Chapter 5.04 GENERAL BUSINESS LICENSE REGULATIONS

This article is enacted to raise revenue for municipal purposes and to regulate the transacting and carrying on of businesses in the city for the protection of the public health, morals, safety and general welfare. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.020 Definitions.

For the purpose of this title and resolutions establishing fees, the following words and phrases shall have the meaning ascribed to them by this section:

A. “Machines or games for skill or amusement/music boxes and mechanical devices, including remote control machines operating from a central station” means any person engaged in the business of maintaining any machines or games for skill or amusement that involve the deposit or payment of a slug or coin and any vending machines or games operated mechanically or otherwise in which slugs or coins are deposited and in addition to vending or discharging merchandise make any display other than the merchandise offered for sale or which emit anything whether of value or not in addition to merchandise or any person engaged in the business of maintaining any amusement machine, apparatus or device designed or constructed for the purpose of producing or reproducing or playing any musical tone or tones or combination of tones, or any similar instrument, recording device, music box, jukebox, motion picture or photograph machine.

B. “Arts or crafts” means the services rendered individually for compensation by artisans (artists), bricklayers, brick masons, carpenters, dressmakers, electricians, engravers, gardeners, sign painters, mechanics, metalworkers, painters, plumbers, printers, sculptors, tailors, woodworkers, etc.

C. “Auctioneer” means any person not having a fixed place of business in the city engaged in selling at auction any real estate, goods, wares, merchandise, or materials or any similar, kindred or related thing, for which a license fee is not specifically required under any other chapter or section of this chapter; providing, that no additional fee shall be required of any person otherwise licensed to do business in the city personally carrying on an auction sale in the regular course of his business.

D. “Billboard advertising” means all places of business the principal function of which is the advertising of any service, event, commodities, materials, goods, wares or merchandise by means of billboards, illuminated signs, banners, posters, or statuary, and carrying on any advertising business by any process or method similar, kindred or related to those herein enumerated.

E. “Business” means and includes professions, trades and occupations in all and every kind of calling, whether or not carried on for profit. “Business” includes real property rentals, including homes, apartments, flats, stores, mobile home spaces, parts or all of building structures and vacant areas.

F. “City” means the City of Escalon, a municipal corporation of the State of California, in its present incorporated form or any later reorganized, consolidated, enlarged or reincorporated form.

G. “City manager” means the city manager for the City of Escalon, or his or her designee. For the purposes of hearing an appeal, the city manager may designate another city employee or an independent hearing officer to preside over an appeal.

H. “Commercial vehicles” means and includes the business carried on by any person engaged in the delivering, selling, or offering for sale by means of any motor-driven vehicle any materials, commodities, edibles, goods, wares or merchandise, including any similar, kindred or related vehicular operations and for which a license fee is not specifically required under any other part, chapter or section of this title.

I. “Contracting” means the business carried on as a California Contractors State License Board contractor or subcontractor engaged in building, lathing, acoustical installation, plastering, paving, cement and concrete work, painting, decorating, paperhanging, metalwork, heating and ventilating, house and building moving and wrecking, electrical work, plumbing, structural work, well drilling, pest control, awning work, burglar alarm installations, window decorations, etc.

J. “Finance director” means the finance director for the City of Escalon, or his or her designee.

K. “Garage sale” means any sale of tangible personal property in, at, or upon premises that are residentially zoned or residentially occupied. This definition includes without limitation sales of personal property from the garage, driveway, yard, patio, or house areas of such premises.

L. Gross Receipts. Except as otherwise specifically provided herein, the term “gross receipts” as used herein means the gross receipts of the calendar year preceding the beginning of the annual license period and is defined as follows: the total amount of the sale price of all sales, the total amount charged or received for the performance of any act, service or employment or whatever nature it may be, whether such service, act or employment is done as a part of or in connection with the sale of materials, commodities, goods, wares, merchandise or not for which a charge is made or credit allowed including all receipts, cash, credits and property of any kind or nature, any amount for which credit is allowed by the seller to the purchaser without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, losses or other expenses whatsoever; provided, that cash discounts allowed or taken on sales shall not be included, and this chapter shall not be construed to impose any tax upon any business or transaction which the city is not authorized to license or tax under any law of the state or of the United States. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser, and such part of the sales price of any property previously sold and returned by the purchaser to the seller by way of cash or credit allowances given or taken as part payment on any property so accepted for resale, shall be deducted for the purpose of determining the gross receipts hereunder.

