Chapter 5.05
BUSINESS LICENSES AND REGULATIONS
Sections:
5.05.010 Definitions.
5.05.020 Change in nature or location of business.
5.05.030 Transferability.
5.05.040 Exemptions.
5.05.050 License required.
5.05.060 Required display.
5.05.070 Processing procedure.
5.05.080 Inspections – Right of entry.
5.05.090 Renewal of licenses.
5.05.100 License fee.
5.05.110 Late fees.
5.05.120 Violations.
5.05.130 Mailing of notices.
5.05.140 Revocation – Suspension – Denial.
5.05.150 Notice of suspension.
5.05.160 Appeal process.
5.05.170 Decision of the hearing examiner.
5.05.180 Appeal to the superior court.
5.05.190 Emergency suspension.
5.05.200 Regulation adoption and publication – Failure to comply.
5.05.010 Definitions.
For the purpose of this chapter and unless otherwise declared or clearly apparent from the context, the following definitions shall be applied:
A. “Business” shall include:
1. All activities, occupations, pursuits, sales, services or professions, engaged in or on premises located within the city with the object of gain, benefit, advantage or profit to the business enterprise or person or to another person or class, directly or indirectly, regardless where their permanent location of business is located;
2. The rental and/or leasing of commercial or industrial properties and the rental and/or leasing of multifamily residential dwelling units;
3. Business activities of nonresident businesses and specifically:
a. Sales or services that are solicited or performed by the physical presence of business representatives within the city;
b. General and specialty contractors who perform work in or on premises located within the city.
B. “Canvasser” means any person who goes from place to place or approaches individuals within the city seeking contributions or donations to private causes or tax exempt charities, or seeks opinions, preferences or other information for commercial or noncommercial purposes. “Canvassing” means to engage in such action.
C. “City clerk” means the city clerk for the city or the clerk's designee.
D. “Engage in” or “engaging in” means commencing, conducting or continuing in any business activity including soliciting business within the city or using either a business telephone number or business address within the city. It also includes the exercise of corporate or franchise powers as well as liquidating a business when the liquidators thereof hold themselves out to the public as conducting such business.
E. “Home occupation” means as defined in the city's development regulations.
F. “Limited home occupation” means as defined in the city's development regulations.
G. “Nonresident business” means any business which is not occupying a fixed place of operation within the city.
H. “Peddler” means any person who goes from place to place or approaches individuals within the city carrying or transporting goods, wares or merchandise and offering or exposing the same for sale, or making sales and deliveries to purchasers. “Peddle” means to engage in such actions.
I. “Person” means any individual, partnership, corporation or other entity or group of persons however organized.
J. “Premises” is meant to include all lands, structures and places, and also any personal property which is affixed to such premises.
K. “Solicitor” means any person who goes from place to place or approaches individuals within the city attempting to take orders for any goods, services, wares or merchandise, including books, periodicals, magazines or personal property of any nature whatsoever for future deliveries and/or performances. “Soliciting” means to engage in such actions.
L. “Special event” means an event or any community event which is sponsored by or for the benefit of any bona fide charitable or nonprofit organization, including but not limited to religious, civic, benevolent, fraternal, social or youth organizations.
M. “Temporary business” means and includes the following businesses having a transitory nature or fixed duration and operating from a fixed location within the city for not more than 60 days within any calendar year:
1. Circuses, carnivals, rodeos, fairs or similarly transient amusement or recreational activities;
2. Christmas tree sales lots, flower and produce stands;
3. Indoor or outdoor special sales, including swap meets, flea markets, parking lot sales, warehouse sales or similar activities;
4. Temporary stands for the sale of items such as food, toys, jewelry, goods, art, crafts, and firewood.
N. “Employee” means any person who performs work, labor or services for a business and is under that business' control, including without limitation sole proprietors.
O. “Residential dwelling” means a building or portion thereof designed exclusively for human habitation; including single-family, two-family, and multifamily dwellings, accessory dwelling units, modular homes, manufactured homes and mobile homes, but not including hotels or motel units having no kitchen.
