Chapter 5.02
BUSINESS LICENSES
Sections:
5.02.020 Business license required.
5.02.030 Activities that constitute engaging in business.
5.02.050 Application procedure.
5.02.060 Procedures for issuance or denial of license.
5.02.080 Procedure for renewing licenses.
5.02.100 Ineligible activities.
5.02.110 Standards of conduct.
5.02.130 Suspension or revocation of licenses.
5.02.150 Sale or transfer of business – New license required.
5.02.160 Penalties for violation.
5.02.010 Definitions.
Except as otherwise expressly declared or clearly apparent from the context in which used, the following definitions shall be applied in construing the provisions of this chapter:
“Business” means all services, activities, occupations, pursuits or professions located and/or performed within the city with the object of pecuniary gain, benefit or advantage to the person, or to another person or class, directly or indirectly, whether part-time or full-time. This definition includes, without limitation, home occupations, peddlers, hawkers, and the rental of four or more residential dwelling units. It also includes the activities of businesses which are located outside the city where sales or services are solicited by the physical presence of business representatives inside the city, and it includes general and specialty contractors with offices outside the city who do work on property located inside the city. Businesses which are exempt from this chapter are listed in MMC 5.02.040.
“Director” means the director of the community development department or his or her designee.
“Engaging in business” means commencing, conducting, or continuing in business, and also the exercise of corporate or franchise powers, as well as liquidating a business when the liquidators thereof hold themselves out to the public as conducting such business. The city expressly intends that engaging in business include any activity sufficient to establish nexus for purposes of applying the license fee under the law and the Constitutions of the United States and the state of Washington. Nexus is presumed to continue as long as the taxpayer benefits from the activity that constituted the original nexus-generating contact or subsequent contacts. See MMC 5.02.030 for a list of example activities that constitute “engaging in business.”
“Person” means one or more natural persons of either sex, corporations, partnerships, associations or other entities capable of having an action at law brought against such entity, but shall not include employees of persons licensed pursuant to this chapter. (Ord. 3101 § 2 (Exh. A), 2018)
5.02.020 Business license required.
It is unlawful for any person to engage in business in the city without having first obtained a business license from the city. If more than one separate business is conducted on a single premises, a separate license shall be required for each such business. If a business actively operates from more than one location in the city, a separate license shall be required for each location. (Ord. 3101 § 2 (Exh. A), 2018)
5.02.030 Activities that constitute engaging in business.
This section sets forth examples of activities that constitute engaging in business in the city. The activities listed in this section are illustrative only and are not intended to narrow the definition of “engaging in business.” If an activity is not listed, whether it constitutes engaging in business in the city shall be determined by considering all the facts and circumstances and applicable law.
(1) Without being all inclusive, any one of the following activities conducted within the city by a person, or its employee, agent, representative, independent contractor, broker or another acting on its behalf, constitutes engaging in business and requires a person to register and obtain a business license.
(a) Owning, renting, leasing, maintaining, or having the right to use, or using, tangible personal property, intangible personal property, or real property permanently or temporarily located in the city.
(b) Owning, renting, leasing, using, or maintaining an office, place of business, or other establishment in the city.
(c) Soliciting sales.
(d) Making repairs or providing maintenance or service to real or tangible personal property, including warranty work and property maintenance.
(e) Providing technical assistance or service, including quality control, product inspections, warranty work, or similar services on or in connection with tangible personal property sold by the person or on its behalf.
(f) Installing or constructing, or supervising installation or construction of, real or tangible personal property.
(g) Soliciting, negotiating, or approving franchise, license, or other similar agreements.
(h) Collecting current or delinquent accounts.
(i) Picking up and transporting tangible personal property, solid waste, construction debris, or excavated materials.
(j) Providing disinfecting and pest control services, employment and labor pool services, home nursing care, janitorial services, appraising, landscape architectural services, security system services, surveying, and real estate services including the listing of homes and managing real property.
(k) Rendering professional services such as those provided by accountants, architects, attorneys, auctioneers, consultants, engineers, professional athletes, barbers, baseball clubs and other sports organizations, chemists, consultants, psychologists, court reporters, dentists, doctors, detectives, laboratory operators, teachers, veterinarians.