M. “Handbill distributors” means any person engaged in the business for hire or gain of distributing commercial or noncommercial fliers by hand (“handbills”) other than newspapers maintaining a fixed place of business in the city, and which newspapers pay a license fee under any other provision of this title, and any person receiving compensation directly or indirectly for the distribution of such handbills; provided, that no license fee shall be charged for the distribution of any noncommercial handbill, the principal purposes of which is to disseminate information relating to any political, economic, religious, philosophical, or related subjects and not connected with any commercial enterprise.

N. “Hotels, motels, apartments, rooming houses and auto courts” means all places of business providing guest rooms, shelter, or space at a fixed rental for the accommodation of the public and consisting of at least five rental units.

O. “Interstate commerce” means the buying, selling, or moving of products, services, or money across state borders.

P. “Laundry collection agency” means every person engaged in the business of collection or delivering any garment, household linen, fabric, or other material or article commonly and ordinarily accepted for laundry service, by any laundry establishment including dry cleaning.

Q. “Oil storage tank stations” means all places of business the principal function of which is maintaining tankage facilities for the storage of petroleum products, compound, or any hydrocarbon substance, and shall include wholesale distributors of such petroleum, petroleum products or compound, or hydrocarbon substances.

R. “Peddler” means any person, not having a fixed place of business in the city, who travels from place to place, from house to house, or from street to street seeking to make sales and/or deliveries of the good, wares, merchandise or services in which he deals. Peddler shall not include vendors who distribute their goods to regular customers on established routes.

S. “Personal services” means any personal services, as that term is ordinarily and commonly used and understood, rendered by any person offering to the public personal services for compensation, and not specifically covered under any other part, chapter or section of this title, and shall include but not be limited to barbers, beauticians, cosmeticians (manicurists, hairdressers, etc.), bootblacks, checkroom operators and any person engaged in rendering any service to the person, or personal services similar, kindred or related to any of those services listed in this subsection, and for which a license fee is not specifically required under any other part, chapter or section of this title.

T. “Person” means and includes all domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, business or common law trusts, societies and individuals transacting and carrying on any business in the city, other than as an employee. Notwithstanding the definition herein of “person,” professional people shall be individually licensed as provided in this title.

U. “Professional services” means any professional services as that term is ordinarily and commonly used and understood, wherein individuals are engaged in the business of offering to the public professional or semiprofessional services for compensation, and not specifically covered under any other part, chapter or section of this title, and shall include but not be limited to the services rendered by any person engaged in the practice or profession of law; medicine, surgery; dentistry; optometry; chiropractic; osteopathy, chiropody; veterinary; real estate agent; real estate broker; insurance agent; insurance broker; stock and bond agent or broker; telephone message service; civil, mechanical, electrical, industrial, or other class of engineer; architect; draftsman; designer; income tax consultant; teacher of dancing, music, elocution, dramatic art; all teachers of the arts and sciences; and similar enterprises or occupations.

V. “Public card room” means any person conducting, managing or carrying on any public card room where games of any kind are played with cards; exempting, however, all fraternal organizations and labor unions.

W. “Retailing” means the business of offering for sale or selling to the public at retail any materials, commodities, goods, wares or merchandise.

X. “Rummage sale” means a sale of assorted secondhand objects contributed by donors to raise money for a charity.

Y. “Sale” means and includes the transfer in any manner or by any means whatsoever of the title to property for a consideration. The serving, supplying or furnishing for a consideration of any property and a transaction whereby the possession of property is transferred and the seller retains the title as security for the payment of the price shall likewise be deemed a sale. This definition shall not be deemed to exclude any transaction, which in effect results in a sale within the contemplation of law.

Z. “Solicitor” means any person who goes from place to place, from house to house, or from street to street soliciting or taking, or attempting to take, orders for the sale of goods, wares, merchandise, or property of any nature for future delivery, or for services to be performed in the future.

AA. “Street faire,” “special event,” or “farmers’ market” means an event, sponsored by an organization, consisting of at least five vendors offering for retail sale handmade items, textiles, ceramics, paintings, sculptures, agricultural produce, refreshments, prepared food, beverages, and other such items which are commonly offered for sale at events of a similar nature. At any street faire/special event, the sponsoring organization may provide live entertainment.

BB. “Supplemental paperwork” means forms or documents required to be submitted with a new or renewal business license application. The types of forms or documents vary based on the type of business but may include such items as: fats, oils, and grease logs, standard industrial classification code, regulatory permits or licenses, business services form, independent business owner/1099 form, SB 341/1826 recycling forms, stormwater device maintenance verification form or other regulatory forms deemed necessary by the finance director.

CC. “Sworn statement” means an affidavit sworn to before a person (public notary, city clerk, city manager, police chief) authorized to take oath or a declaration or certification made under penalty of perjury.

