Chapter 5.04
BUSINESS LICENSES

Sections:

5.04.010    Definitions.

5.04.020    Purpose of provisions.

5.04.030    Applicability of provisions.

5.04.040    Required.

5.04.050    Separate required for each location.

5.04.060    Application.

5.04.070    Issuance.

5.04.080    Approval.

5.04.090    Fee payment required.

5.04.100    Tax.

5.04.110    Fee – Exemption.

5.04.120    Fee – Debt to city.

5.04.130    Fee – Notice not required.

5.04.140    Form and content.

5.04.150    Transferability.

5.04.160    Display required.

5.04.170    Revocation.

5.04.180    Operation without license prohibited.

5.04.190    Unlawful businesses prohibited.

5.04.200    Enforcement.

5.04.010 Definitions.

For the purposes of this chapter, the following words and phrases have the meaning respectively ascribed to them by this section:

A. “Business” 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.

B. “City” means the city of Hughson, a municipal corporation of the state of California, in its present incorporated form or any later reorganized, consolidated, enlarged, or reincorporated form.

C. “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of marijuana.

D. “Delivery” means the transfer, whether commercial or noncommercial, of marijuana or marijuana products to another person. “Delivery” also includes the use by a retailer of any technology platform owned and controlled by the retailer or independently licensed under California law that enables customers to arrange for or facilitate the commercial transfer by a licensed retailer of marijuana or marijuana products.

E. “Dispensary” means a facility or location, whether fixed or mobile, where marijuana, marijuana products or devices for the use of marijuana are offered, made available, or provided, either individually or in any combination, with or without remuneration for medical, recreation, or other purposes.

F. “Garage sale” means the sale of tangible personal property of personal household or sporting goods nature, and owned by a householder within the city, not including property purchased for resale or the goods and wares of a merchant of any description; such sales must be bona fide sales of property personally owned and used by the seller for personal or household use. Garage sale includes yard sale and patio sale.

G. “Manufacture” means to compound, blend, extract, infuse, or otherwise make or prepare a marijuana product.

H. “Marijuana” shall have the same meaning as set forth in Health and Safety Code Section 11018 as the same may be amended from time to time. For purposes of this chapter “marijuana” shall also include marijuana infused in foodstuff or any other ingestible or consumable product containing marijuana and marijuana that is cultivated, processed, transported, distributed, or sold for medical purposes under Chapter 3.5 (commencing with Section 19300) of Division 8 of the Business and Professions Code.

I. “Marijuana activity” means any personal, commercial, noncommercial, or nonprofit cultivation of marijuana, delivery of marijuana, distribution of marijuana, dispensing marijuana, manufacture of marijuana, sale of marijuana and/or marijuana products, the nonmedical use and medical use of marijuana to the extent prohibited by Chapter 9.40 HMC, and the operation or establishment of a medical or nonmedical marijuana cooperative, dispensary, delivery service, operator, or provider.

J. “Marijuana products” means marijuana that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated marijuana/cannabis, or an edible or topical product containing marijuana or concentrated marijuana/cannabis and other ingredients. “Marijuana products” includes all types of marijuana, whether medical, nonmedical, or otherwise.

K. “Merchants” includes any person selling goods, wares, and merchandise or services of any description within the city, either as a sole business, or in connection with some other business, and any person engaging in business within the city; except, however, peddlers, solicitors, and all other persons whose business is specifically defined in or for whose business a separate and distinct license fee is provided and required under this chapter.

L. “Person” includes all domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, Massachusetts business or common-law trusts, societies, and individuals transacting and carrying on any business in the city, other than as an employee.

M. “Sale” 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 does not exclude any transaction which in effect results in a sale within the contemplation of law.

N. “Solicitors” and “peddlers” means every person not having a fixed place of business in the city, who travels from place to place or house to house, or temporarily occupies space in any other business establishment within the city, who makes demonstrations of, or solicits, takes orders, or canvasses for the sale of, or sells any goods, wares, merchandise, insurance, subscriptions to periodicals or magazines, or things or articles of value of any nature, kind or description.