(l) Meeting with customers or potential customers, even when no sales or orders are solicited at the meetings.
(m) Training or recruiting agents, representatives, independent contractors, brokers or others, domiciled or operating on a job in the city, acting on its behalf, or for customers or potential customers.
(n) Investigating, resolving, or otherwise assisting in resolving customer complaints.
(o) In-store stocking or manipulating products or goods, sold to and owned by a customer, regardless of where sale and delivery of the goods took place.
(p) Delivering goods in vehicles owned, rented, leased, used, or maintained by the person or another acting on its behalf.
(2) MMC 5.02.040 establishes safe harbors for certain of those activities so that a person who meets the criteria may engage in de minimis business activities in the city without having to pay a business license fee. (Ord. 3101 § 2 (Exh. A), 2018)
5.02.040 Exempt businesses.
To the extent set forth in this section, the following persons and businesses shall be exempt from the registration, license, and/or license fee requirements as outlined in this chapter:
(1) Any person or business whose annual value of products, gross proceeds of sales, or gross income of the business in the city is equal to or less than $2,000. The exemption does not apply to regulatory license requirements or activities that require a specialized permit;
(2) Nonprofit activities carried on by religious, charitable, benevolent, fraternal or social organizations;
(3) Public utility companies;
(4) Any instrumentality of the United States, state of Washington, or political subdivision thereof with respect to the exercise of governmental functions;
(5) National banks, state banks, trust companies, mutual savings banks, credit unions and building and loan associations, with respect to their banking business, trust business, or savings and loan business;
(6) Farmers or gardeners selling their own unprocessed farm products raised or grown exclusively upon lands owned or occupied by them;
(7) Garage sales conducted on residential premises in compliance with the city zoning code;
(8) Any business which operates only during the annual Strawberry Festival, and which is authorized by the entity which holds the Strawberry Festival master permit;
(9) Any business which sublets or purchases space from a farmer’s market where the sponsor leases property owned by the city of Marysville; provided, the sponsor/lessee shall not be exempt from the business license requirements of this chapter;
(10) Any person, or its employee, agent, representative, independent contractor, broker or another acting on the person’s behalf, that engages in no other activities in or with the city but the following:
(a) Meeting with suppliers of goods and services as a customer.
(b) Meeting with government representatives in their official capacity, other than those performing contracting or purchasing functions.
(c) Attending meetings, such as board meetings, retreats, seminars, and conferences, or other meetings wherein the person does not provide training in connection with tangible personal property sold by the person or on its behalf. This provision does not apply to any board of director member or attendee engaging in business such as a member of a board of directors who attends a board meeting.
(d) Renting tangible or intangible property as a customer when the property is not used in the city.
(e) Attending, but not participating in, a “trade show” or “multiple vendor events.” Persons participating at a trade show shall review the city’s trade show or multiple vendor event ordinances.
(f) Conducting advertising through the mail.
(g) Soliciting sales by phone from a location outside the city.
(11) A seller located outside the city merely delivering goods into the city by means of common carrier is not required to register and obtain a business license; provided, that it engages in no other business activities in the city. Such activities do not include those in subsection (10) of this section. (Ord. 3101 § 2 (Exh. A), 2018)
5.02.050 Application procedure.
(1) No business license shall be issued or renewed except upon written application made to the city of Marysville community development department or designated licensing official. Each application shall be signed by the person who intends to conduct, operate or engage in the business for which the license is to be issued, and shall state the nature of the business, its proposed address and telephone number, the names and addresses of all owners of the business (or their registered agent), and such other information as may be required by the city of Marysville community development department or designated licensing official. A nonrefundable application fee, as identified in MMC 5.02.090(1), shall accompany the application. In the event that the license is granted, the application fee shall be credited toward payment of the annual license fee.
(2) If the applicant is a partnership, the application must be made and signed by one of the partners; if a corporation, by one of the officers thereof; if a foreign corporation, partnership or nonresident individual, by the resident agent or local manager of the corporation, partnership or individual.
(3) If the business premises are to be located on property owned by another person, the application shall include written evidence of the property owner’s consent.