P. “Licensing year” means February 1st to January 31st. (Ord. 02-196 § 1).
5.05.020 Change in nature or location of business.
Each business license shall authorize a particular type of business at the designated location. Any change in the nature of the business shall necessitate a new application for a business license. A change of location shall be reported in writing to the city clerk within 10 days of the changes and, if in compliance with zoning and business regulatory codes, the existing business license shall be transferred to the new location. (Ord. 02-196 § 2).
5.05.030 Transferability.
The license granted in pursuance hereof shall be personal to the licensee and it shall not be assignable or transferable to any other person. (Ord. 02-196 § 3).
5.05.040 Exemptions.
The following shall be exempt from the provisions of this code:
A. Casual or isolated sales made by persons who are not engaged in the ongoing business of selling the type of property involved shall be regulated in accordance with the city's development regulations.
B. Businesses where the sale or contract for services occurs on business premises outside of the city and the only event occurring within the city is the mere delivery of the goods or services to the customer or client.
C. Minors engaged in babysitting, delivery of newspapers, lawn mowing, car washing, and similar activities.
D. Any instrumentality of the United States, state of Washington, or any political subdivision thereof, with respect to the exercise of governmental functions.
E. All special events including those sponsored by the city, but not to include participating commercial peddlers.
F. Nonprofit organizations, including but not limited to religious, civic, charitable, benevolent, nonprofit, cultural or youth organizations.
G. All honorably discharged veterans exempt from paying license fees as provided in RCW 73.04.050 and 73.04.060, as the same exist or may hereinafter be amended. (Ord. 02-196 § 4).
5.05.050 License required.
It is unlawful for any person to conduct, operate, engage in or practice any business within the city without first obtaining and maintaining a valid business license issued under the provisions of this chapter.
A. If a business actively operates from more than one location in the city, a separate license shall be required for each location; provided, however, warehouses, distributing plants and/or storage yards used in connection with and incidental to a business licensed under the provisions of this title shall not be deemed to be a separate place of business. Location of such warehouses, distributing plants and/or storage yards shall be provided to the city clerk, and must comply with the provisions of this title, all city codes and shall not be deemed to be a separate place of business.
B. An individual, group or organization canvassing within the city limits for noncommercial purposes is not required to obtain a license. However, an individual, group, organization or business engaging in such activity for commercial purposes, must obtain a business license prior to such activity.
C. If more than one separate business is conducted on a single premises within the city, a separate license shall be required for each business.
D. Neither the filing of an application for a license or the renewal thereof, nor payment of any application or renewal fee shall authorize a person to engage in or conduct a business until such license has been granted or renewed.
E. As defined in the city's development regulations and permit review processes, fees may be required in accordance with the city's fee schedule. (Ord. 03-213 § 2; Ord. 02-196 § 5).
5.05.060 Required display.
The license must be prominently displayed in plain view of the public in the place of business of the applicant. (Ord. 02-196 § 6).
5.05.070 Processing procedure.
The city clerk shall issue licenses and collect fees, as set forth in the city's fee schedule, in the name of the city to all person qualified under the provisions of this chapter and shall:
A. Adopt all forms and prescribe the information required to implement this chapter.
B. Route all applications to the community development department, the police department, the fire district, and others as deemed necessary by the city clerk, for their endorsements as to compliance by applicant with all city regulations which they have the duty of enforcing.
C. Notify any applicant of the acceptance or rejection of this application and shall, upon denial of any application, state in writing the reason(s) for rejection and the process for appeal. Applicant shall be provided the opportunity to withdraw the application without penalty and/or allowed a 90-day due diligence period to remedy the issue(s) determined as the reason(s) for denial. Upon reapplication, if within the 90-day due diligence period, no additional licensing fees will be required. Reapplication after the 90-day due diligence period shall require all processing fees to again be collected.
