Chapter 4.02
BUSINESS CERTIFICATES
Sections:
4.02.030 Certificates – Required.
4.02.040 Certificates – Required for branch offices and businesses doing business in same location.
4.02.050 Evidence of doing business – Designated.
4.02.060 Exempt businesses or corporations.
4.02.080 Certificate – Application – Contents.
4.02.100 Certificate – Issuance.
4.02.120 Certificate – Nontransferable or nonrefundable.
4.02.130 Certificate – Duplicate.
4.02.140 Certificate – Denial.
4.02.150 Certificate – Appeal of denial.
4.02.160 Investigation and inspection procedure.
4.02.170 Constitutional apportionment.
4.02.200 Grounds for denial or revocation.
4.02.210 Penalties for failure to apply for certificate or not having current certificate.
4.02.220 Effect of chapter on existing businesses.
4.02.010 Purpose.
A. This chapter is enacted to protect the public interest, health, welfare and safety by providing a means to ensure that all new and existing businesses operating in a fixed location in the city are made aware of and conform to all city zoning, fire and public safety ordinances, rules and regulations by requiring them to register and procure a certificate from the city.
B. This chapter is also intended to protect the interests of legitimate businesses in the city from unfair competition with businesses operating in violation of federal, state and local laws.
C. This chapter is not intended to impose any form of taxation on the business community nor to collect in fees more money than is necessary to recover the administrative costs of processing an application for the issuance or renewal of a business certificate. (Ord. 290 § 1, 2002; Ord. 45 § 1, 1987; 1987 Code § 4.02.010)
4.02.020 Definitions.
For the purposes of this chapter, the words set out in this section shall have the following meanings:
A. “Business” means professions, trades and occupations and all and every kind of calling, whether or not carried on for a profit.
B. “Civic groups, service clubs and social organizations” means a group, club or organization that is not engaged in any profession, trade, calling or occupation but is organized to provide civic, service or social activities in the city.
C. “Occasional” means less than once each quarter of a year.
D. “Person” means all domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, Massachusetts trusts, business trusts or common law trusts, societies, and individuals transacting and carrying on any business in the city.
E. “Profession” means doctors, dentists, attorneys, accountants, real estate licensees, beauticians, barbers or any other occupation or calling requiring a specialized knowledge and a license to practice such profession.
F. “Sworn statement” means an affidavit sworn before a person authorized to take oaths, or a declaration or certification made under penalty of perjury. (Ord. 290 § 1, 2002; Ord. 45 § 1, 1987; 1987 Code § 4.02.020)
4.02.030 Certificates – Required.
A. It is unlawful for any person to transact and carry on any business, trade, profession, calling or occupation operating from a fixed location within the city without first having procured a certificate from the city to do so, or without complying with any and all applicable provisions of this chapter.
B. A new certificate shall be required whenever:
1. There is a change of business name;
2. There is a change of business ownership or management;
3. There is a change of physical location;
4. There is a change of type or nature of business. (Ord. 290 § 1, 2002; Ord. 45 § 1, 1987; 1987 Code § 4.02.030)
4.02.040 Certificates – Required for branch offices and businesses doing business in same location.
A. A separate certificate must be obtained for each branch establishment or location of the business transacted and carried on and for each separate type of business at the same location. Each certificate shall authorize the holder to transact and carry on only the business certified at a given location. Any changes in the type or character of the business will require the certificate holder to submit an application for a new certificate.
B. A beautician, barber, accountant, real estate licensee, doctor, dentist or similar type of professional person who is in business for himself or herself and uses space in a business office area that has been issued a certificate for the primary business conducting the same type of business shall not be required to have a separate certificate. This includes independent contractors, holistic health practitioners, masseuses, and retail operators. (Ord. 290 § 1, 2002; Ord. 45 § 1, 1987; 1987 Code §§ 4.02.040, 4.02.090)
4.02.050 Evidence of doing business – Designated.
When any person shall, by use of signs, circulars, cards, telephone book or newspaper, advertise or otherwise represent that the person is in business in the city, or when any person holds an active certificate or permit issued by a governmental agency indicating that the person is in business in the city, and such person fails to deny on a sworn statement provided by the city that the person is not conducting business in the city, then these facts shall be considered prima facie evidence that the person is conducting a business in the city and a certificate will be required unless the business is excluded in SBMC 4.02.060. (Ord. 290 § 1, 2002; Ord. 45 § 1, 1987; 1987 Code § 4.02.050)
4.02.060 Exempt businesses or corporations.
A. Churches, civic groups, service clubs or social organizations, casual workers such as babysitters, tutors, music teachers and the like shall be exempt from the requirement to obtain a certificate.
B. Businesses that are required to obtain a solicitor’s permit are exempt from this chapter.
C. Businesses which are exempt from the payment of fees or taxes to a municipal corporation by operation of the Constitution or statutes of the state of California or the United States. (Ord. 290 § 1, 2002; Ord. 45 § 1, 1987; 1987 Code § 4.02.060)
4.02.070 Exemption to fees.
A. Charitable organizations meeting the conditions listed below are subject to the requirement to obtain a permit but shall be exempt from the payment of the certificate fee. The payment of the certificate fee will not be required 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 or from which profit is not derived, either directly or indirectly, by any individual, firm or corporation.
