CHAPTER 1
GENERAL Revised 12/23 Revised 2/24

ARTICLE 1 - DEFINITIONS

For the purposes of this Division, certain words and phrases shall have the meanings ascribed to them as follows:

31.1.1 CARRYING ON BUSINESS.

Shall mean conducting, engaged in, managing or carrying on any profession, trade, calling, occupation or commercial enterprise in the City.

31.1.2 CONCESSIONAIRE.

Shall mean any person who regularly conducts any business by renting or leasing floor space from another person in the latter’s place of business, on a cash rental, or commission basis, or otherwise.

31.1.3 FIXED PLACE OF BUSINESS.

Shall mean a business which is fixed or settled in the City rather than temporary and transient, the proprietor of which occupies any building or place or portion thereof for the purpose of selling real or personal property or services.

31.1.4 LICENSE SUPERVISOR.

(Amended by O-1501)

Shall mean the License Supervisor of the City of Torrance.

31.1.5 MERCHANDISE.

Shall mean goods, wares, merchandise or other tangible personal property.

31.1.6 PERSON.

Shall mean, except where the context requires a different meaning, an individual, a co-partnership, joint venture, a firm, an unincorporated association, a syndicate, a club, a society, a trust and all private or political or charitable or social organizations doing business or existing under and by virtue of any law, as a corporation or otherwise.

31.1.7 SALE AND SELL.

Shall each mean:

a)    Any contract to sell, sale or conditional sale as defined in Part IV, Division 3 of the California Civil Code;

b)    Any supplying of merchandise to the special order of the purchaser; and

c)    Any transfer of possession of merchandise where a person other than the transferee retains or receives the Title thereto for security purposes.

31.1.8 TRANSIENT BUSINESS.

a)    Shall include any business, not specifically listed elsewhere in this Division, which by its nature is only conducted intermittently for periods of five (5) days or less.

b)    Shall not include businesses which have a business license at regular business locations and which for any reason discontinues business in five (5) days or less.

31.1.9 PEDDLER.

Shall mean any person selling or offering for sale goods, wares, merchandise of any kind or food or drink from a pack, stand or vehicle or by going from place to place who has such goods, wares or merchandise in his possession at the time of selling or offering for sale and who primarily relies on present solicitation of chance customers for purchases of uncertain quantities of such goods, wares or merchandise and concurrently sells and delivers them.

31.1.10 FLIGHT SCHOOL. Revised 2/24

(Added by O-3928; O-3929)

Flight School shall have the same definition as set forth in 49 CFR § 1552.1(b), as that section may be amended from time to time, and shall mean any pilot school, flight training center, air carrier flight training facility, or flight instructor certificated under 14 CFR part 61, 121, 135, 141, or 142, as those provisions are amended from time to time; or any other person or entity that provides instruction under 49 U.S.C. Subtitle VII, Part A, in the operation of any aircraft or aircraft simulator. No more than 6 active business licenses may be issued for Flight Schools in the City at any one time.

ARTICLE 2 - PAYMENT OF TAX

31.2.1 SCHEDULE OF LICENSE TAXES.

(Amended by O-297; O-1501; O-1725; O-2129; O-2288; O-2416; O-2843; O-3170; O-3229; O-3354; O-3364)

Effective December 16, 1992, every person carrying on in the City any business or rendering any services, except those businesses expressly enumerated in Chapter 3, shall pay a basic license tax of $138.00* per year, and in addition thereto, shall pay an additional license tax of $40.001 for each person engaged in the business (except owner) up to a maximum of two thousand five hundred (2,500) employees.

31.2.2 ADDITIONAL LICENSE TAX.

(Amended by O-2129)

The additional license tax shall be based on the number of persons engaged in the business in the City on December 31st of the year preceding the year for which the license was issued.

31.2.3 DEFINITION OF PERSON ENGAGED IN THE BUSINESS.

(Amended by O-2288)

For the purpose of computing the additional license tax, person engaged in business shall mean all individuals engaged in the operation or conduct of any business, whether as owner, member of the owner’s family, partner, agent, manager and any and all other persons employed or working in said business for a wage, salary, commission or board and room. Number of persons may be determined by dividing by forty (40) the total number of hours worked per week by all persons engaged in business.

31.2.4 NEW APPLICANTS.

Every applicant applying for the first time for a business license under this Division shall file an affidavit estimating the number of persons he intends or expects to have engaged in the business for the balance of the year for which he is applying, and shall pay the license tax based on such estimate.

