Chapter 5.04
BUSINESS GENERALLY

Sections:

5.04.002    Purpose of chapter.

5.04.005    Applicability.

5.04.010    Administrative authority.

5.04.020    License to conduct business and compliance with applicable law.

5.04.030    Application for license – Decision of the director – Appeal.

5.04.040    Term and renewal of license.

5.04.042    Repealed.

5.04.045    Revocation or suspension of business license.

5.04.050    Repealed.

5.04.110    Separate licenses – When required.

5.04.120    Personal identification.

5.04.130    Penalty for violation of title.

5.04.002 Purpose of chapter.

This chapter is declared to be enacted for the purpose of regulating and controlling businesses, and for the purpose of providing revenue for the city of Lynnwood. (Ord. 3253 § 2 (Exh. B), 2017; Ord. 3189 § 10, 2016; Ord. 30 § 9, 1959. Formerly 5.04.090)

5.04.005 Applicability.

A. The following provisions of this chapter are general provisions and shall apply to all persons who carry on business in the city of Lynnwood, and such provisions, and all additions that have general application, and subsection (B) of this section, shall comprise a separate chapter in this title designated as Chapter 5.04 LMC and entitled, “Business Generally”: LMC 5.04.020, 5.04.030, 5.04.040, 5.04.045, 5.04.110.

B. Without affecting the validity and requirements of any other provisions in this chapter or any other title or chapter relating to business regulations, the provisions of this chapter shall apply to all persons who propose to, or carry on business and all businesses in the city of Lynnwood. (Ord. 3253 § 2 (Exh. B), 2017; Ord. 1089 § 10, 1979)

5.04.010 Administrative authority.

A. Except as specified herein, the community development director is authorized to administer, interpret, and enforce the provisions of this title. The community development director may promulgate forms, policies, and procedures as necessary to effectively and uniformly administer these provisions.

B. As necessary, the director may designate employees of the community development department or other city department to implement or enforce the provisions of this title. Enforcement of this title shall be based upon the authority and regulations set out in this chapter and in Chapters 1.01 and 1.40 LMC.

C. The following definitions shall apply in construing the provisions of this chapter, except where otherwise declared or clearly apparent from the context:

1. “Director” means the city of Lynnwood community development director or the director’s designee.

2. “Department” means the community development department of the city of Lynnwood, or any department that succeeds to the community development department’s duties under this title.

3. “Business license clerk” means city employees or agents the community development director shall designate to administer this title, or any designee thereof. (Ord. 3253 § 2 (Exh. B), 2017; Ord. 3189 § 2, 2016)

5.04.020 License to conduct business and compliance with applicable law.

A. It is unlawful for any person, firm, corporation or association to maintain, conduct or operate any device, vehicle or thing, or engage in any business, profession, trade, occupation or activity, without first having secured the license to do so, and paying all fees prescribed in this code.

B. Businesses licensed by the city, the licensee, and business employees shall conduct business operations and activities in compliance with applicable federal, state, and local laws and regulations.

C. The physical premises of a business licensed by the city shall conform to all applicable laws and regulations for property and structures, including but not limited to laws and regulations relating to land use, building, fire, health and safety, environment, and nuisances.

D. In instances when ownership of a licensed business is transferred, or when a licensed business is moved to a new physical location, a new business license shall be required. It shall be the responsibility of the business owner to submit a complete application for a business license. The business may be granted a 30-business-day grace period to allow for continuity of business operations while the new business license application is reviewed by the city.