O. “Sworn statement” means an affidavit sworn to before a person authorized to take an oath or a declaration or certification made within the state under penalty of perjury. (Ord. 17-04 § 1, 2017; Ord. 73-3 § 1, 1973)

5.04.020 Purpose of provisions.

The ordinance codified in this chapter is enacted solely to raise revenue for municipal purposes and is not intended for regulation. (Ord. 73-3 § 2, 1973)

5.04.030 Applicability of provisions.

Persons required to pay a license tax for transacting and carrying on any business under this chapter shall not be relieved from the payment of any license tax for the privilege of doing such business required under any other ordinance of the city, or any other provision of this code, and shall remain subject to the regulatory provisions of other ordinances and code provisions. (Ord. 73-3 § 3, 1973)

5.04.040 Required.

It is unlawful for any person to commence, establish, maintain, or carry on any business enterprise whatever in the city without:

A. First obtaining a license from the city, whether the business enterprise or the person is subject to a city license tax under this chapter or not; and

B. Fully complying with any and all other regulations of the business contained in this chapter or other regulatory provisions now existing or hereafter to be adopted by the city. (Ord. 73-3 § 4, 1973)

5.04.050 Separate required for each location.

A separate license shall be required and obtained for each kind or class of business carried on at one location. However, except as may be provided otherwise, if more than one business is carried on or engaged in by a person in one store, office, building, or other enclosed area, only the highest single tax applicable to any of the businesses, as prescribed in HMC 5.04.100, shall be required. (Ord. 73-3 § 5, 1973)

5.04.060 Application.

All applications for a license shall be made to the city clerk on forms furnished by the city clerk and shall state all facts necessary and proper to be known and stated for the issuance of a license, including the kind or character of the business or business enterprise, the location thereof, the full name and residence of the proposed licensee, the period of time the business or business enterprise is intended to be continued, or for which the proposed license is to be issued, and such other facts or information as the clerk may require. All applications for license shall be verified by the applicant. Whenever an application is made for a license which must be approved by the city council before being issued, or whenever an application is made for a license to conduct a business of a temporary nature, the clerk may require the person applying for a license to add his thumb and finger prints to the application therefor. (Ord. 73-3 § 6, 1973)

5.04.070 Issuance.

On receiving proper application therefor and containing the necessary information, it shall be the duty of the city clerk to issue a license under this chapter to every person paying a license fee or entitled to such license. The city clerk shall determine the business classification of the applicants; provided, that any person may appeal to the city council from the decision of the city clerk as to the classification, and the council after hearing shall fix and determine the classification and the amount of tax required for such license, and the determination of the council is final. In no case shall any mistake by the city clerk in stating the amount of the license fee prevent the collection of what is 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. 73-3 § 3, 1973)

5.04.080 Approval.

Whenever any person desires to engage in any business in the city, enumerated in this section, such person shall petition the city council for a license therefor, which petition shall state the name of the applicant and any other information which the city council may require by resolution. 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 or permit shall be issued for the conduct of any such business, except as ordered by the council. Such businesses are the following: astrology, athletic exhibitions, boxing contests, carnivals, circuses, clairvoyance and similar practices, and fortunetelling. (Ord. 73-3 § 8, 1973)

5.04.090 Fee payment required.

A. All license fees shall be payable in advance in lawful money of the United States at the office of the city clerk, or at such other place as is from time to time lawfully designated by resolution of the city council.

B. Quarterly Licenses. The quarterly license fees in this chapter shall be due and payable to the city on the first days of January, April, July, and October of each year. Any person liable to pay a quarterly license fee, but who does business for only a portion of the quarterly period, shall nevertheless be required to pay the full quarterly fee. Any person liable to pay a quarterly license may, if he desires and upon making proper application therefor, pay his license fee in advance on either a quarterly, semiannual, or annual basis.

C. Monthly Licenses. The monthly license fees in this chapter shall be due and payable to the city on the first day of each month.

D. Weekly Licenses. The weekly license fees in this chapter are due and payable to the city each Monday.

E. Daily Licenses. The daily license fees in this chapter are due and payable to the city each day. (Ord. 73-3 § 9, 1973)

5.04.100 Tax.

The amounts or rates of license fees to be paid by persons engaging in or carrying on any business or business enterprise in the city shall be fixed and determined from time to time by resolution of the city council, which resolution shall include the amount to be paid for each classification of business and the time of payment, whether quarterly, monthly, weekly or daily. (Ord. 91-03 § 1, 1991; Ord. 73-3 § 10, 1973)

5.04.110 Fee – Exemption.

A. No person 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. Disabled war veterans who are exempt by state law from the payment of a license fee;

2. Solicitors, peddlers, and hawkers 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 of any state from the payment to municipal corporations of such license fees or taxes;

4. A person soliciting or taking orders for goods, wares, or merchandise as a bona fide wholesaler for retail merchants in the city;

5. Any public utility which does business within the city pursuant to a franchise granted by the city;

6. Persons conducting dances, concerts, lectures, parties, entertainment, occasional sales, or any other lawful activity where all the receipts are appropriated exclusively to any church, school, religious, benevolent, patriotic, or other public or beneficial purpose of a local character within the city;

7. Persons engaged in the rental of real property; provided, the average monthly gross receipts from all rentals does not exceed $1,000, and also provided that the number of rental units does not exceed 10.