31.2.5 UNCLASSIFIED BUSINESS.

(Amended by O-1501; O-1725; O-2129; O-2288; O-2416; O-2843; O-3170; O-3229; O-3354; O-3364)

a)    Effective July 1, 1988, every person who carried on a business from a fixed place within the City and which business is not specifically listed elsewhere in this Division, shall pay an annual license tax composed of a basic license tax of $138.00* and an additional license tax of $35.00* for each employee therein.

b)    Effective July 1, 1988, every person not having a fixed place of business in the City who engaged in business within the City and which business is not specifically listed elsewhere in this Division shall pay an annual license tax of $135.00* and an additional tax of $35.00* for each employee working within the City of Torrance.

31.2.6 CONCESSION.

Every person carrying on business as a concessionaire at a fixed place of business in the City shall pay the license taxes as provided in this Division the same as if such business were conducted under a separate roof.

31.2.7 ROUTES NOT OPERATED FROM FIXED PLACE OF BUSINESS.

(Amended by O-2129: O-2288; O-2843; O-3170; O-3229; O-3354; O-3364)

a)    Every person not having a fixed place of business in the City who carries on the business of a retail route within the City, and which business is not specifically listed elsewhere in this Division, shall pay an annual license tax of $158.002 per year per vehicle.

b)    Every person not having a fixed place of business in the City who carries on the business of a wholesale route within the City and which business is not specifically listed elsewhere in this Division shall pay an annual license tax of $112.00* per year per vehicle.

31.2.8 ROUTES OPERATED FROM FIXED PLACE OF BUSINESS.

Any person carrying on a business at a fixed place of business for which a license tax has been paid shall not be charged an additional license tax for retail or wholesale routes operated from such business.

31.2.9 TWO TYPES OF BUSINESS AT SAME LOCATION.

Where two (2) or more types of business are carried on at the same address and under one (1) ownership, the license tax shall be paid for the classification of the business conducted for which the higher fee is required.

31.2.10 LICENSES PAYABLE ANNUALLY.

(Amended by O-743)

The annual license tax shall be due and payable to the City in the Office of the License Supervisor at the time specified in this Division or when not so specified, on the first day of January of each year.

31.2.11 DAILY LICENSES.

(Amended by O-396)

The daily license tax provided in this Division shall be due and payable to the City in the office of the License Supervisor each day, in advance, and shall become delinquent on the following day.

31.2.12 PRORATION OF TAXES.

(Amended by O-809; O-2129; O-2288)

Notwithstanding the provisions of any section of this Division, the basic annual flat rate or plus fee license tax shall be pro-rated so that the applicant shall pay therefor the following amounts:

a)    January 1 through March 15-Total tax due

b)    March 16 through June 15-Three-fourths of such tax

c)    June 16 through September 15-One-half of such tax

d)    September 16 through December 15 or after December 15th at the option of the person applying, the total fee for the following year.-One-fourth of such tax

e)    Notwithstanding subsections a), b), c) or d)-The minimum fee shall not be less than $1.00.

31.2.13 REFUNDS.

(Amended by O-3061)

a)    Whenever any money is collected or received by the Revenue Administrator, it shall be refunded with the approval of the License Review Board only under the following conditions:

1)    Where a refund is specifically authorized by the provisions of law not requiring payment of the license tax;

2)    Where the money is paid to secure a license not required by law;

3)    Where the amount paid was in excess of the amount required by law;

4)    Where the applicant has not at any time after applying for a license actually commenced to engage in the business or performed any act for which a license is required.

b)    When a refund is made under the provisions of this Section, the City shall retain from the amount refunded twenty (20) percent thereof for administrative expenses, but not to exceed Twenty-five Dollars ($25.00). If, in the opinion of the City Manager or the City Council, the City was at fault, such retained amount may be waived.

c)    All requests for refunds shall be made in writing to the Revenue Administrator.

d)    All refunds payable under the provisions of this Section shall first be applied to pay any debt owed by the applicant to the City.

31.2.14 DISPOSITION OF MONIES COLLECTED.

(Amended by O-1742)

The License Supervisor shall deposit daily with the City Treasurer all monies collected for licenses, for which the City Treasurer shall issue a receipt.

31.2.15 MINOR ERRORS IN PAYMENTS.

(Added by O-2129; Amended by O-2288)

In the event a discrepancy exists between the amount of tax paid and the amount of tax due, resulting in an underpayment or overpayment of the tax in an amount of $7.00 or less, the License Supervisor may accept and record such underpayment or overpayment without notification to the taxpayer.

