any license fee due and unpaid and delinquent under this chapter shall constitute a debt of the city. The city may, pursuant to chapter 19.16 RCW, use a collection agency to collect unpaid fees or taxes owed or assessed, or it may seek collection by court proceedings, which remedies shall be in addition to all other remedies.
C. Criminal Penalties for Repeat Violations. A second or repeat violation of any provision of this chapter shall constitute a misdemeanor punishable by a fine of a sum not exceeding $1,000 or by imprisonment not exceeding 90 days or by both such fine and imprisonment. Each separate day or portion thereof during which any violation of any provision of this chapter shall constitute a separate violation and, upon conviction thereof, shall be punished as provided in this section. (Ord. 2225 § 1 (part), 2007)