(4) If the applicant or the business applying for a license is regulated, licensed or certified by any other governmental agency or professional association, the application must include written evidence of good standing with said regulatory authority. In such cases the continuing validity of the city business license shall be conditioned upon compliance with the requirements of the regulatory authority.
(5) Neither the filing of an application for a license or the renewal thereof, nor any payment of any application or renewal fee, shall authorize a person to engage in or conduct a business until such license has been granted or renewed. (Ord. 3101 § 2 (Exh. A), 2018)
5.02.060 Procedures for issuance or denial of license.
After receiving a complete application for a business license the city shall follow the following procedures:
(1) The city of Marysville community development department or designated licensing official shall forward copies of the application to appropriate city officials for their comments regarding compliance with regulations under their jurisdiction. The city of Marysville community development department or designated licensing official shall consider all materials and comments submitted and shall issue or deny the license within 20 working days after the date on which a completed application was filed unless the applicant agrees to an extension of said time period in writing.
(2) A business license may only be denied by the city of Marysville community development department or designated licensing official on one or more of the following grounds:
(a) If the business or the premises on which it is located do not comply with all applicable regulatory codes of the city, the Snohomish health district, and the state of Washington;
(b) If the application is incomplete or if it contains any material misrepresentation;
(c) If the application does not propose adequate measures for the protection of public health, safety and welfare in terms of pedestrian and vehicular traffic control, security, avoidance of public nuisances and avoidance of consumer fraud;
(d) If the person making the application, if licensed, is likely to present a danger to the public health, safety, or welfare by reason of any of the following:
(i) The applicant or his or her employee or agent has committed a crime or other violation of law which bears a direct relationship to the conduct of the business under the license issued pursuant to this title. The director may consider any relevant violation of law regardless of whether the same act was charged as a civil infraction or crime or resulted in a finding of committed or conviction or if it is deferred or subject to pretrial diversion. If an applicant appeals a denial of a license under this subsection, the violation must be proved by a preponderance of the evidence; provided, however, that a finding of not committed on a civil infraction or a verdict of not guilty on a criminal charge precludes use of that act as a basis for a violation under this chapter.
(ii) The applicant has had a similar license revoked or suspended by the city or has had a similar license revoked or suspended by any other jurisdiction or administrative authority.
(iii) The director has reasonable grounds to believe applicant to be dishonest or to desire such license to enable applicant to practice some illegal act or some act injurious to the public health or safety;
(e) If the applicant is not qualified under this chapter or is in violation of this chapter.
(3) If the city of Marysville community development department or designated licensing official denies a license, written notice of said denial, stating the reasons therefor, shall be sent to the applicant within one working day thereafter. The applicant shall have a period of 10 working days after the date of license denial to appeal the same to the city’s hearing examiner. Upon receiving written notice of appeal the hearing examiner shall hold a public hearing within 21 days thereafter to consider, de novo, whether to issue or deny the license. The applicant shall be given not less than seven days’ advance written notice of the hearing. The decision of the hearing examiner shall be announced at the conclusion of the hearing and shall be final, subject only to a petition for writ of certiorari being filed with the Snohomish County superior court within 14 days following the date of the hearing examiner’s decision. (Ord. 3101 § 2 (Exh. A), 2018)
5.02.070 Term of license.
All business licenses issued pursuant to the provisions of this chapter shall be valid for a period of one year after the receiving date is stamped on the application at City Hall; all renewals thereafter shall be for a period of one year commencing on the anniversary of said receiving date. (Ord. 3101 § 2 (Exh. A), 2018)
5.02.080 Procedure for renewing licenses.
All business licenses issued pursuant to the provisions of this chapter may be renewed by following the procedures specified above for original applications; provided, that application forms for renewals may be abbreviated by only requesting updated or changed information. (Ord. 3101 § 2 (Exh. A), 2018)
5.02.090 Fees – Penalty.
(1) The annual fee for each business license required by this chapter, and each renewal thereof, shall be as follows:
(a) All new businesses: $65.00;
(b) Renewals: $40.00;
(c) Short-term businesses: $7.00 per day.
(2) There shall be assessed a late payment penalty of $20.00 for each 30 days of delinquency after a license fee or renewal fee is due. This penalty shall be added to the license fee.