31.2.16 CHANGES IN LICENSE TAX.

(Amended by O-2843; O-3376)

a)    The rate of license tax due and owing on January 1, 1994 shall remain the same as for the same license on January 1, 1993. Commencing, however, on July 1, 1994, the rate of business license tax shall increase by the percentage of increase, if any, of the Consumer Price Index, Urban Wage Earner and Clerical Worker, Los Angeles, Anaheim, Riverside Metropolitan Area, prepared by the United States Bureau of Labor Statistics between the months of May 1993 and May 1994.

b)    Annually thereafter, if the Consumer Price Index, Urban Wage Earner and Clerical Worker, Los Angeles, Anaheim, Riverside Metropolitan Area, prepared by the United States Bureau of Labor Statistics, Department of Labor for the month of May shall stand at the same index number as in May 1994 (using the price prevailing during the years 1982-84 as a base of 100) then the amount of the taxes in this Division 3 shall remain as written herein.

c)    If the said index for said month shall stand at other than the index number in May 1994, then the amount of fees provided in this Division 3 shall be increased or decreased a corresponding amount; provided, however, that the fees shall be rounded to the nearest dollar, except as provided in Sections 35.7.3 and 35.8.4

d)    The amount of adjustment shall be determined by the Director of Finance, who shall provide such adjustment figures each calendar year thereafter.

e)    In the event the said bureau shall revise the said index, the Director of Finance shall accept the method of revisions or conversion recommended by the bureau.

f)    If the said bureau shall discontinue the preparation of the Consumer Price Index, Urban Wage Earner and Clerical Worker, Los Angeles, Anaheim, Riverside Metropolitan Area, prepared by the United States Bureau of Labor Statistics, Department of Labor, using prices prevailing in the year 1982-84 as a base of 100, and if no transportation table prepared by the Bureau is available which is applicable to the years 1982-84, then the fees shall be increased or decreased on the basis of any other nationally recognized indicator of increases or decreases in consumer product prices.

31.2.17 COMMERCIAL OFFICE TAX.

(Added by O-3298; amended by O-3313)

a)    A tax is hereby imposed upon every person owning or operating a commercial office building in the City at the rate of five (5) cents per gross square foot per year, except as provided in Section 31.2.20 below.

b)    The amount of tax shall be determined by the Director of Finance annually, and shall be billed to the owner or operator annually. Said tax shall be increased or decreased in relation to the Consumer Price Index, Urban Wage Earner and Clerical Worker, Los Angeles, Anaheim, Riverside Metropolitan Area, prepared by the United States Bureau of Labor Statistics, Department of Labor.

c)    If the said Index for said month shall stand at other than 130.5 then the amount of fees provided in this Section may be increased a corresponding amount; provided, however, that the fees shall be rounded to the nearest one-tenth of one cent, but shall not be less than five (5) cents per square foot, except as provided in Sections 35.7.3 and 35.8.4

d)    The amount of adjustment shall be determined by the Director of Finance, and she shall provide such adjustment figures annually thereafter.

e)    In the event the said Bureau shall revise the said Index, the Director of Finance shall accept the method of revisions or conversion recommended by the Bureau.

f)    If the said Bureau shall discontinue the preparation of the Consumer Price Index, Urban Wage Earner and Clerical Worker, Los Angeles, Anaheim, Riverside Metropolitan Area, prepared by the United States Bureau of Labor Statistics, Department of Labor, using prices prevailing in the years 1982-84 as a base of 100, and if no transposition table prepared by the bureau is available which is applicable to the years 1982-84, then the fees shall be increased or decreased on the basis of any other nationally recognized indicator of increases or decreases in consumer product prices.

31.2.18 OPERATIVE DATE.

(Added by O-3298)

The tax imposed by this Article shall be effective July 1, 1990.

31.2.19 DEFINITIONS.

(Added by O-3298)

a)    For purposes of Section 31.2.17, the term "commercial office building" shall mean any building which is used to the extent of more than fifty percent (50%) for office uses.

b)    For purposes of Section 31.2.17, the term "office uses" shall mean those uses which are customarily associated with offices where such work as clerical, consulting or computing is performed, including, but not by way of limitation, professional offices, such as legal, medical, dental, engineering, scientific, fine arts, literary, social services, architects, designers, employment agencies, secretarial services, accounting, stocks and bonds, typing and labeling services, travel agencies, public relations, escrow offices, mortgage or loan offices, insurance agencies, collection agencies, advertising agencies, and business offices, both general and corporate, but not including banks, savings and loans or laboratories.

31.2.20 TAX APPLICATION.

(Added by O-3298)

The tax imposed by this Article shall be calculated on the gross floor area of each building identified as a commercial office building; provided, however, that such tax shall be applied only to those commercial office buildings, or portions of commercial office buildings, which exceed five thousand (5,000) square feet in area.

31.2.21 THIRTY-DAY PERIOD.

(Added by O-3298)

Any person against whom a determination is made under Section 31.2.14 of this Article may petition for a redetermination within thirty (30) days after service upon the person of notice thereof. If a petition for redetermination is not filed within the thirty (30) day period, the determination becomes final at the expiration of the period.