DD. “Transient house-to-house personal and miscellaneous services” means any personal service as the same is ordinarily and commonly used and understood, wherein individuals, either by appointment or call or otherwise, go from house to house or place to place rendering personal or other services for compensation and shall include services rendered by barbers, beauticians, cosmeticians, manicurists, hairdressers, etc., tool or cutlery grinders, dressmakers, tailors, dog groomers, house cleaners, handymen and any person engaged in rendering any service to the person or personal or miscellaneous services similar, kindred or related to any of those listed in this subsection not prohibited by law and for which a license fee is not specifically required under any other part, chapter or section of this title; provided, that any person maintaining a fixed place of business in the city for rendering personal services and paying a license fee therefor shall not be required to pay any further license fee under the provisions of this chapter.

EE. “Trucking and transportation” means the business carried on by any person engaged in trucking or transporting by vehicle, for hire or compensation, baggage, express, freight, household goods, building or other materials, equipment, rubbish, goods, wares or merchandise.

FF. “Vehicular street advertising” means the business of advertising commercial enterprises of any character or for any purpose, carried on by means of any vehicle traversing the public streets.

GG. “Wholesale and jobbing” means the business of offering for sale or selling at wholesale or as a jobber any materials, commodities, wares or merchandise. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.030 Operation of business without license prohibited.

It is unlawful for any person to conduct or operate any business, as the same is defined in this chapter, without having a valid, unrevoked and unsuspended license from the city to do so in accordance with Article II, fully paid fees required by Article III, and without complying with any and all regulations of such business contained in this title. It is unlawful for the owner of a commercial or industrial business with a physical location to allow independent business owners to locate within or operate out of their facility until the independent business owner has obtained a valid business license under this chapter. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.040 Business inspections.

Before a business license is issued, the business must receive and pass a business inspection conducted by the city building department and consolidated fire department. The necessity for an inspection for a home occupation business is at the discretion of the building department. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.050 Enforcement of chapter.

A. It shall be the duty of the finance director to enforce each of the provisions of this chapter. The chief of police shall render such assistance in such enforcement as may be required from time to time by the finance director or the city council.

B. The finance director and any police officer shall have the power and authority to enter, free of charge, and at any reasonable time, any place of business required to be licensed under this chapter and to demand that its license be exhibited and to ascertain whether or not the provisions of this chapter have been complied with.

C. For the purpose of enforcing the provisions of this title, the finance director may, with the prior consent of the city council, deputize a qualified accountant to examine the necessary books and records of any person doing business in the city for the purpose of determining the correctness of the statement filed with the finance director, or on which the license fee for such business is based. Any failure on the part of any person licensed under this chapter to exhibit his or her books and records to the accountant so deputized shall constitute a misdemeanor punishable as in this chapter provided. (Ord. 585 § 2.1 (Exh. A), 2020)

Article II. Business License Required

5.04.060 Business license – Application.

A. All applications for a business license shall be made to the finance director on forms furnished by the finance director and shall state all facts necessary and proper to be known and stated for the issuance of such license, including the following:

1. The kind or character of the business or business enterprise;

2. The location of the business or business enterprise;

3. The full name and residence of the proposed licensee;

4. The period of time such business or business enterprise is intended to be continued, or for which the proposed license is to be issued; and

5. Such other facts or information as the finance director may require, including any supplemental paperwork required in accordance with EMC 5.04.180.

B. If the license fee payable under this chapter is fixed or to be determined by the amount of gross sales or gross receipts, then for new businesses and business enterprises not previously licensed, the application shall state an estimate of the amount of such gross sales or gross receipts anticipated for the period for which the license is proposed to be issued.

C. For established businesses and businesses previously licensed, the application shall state the amount of gross sales or gross receipts for the last preceding license period. All applications for license shall be verified by the applicant.

D. Whenever a license is applied for which must be approved by the chief of police or city council before being issued in accordance with EMC 5.04.150 or 5.04.160, or whenever a license is applied for to conduct a business of a temporary nature, the finance director or designee may require the person applying for a license to submit their thumb- and fingerprints supplement to the application therefor.

E. Any application for a new annual license received after November 30th will be processed to include the following calendar year. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.070 Business license – Issuance by finance director.