B. In each of the cases in subsection A of this section, the person claiming exemption from license fee shall first present satisfactory evidence to the city clerk that he is entitled to the exemption, which evidence shall include a written statement under oath setting forth such facts and giving such information as the city clerk may require; and provided further, that all such persons shall comply with all the other provisions of this chapter. (Ord. 73-3 § 11, 1973)

5.04.120 Fee – Debt to city.

The amount of any license fee imposed by this chapter shall be 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 chapter is liable to legal action in the name of the city in any court of competent jurisdiction for the amount of the license fee plus any court costs incurred by the city. The conviction and punishment of any person for transacting any business without a license shall not excuse or exempt the person from the payment of any unpaid license fees. Nothing in this section shall prevent a criminal prosecution for any violation of the provisions of this chapter. (Ord. 73-3 § 12, 1973)

5.04.130 Fee – Notice not required.

No personal demands or notices to any persons owing any license fee, or additions for delinquencies under this chapter, shall be necessary in order that such persons incur or be charged with the penalties of this chapter. (Ord. 73-3 § 13, 1973)

5.04.140 Form and content.

Each license issued under this chapter shall be on forms furnished by the city clerk and shall set forth and contain:

A. The name of the licensee or of the business licensed;

B. The address of the licensee and the location of the business licensed;

C. The period of time covered by the license;

D. The amount of the license fee if payable for the license; and

E. Such other information as the city clerk may deem necessary or proper. (Ord. 73-3 § 14, 1973)

5.04.150 Transferability.

No license granted or issued under any provision of this chapter is transferable or assignable, except in the case of a bona fide sale of the entire business for which the license was issued; and then only in case the sale is reported to the city clerk and the consent of the city clerk to the 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 city clerk and the consent of the city clerk to the change in location is obtained. (Ord. 73-3 § 15, 1973)

5.04.160 Display required.

Every person having a license under the provisions of this chapter shall produce and exhibit the same when applying for 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. (Ord. 73-3 § 16, 1973)

5.04.170 Revocation.

The city council reserves the right to revoke any license issued under this chapter for good cause shown. No license shall be revoked until after a hearing before the city council, notice of which hearing shall be given to a license holder not less than five days in advance of the date of the hearing, which notice shall either be delivered to the licensee personally or left at his place of business if he conducts business in a fixed, bona fide, and established place in the city, or by mailing the notice to him at the mail address stated on his application. (Ord. 73-3 § 17, 1973)

5.04.180 Operation without license prohibited.

The conduct or operation by any person of any business enterprise, as defined in this chapter, without having an unrevoked license from the city to do so, fully paid and in effect at the time, or without complying with any and all regulations of such business contained in this chapter, shall be unlawful. (Ord. 73-3 § 18, 1973)

5.04.190 Unlawful businesses prohibited.

A. No provision of this chapter 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 thereafter.

B. The city shall not approve licenses or uses for any kind or type of marijuana activities, whether medical, nonmedical, or otherwise, including, without limitation, the following:

1. Collectives, cooperatives or dispensaries (as defined in Chapter 9.40 HMC) or any other marijuana activity, whether medical, nonmedical, or otherwise.

2. The distribution, cultivation, manufacturing, transportation, delivery, testing, processing, or any other commercial or noncommercial activity of any type or kind of marijuana, whether medical, nonmedical, or otherwise.

3. Any marijuana activity that requires a license or any other authorization or approval by the state or any other government entity under California law. (Ord. 17-04 § 1, 2017; Ord. 16-03 § 1, 2016; Ord. 73-3 § 19, 1973)

5.04.200 Enforcement.

It is the duty of the city clerk and the chief of police, and of all other lawfully authorized officers or employees of the city, to enforce the provisions of this chapter and to make collections of the license fees imposed. (Ord. 73-3 § 20, 1973)