31.2.22 HEARING FOR RECONSIDERATION.

(Added by O-3298)

If a petition for redetermination is filed within the thirty (30) day period, the Director shall reconsider the determination and, if the person has so requested in his petition, shall grant him an oral hearing and give him ten (10) days notice of the time and place of the hearing. The Director may continue the hearing from time to time as may be necessary.

31.2.23 FINAL DECISION.

(Added by O-3298)

The order or decision of the Director upon a petition for redetermination becomes final thirty (30) days after mailing of notice thereof.

31.2.24 PAYABLE UPON FINALIZATION.

(Added by O-3298)

All determinations made by the Director under this Article are due and payable at the time they become final. If they are not paid when due and payable, a penalty of ten percent (10%) of the amount of the determination, exclusive of interest and penalties, shall be added thereto.

31.2.25 NOTICE OF DETERMINATION.

(Added by O-3298)

Any notice required by this Article shall be served personally or by mail.

ARTICLE 3 - PENALTIES AND ENFORCEMENT

(Amended by O-1725)

31.3.1 CARRYING ON BUSINESS WITHOUT LICENSE.

(Added by O-3385)

No person (whether as principal or agent, clerk or employee, either for himself or for any other person, or otherwise) shall carry on any business in the City without first having obtained a license therefor from the City, and without complying with any and all applicable provisions of this Division. Each day that such business is so carried on shall constitute a separate violation of this Division.

31.3.2 COMMENCEMENT OF BUSINESS WITHOUT LICENSE; PENALTY.

(Amended by O-2288)

Any person who carries on any business without first having obtained a license therefor shall pay a penalty of ten (10) percent of the prescribed business tax; an additional one (1) percent penalty shall be added for each three (3) days or fraction thereof after notice shall have been issued to such person directing him to appear at the Office of the City License Inspector and until the appropriate business application is filed and tax paid, except that the total amount of penalty added shall in no event exceed fifty (50) percent of the amount of tax due. Such penalty shall be collected and the payment thereof shall be enforced in the same manner as other business taxes are collected and payment enforced.

31.3.3 DELINQUENT TAXES; PENALTIES.

(Amended by O-47; O-2288)

a)    Annual or quarterly taxes shall be delinquent if not paid by 5:00 p.m. on the last day of the month following the close of the previous period. A penalty of one (1) percent of the tax due shall be added to the tax for every three (3) days or fraction thereof that tax is delinquent, provided that the total amount of such penalty to be added shall in no event exceed fifty (50) percent of the amount of tax due. Such penalty shall be collected and the payment thereof shall be enforced in the same manner as other business taxes are collected and payment enforced.

b)    Daily taxes shall be delinquent if not paid before the close of the City’s business day on the day the tax was due and payable. A penalty of ten (10) percent of the tax shall be added to the tax if not paid by that time and an additional one (1) percent of the tax shall be added for each additional day of delinquency thereafter, provided that the total amount of such penalty to be added shall in no event exceed fifty (50) percent of the amount of tax due. Such penalty shall be collected and the payment thereof shall be enforced in the same manner as other business taxes are collected and payment enforced.

31.3.4 SEPARATE LICENSE FOR EACH BRANCH OF BUSINESS.

(Amended by O-2288)

A separate business license shall be obtained for each business location. No person shall carry on any business except at the location stated in the license issued to such person. No person shall conduct any business except that specified in the license issued to such person.

31.3.5 EFFECT OF ISSUANCE.

The issuance of any license shall not authorize the commencing or conducting of any business in the City contrary to the provisions of the zoning or other provisions of this Code.

31.3.6 UNLAWFUL BUSINESS.

(Amended by O-495; O-629; O-3684)

No license issued under the provisions of this Division shall be construed as authorizing the conduct of or continuance of any illegal or unlawful business or practice, or the furnishing, sale, or provisioning of any service, good, or product that is illegal under this Code, the Laws of the State of California, or the Laws of the United States of America.

31.3.7 INDEBTEDNESS FOR PAST LICENSES.

No license shall be issued for any succeeding current or unexpired license period knowingly to any person who, at the time of requesting any new license, is indebted to the City for any unpaid license tax.

31.3.8 CIVIL AND CRIMINAL ACTIONS.

(Amended by O-47; O-50; O-109)

a)    The amount of any license tax imposed by this Division shall be deemed a debt to the City, and any person carrying on any business mentioned in this Division without having a license therefor from the City shall be subject to an action in the name of said City in any court of competent jurisdiction for the collection of the amount of license tax by this Division imposed on such business.

b)    The conviction and punishment of any person for carrying on any business without a license shall not excuse or exempt such person from the payment of such license tax due or unpaid at the time of such conviction.

c)    Nothing herein contained shall prevent a criminal prosecution of any person violating any of the provisions of this Division; provided, however, that persons holding a license issued by the State to carry on any business shall not be subject to criminal prosecution for failure to pay any license tax required by this Division.