On receiving proper application therefor and containing the necessary information, it shall be the duty of the finance director to issue a license under this chapter to every person paying a license fee or entitled to such license. The finance director shall determine the business classification of the applicants; provided, that any person may appeal to the city council from the decision of the finance director as to such classification in accordance with EMC 5.04.140, and the council, after hearing, shall fix and determine the classification and the amount of fee required for such license, and the determination of the council shall be final. In no case shall any mistake by the finance director stating the amount of the license fee prevent the collection of what shall be actually due, with all costs against any licensee, or against anyone commencing or carrying on any business enterprise within the city, without a license. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.080 Business license – Form and contents.

Each license issued under this article shall be upon the forms furnished by the finance director and shall set forth and contain the name of the licensee, or of the business licensed, the address of the licensee, and the location of the business licensed, the period of time covered by such license, and such other information as the finance director may deem necessary or proper. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.090 Business license – Renewal.

An annual license is effective from January 1st to December 31st of each year. To renew an annual license, the business must submit to the city a renewal application form, the required supplemental documents listed on the renewal application form, and annual license fees in accordance with this chapter. The annual renewal paperwork and license fees shall be due and payable to the city on or before January 1st of each and every year. Any person liable to pay an annual license fee, but intends to conduct business for only a portion of the year, shall nevertheless be required to pay the full annual fee. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.100 Business license – Application – Denial.

A. The finance director, chief of police or city council may deny an application for a business license, if the applicant or any agent or representative thereof has:

1. Made any false, misleading or fraudulent statement of a material fact in the application or in any record or report required to be filed under this title;

2. Violated any of the provisions of this chapter or any provisions of any other ordinance or law relating to or regulating said business or occupation;

3. Been convicted of a crime, the nature of which indicates the applicant’s unfitness to operate the proposed business. A plea or verdict of guilty, a finding of guilty by a court in a trial without a jury, a plea of nolo contendere, or a forfeiture of bail is deemed a conviction;

4. Failed to obtain or comply with a license, where this code or the laws of the State of California require a person or entity to be licensed under and by virtue of its laws;

5. Proposed to conduct or carry on a business where prohibited by the zoning ordinance or within a structure which does not comply with applicable building code regulations.

B. The denial of a business license may be appealed pursuant to EMC 5.04.140. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.110 Business license – Posting.

Every person having a license under the provisions of this article shall post the license in the place of business of the license, and shall produce and exhibit the license when applying for a renewal thereof; and whenever requested to do so by any police officer or by any officer authorized to issue or inspect licenses or to collect license fees. Every person not having a place of business and required to have a license by this chapter shall carry the license while engaged in the pursuit for which the license is issued. All solicitors and peddlers shall wear self-provided photo identification consisting of the peddler’s or solicitor’s legal name, and the name, address, and phone number of the business entity represented. This identification must be presented to the city before a business license will be issued. Peddlers and solicitors shall also have on their person proof of business license with the city. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.120 Business license – Nontransferable – Exceptions.

No license granted or issued under any provision of this article shall be transferable or assignable, except in the case of bona fide sale of the entire business for which such license was issued; and then only in case such sale is reported to the finance director, a fee set by resolution of the city council is paid, and the consent of the finance director to such assignment is obtained. The licensed business shall be carried on only at or from the place specified in the license unless any change in location is reported to the finance director, and the consent of the finance director to such change in location is obtained. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.130 Business license – Revocation and suspension.

The finance director may revoke or suspend any license issued under this title in any of the following circumstances: (A) the finance director makes any finding necessary to deny a license under EMC 5.04.100; and (B) the licensee violates any provision of this chapter or this code. The finance director shall provide notice of any decision under this section to be delivered to the licensee personally, or left at their place of business, if they conduct their business in a fixed, bona fide and established place in the city, or by mailing the notice at the mailing address stated on their application. Upon revocation or suspension of a license, the finance director may, in such cases as it deems proper, order refunded to the person whose license is revoked or suspended the prepaid license fees of such person. If the revocation or suspension of license is for violation of the terms and provisions of this title, or other regulatory ordinances of the city, the prepaid license fees shall be forfeited to the city. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.140 Business license – Appeal of denial, revocation, condition – Hearing procedures.

A. Submission of Appeal.

1. Any person aggrieved by the decision of the city with respect to the issuance or refusal to issue a license or any other determination pursuant to this title may appeal that decision to the city manager within 15 calendar days following service of notice of the action was received or the permit or license was issued.

2. The notice of appeal shall be in writing and signed by the person making the appeal, or his or her legal representative, and shall contain the following:

a. The name, address and telephone number of the appellant;

b. A true and correct copy of the notice of the decision or action issued by the city manager that the appellant is appealing;

c. A specific statement of the reasons and grounds for making the appeal in sufficient detail to enable the city manager to understand the nature of the controversy, the basis of the appeal, and the relief requested;

d. All documents or other evidence pertinent to the appeal that the appellant requests the city manager to consider at the hearing.