E. In instances when the name of the business is changed without the need for a change to the business’ Uniform Business Identifier (UBI) as determined by the Washington State Department of Revenue, and without a change in business ownership or location, the business owner shall notify the city of the name change not less than 15 business days prior to the change. (Ord. 3253 § 2 (Exh. B), 2017; Ord. 3189 § 3, 2016; Ord. 818 § 2, 1975; Ord. 754 § 1, 1974; Ord. 674 § 1, 1972; Ord. 30 § 2, 1959)

5.04.030 Application for license – Decision of the director – Appeal.

A. No license required under this chapter shall be issued except upon application made on forms prescribed by the city. Each application for license, in addition to other requirements, shall indicate:

1. The physical address and the mailing address for the proposed business or occupation;

2. The type and nature of the proposed business or occupation which the applicant intends to operate on said premises; and

3. The identity of the person or persons holding an ownership interest in the business, and those responsible for operation of the business, such as agents and officers of the corporation, business owner, or primary business manager. Telephone and email contact information shall be provided for each person identified as well as the name and contact information of the owner if the property is not owned by the business.

B. Each license application shall be accompanied by the license fee specified by Chapter 3.104 LMC.

C. Upon review of a complete application for a business license, the director shall take one of the following actions:

1. Approve the application; or

2. Approve the application with conditions necessary to ensure compliance with this title; or

3. Request additional information regarding the type and nature of the proposed business, or the responsible persons; or

4. Deny the application as provided by this section.

D. In the event the director denies a business license application, the director shall provide a written explanation of the reason for the denial to the applicant, with information regarding the right of appeal. The director may deny a business license application for reasons including but not limited to:

1. If the applicant fails to submit a complete application or additional information requested by the director;

2. If the application represents business practices that would cause any person to violate any federal, state or local law or regulation;

3. If the application contains misleading or inaccurate information;

4. If the applicant, corporate officer, or other responsible party has previously had his/her business license denied or revoked in Lynnwood or elsewhere, or has been convicted of, forfeited bonds for, or has plead guilty to offenses related to the operation of the same or a substantially similar business in Lynnwood or elsewhere, and the director has reliable, objective information that approval of the application will result in unlawful business activity; or

5. If violation(s) of building, zoning, safety, fire or health laws or regulations exist or will exist on the premises of the proposed business, after receiving instruction from the city or other regulatory agency to correct such violation(s).

E. Following the director’s approval of the application, the business license shall be issued by the city.

F. Upon denial of an application for a business license, the base fee for business employees specified by Chapter 3.104 LMC shall be returned to the applicant with the denial decision.

G. An applicant denied a license, or any person objecting to the issuance of a license, may appeal the director’s decision by filing a written notice of appeal with the community development department. The appeal must be filed within 10 business days of the director’s decision, include the appeal fee specified by Chapter 3.104 LMC, and state the factual grounds for the appeal. The hearing examiner shall set a date for the appeal hearing. The city shall notify the parties of record by mail of the time and place of the hearing, which shall be conducted as specified by LMC 1.35.200 et seq., Chapter 2.22 LMC and the rules for hearings adopted pursuant to LMC 2.22.080. (Ord. 3253 § 2 (Exh. B), 2017; Ord. 3189 § 4, 2016; Ord. 2955 § 2, 2012; Ord. 2877 § 5, 2011; Ord. 1089 § 4, 1979; Ord. 818 § 3, 1975; Ord. 449, 1968; Ord. 82, 1961; Ord. 30 § 3, 1959)

5.04.040 Term and renewal of license.

A. Except where a different term is specified or authorized by this title, business licenses shall have a term of one year (365 days).

B. Unless an alternative term is specified by the director, the term of a new license shall commence on the date of issuance of the license, and the term of a renewed license shall commence on the day following the expiration of the existing license. Licenses issued by the director shall specify the dates of the term of the license.

C. A short-term, nonresident business license may be issued for a term of 60 consecutive days.

D. Within 45 days before or after the expiration of the license’s term, the applicant may submit a complete application for renewal of the license, for a subsequent one-year term. Each license renewal application shall be on form prescribed by the city, and shall be accompanied by the fee(s) specified by Chapter 3.104 LMC. For applications submitted after the expiration of the license’s term, the late business license application fee specified by Chapter 3.104 LMC shall apply.