31.3.9 AUTHORITY OF LICENSE SUPERVISOR.

a)    The License Supervisor and his deputies shall be appointed police officers of the City and shall have the authority of police officers in the enforcement of this Division, including, but not limited to the authority:

1)    To make arrests for the violation of any of the provisions of this Division;

2)    To enter free of charge, at any time, any place of business for which a license is required by this Division and to demand the exhibition of such license for the current term by any person engaged or employed in the transaction of such business;

3)    To examine the books and records of any applicant or licensee when reasonably necessary to the administration and enforcement of the provisions of this Division.

b)    If any such person shall then and there fail to permit entry of the License Supervisor or his deputy, or fail to exhibit such license, books or records, such person shall be liable to the penalty provided for a violation of this Division.

31.3.10 RULES AND REGULATIONS.

The License Supervisor is hereby authorized to make such rules and regulations as may be necessary for the enforcement of the provisions of this Division.

ARTICLE 4 - THE LICENSE

(Amended by O-50; O-110; O-624; O-1725)

31.4.1 APPLICATIONS.

(Amended by O-2129; O-2538; O-3684)

a)    Every person required to have a business license shall make application to the License Supervisor. The applicant shall furnish all information required to enable the License Supervisor to properly classify the business of the applicant and determine the proper license tax to be paid by such applicant. This information shall include, but not be limited to:

1)    Name of firm;

2)    Address and phone number;

3)    Mailing address;

4)    Nature of business;

5)    Name of applicant;

6)    Address and phone number of applicant;

7)    Driver’s license number of applicant;

8)    Social Security number of applicant;

9)    An affirmation by the applicant that the business does not furnish or provide any service, good, or product that is illegal under this Code, the Laws of the State of California, or the Laws of the United States of America.

b)    Upon the payment of the prescribed license tax, the License Supervisor shall, except as otherwise provided in this Division, issue to such person a license which shall contain:

1)    The name of the person to whom the license is issued;

2)    The address of the business being conducted;

3)    The name and description of the business licensed;

4)    The amount of license tax paid for current year;

5)    The date of expiration of such license;

6)    Such other information as may be necessary for the enforcement of this Division.

c)    No person shall make any false, misleading or fraudulent statement or misrepresent any fact in any application for a license.

31.4.2 HEALTH PERMIT REQUIRED.

No license shall be issued to any business for which a health permit is required by law until such permit has been obtained from the health officer of the City.

31.4.3 STATE LICENSEES.

(Amended by O-495)

Notwithstanding any other provision of this Code, no person holding a license issued by the State to carry on any business shall be required to perform any acts as a condition of the issuance of a license therefor by the City under this Division, except the payment of a City license tax for revenue only and the filing of an application for a license with the License Supervisor containing the information required by Section 31.4.1.

31.4.4 TRANSFER.

(Amended by O-2129; O-2288)

a)    No business license shall be transferable; provided, however that where a license is issued authorizing a person to conduct a business at a particular location, such licensee, upon application and the payment of $8.00* may have the license previously issued amended so as to authorize the conduct of the same type of business from such other location.

b)    It shall be unlawful for any licensee to sell, give or otherwise transfer to another person, or allow any other person to use or display, damage or remove, or to have in his possession, except as authorized by this Division, any license or insignia which has been issued to such licensee.

c)    The transfer of the stock or assets of any licensed business which results in the control of the business passing to the buyer, shall constitute a change of ownership.

31.4.5 EXHIBITION OF LICENSE.

(Amended by O-50; O-110; O-629)

Every person having a business license and carrying on a business at a fixed place of business shall keep such license posted and exhibited while in force in some conspicuous part of said place of business. Every person having such a license and not having a fixed place of business shall carry such license with him at all times while carrying on the business for which the same was issued.

31.4.6 REPLACEMENT.

(Amended by O-2129; O-2288)

The License Supervisor shall make a charge of $3.00* for each duplicate license issued to replace any license which has been lost or destroyed.

31.4.7 MISTAKES.

(Amended by O-50; O-110)

In no case shall any mistake made by the License Supervisor in stating the amount of a license tax prevent or prejudice the collection by the City of the amount which shall be actually due from anyone carrying on a business subject to a license under this Division.

31.4.8 CHANGE OF NAME.

(Added by O-2129; Amended by O-2288)

The owner of a business desiring to change the name of the business, may upon application to the License Supervisor and the payment of $8.003 have the license previously issued amended to show new name under which business is to be conducted.