(3) Any business relocating to another address in the city shall pay an administrative transfer fee of $5.00 to have its business license reissued to reflect the new address. (Ord. 3101 § 2 (Exh. A), 2018)
5.02.100 Ineligible activities.
Notwithstanding any other provisions of this chapter, a license hereunder may not be issued to or held by any person who uses or occupies or proposes to use or occupy any real property or otherwise conducts or proposes to conduct any business in violation of the provisions of any ordinance of the city or the statutes of the state of Washington or any other applicable law or regulation. The granting of a business license shall not authorize any person to engage in any activity prohibited by a federal, state or local law or regulation. (Ord. 3101 § 2 (Exh. A), 2018)
5.02.110 Standards of conduct.
Every licensee under this chapter shall:
(1) Permit reasonable inspections of the business premises by governmental authorities for the purpose of enforcing the provisions of this chapter;
(2) Comply with all federal, state and city statutes, laws, regulations and ordinances relating to the business premises and the conduct of the business thereon;
(3) Refrain from unfair or deceptive acts or practices, or consumer fraud, in the conduct of the business, and avoid maintaining a public nuisance on the business premises;
(4) Refrain from operating the business after expiration of a license or during the period that the license may be suspended or revoked. (Ord. 3101 § 2 (Exh. A), 2018)
5.02.120 New location.
A licensee shall have the right to change the location of the licensed business. Prior to such a change, the licensee shall notify the city of Marysville community development department or designated licensing official, in writing, and shall pay the administrative transfer fee specified in MMC 5.02.090(3). (Ord. 3101 § 2 (Exh. A), 2018)
5.02.130 Suspension or revocation of licenses.
(1) The director may suspend a business license whenever the licensee, or any manager, officer, director, agent or employee of the licensee, has caused, permitted, or knowingly done any of the following:
(a) Failed to keep the building structure or equipment of the licensed premises in compliance with the applicable health, building, fire or safety laws, regulations or ordinances in a way which relates to or affects public health or safety on the business premises;
(b) Failed to comply with the standards of conduct specified in this chapter;
(c) Whenever the licensee or any manager, officer, director, agent or employee of the licensee engages in or knowingly permits conduct on the licensed premises that violates any federal, state or city law or ordinance;
(d) Whenever operation of the business constitutes a public nuisance.
Such suspension shall remain in effect until the conditions causing the suspension are cured and reasonable measures are taken to ensure that the same will not recur, as determined by the director.
(2) The director may revoke a business license on any one or more of the following grounds:
(a) Whenever the city learns that the licensee or any manager, officer, director, agent or employee of the licensee made a material false statement or representation, or failed to disclose any material information to the city, in connection with any application for a business license or any renewal thereof;
(b) Whenever the licensee or any manager, officer, director, agent or employee of the licensee fails within a reasonable time to cure a condition that caused a license suspension;
(c) Whenever the licensee or any manager, officer, director, agent or employee of the licensee knowingly permits conduct on the licensed premises that violates any federal, state or city law or ordinance;
(d) Whenever the licensee or any manager, officer, director, agent or employee of the licensee knowingly engages in unfair or deceptive acts or practices in the conduct of the business;
(e) Whenever operation of the business constitutes a public nuisance.
(3) Whenever the director determines that there is probable cause for suspending or revoking a business license, he or she shall notify the licensee of the suspension or revocation and specify the grounds for suspension or revocation.
The director will notify a licensee of the suspension or revocation of that person’s license by personal service or by mailing. If by mailing, the notice shall be mailed first class and certified mail to the address used in the licensee’s license application or current address provided by the license holder in writing. A licensee may, within 10 days from the date that the suspension or revocation notice was delivered or mailed to the licensee, appeal such suspension or revocation by filing a written notice of appeal (“petition”) setting forth the grounds therefor with the city clerk. The licensee must provide a copy of the petition to the director and to the city attorney on or before the date the petition is filed with the city clerk. The hearing will be before the hearing examiner and be conducted in accordance with the procedures for adjudicative proceedings under Chapter 34.05 RCW. The hearing examiner shall set a date for hearing the appeal and notify the licensee by mail of the time and place of the hearing. The hearing shall be set no later than 21 days after the receipt of an appeal. After the hearing, the hearing examiner shall enter appropriate findings of fact and conclusions of law, and affirm, modify, or reverse the decision to suspend or revoke the license.