3. At the time of filing the appellant must pay the designated appeal fee, which may be established by resolution of the city council.

4. In the event a written notice of appeal is timely filed, the suspension, revocation, or denial is not effective until a final order has been rendered and issued by the city manager. If no timely, proper appeal is filed in the event of a decision of denial, the license expires at the conclusion of the term of the permit. If no timely, proper appeal is filed in the event of a suspension or revocation, the suspension or revocation is effective upon the expiration of the period for filing a written notice of appeal. Failure of the aggrieved person to file a timely and proper appeal is a waiver of the right to appeal the decision of the city and a failure to exhaust all administrative remedies. In this event, the city’s decision is final and binding.

B. Hearing Procedure.

1. Upon receipt of the written appeal, the city clerk shall set the matter for a hearing before the city manager. The city manager will preside over the appeal, hear the matter de novo, and conduct the hearing pursuant to the procedures set forth in this chapter. The city bears the burden of proof to establish the grounds for the suspension, revocation, or denial by a preponderance of the evidence.

2. The appeal must be held within a reasonable time after the date of filing, but no later than 30 calendar days from that date unless the parties agree otherwise. The city must notify the appellant of the date, time, and location of the hearing at least 10 calendar days before the date of the hearing.

3. At the hearing, the appellant may present witnesses and evidence relevant to the decision appealed. Appeal hearings are informal, and the formal rules of evidence and procedure applicable in a court of law shall not apply to the hearing. However, rules of privilege are applicable to the extent they are permitted by law; and irrelevant, collateral, and repetitious evidence may be excluded.

C. City Manager’s Decision.

1. No later than 15 calendar days following conclusion of the appeal hearing, and after considering all of the testimony and evidence submitted at the hearing, the city manager will determine if any ground exists for the suspension, revocation, or denial of the business license.

2. If the city manager determines that no grounds for the suspension, revocation, or denial exist, the decision shall be deemed canceled.

3. If the city manager determines that one or more of the reasons or grounds exist, the city manager must issue a written decision containing a finding and description of each reason or ground to uphold the city’s decision, and any other finding that is relevant or necessary to the subject matter of the appeal. The decision of the city manager is final. The decision must contain the following statement:

The decision of the City Manager is final. Judicial review of this decision is subject to the time limits set forth in California Code of Civil Procedure section 1094.6.

4. A copy of the city manager’s decision must be served by first class mail on the appellant. Failure of a person to receive a properly addressed city manager’s decision does not invalidate any action or proceeding by the city pursuant to this chapter. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.150 When license to be authorized by city council.

Whenever any person desires to engage in any business in the city, enumerated in this section, in addition to the application filed with the finance director, such person shall petition the city council for license therefor, which petition shall state the name of the applicant and any other information, which the city council may by resolution require. On consideration thereof, the council may authorize the same to be issued in whole or in part or rejected in whole or in part. No license shall be issued for the conduct of any such business, except as ordered by the council. Such businesses are the following:

A. Circuses;

B. Public card rooms;

C. Carnivals, tent theaters, animal shows, temporary entertainment under tent or temporary structure;

D. Ambulance service. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.160 When license to be authorized by chief of police.

A. No license shall be issued or renewed for the following businesses without prior authorization by the chief of police and a background check as provided by subsections C and D of this section:

1. Adult entertainment establishments;

2. Bathhouses and massage parlors;

3. Bowling alleys, amusement arcades, commercial arcades, ice skating or roller skating rinks;

4. Fortunetelling;

5. Hospitals, sanitariums, rest homes, mortuaries and funeral parlors;

6. Junk dealers or collectors, secondhand dealers, automobile-wrecking and machine-wrecking yards;

7. Mobile vendors;

8. Pawnbrokers and watchmen;

9. Pool and billiard halls;

10. Private police and detective agencies;

11. Solicitors and peddlers, handbill distributors, transient house-to-house personal and miscellaneous services; and any business not already licensed by the state that enters into a resident’s home;

12. Taxicabs, vehicles for hire, and transportation network company drivers;

13. Used vehicle lot, including, but not limited to, cars, trucks, recreational vehicles, watercraft or trailers;

14. Bar with or without food service.

B. No license shall be issued for the following businesses without prior authorization by the chief of police and, in the discretion of the chief of police, a background check as provided in subsection C of this section:

1. Kennels and boarding stables;

2. Theaters maintaining fixed place of business in the city.

C. As part of the business license application for the businesses for which a background check is required, applicants shall provide the following:

1. A list of all criminal convictions, including pleas of nolo contendere, within the last eight years, including those dismissed or expunged pursuant to Penal Code Section 1203.4, but excluding minor traffic violations, and the date and place of each such conviction and explanation thereof; and

2. At the applicant’s expense, a complete set of fingerprints taken by the police department.

D. Any person holding a license for any of the following businesses must provide a background check every three years:

1. Adult entertainment establishments;

2. Bathhouses and massage parlors;

3. Fortunetelling;

4. Pawnbrokers and watchmen;

5. Solicitors and peddlers, handbill distributors, transient house-to-house personal and miscellaneous services; and any business not already licensed by the state that enters into a resident’s home.