ARTICLE 5 - VEHICLE IDENTIFICATION TAGS

(Amended by O-829; O-1045; O-1102; O-1725; O-2116)

31.5.1 VEHICLE IDENTIFICATION TAG REQUIRED.

When a person pays a license tax to engage in business, and as an incident to such business uses or operates any motor vehicle, as defined in the State Vehicle Code, in said business, the License Supervisor shall issue to such person at the time of issuing the license, a vehicle identification tag for each such vehicle used in the business, or the number of identification tags thereof as he deems necessary for any such business. The vehicle identification tag shall be numbered and be of such size, style and design as the License Supervisor shall designate.

31.5.2 DISPLAY OF VEHICLE IDENTIFICATION TAG.

No person to whom a vehicle identification tag has been issued pursuant to Section 31.5.1., whether owner, employee, agent, or otherwise, shall operate any such vehicle as above mentioned, in the City unless such vehicle identification tag is displayed in a conspicuous place on the exterior of the vehicle.

31.5.3 REPLACEMENT OF VEHICLE IDENTIFICATION TAG.

In case of loss or mutilation of such vehicle identification tag a duplicate may be issued by the License Supervisor providing a fee of One Dollar ($1.00) is paid for each duplicate.

31.5.4 TRANSFER OF VEHICLE IDENTIFICATION TAG.

No person to whom a vehicle identification tag has been issued shall give away, sell or transfer any such identification tag or permit its use by any other person.

31.5.5 INSPECTION BY CHIEF OF POLICE.

(Added by O-3385)

In addition to those vehicles described in California Vehicle Code Section 34500, before a business license is issued to any person, firm or corporation for collecting, hauling or disposing of solid waste, or for the collection, hauling or disposal of recyclable materials, or for the operation of a refreshment or catering vehicle, or a vehicle for the sale of ice cream, candy or other foodstuffs on the City streets, each vehicle or trailer that will be used in such collection, delivery, distribution, sale or disposing shall be inspected by the Chief of Police and shall be found by him to be in compliance with the requirements of the California Vehicle Code.

ARTICLE 6 - EXEMPTIONS4

(Amended by O-629; O-1725)

31.6.1 CONSTITUTIONAL EXEMPTIONS.

Nothing in this Division shall be deemed or construed to apply to any person carrying on any business exempt from the payment of license taxes by virtue of the Constitution or laws of the United States or of the State of California.

31.6.2 PARTICULAR EXEMPTIONS.

(Amended by O-3137)

Except as hereinafter provided in this Article, and subject to the provisions of Chapter 4, the provisions of this Division shall not be construed to require the payment of a license tax to carry on any business or activity for solely charitable, benevolent, religious or political purposes, the receipts of which are to be immediately appropriated for such purpose, or any business or activity operated as part of the City-sponsored Certified Farmers’ Market, whether for monetary gain or otherwise.

31.6.3 EXCEPTIONS.

The exemptions provided in Section 31.6.2. shall not apply to any person not organized and existing for solely charitable, benevolent, religious or political purposes who, for monetary gain, carries on, participates in or sponsors any such exempt business or activity.

31.6.4 APPLICATION FOR EXEMPTION.

(Amended by O-2499)

Any person who claims exemption from the payment of the license tax shall make an application for such exemption upon a form furnished by the License Supervisor. The License Supervisor shall make, or cause to be made, an investigation of the applicant and the business or activity for which the exemption is claimed to determine whether the applicant qualifies for an exemption. If the License Supervisor finds that the applicant qualifies for an exemption, he shall issue a No Fee license to such applicant.

31.6.5 RIGHT OF APPEAL.

(Added by O-2499; Amended by O-2822)

If the License Supervisor fails or refuses to issue a no fee license to an applicant for an exemption, the applicant may appeal such decision to the License Review Board which shall hold a hearing thereon in accordance with the provisions of Article 7 of this Chapter. The License Review Board, following such hearing, shall determine whether or not the applicant is entitled to such exemption. The decision of the License Review Board may be appealed to the City Council in accordance with the provisions of Article 5, Chapter 1, Division 1 of this Code, commencing with Section 11.5.1.

31.6.6 CITY SPONSORED EVENTS.

(Added by O-3464)

The City may exempt any person carrying on a business at a City conducted or sponsored event from the requirements of this Division for business activity conducted at the event.

ARTICLE 7 - LICENSE REVIEW BOARD Revised 12/23

(Added by O-1101; Amended by O-1725)

31.7.1 DUTIES OF LICENSE REVIEW BOARD.

a)    The License Review Board is hereby created to review applications for a business license in the following cases:

1)    When a license is denied by the License Supervisor or any other officer or employee of the City;

2)    Applications made for the issuance of free licenses;

3)    For those businesses which, under the provisions of this Division, require License Review Board approval before a license may be issued; and

4)    All such other business license applications as in the discretion of the License Supervisor should be sent to the License Review Board.

b)    All matters pertaining to the revocation and suspension of business licenses shall be referred to the License Review Board for hearing and findings.

c)    The License Review Board shall review applications for fund solicitation certificates, as set forth in Article 2 of Chapter 4.

