CHAPTER 3-01
BUSINESS LICENSE REGULATIONS
SECTIONS:
3-01-001-0001 DEFINITIONS
3-01-001-0002 LICENSE REQUIRED
3-01-001-0003 LICENSE EXEMPTIONS
3-01-001-0004 LICENSE APPLICATION
3-01-001-0005 TRANSIENT MERCHANTS – SUPPLEMENTARY INFORMATION
3-01-001-0006 LICENSE TERM; RENEWAL; PENALTIES
3-01-001-0007 TRANSFER OF LICENSES
3-01-001-0008 DISPLAY OF LICENSE
3-01-001-0009 LOCATION RESTRICTIONS
3-01-001-0010 SOLICITATION PROHIBITED
3-01-001-0011 LICENSE DENIAL, REVOCATION, SUSPENSION
3-01-001-0012 NOTICE OF HEARING AND APPEAL
3-01-001-0013 ENFORCEMENT
Prior legislation: Ords. 370, 461, 1794, 2004-26 and 2011-07.
3-01-001-0001 DEFINITIONS
"Administrator" shall mean the License Administrator designated by the City Manager.
"Business" includes all activities or acts, personal or corporate, engaged in or caused to be engaged in, with the object of gain, benefit or advantage either directly or indirectly, but does not include the following:
1. Casual activities or sales; or
2. The transfer of electricity from a solar photovoltaic generation system to an electric utility distribution system.
"Business license" shall mean any business license required under Section 3-01-001-0002, License Required.
"Business location" means the following:
1. Any location from which a person engages in business on a permanent basis;
2. Any location from which a person engages in business on a temporary basis;
3. Any areas of the City where the person engages in transient merchant activities.
"Casual activity or sale" means a transaction of an isolated nature made by a person who neither represents himself to be nor is engaged in a business subject to a license required by this chapter. However, no sale, rental, license for use, or lease transaction concerning real property nor any activity entered into by a business required to be licensed by this chapter shall be treated, or be exempt, as casual. This definition shall include sales of used capital assets; provided, that the volume and frequency of such sales do not indicate that the seller regularly engages in selling such property.
"City facilities" means any City property other than right-of-way and includes buildings, parking lots and open space.
"Engaging" when used with reference to engaging or continuing in business includes the exercise of corporate or franchise powers.
"Fair vendor" means any person who engages in a temporary business of displaying or selling any type of tangible personal property, and who occupies a stall, booth or other temporary structure on location in conjunction with, associated with or attendant to a prescheduled fair, convention, celebration, promotion or other public gathering, which prescheduled fair, convention, celebration, promotion or other public gathering which is not longer than fifteen (15) days in duration and of which the first public announcement is thirty (30) days or more prior to its commencement.
"Permanent basis" means forty-five (45) calendar days or longer within a year.
"Person" means an individual, firm, partnership, joint venture, association, corporation, estate, trust receiver, syndicate, broker, the Federal government, this State, or any political subdivision or agency of this State. For the purposes of this chapter, a person shall be considered a distinct and separate person from any general or limited partnership or joint venture or other association with which such person is affiliated. A subsidiary corporation shall be considered a separate person from its parent corporation for purposes of taxation of transactions with its parent corporation.
"Temporary basis" means forty-four (44) contiguous calendar days or less within a year.
"Temporary location" means any place where business is operated on a temporary basis.
"Transient merchant" means any of the following:
1. "Peddler" means a person using the public rights-of-way to travel about and sell any type of tangible personal property, including but not limited to food and drink, which is carried on his person, bicycle, wagon, pushcart, or vehicle.
2. "Solicitor" means a person who goes uninvited from residence to residence or to only one (1) residence within the City offering to sell any type of service or any tangible personal property. A solicitor shall not include an employee, agent or contractor of a business licensed under this chapter who goes uninvited from business to business offering to sell any type of services or any tangible personal property. (Ord. 2018-22, Amended, 06/19/2018)
3-01-001-0002 LICENSE REQUIRED
A. A person shall obtain a business license and pay an annual license fee pursuant to this chapter prior to engaging in any business within the City, unless exempted under Section 3-01-001-0003 (License Exemptions).
