Chapter 5.02 GENERAL BUSINESS LICENSE PROVISIONS

The regulations contained within Chapters 5.02 through 5.30, inclusive, shall collectively be known as “Title 5, Business Licensing and Regulation” and are referred to herein as “this title.” (Ord. 2022-5 §1, 2022; Ord. 1163(part), 2007)

5.02.020 Purpose.

The purpose of this title is to provide minimum standards to safeguard the health, property and general public welfare by regulating and controlling business licensing and regulating of certain business as outlined in this title. (Ord. 2022-5 §1, 2022; Ord. 1163(part), 2007)

5.02.030 Exercise of power.

This title shall be deemed an exercise of the power of the city to license for revenue and regulation, and nothing in this title shall be construed to repeal or affect any other ordinance of the city which purports to regulate some business or activity pursuant to the general police power of the city, notwithstanding the fact that such ordinance may or might contain provisions relating to the licensing of such activity. (Ord. 2022-5 §1, 2022; Ord. 1163(part), 2007)

5.02.035 Engaging in business.

A. The term “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.

B. This section sets forth examples of activities that constitute engaging in business in the city, and establishes safe harbors for certain of those activities so that a person who meets the criteria may engage in de minimus business activities in the city without having to pay a business license fee. The activities listed in this section are illustrative only and are not intended to narrow the definition of “engaging in business” in subsection A of this section. 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.

C. 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:

1. 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.

2. Owning, renting, leasing, using, or maintaining an office, place of business, or other establishment in the city.

3. Soliciting sales.

4. Making repairs or providing maintenance or service to real or tangible personal property, including warranty work and property maintenance.

5. 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.

6. Installing, constructing, or supervising installation or construction of, real or tangible personal property.

7. Soliciting, negotiating, or approving franchise, license, or other similar agreements.

8. Collecting current or delinquent accounts.

9. Picking up and transporting tangible personal property, solid waste, construction debris, or excavated materials.

10. 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.

11. 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, and veterinarians.

12. Meeting with customers or potential customers, even when no sales or orders are solicited at the meetings.

13. 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.

14. Investigating, resolving, or otherwise assisting in resolving customer complaints.

15. 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.

16. Delivering goods in vehicles owned, rented, leased, used, or maintained by the person or another acting on its behalf.

D. If a person, or its employee, agent, representative, independent contractor, broker or another acting on the person’s behalf engages in no other activities in or with the city but the following, it need not register and obtain a business license:

1. Meeting with suppliers of goods and services as a customer.

2. Meeting with government representatives in their official capacity, other than those performing contracting or purchasing functions.

3. 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.

4. Renting tangible or intangible property as a customer when the property is not used in the city.

5. 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.

6. Conducting advertising through the mail.

7. Soliciting sales by phone from a location outside the city.

E. A seller located outside the city merely delivering goods into the city by means of a 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 D of this section.

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. (Ord. 2022-5 §1, 2022)

5.02.040 License required.

Each and every business operating within the city of Wapato is required to be licensed. No person shall operate a business within the city without a license from the city clerk/treasurer. (Ord. 2022-5 §1, 2022; Ord. 1163(part), 2007)

5.02.045 Nonresident businesses.

For purposes of the license required by this chapter, 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 two thousand dollars and who does not maintain a place of business within the city must obtain a business license; however, the person or business will be exempted from the city business license fee. The threshold does not apply to regulatory license requirements or activities that require a specialized permit. (Ord. 2022-5 §1, 2022)

5.02.050 Applications.

Application for a business license is made through the Business Licensing Service (BLS), and must include all information required for all licenses requested, the total fees due for all licenses, and the application handling fee required by RCW 19.02.075.

A. The BLS will make the application information available to the city for review in order to determine whether to approve issuance of the business license to the applicant.

B. The city clerk/treasurer may require the applicant to submit such information in addition to what has been provided through the BLS as may be needed to properly evaluate the application.

C. The city clerk/treasurer may approve issuance within ten business days after the submittal of the application. Upon determination to approve the application, the city will authorize the BLS to issue the business license.