E. If, in the judgment of the chief of police, the representations made in the application, or his investigation of the applicant, discloses that the granting of the license applied for may be detrimental to the public peace, health, safety or general welfare or that the applicant has been convicted of any violation of law involving moral turpitude, he shall not authorize the issuance of the license. The finance director shall thereupon advise the applicant that he may appeal to the city manager in the same manner as provided by EMC 8.20.190. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.170 State and/or county license required.

No license shall be issued covering any business, profession, or operation for which a permit or license is required by the state and/or county unless the applicant shall exhibit the license or permit to the finance director. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.180 Supplemental paperwork

No license shall be issued covering any business, profession, or operation until the supplemental paperwork required and associated with that business type is completed. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.190 Branch establishments.

A. Only one license shall be required for any business where one of the following conditions are found:

1. There is only one physical location for the business in the city;

2. There are two or more physical locations for the business but the entire business is owned by the same one or more persons or business organizations.

B. In the event there are two or more physical locations for the business not meeting the requirements in subsections (A)(1) and (A)(2) of this section, a separate license shall be required for each location of the business.

C. In the event different parts of the business are owned by different persons or business organizations, although the business is conducted at one location, a separate license shall be required for each part of the business. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.200 Demands or notices not required.

No personal demands or notices to any persons owing any license fee or additions for delinquencies under this article shall be necessary in order that such persons incur or be charged with the penalties of this article. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.210 Effect on other ordinances.

Persons required to pay a license fee for transacting and carrying on any business under this article shall not be relieved from the payment of any license fee for the privilege of doing such business required under any other ordinance of the city, and shall remain subject to the regulatory provisions of other ordinances. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.220 Unlawful business prohibited.

Issuance of a license shall not constitute endorsement of the applicant, their employees or product by the city or its employees. Any such claim of endorsement by the applicant or any agent of their business or product may be cause for immediate revocation of the license. No provisions of this article shall ever be held or construed as licensing or permitting the establishment or carrying on of any unlawful business, game or other activity. Every such unlawful business, game or other activity is prohibited and no license shall be authorized or issued therefor. Any business, game and activity shall be considered unlawful pursuant to this section if it violates either federal or state law. (Ord. 585 § 2.1 (Exh. A), 2020)

Article III. Business License Fees

5.04.230 License fees – Applicability.

Every person transacting, carrying on or conducting in the city any business shall pay an application fee for the initial license and an annual license fee based upon gross receipts or as otherwise established by resolution of the city council. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.240 License fees – Payment.

All license fees shall be payable in advance of issuance of the license in lawful money of the United States at City Hall. For daily licenses, the applicant shall pay the daily license fee in this article to the city each day. When an annual license is first obtained, the license fee may be prorated for the balance of the licensing period by estimating gross receipts/sales from the issue date of the license through December 31st of that same year. In the event the license is for any reason whatsoever revoked, suspended, denied or in any event not obtained by the applicant, the fee paid will not be refunded to the applicant. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.250 License fees – Right to review statements.

A. Any applicant for a license required by this chapter must provide documentation required to verify any statement or representation made to the city in support of the license. Any statement or representation contained in an application for a license or renewal license is subject to audit and verification by the finance director, his or her deputies, or authorized employees of the city, who are authorized to examine, audit, and inspect such books and records of any licensee or applicant for license, as may be necessary in their judgment to verify or ascertain the amount of license fee due.

B. All licensees, applicants for licenses, and persons engaged in business in the city are required to permit an examination of such books and records for the purposes aforesaid. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.260 License fees – Delinquent when.

All annual license fees described in this article, if unpaid, are delinquent if not received in the office before 5:00 p.m. on January 1st of each year. All daily license fees, if unpaid, are delinquent at 5:00 p.m. on the same day they become due and payable. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.270 License fees – Penalties for delinquencies.