E. Upon review of a complete license renewal application, the director shall take one of the following actions:

1. Approve the application;

2. Approve the application with conditions necessary to ensure compliance with this title;

3. Request additional information regarding the type and nature of the proposed business, or the responsible persons; or

4. Deny the application as provided by this section.

F. In the event the director denies a license renewal application, the director shall provide a written explanation of the reason for the denial to the applicant, with information regarding the right of appeal. The director may deny a business license application for reasons including but not limited to the reasons stated in LMC 5.04.030 for denial of an initial license application.

G. If an application for license renewal is not made as allowed by this section, an application for a new license shall be required. The late business license application fee specified by Chapter 3.104 LMC shall apply.

H. If a license expires prior to the submittal of a complete and good-faith application for renewal, the business shall be considered to be in violation of the provisions of this title. Submittal of a complete application for license renewal to the city within the time frames allowed by this section may suspend further enforcement and/or the imposition of penalty. (Ord. 3253 § 2 (Exh. B), 2017; Ord. 3189 § 5, 2016; Ord. 2955 § 2, 2012; Ord. 30 § 4, 1959)

5.04.042 Term and renewal of license during 2012.

Repealed by Ord. 3189. (Ord. 2932 § 2, 2012; Ord. 2877 § 3, 2011)

5.04.045 Revocation or suspension of business license.

A. The director may revoke or suspend a business license when the business operation or the licensee meets the criteria for denial of a business license application specified by LMC 5.04.030.

B. Upon a determination by the director that there is a basis for revocation or suspension of a business license, the director shall notify the licensee by certified and regular mail of the director’s decision to revoke or suspend the license. The written decision shall specify the basis for the director’s determination, the effective date of the revocation or suspension, the corrective measures required to avoid revocation or suspension, and the procedures for appeal of the director’s determination.

C. The decision of the director may be appealed by filing a written appeal with the community development department within 10 business days of the date of the written decision, together with the appeal fee specified by Chapter 3.104 LMC. An appeal of the director’s decision shall be conducted by the hearing examiner consistent with the provisions of LMC 1.35.200 et seq., LMC 5.04.030, Chapter 2.22 LMC, and the rules for hearings adopted pursuant to LMC 2.22.080. Upon the filing of a timely appeal, the director’s decision to revoke or suspend the business license shall be stayed pending a final decision by the hearing examiner on the appeal. (Ord. 3253 § 2 (Exh. B), 2017; Ord. 3189 § 7, 2016; Ord. 2877 § 6, 2011; Ord. 1089 § 5, 1979)

5.04.050 Exemptions.

Repealed by Ord. 3189. (Ord. 1487 §§ 1, 2, 3, 1985; Ord. 30 § 5, 1959)

5.04.110 Separate licenses – When required.

A separate license shall be obtained for each branch, establishment or separate location in which the business, calling, profession, trade, occupation or activity licensed by this title is carried on, and for each such different business, calling, profession, trade, occupation or activity carried on or device situated in any one location, and each license shall authorize the licensee to carry on, pursue or conduct only that business, calling, profession, trade, occupation or activity, or operate the device, vehicle or thing described in such license, and only at the location or in the manner indicated therein, except as may be specifically provided in this chapter. (Ord. 3253 § 2 (Exh. B), 2017; Ord. 818 § 4, 1975)

5.04.120 Personal identification.

Whenever any person is an applicant for a license to be issued by the city, and the law or a regulation of the city requires that the applicant not have been convicted of a crime, or otherwise requires that the applicant be investigated regarding the application, the chief of police shall require the applicant to submit photographs and/or impressions of his fingerprints for the purpose of securing identification of the applicant, including submitting the same to any law enforcement agency or the identification section of the Washington State Patrol. (Ord. 3253 § 2 (Exh. B), 2017; Ord. 974 § 1, 1978)

5.04.130 Penalty for violation of title.

Unless a specific penalty is prescribed in this title, and in addition to other powers, any violation of the provisions of this title as now or hereafter amended is a misdemeanor and shall be punished by a fine not to exceed $1,000 or by imprisonment not to exceed 90 days, or by both such fine and imprisonment. (Ord. 3253 § 2 (Exh. B), 2017; Ord. 1089 § 1, 1979)