B. Nothing in this section shall be deemed to exempt any person, association or organization, institution, firm or corporation from complying with the provisions of this chapter or any ordinance of the city requiring that a certificate, license or permit be obtained to conduct, manage or carry on any profession, trade, calling or occupation.
C. Any person claiming an exemption pursuant to this section shall file a verified statement, on a form provided by the city, stating the facts upon which the exemption is claimed. (Ord. 290 § 1, 2002; Ord. 45 § 1, 1987; 1987 Code § 4.02.070)
4.02.080 Certificate – Application – Contents.
A. Every person, association, organization, institution, firm or corporation required to have a certificate under the provisions of this chapter shall make application to the city on a form provided by the city. The application shall include the following information:
1. The name of the person to whom the certificate is to be issued; if the certificate is to be issued to other than a natural person, the application shall contain the name of the officer, manager or employee primarily responsible for the day-to-day operation of the business;
2. The name of the business;
3. The specific type of business to be conducted;
4. The mailing address of the business;
5. The physical location where the business is to be transacted and carried on;
6. Whether hazardous materials or chemicals will be stored at the business location to the extent permitted within the hazardous materials ordinance;
7. The business State Board of Equalization resale license number, if a resale license is required by the State Board of Equalization; and
8. Federal Employee Identification Number (FEIN) or Tax I.D. Number.
B. The information requested by subsections (A)(7) and (8) of this section shall be considered confidential and shall not be made available to the public. (Ord. 290 § 1, 2002; Ord. 45 § 1, 1987; 1987 Code § 4.02.080)
4.02.090 Certificate – Fee.
At the time of application for a business certificate, the applicant shall pay a fee for the processing and issuing of the certificate in an amount established by city council resolution. (Ord. 290 § 1, 2002; Ord. 45 § 1, 1987; 1987 Code § 4.02.090)
4.02.100 Certificate – Issuance.
A. No certificate shall be issued until an application for a certificate has been completed and filed with the city, all certificate fees are paid, and all city officers or departments required to investigate the application or inspect the premises or facilities to be occupied or used have approved of such issuance. However, the city shall make every attempt practicable to complete any investigation or inspection within 20 working days of receipt of the application. If a certificate is not issued within 15 working days of the approval of the application, the applicant shall be informed of the reason or reasons why the certificate has not yet been issued or will not be issued.
B. The issuance of a certificate shall not be deemed as evidence that a person, association, organization, institution, firm or corporation operating a business in the city is in fact in compliance with all ordinance rules or regulations of the city or that they have applied for or have been issued all permits or licenses which otherwise may be required. (Ord. 290 § 1, 2002; Ord. 45 § 1, 1987; 1987 Code § 4.02.100)
4.02.110 Certificate – Term.
A. Certificates for New Businesses. Certificates for new businesses, whether new to the city or resulting from a change of ownership, location or type of business, shall be issued for a term to expire on December 31st of each calendar year on which the license is issued; provided, however, that any license issued after September 30th of a year shall be issued for a term which will expire on December 31st of the next following calendar year.
B. Renewal of Existing Certificate. All certificates shall be renewed not later than 30 days after expiration. Renewal is the obligation of the certificate holder. (Ord. 290 § 1, 2002; Ord. 97 § 1, 1989; Ord. 45 § 1, 1987; 1987 Code § 4.02.110)
4.02.120 Certificate – Nontransferable or nonrefundable.
No certificate applied for or issued pursuant to this chapter shall be transferable or refundable. (Ord. 290 § 1, 2002; Ord. 45 § 1, 1987; 1987 Code § 4.02.120)
4.02.130 Certificate – Duplicate.
A duplicate certificate may be issued by the city to replace any certificate previously issued under this chapter which has been lost or destroyed, upon the certificate holder filing a sworn statement attesting to such fact and, at the time of filing such statement, paying a duplicate certificate fee equal to the fee established for a certificate renewal. (Ord. 290 § 1, 2002; Ord. 45 § 1, 1987; 1987 Code § 4.02.130)
4.02.140 Certificate – Denial.
Any person denied a certificate shall be fully advised, in writing, of the grounds for such denial. (Ord. 290 § 1, 2002; Ord. 45 § 1, 1987; 1987 Code § 4.02.140)
4.02.150 Certificate – Appeal of denial.
A. Any person aggrieved by the decision of an administrative officer or agency with respect to the issuance or refusal to issue a certificate may appeal that decision to the city manager within 30 days of the date of the denial or the date of issuance of the certificate. The appeal must be in writing and filed with the city clerk. Following the filing of an appeal, the city manager or designee must notify the appellant of a time and place for a hearing to review the appeal. The hearing shall be held within 10 working days of the date of filing of the appeal. Following the hearing, the city manager must notify the appellant of the decision in writing within 15 calendar days.