A. All renewing annual licenses shall receive a grace period from assessed penalties from January 2nd through January 31st of each year. In such case where renewal application, supplemental paperwork, and license fees required by this article are not actually received in the office before 5:00 p.m. on January 31st – not just postmarked – a penalty of 10 percent of the license fee shall be added. An additional penalty of 10 percent of the license fee shall be added at 8:00 a.m. on the first calendar day of each month thereafter.

B. Every penalty shall become a part of the license fee required by this article. In no event shall the penalty or penalties exceed the amount of the license fee due. This section shall not be construed to prevent the enforcement of the penal provisions of this article and such provisions may be enforced at any time after the due date of the license.

C. No license shall be issued, nor one which has been suspended or revoked shall be reinstated or reissued, to any person who, at the time of applying therefor, is indebted to the city for any delinquent business licenses taxes, delinquencies fees, or administration citations. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.280 License fees – Exemptions.

A. Except as otherwise provided in this chapter, no person or business shall be exempt from the necessity of procuring a license to do business in the city. License fees, however, will not be charged for licenses in the following cases:

1. A veteran who is honorably discharged or honorably relieved from the United States Armed Forces and is a resident of this state shall not be required to pay any local business license fees for a business selling or providing services if the veteran is the sole proprietor of the business. To claim this exemption, the applicant must provide a certificate of honorable discharge from any of the armed forces of the United States, or a certified or exemplified copy thereof; and unexpired photo identification;

2. Solicitors and peddlers engaged in interstate commerce and who are, by law, exempt from payment of a license fee, by virtue of the fact that they are engaged in interstate commerce;

3. Persons transacting and carrying on any business exempt by virtue of the Constitution or applicable statutes of the United States or other state from the payment to municipal corporations of such license fees or taxes;

4. Banks/financial institutions, public schools, or insurance companies so long as the insurance company does not conduct any business within the limits of the city other than the sale of insurance to the extent provided by Article XIII, Sections 27 and 28, of the State Constitution;

5. The provisions of this article shall not be deemed or construed to require the payment of a license fee to conduct, manage or carry on any business, occupation or activity, from any institution or organization which is conducted, managed or carried on wholly for the benefit of charitable purposes and from which profit is not derived, either directly or indirectly, by any individual, firm or corporation; nor shall any license fee be required for the conducting of any entertainment, concert, exhibition or lecture dealing with scientific, historical, political, literary, religious, or other educational subjects within the city, wherein the receipts of any such entertainment, concert, exhibition or lecture are to be appropriated to any service organization, church or school, or to any religious or benevolent purpose; nor shall any license fee be required for the conducting of any entertainment, dance, charitable, fraternal, education, military, state, county or municipal organization or association, whenever the receipts of any such entertainment, dance, concert, exhibition or lecture are to be appropriated for the purposes and objects for which such association or organization was formed and from which profit is not derived either directly or indirectly, by any individual firm or corporation; provided, however, that nothing contained in this section shall be deemed to exempt any such institution or organization from complying with the provisions of this article or any other ordinance of the city requiring authorization from the city council or any other officer of the city to conduct, manage or carry on any profession, trade, calling or occupation, specified in this article.

B. The provisions of this article shall not be deemed or construed to require the payment of any license fee by any public utility, which pays to the city a tax under a franchise or similar agreement.

C. The finance director may require the filing of a verified statement, with supporting documentation, from any person claiming to be excluded by the provisions of this title, which statement sets forth all facts upon which the exclusion is claimed. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.290 License and fee exemptions.

A. The following businesses are not required to obtain a business license nor pay a fee or tax:

1. Large and small family daycare homes, as defined in the Escalon Zoning Ordinance, Chapter 17.81 EMC;

2. Vendors conducting business on Escalon Unified School District property during sporting, fundraising, or special events.

B. In each of the above cases, the person claiming exemption from license shall first present satisfactory evidence to the finance director that they are entitled to such exemption, which evidence shall include a written statement under oath setting forth such facts and giving such information as the finance director may require; and provided further, that all such persons shall comply with all the other provisions of this chapter. (Ord. 585 § 2.1 (Exh. A), 2020)

Article IV. Specific Business Regulations

5.04.300 Concessions.

Every person who operates any business, whether upon a cost, rental or commission basis as a concession or upon rented floor space in or upon the premises of any person licensed under any provisions of this chapter, shall be required to pay the license fee and obtain a separate and independent license pursuant to the appropriate provisions hereof, and shall be subject to all the provisions of this chapter. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.310 License fees – Commercial vehicles.

A. Every person transacting, carrying on or conducting the business of trading in, selling, or offering for sale any materials, commodities, edibles, goods, wares or merchandise by means of any vehicle or operating a delivery service for the delivery thereof by means of any vehicle or the servicing of vending and amusement machines by means of any vehicles shall pay an annual license fee as established by resolution of the city council.