B. A separate business license is required for each permanent business location. However, a single business license may be issued for up to five (5) temporary business locations. Also, a single business license may be issued to a transient merchant, subject to approval of the dates, times and areas of business. (Ord. 2018-22, Amended, 06/19/2018)
3-01-001-0003 LICENSE EXEMPTIONS
A. The following persons shall not be required to obtain a business license:
1. Any person defined in Section 3-05-002-0270 as a Federally exempt organization, governmental entity, proprietary club or public educational entity;
2. Any person licensed under Chapter 3-07 (Special Licenses) or 3-09 (Cable);
3. Any person with a valid franchise agreement with the City;
4. Any person licensed under Chapter 3-08 (Sexually Oriented Businesses);
5. Sidewalk vendor with a permit issued under Section 8-03-002-0004 (Sidewalk Vending Carts);
6. Any person with a valid special event permit issued under Chapter 8-12 (Special Events);
7. Any person with a valid temporary use permit issued under Section 10-20.40.150 (Temporary Use Permits);
8. A fair vendor at a prescheduled fair, convention, celebration, promotion or other public gathering, where the organizer has obtained a special event permit issued under Chapter 8-12 (Special Events) or temporary use permit issued under Section 10-20.40.150 (Temporary Use Permits).
B. In addition, the following persons shall not be required to obtain a business license:
1. Employees of licensed businesses delivering goods in the regular course of business;
2. A person who only engages in a "casual activity or sale";
3. Any person licensed by the State pursuant to A.R.S Title 20 (Insurance);
4. Designated caregivers as defined in A.R.S Section 36-2801;
5. Any person with sales of food products by food producers as provided for by A.R.S. Sections 3-561, 3-562, and 3-563;
6. Any "out-of-state business" responding to a "declared disaster" on a "temporary basis" during a "disaster period" at the request of a "registered business" within Arizona to perform "disaster recovery" of "infrastructure" as those terms are defined and as provided for by A.R.S. Sections 32-4501 and 32-4502. Nothing herein shall be construed to waive compliance with City building and safety permitting requirements, including but not limited to traffic control permits;
7. Liquor wholesaler licensed under A.R.S. Section 4-209;
8. Residential rental property registered with the Coconino County Assessor’s Office, per A.R.S. Section 9-1304;
9. Or any other person exempted by State law from local business licensing. (Ord. 2018-22, Amended, 06/19/2018)
3-01-001-0004 LICENSE APPLICATION
A. An application for a business license shall be made on a form prescribed by the Administrator, will specify the time for review, and will include the following information:
1. Name of business, state where incorporated or formed, and any trade names;
2. Names of business owners, officers or members;
3. The business location within City, including address and zip code;
4. A brief description of the nature of the business and the goods/services to be sold;
5. Contact name and telephone number;
6. License eligibility form related to lawful presence in the United States (if applicant is an individual);
7. A statement as to whether or not the applicant has been convicted of any crime other than a petty offense within the past five (5) years, and the nature of the offense;
8. A home occupation permit (if applicable);
9. Any other information deemed relevant to the City.
B. Applicant for a business license shall pay the business license fee set by Section 3-10-001-0008 (License Fees).
C. Applicant is responsible for promptly updating any changes in the information provided. (Ord. 2018-22, Amended, 06/19/2018)
3-01-001-0005 TRANSIENT MERCHANTS – SUPPLEMENTARY INFORMATION
A transient merchant shall obtain a business license under this chapter, unless exempt under Section 3-01-001-0003 (License Exemptions) and shall submit the following supplementary information at least one (1) business day prior to engaging in such business:
A. The specific days and locations where business activities will take place. Transient merchants will be issued separate approvals for the dates, times and areas stated for their transient merchant activities. Any approval will reference the business license number.
B. Photo identification card of business license holder. (Ord. 2018-22, Amended, 06/19/2018)
3-01-001-0006 LICENSE TERM; RENEWAL; PENALTIES
A. Term. A business license is valid for one (1) year, commencing on the first day of the month during which the person operates.
B. Renewal. A business license must be renewed on or before the expiration date.
C. Failure to Obtain. Any person who operates without a business license required by this chapter shall pay a failure to obtain/renew penalty plus the applicable license fee for each year or portion of a year wherein the person operated without a license. All license fees and penalties, as established in Section 3-10-001-0008 (License Fees), must be paid before a business license is issued. Failure to obtain/renew a business license within thirty (30) days after receipt of written notice from the City concerning licensing requirements is a violation of this chapter and the City may take enforcement action pursuant to Section 3-01-001-0013 (Enforcement). (Ord. 2018-22, Amended, 06/19/2018)
3-01-001-0007 TRANSFER OF LICENSES
All licenses issued under the terms of this chapter shall be nontransferable. Any change in ownership or location requires a new license. (Ord. 2018-22, Amended, 06/19/2018)
3-01-001-0008 DISPLAY OF LICENSE
The business license shall be displayed in a publicly conspicuous place at the licensed business location. If conducting transient merchant activities, a copy of the approval referencing the business license also must be kept on hand and exhibited upon request of the City, a law enforcement authority, or any citizen. (Ord. 2018-22, Amended, 06/19/2018)
3-01-001-0009 LOCATION RESTRICTIONS
A. General. No person shall have an exclusive right to any location in the public right-of-way, nor shall be permitted to operate in any congested area where his operations might impede or inconvenience the public. The judgment of the City Code enforcement officer or a City police officer, exercised in good faith, shall be deemed conclusive as to whether the area is congested or the public impeded or inconvenienced.