B. If the person is not satisfied with the decision of the city manager, the person may appeal to the city council within 30 calendar days of receipt of the notice of the city manager’s decision by filing a written appeal with the city clerk. The city clerk shall fix a time and place for hearing the appeal within 30 calendar days of the filing of the appeal and provide the appellant with sufficient notice by serving the appellant personally or by sending the notice by registered mail addressed to the appellant at the last known address. The city council shall have the authority to determine all questions raised on appeal. (Ord. 290 § 1, 2002; Ord. 45 § 1, 1987; 1987 Code § 4.02.150)
4.02.160 Investigation and inspection procedure.
All applications for a certificate shall be investigated in accordance with the following guidelines:
A. Applications for New Certificates. Each application for a new certificate shall be investigated and certified as noted below. The city shall make every attempt practicable to complete all required investigations within 20 working days of the receipt of an application.
1. The community development director must verify that the business and its location comply with the zoning laws of the city.
2. The city’s fire marshal must verify that the physical structures of the business are appropriate for the occupancy class of the proposed use, including hazardous materials, in accordance with the provisions of the Uniform Fire Code and any amendments thereto adopted by this code.
B. Applications for Renewal of an Existing Certificate. Each application for renewal of a certificate shall be processed as follows: The finance department shall receive the renewal application and review it to determine whether any changes exist which require the review of any other department agency or official. If a review is necessary, the application shall be forwarded to the appropriate department. (Ord. 290 § 1, 2002; Ord. 45 § 1, 1987; 1987 Code § 4.02.160)
4.02.170 Constitutional apportionment.
A. None of the fees imposed by this chapter shall be so applied as to occasion an undue burden upon interstate commerce or be violative of the equal protection and due process clauses of the Constitutions of the United States and the state of California.
B. In any case where a fee imposed by this chapter is believed by a certificate holder or applicant for a certificate to place an undue burden upon interstate commerce or be violative of such constitutional clauses, the applicant may apply to the city council for an adjustment of the fee. Such application may be made before, at, or within six months after payment of the prescribed fee. The decision of the city council shall be final. (Ord. 290 § 1, 2002; Ord. 45 § 1, 1987; 1987 Code § 4.02.170)
4.02.180 Posting and keeping.
All certificates must be kept and posted in the following manner:
A. Any certificate holder transacting or carrying on business at a fixed place of business in the city shall keep the certificate posted in a conspicuous place upon the premises where such business is carried on or must have the certificate immediately available for inspection upon request.
B. Any certificate holder transacting or carrying on business, but not operating at a fixed place of business, shall keep the certificate immediately available at all times while transacting and carrying on business in the city. (Ord. 290 § 1, 2002; Ord. 45 § 1, 1987; 1987 Code § 4.02.180)
4.02.190 Right to revoke.
A. Every certificate granted under this chapter is granted and accepted by all parties with the express understanding that the city council may revoke the certificate if it is in the best interest of the health, welfare and safety of the public to do so and grounds for such revocation exist as noted in SBMC 4.02.200.
B. Before a certificate may be revoked, the city council must hold a public hearing with the notice of the time and place of the public hearing and the reason or reasons for the hearing given to the certificate holder. (Ord. 290 § 1, 2002; Ord. 45 § 1, 1987; 1987 Code § 4.02.190)
4.02.200 Grounds for denial or revocation.
A certificate required by this chapter may be denied or revoked, pursuant to this chapter, only upon one or more of the following grounds:
A. Proper application as prescribed in this chapter has not been made or information submitted has been falsified;
B. The fee for such certificate has not been paid;
C. Delinquent certificate fees have not been paid;
D. The conduct of the business is contrary to local, state or federal law; or
E. Information provided on the application is proved false. (Ord. 290 § 1, 2002; Ord. 45 § 1, 1987; 1987 Code § 4.02.200)
4.02.210 Penalties for failure to apply for certificate or not having current certificate.
Any person who fails to apply for and receive a certificate prior to the start of business, or has not applied for the renewal of an existing certificate prior to expiration of the certificate, shall be assessed a penalty fee not to exceed $100.00. (Ord. 290 § 1, 2002; Ord. 45 § 1, 1987; 1987 Code § 4.02.210)
4.02.220 Effect of chapter on existing businesses.
This chapter shall apply to any business that is operating from a permanent location in the city, on the effective date of the ordinance adopting this chapter. (Ord. 290 § 1, 2002; Ord. 45 § 1, 1987; 1987 Code § 4.02.220)
4.02.230 Violation – Penalty.
If a person fails to file for a certificate as provided in this chapter within 30 calendar days after being informed to do so, or fails to pay the fee noted in SBMC 4.02.090, or violates any of the other provisions of this chapter, or knowingly or intentionally misrepresents any material facts to any officer or employee of the city in procuring the certificate provided in this chapter, or continues to operate a business after the business registration certificate has been revoked, the person shall be guilty of a misdemeanor, and shall be punished according to the provisions of Chapter 1.16 SBMC. In the alternative, the city may enforce these provisions pursuant to Chapter 1.18 SBMC. (Ord. 290 § 1, 2002; Ord. 45 § 1, 1987; 1987 Code § 4.02.230)