No suspension or revocation of a license or registration shall take effect until 10 days after the mailing or hand delivery of the notice to the licensee. If appeal is taken in accordance with this section, the suspension or revocation shall be stayed pending final action by the hearing examiner. A license that is suspended or revoked must be surrendered to the city on the effective date of such suspension or revocation. The decision of the hearing examiner is final. The licensee or the director may seek review of the decision by the superior court of Washington in and for Snohomish County within 14 days from the date of the decision. The suspension or revocation will be stayed pending final action by the superior court on the petition for review.
No portion of the license fee will be returned to the licensee due to suspension or revocation of the license. (Ord. 3101 § 2 (Exh. A), 2018)
5.02.140 Summary suspension.
(1) Where conditions exist that are deemed hazardous to life or property, or where the owner or his or her employee or agent has knowingly permitted a violation of the Uniform Controlled Substances Act, a violation of any law against gambling, a violation of any law against prostitution within the business, or a violation of any law against unlawful public exposure, the director is authorized to immediately stop such hazardous conditions that are in violation of this code, up to and including closing the business operation. Such order and demand may be oral or written. A police officer or code enforcement officer or fire marshal also may order a business to close under this section. The effect of the closure shall be to suspend the owner’s business license until such time it is reinstated by the director.
(2) At the time the director notifies the licensee of the summary suspension, either by mail or hand delivery, the director shall also schedule a hearing to be held within three business days from the date of the notice of summary suspension. Where an oral summary suspension is ordered or demanded by another public official, the director will schedule a hearing to be held within three business days from the date of the summary suspension and the licensee will be notified by at least one of the following means: mail, facsimile, email, personal service, or hand delivery. Such notices shall state the time and place of the hearing.
(3) The decision of the director shall be final. The licensee may, within 10 days from the date of the director’s decision, appeal such suspension or revocation by filing a written notice of appeal setting forth the grounds therefor with the city clerk. A copy of the notice of appeal must be provided by the licensee to the director and the city attorney on or before the date it is filed with the city clerk. The hearing examiner will set a date for hearing the appeal and notify the licensee by mail of the time and place of the hearing. After the hearing, the hearing examiner will make appropriate findings of fact and conclusions of law and affirm, modify, or reverse the summary suspension and reinstate the license, and may impose conditions on the continuance of the license.
(4) The decision of the hearing examiner shall be final. The licensee and/or the director may seek review of the decision by the superior court of Washington in and for Snohomish County within 21 days from the date of hearing examiner’s decision. (Ord. 3101 § 2 (Exh. A), 2018)
5.02.150 Sale or transfer of business – New license required.
Upon the sale or transfer of any business which is licensed pursuant to this chapter, the license issued to the prior owner shall automatically expire on the date of such sale or transfer and the new owner shall apply for and obtain a new business license prior to engaging in, conducting or operating the business. (Ord. 3101 § 2 (Exh. A), 2018)
5.02.160 Penalties for violation.
(1) Any person, including an employee, who conducts, operates, practices, or engages in a business knowing that the license for that business is suspended or revoked or was denied is guilty of a gross misdemeanor.
(2) Any person, including an employee, who fails to obey an order to close a business under MMC 5.02.140 is guilty of a gross misdemeanor.
(3) Other violations of, or failure to comply with, any provision of this chapter shall constitute a commercial violation and any person found to have violated any provision of this chapter is punishable by a penalty as set forth in MMC 4.02.040(3)(g). Each day that a violation continues shall constitute a new and separate violation.
(4) The imposition of a penalty for violation of this chapter shall be in addition to any other penalties provided for in any other ordinances of the city or any other ordinances or laws applicable to the violation, and any premises upon which a business is operated in violation of this chapter is hereby declared to be a public nuisance.
(5) Any license fee or penalty which is delinquent or unpaid shall constitute a debt to the city and may be collected by a court proceeding in the same manner as any other debt in like amount, which remedy shall be in addition to all other existing remedies.
(6) The city shall not enter into any contract or conduct any trade or commerce with any business which fails to comply with this chapter. (Ord. 3101 § 2 (Exh. A), 2018)