B. Selling in Public Parks and on City Facilities. No person shall sell any tangible personal property, including but not limited to food or drink, from any vehicle, pushcart, stand or other movable or temporary contrivance within any public park or City facilities, subject to the following exceptions:
1. A person operating within the scope of a valid special event permit issued by the City; or
2. A person operating within the scope of a license, lease or permit approved by the City.
C. Selling from City Sidewalks. No person shall sell any tangible personal property, including but not limited to food or drink, from any City sidewalk without first having obtained a permit issued under Section 8-03-002-0004 (Sidewalk Vending Carts).
D. Selling from Temporary Location on Non-City Property. No person shall sell any tangible personal property, including but not limited to food or drink, from any temporary locations within the City without first having obtained a permit issued under Section 10-20.40.150 (Temporary Use Permits). (Ord. 2018-22, Amended, 06/19/2018)
3-01-001-0010 SOLICITATION PROHIBITED
It shall be unlawful for any person in the course of business to ring the doorbell or knock at any building:
A. Where a sign bearing the words "no peddlers," "no solicitors" or similar wording is posted for public view; or
B. Before 8:00 a.m. or after 8:00 p.m. (Ord. 2018-22, Amended, 06/19/2018)
3-01-001-0011 LICENSE DENIAL, REVOCATION, SUSPENSION
A. In General. Licenses may be denied or revoked by the Administrator after notice and hearing for any of the following causes:
1. Fraud, misrepresentation or false statement contained in the application;
2. Fraud, misrepresentation or false statement in the course of business;
3. Failure to obtain or maintain any required temporary use permit, transaction privilege tax license, or other required permit or governmental approval;
4. Any violation of this chapter;
5. Conducting business in an unlawful manner as to constitute a breach of the peace or to constitute a menace to the health, safety or general welfare of the public;
6. Upon legal review of the application criminal disclosure, it is determined that a denial is warranted.
B. Immediate Suspension. Notwithstanding the provisions of subsection (A) of this section, the Administrator may summarily suspend the license of any person charged with an offense relating to theft, assault or other offense constituting an imminent threat to the public’s health, safety or welfare. Failure to submit a written application for reinstatement of a license summarily suspended hereunder shall operate as a revocation of such permit. (Ord. 2018-22, Amended, 06/19/2018)
3-01-001-0012 NOTICE OF HEARING AND APPEAL
A. Notice of Denial, Revocation and Suspension. Notice of denial, revocation or suspension of a license issued hereunder shall be given in writing (in person, by mail or email at the last known address provided to the Administrator) along with the specific reasons for such action.
1. Notice of denial shall be provided within ten (10) business days of receipt of the application.
2. Notice of revocation shall be provided at least ten (10) business days before revocation.
3. Notice of suspension shall be provided immediately.
B. Appeal. Any person may appeal the denial, revocation, or suspension of a license within ten (10) business days from the mailing date of the notice by filing an appeal in writing to the Administrator.
C. Hearing. A hearing will be scheduled by the Administrator within ten (10) business days to take place no later than fifteen (15) days from receipt of the appeal or a later time mutually agreed to in writing by both parties. Notice of the date, time and place of the hearing will be mailed to the licensee at the address last provided to the Administrator at least five (5) calendar days prior to the hearing date. The hearing will be conducted by the Treasurer or designee ("Hearing Officer"), who shall admit all testimony and reliable evidence without regard to formal rules of evidence. The licensee/applicant may appear in person or send a representative to the hearing.
D. Final Decision. Within five (5) business days from the hearing, the Hearing Officer will issue a written decision on the appeal and reasons for such decision. The Hearing Officer’s decision may affirm, reverse, or modify the Administrator’s action. Notice of this decision will be mailed to the applicant/licensee at the address last provided to the Administrator, and a copy will be sent to the Administrator. The Hearing Officer’s decision is final. (Ord. 2018-22, Amended, 06/19/2018)
3-01-001-0013 ENFORCEMENT
A. Authority. Any City Code enforcement officer or any State certified peace officer may issue a written warning or citation for the violation of this chapter.
B. Separate Offenses. Each violation pursuant to this section shall constitute a separate offense and each day a violation remains unabated may constitute a separate offense.
C. Penalties. Any violation of this chapter is punishable as a petty offense. (Ord. 2018-22, Amended, 06/19/2018)