D. Upon determination to deny the license, the city clerk/treasurer must notify the applicant in writing, sent by regular mail to the mailing addresses of the business and applicant provided in the application, stating the reason(s) why a license may not be issued. (Ord. 2022-5 §1, 2022; Ord. 1163(part), 2007)

5.02.055 Renewals.

The licenses issued through the Business Licensing Service (BLS) under the provisions of this chapter expire on the date established by the BLS and must be renewed on or before that date to continue to engage in business in the city after that date.

A. Application for renewal of the license is made through the BLS and must include all information required to renew each license involved, the total fees due for all licenses, and the renewal application handling fee required by RCW 19.02.075.

B. The license term and respective fee amount may be prorated as necessary to synchronize the license expiration date with the expiration of the license account maintained by the BLS.

C. Failure to complete the license renewal by the expiration date will incur the late renewal penalty required by RCW 19.02.085 in addition to all other fees due.

D. Failure to complete the license renewal within one hundred twenty days after the expiration date will result in the cancellation of the license, and will require submitting an application for a new license to continue to engage in business in the city. The city is authorized to require payment of all past due amounts prior to approval of the new license.

E. Engaging in business under an expired license constitutes operating a business without a license, and may also subject the licensee to other respective administrative or legal action from the city. (Ord. 2022-5 §1, 2022)

5.02.060 Investigations.

Within five business days of the time of the receipt of an application for a license or renewal thereof, where ordinances of the city necessitate an inspection or investigation before the issuance of a license, the city clerk/treasurer shall refer such application to the proper city department for making such investigation. The person charged with the duty of making the investigation shall make a detailed written report thereon, favorable or otherwise, within ten business days after receiving the application. A copy of the application information may be substituted for the original for the purposes of this section. (Ord. 2022-5 §1, 2022; Ord. 1163(part), 2007)

5.02.070 Building and premises.

Before a license may be issued, the applicant must certify that, to the best of his knowledge and belief, the premises and building where the business is to be conducted are in substantial compliance with all city ordinances, including, but not limited to, Title 15, Buildings and Construction, and Title 17, Zoning. (Ord. 2022-5 §1, 2022; Ord. 1163(part), 2007)

5.02.080 Inspections.

A. Generally. Whenever inspections of the premises used for or in connection with the operation of a business, or the application for a business license, are reasonably necessary to secure compliance with any ordinance provision, including, but not limited to, Titles 15 and 17, it shall be the duty of the licensee, or the person in charge of the premises to be inspected, to admit onto the premises for the purpose of making inspection any officer or employee of the city who is authorized or directed to make such inspections at any reasonable time that admission is requested.

B. Upon Renewal of License. All renewals of business licenses are conditioned upon, and are granted with the understanding that, an inspection by the code enforcement officer will be done.

C. Code Enforcement Officer Entry. The code enforcement officer and/or his agent shall be allowed entry into or onto any business premises for the purpose of inspecting the property. If the code enforcement officer is denied entry, the premises’ business license shall be suspended pursuant to Section 5.02.110. (Ord. 2022-5 §1, 2022; Ord. 1163(part), 2007)

5.02.090 Issuance.

Repealed by Ord. 2022-5. (Ord. 1163(part), 2007)

5.02.095 Fees.

A. License fees will be reviewed yearly and determined by a fee resolution to be voted upon by the city council at its first regularly held meeting in January each year.

B. The city’s general business license and landlord license fees payable through the Business Licensing Service are:

1--2 employees (includes owners) per location	$30.00
Each additional employee at the same location	$5.00
Maximum employee fees per business location	$300.00
Landlord license--first rental property	$25.00
Landlord license--each additional rental property	$10.00

The owner and employee count reflects the number of such found at each separate licensed location. All owners and employees, regardless of the number of hours worked, must each be counted.

The landlord license fee is for the residential rental unit regulation administered under Chapter 5.24, and applies to each separate rental property within the city regardless of the number of individual dwelling units at each such property. Each rental property must be licensed separately.