31.7.2 MEMBERS OF THE LICENSE REVIEW BOARD.

(Amended by O-2169; O-3501)

The License Review Board will be composed of three City employees designated by the City Manager.

31.7.3 APPROVAL OF LICENSE REVIEW BOARD. Revised 12/23

(Amended by O-1173; O-1493; O-1590; O-1725; O-2021; O-2266; O-2288; O-2894; O-3087; O-3102; O-3924)

No license shall be issued to carry on any of the following businesses except upon approval of the License Review Board:

1)    Animal shelter, humane society or dog pound

2)    Automobile parts and supplies; secondhand

3)    Automobile wrecking

4)    Baths

5)    Billiard or pool hall

6)    Bowling alley

7)    Carnival, circuses, rodeos or itinerant shows

8)    Cemetery

9)    Dance halls

10)    Entertainment

11)    Foster homes

12)    Handbills

13)    Junk dealer, junk collector, salvage pickup

14)    Mausoleum

15)    Secondhand dealers

16)    Swap meets

17)    Swim at home instruction

18)    Massage parlors - massagist

19)    Hypnotist

20)    Fortune telling

21)    Escorts and escort bureaus

31.7.4 STANDARDS.

(Amended by O-3011)

a)    Every application for a license for the businesses listed in Section 31.7.3. of this Article shall be in the form required by the License Review Board and shall be accompanied by a fee sufficient to cover the cost of processing the application and conducting the investigation required by this Section. The License Review Board may adopt regulations and procedures to implement this Division.

b)    The Revenue Administrator shall cause such investigation of the application to be made as he deems necessary. The License Review Board shall, within thirty (30) days after receiving the application, deny the permit or issue the same as applied for or with conditions. Such thirty (30) days shall be extended by the time required for reporting the application to state or federal agencies. The time for processing may be further extended with consent of the applicant.

c)    The License Review Board shall deny a license provided for in this Article if it finds the applicant is unfit for the particular business. The Board may find the applicant is unfit based on the following factors where relevant to the business activity for which the application is made:

1)    If the applicant has engaged in an unlawful, fraudulent, unfair or deceptive business acts or practices;

2)    If the applicant has been convicted of a felony;

3)    If the applicant has been convicted of a misdemeanor involving moral turpitude;

4)    If the applicant has violated any law or lawful regulation of the United States, or any state, county or city relevant to the business or activity for which he is making application;

5)    If the applicant has made any material misstatement or concealment in the application for such a permit; or

6)    If the Board finds on any of the foregoing bases that the applicant is unfit to conduct such a business.

The Board may also deny a permit if it shall reasonably determine that the conduct of such business or activity by the applicant at the location for which application is made will violate any law, or lawful regulation of the City of Torrance, the State of California, the United States or any agency thereof; or will constitute a public nuisance; or by reason of the nature of the activity or subject of the business or the proposed location, can reasonably be expected to be substantially detrimental to the health or safety of the public.

d)    Upon issuance of any license, the Board may limit the permit by any condition reasonably necessary to preserve the intent and purpose of this Chapter.

31.7.5 HEARING.

Any person denied a license by the License Supervisor or the License Review Board shall be entitled to a hearing thereon before the License Review Board upon the filing of a written request therefor with the License Supervisor. The License Review Board shall hold such hearing not later than ten (10) days thereafter, unless an extension of time therefor is requested by the applicant. The hearing shall be conducted in the manner provided in Section 31.9.4.

31.7.6 RIGHT OF APPEAL.

(Amended by O-2822)

In any case where the License Review Board approves or fails to approve the issuance of a business license, an appeal may be taken pursuant to the provisions of Article 5, Chapter 1, Division 1 of this Code, commencing at Section 11.5.1.

ARTICLE 8 - RECORDS

(Amended by O-1725)

31.8.1 RECORDS TO BE KEPT.

Every record required by this Division to be filed or kept by a licensee shall be written or printed entirely in the English language, in a clear and intelligible manner.

31.8.2 LIST OF BUSINESSES REQUIRED TO KEEP RECORDS.

Every person carrying on any of the following businesses shall keep a complete record of all items of merchandise or other property received, pledged or purchased by him or sold or otherwise disposed of:

1)    Automobile parts and supplies; secondhand

2)    Automobile wrecking

3)    Junk dealer, junk collector, salvage pickup

4)    Pawnbroker

5)    Secondhand dealers

6)    Swap meet

7)    Used car dealer

31.8.3 INSPECTION.

Any person required by the provisions of this Division to keep records shall produce such records for inspection at the request of the License Supervisor or his deputy, or any police officer of the City.