B. No fee shall be required for any vehicles used for miscellaneous and irregular delivery service by any person carrying on any business located within the city for which a license fee is paid under any other provision of this chapter; provided, that the exemption shall not apply to any such business operating any vehicular order-and-sale or delivery service over fixed or regular routes. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.320 License fees – Contractors.

A. Every person transacting, carrying on or conducting the business of general building contractor, or plumbing, electrical or roofing contractor, or other specialty contractor and who has a fixed place of business in the city shall pay an annual license fee based upon gross receipts as established by resolution of the city council.

B. In computing gross receipts under this section contractors shall be entitled to deduct all sums paid to subcontractors for contracts performed in the city. The name of each subcontractor to whom such payment is claimed shall be reported to the finance director, together with the amount paid.

C. The receipts of the contractors enumerated in this section from contracts performed wholly outside the city shall not be included in their gross receipts for the purpose of computing the license tax. Any such contractor who does not have a fixed place of business in the city shall be required to obtain a license and pay a fee with respect to any contract performed by him within the city equal to 125 percent of the fee specified in subsection A of this section. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.330 License fees – Livestock and poultry feed.

A. Every person transacting, carrying on or conducting the business of selling feed for livestock or poultry at retail, wholesaling and jobbing, or manufacturing shall pay an annual license fee based upon gross receipts as established by resolution of the city council.

B. If any person transacting, carrying on or conducting the business of manufacturing shall also engage in retailing business, whether selling products manufactured by themself or not, they shall also be required to obtain a license and pay the tax specified for such retail business in addition to the license specified in this section; provided, that any person engaged in the business of manufacturing shall not be required to obtain a license in addition to their manufacturing license to engage in the wholesale or jobbing business with respect to products manufactured by themself. In the event a manufacturer has obtained a license as a retailer for the purpose of retailing products manufactured by themself, they shall be entitled to deduct from their gross receipts as a manufacturer the amount of gross receipts realized by themself from the retail sale of the products manufactured by themself. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.340 License fees – Professional services, personal services, and arts and crafts.

Every person transacting, carrying on or conducting in the city the business of furnishing professional services, personal services, arts and crafts, and laundry collection agencies shall pay an annual license fee based upon gross receipts as established by resolution of the city council. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.350 License fees – Trucking and transportation – Business outside city.

Every person transacting, carrying on or conducting a trucking or transportation business from outside of the city shall pay an annual license fee in the amount established by resolution of the city council for every vehicle used in such business inside the city. (Ord. 585 § 2.1 (Exh. A), 2020)

Article V. Violation – Penalty

5.04.360 Violation – Penalty.

A. It is unlawful and constitutes an infraction for any person to violate or fail to comply with any provision of this chapter.

B. Any person having a license required by this title who fails to exhibit the same on demand shall be guilty of an infraction and subject to the penalties provided for by the provisions of this chapter.

C. Any person who violates any provision of this chapter is guilty of a misdemeanor punishable by a fine of up to $1,000, or by imprisonment in the county jail not exceeding six months, or by both such fine and imprisonment, except the city attorney may prosecute a violation of this chapter as an infraction, in his or her discretion.

D. Administrative citations may be issued for violations of the provisions of this chapter, as set forth in Chapter 8.24 EMC.

E. The city attorney may bring a civil or equitable action, at his or her discretion, to seek the abatement of any violation of this code.

F. Whenever in this chapter any act or omission is made unlawful, it shall include causing, permitting, aiding, abetting, suffering, or concealing the fact of such act or omission.

G. Each and every day a violation is maintained, caused, aided, abetted, concealed, suffered, or permitted is a separate offense.

H. The remedies, procedures, and penalties provided by this chapter are cumulative to each other and to any other available under city, state, or federal law. (Ord. 585 § 2.1 (Exh. A), 2020)

5.04.370 License fees – Civil and criminal liability.

A. The amount of any license fee imposed by this chapter shall be deemed a debt to the city, and any person engaged in any business in the city without having secured the required license from the city to do so or having failed to pay in full the license fees provided in this article shall be liable to legal action in the name of the city in any court of competent jurisdiction for the amount of such license fee, plus any court costs incurred by the city.

B. The conviction and punishment of any person for transacting any business without a license shall not excuse or exempt such person from the payment of any unpaid license fees.

C. Nothing herein shall prevent a criminal prosecution for any violation of the provisions of this article. (Ord. 585 § 2.1 (Exh. A), 2020)