D. Deny any application for a business license upon written findings that the granting would be detrimental to public peace, health or welfare, or that such application for a business license is not in compliance with any applicable city regulation or if the license was procured by fraud or by false or misleading representation of fact in the application, or in any report required to be filed with the city clerk.
E. When any such application is denied, the applicant may appeal such decision to the hearing examiner pursuant to the process described in EMC 5.05.150 through 5.05.170.
F. When the license application is denied, and any action instituted by the applicant to compel its issuance, such applicant shall not engage in the business for which the license was refused unless or until the license is issued pursuant to an administrative or judicial judgement. (Ord. 02-196 § 7).
5.05.080 Inspections – Right of entry.
The city clerk, or designee, or authorized representative of the community development department, specifically including the code enforcement officer, the police department, or the fire district, are authorized to make such inspections of licensed premises during normal hours of operation of said business and take such action as may be required to enforce the provisions of any business license regulation when deemed necessary. (Ord. 02-196 § 8).
5.05.090 Renewal of licenses.
A license may be renewed by submittal of an application for renewal to the city clerk and payment of the fee, as set forth in the city's fee schedule, prior to February 1st. Said fee schedule shall be available upon request. The city clerk shall route the renewal application to appropriate departments for review as set forth in EMC 5.05.070(B). All business licenses shall be renewed before February 1st of the calendar year of issuance, if the business is to be continued. Application for renewal shall be made on forms prescribed by the city clerk. (Ord. 02-196 § 9).
5.05.100 License fee.
New license applications which are submitted during the months of November, December or January shall be required to pay only one year's licensing fee and, upon approval of said application, shall be issued a license for the remaining months of the application year and the full licensing year following. (Ord. 02-196 § 10).
5.05.110 Late fees.
The license fee shall be increased, as set forth below, for failure to renew a license within 30 days of the renewal date:
A. Delinquent from 31 to 60 days: $10.00 late fee.
B. Delinquent from 61 to 90 days: $20.00 late fee.
C. Delinquent for more than 90 days: a penalty equal to 100 percent of the prescribed license fee. (Ord. 02-196 § 11).
5.05.120 Violations.
A. Any person engaged in business without a valid business license shall be guilty of a misdemeanor and may be punished by a fine not to exceed $5,000 or by imprisonment not to exceed one year, or by both such fine and imprisonment.
B. Violation of this chapter may result in a license suspension as follows:
1. First violation of this chapter shall result in a license suspension for 90 days.
2. Second violation of this chapter shall result in a license suspension for 180 days.
3. Third violation of this chapter shall result in the revocation of the license for a 12-month period. (Ord. 02-196 § 12).
5.05.130 Mailing of notices.
Any notices required by this chapter to be mailed to any applicant shall be sent by ordinary mail, addressed to the address of the license or applicant as shown by the records of the city clerk, or if no such address is shown, to such address, the city clerk is able to ascertain by reasonable effort. Failure of the registrant or applicant to receive such mailed notice shall not release the registrant or applicant from any fees or penalties thereon, nor shall such failure operate to extend any time limit set by the provisions of this chapter. (Ord. 02-196 § 13).
5.05.140 Revocation – Suspension – Denial.
A. A license issued under this chapter may be revoked, suspended, or denied for any one or more of the following reasons:
1. Failure to comply with any of the terms and conditions imposed by the city on the issuance of the license;
2. Failure to operate the business or activity in accordance with any federal, state or local law or regulation;
3. Conduct of the business or activity in a manner which endangers the public health, welfare, or safety;
4. When the license was procured by fraud or false representation of facts;
5. When the license was issued through mistake or inadvertence;
6. When the license application contains false or misleading statements, evasions or suppression of material facts;
7. Upon determination that grounds for denial, suspension or revocation of a license exist, the city clerk shall send the license holder a notice of denial, suspension or revocation. The notice of denial, suspension or revocation shall set forth the grounds for denial, suspension or revocation and a statement advising that the person may appeal from the notice of denial, suspension or revocation to the hearing officer; provided, that the appeal is made in writing and filed with the city clerk within 14 days from the date of receipt of the notice of denial, suspension or revocation, and that failure to so appeal shall constitute a waiver of all rights to any additional administrative hearing or determination on the matter. Upon issuance of such notice, the license is suspended or revoked and is no longer valid and current, unless appealed as provided in this chapter, in which case the effect of the suspension or the revocation is stayed pending the outcome of the appeal;
8. Receipt of the Notice of Denial, Suspension or Revocation. The notice of denial, suspension or revocation shall be served upon the license holder either personally or by mailing a copy of such notice by certified mail, postage prepaid, return receipt requested to such license holder to his or her last known address(es) as provided in the license application. Alternatively, the notice may be posted upon the premises where such license holder conducts his or her business, which is the subject of the denied or revoked license.