ARTICLE 9 - DENIAL, REVOCATION AND SUSPENSION OF LICENSES

(Amended by O-1725)

31.9.1 DENIAL OF LICENSE.

Any license issued to any person to carry on any business under the provisions of this Division may be revoked or suspended in the manner hereinafter provided.

31.9.2 NOTICE OF HEARING.

The City Clerk shall, upon motion of the License Review Board, or upon written charges filed by any officer or department head of the City, give notice to any licensee to appear before the License Review Board at a time and place set for such hearing by the City Clerk to show cause why the license issued to such licensee should not be revoked or suspended. Said notice shall state the grounds for complaint or reasons for the proposed revocation or suspension and shall be served upon the licensee not less than five (5) days prior to the date set for said hearing.

31.9.3 SUSPENSION WITHOUT NOTICE.

a)    The Chief of Police, Chief of the Fire Department, Superintendent of Building Inspection, City Health Officer or the License Review Board, upon its own motion, may suspend any license without previous notice, and pending a hearing when it appears to such officers or the License Review Board that the immediate suspension of any license is necessary for the public health, morals, safety or general welfare.

b)    At the time of the suspension of the license, the licensee shall be served with a written statement containing the reasons for such suspension and giving notice of the time and place for hearing thereon before the License Review Board as determined by the License Supervisor.

c)    The hearing of the charges upon which the suspension was based shall be held not later than forty-eight (48) hours after such suspension unless an extension of time therefor is requested by the licensee, in which event the hearing will be held not later than fifteen (15) days after such suspension.

31.9.4 HEARING.

The License Review Board shall hold a hearing at the time set therefor as provided. The licensee may appear personally or by counsel. The License Review Board and the licensee may call witnesses. The License Review Board may continue the hearing from time to time; provided, however, that a hearing held pursuant to the provisions of Section 31.9.3. may be continued only with the consent of the licensee. At the conclusion thereof, the License Review Board may revoke, suspend or reinstate any such license upon such terms and conditions as in the exercise of reasonable discretion it shall determine.

31.9.5 NOTICE.

Any notice required to be given by this Article shall be deemed sufficient if given by personal delivery to the licensee, to any employee of such licensee at his place of business mentioned in said license in the event that said licensee is absent from said place of business, or if sent by registered mail, postage prepaid, to the licensee at the address shown on said license or in other public records pertaining to the matter to which such notice is directed. Service by mail shall be deemed to have been completed twenty-four (24) hours following the time of the deposit in the Post Office.

31.9.6 NOTICE OF LICENSE SUPERVISOR.

After a license has been revoked or suspended, no license shall be issued by the License Supervisor to any licensee to carry on any business or do any act for which such license was granted until an order to the contrary shall have been issued by the License Review Board.

31.9.7 EFFECT OF SUSPENSION OR REVOCATION.

No person whose license has been revoked or suspended pursuant to this Article shall carry on any business, or do any act permitted to be done pursuant to such license during the period of suspension, or after revocation thereof, until the license is reinstated or a new license shall have been granted.

31.9.8 RIGHT OF APPEAL.

(Amended by O-2822)

In any case where the License Supervisor, any officer or department head of the City or the License Review Board approves or fails to approve an application for a business license, or in any case where the License Supervisor, any officer or department head of the City or the License Review Board has suspended or revoked, or refuses to suspend or revoke a license, the decision may be appealed pursuant to the provisions of Article 5, Chapter 1, Division 1 of this Code, commencing at Section 11.5.1.

31.9.9 STATE LICENSEES.

(Added by O-1743)

Any person who holds both a license issued by the State to carry on any business or perform any activity and a license issued by the City, shall hold his City license subject to revocation or suspension only to the extent such revocation or suspension is not prohibited by State Law.

31.9.10 GROUNDS FOR SUSPENSION OR REVOCATION.

(Added by O-1845; Amended by O-2924)

Any such suspension or revocation shall occur only upon one or more of the following grounds:

a)    Failure to pay any fee required by this Division.

b)    Misstatement found to have been made when applying for the license.

c)    The business activity conducted is prohibited by law.

d)    The business activity conducted is found to be a public nuisance.

e)    Failure to allow the License Supervisor or his deputy to examine the books and records of any licensee when reasonably necessary to the administration and enforcement of the provisions of this Division.

f)    Such suspension or revocation is necessary for the preservation of the public health, morals, safety or general welfare.


1

Fees increased/decreased pursuant to Section 31.2.16.


2

Fees increased/decreased pursuant to Section 31.2.16.


3

Fees increased/decreased pursuant to Section 31.2.16.


4

For State law as to persons exempt from license charges, see B & PC, Section 16001 and Section 16002.