B. Effect of License Denial, Revocation or Suspension. If any registrant has a business license denied or revoked for any reason, a new business license shall not be granted to the registrant and/or any entity in which the registrant has an ownership interest for a minimum period of one year from the date of such denial or revocation and all business activity shall immediately cease from the date of such denial or revocation. The city clerk may suspend a license for no more than six months. During the period of any suspension, all business activity shall cease. (Ord. 02-196 § 14).
5.05.150 Notice of suspension.
Prior to suspension or revocation of a license under this chapter, the registrant shall be notified in writing by certified mail of the grounds for suspension or revocation of the license. Suspension or revocation of the license shall occur 10 business days after the date of the notice of suspension or revocation unless such action is appealed by registrant in the manner described in this chapter. Notice of suspension shall be effective, as stated above, regardless of whether the mail is refused or unclaimed. (Ord. 02-196 § 15).
5.05.160 Appeal process.
A registrant under this chapter must appeal the decision for revocation, suspension or denial within 10 days of receipt of the notice of revocation, suspension or denial by filing a notice of appeal with the city clerk. Upon receipt by the city clerk of the appeal notice, a hearing shall be held before a hearing examiner designated by the city clerk. Upon receipt by the city clerk of the appeal notice, a hearing shall be held before a hearing examiner designated by the city. Notice of the hearing shall be given to the appellant at least 10 days prior to the hearing. At such hearing, the appellant shall be entitled to be heard and introduce evidence on his or her own behalf. (Ord. 02-196 § 16).
5.05.170 Decision of the hearing examiner.
The decision of the hearing examiner shall be rendered within 10 days of the close of the hearing and delivered by certified mail to the appellant and the city clerk. The decision shall be in writing and shall:
A. Affirm the city clerk's decision; or
B. Revise or modify the city clerk's decision; or
C. Reverse the city clerk's decision. (Ord. 02-196 § 17).
5.05.180 Appeal to the superior court.
The decision of the hearing examiner is final unless an appeal of the decision of the hearing examiner is filed with superior court within 30 calendar days from the date the hearing examiner's decision was personally served upon or was mailed to the appellant. The decision for suspension or revocation of a license under this chapter shall be stayed during administrative and judicial review, but refusal to issue an initial license shall not be stayed. (Ord. 02-196 § 18).
5.05.190 Emergency suspension.
In the event of conduct or activities which create an imminent risk of harm to public health, safety, or welfare, the license of such business may be summarily suspended upon notice to the registrant; provided, that the registrant shall be entitled to a hearing before a hearing examiner designated by the city upon a written appeal being filed with the city clerk by the registrant within 10 days of the license suspension. In the event of an appeal by registrant, a hearing shall be provided within 10 days of the notice of appeal. The provisions of EMC 5.05.180 shall apply to any appeal of the hearing examiner decision regarding emergency suspension. (Ord. 02-196 § 19).
5.05.200 Regulation adoption and publication – Failure to comply.
The city manager or his/her designee shall have the power and it shall be his/her duty from time to time to publish and enforce rules and regulations not inconsistent with this code or with the law, for the purpose of carrying out the provisions hereof, and it is unlawful for any person to violate or fail to comply with any such rule or regulation. (Ord. 02-196 § 20).