C. Other fees that may also be due under regulations administered by the city, and which are collected by and payable directly to the city, are:

Cab driver per driver	$15.00
Cabulance--each	$50.00
Flea market	$100.00
Flea market plus per vendor per day	$5.00
Secondhand dealer	$50.00
Taxicabs per vehicle	$100.00
Circus per day	$100.00
Carnival per day	$100.00
Shows, exhibits, or fairs per day	$25.00
Transient merchant, hawker:
Temporary flat fee plus	$25.00
Temporary per day	$15.00
Monthly	$30.00
Yearly	$180.00
City late fee	$10.00

(Ord. 2022-5 §1, 2022; Ord. 1163(part), 2007)

5.02.100 License not transferable.

The city business license is personal and may not be assigned or transferred to another person to carry on the same business, or to a different location than that listed on the business license.

A. Upon transfer of ownership, the business license for the prior owner is terminated and the new owner must obtain their own license prior to engaging in business in the city under the acquired business.

B. If a person wishes to change the location of a licensed business to another location within the city, the person must notify the Business Licensing Service through the submission of a new application for license and payment of respective fees for the new location, as otherwise provided for in this chapter. The application must be submitted sufficiently prior to the intended move to allow the city to review the proposed change. Business may not commence at the new location prior to the city’s approval of the change. (Ord. 2022-5 §1, 2022; Ord. 1163(part), 2007)

5.02.110 Suspension or revocation.

Any license may be suspended or revoked at any time during the term of such license for any violation by the licensee of any of the provisions of the Wapato Municipal Code related to the license, the subject matter of the license, or to the premises occupied; such suspension or revocation may be in addition to any fine imposed. Reasons for suspension or revocation include, but are not limited to, any one or more of the following reasons, when determined to exist after investigation by city staff:

A. Reasons for Suspension.

1. Any business license may be suspended when, after investigation by city staff, any one or more of the following reasons are determined to exist:

a. Failure to comply with any of the terms and conditions on which a license or permit is issued;

b. The licensee or any of its employees, officers or agents, while acting within the scope of their employment, violates or fails to comply with any federal, state, or local law or regulation, including but not limited to any provision of the Wapato Municipal Code, and including but not limited to the commission or acquiescence or permitting of any unlawful activity on the business premises. Conviction or plea of guilty in the Wapato municipal court or any court of record shall be deemed conclusive as to whether such a violation or failure to comply has occurred;

c. When reasonably necessary in the interest of protection of the public health, safety, peace or welfare, to include, but not be limited to, when a license holder is conducting business in a facility without public utilities such as water service, sewer service or refuse collection service;

d. When a business becomes an instrument of or a cover for public disorder, crime, or other danger to public safety, morals or health;

e. The licensee has caused or permitted a public nuisance to exist;

f. The licensee’s continued conduct of the business for which the license was issued has or will result in a danger to the public health, safety or welfare;

g. The place of business does not conform to city ordinance, county code provisions, Washington State law, or federal law;

h. The license is being used for a purpose different from that for which it was issued;

i. Failure to allow the code enforcement officer reasonable access to the business premises to conduct an inspection pursuant to this title or any other title under the Wapato Municipal Code.

2. If a determination is made that licensee has violated any of the provisions of this title or any of the provisions of the Wapato Municipal Code, such licensee shall be subject to a suspension. Licensees must be in full compliance of all federal, state, or local laws prior to the reinstatement of the business license. The city clerk/treasurer shall mail written notice of such determination to the licensee at the mailing addresses provided on the license application.

3. Emergency Suspension. In the event of conduct or activities which create an imminent risk of harm to public health, safety, or welfare, as determined by the police chief, fire chief, or code enforcement officer, the license of such business may be summarily suspended upon notice to the licensee; provided, that the registrant shall be entitled to a hearing before the city council, at the next regularly scheduled city council meeting, upon a written appeal being filed with the city clerk/treasurer by the licensee within ten days of the license suspension.

B. Reasons for Revocation.

1. Any business license shall be revoked when, after investigation by city staff, any one or more of the following reasons are determined to exist:

a. Illegal issuance of the license;

b. Issuance of the license without power or authority;

c. Issuance under an unauthorized ordinance or an ordinance illegally adopted, or issuance in violation of an ordinance;

d. When the business license was procured by fraud, misrepresentation, or false representation, evasion or suppression of facts;

e. When the business license was issued by mistake or inadvertence; or

2. Reasons for Immediate Revocation. Any business license shall be revoked when, after investigation by city staff, any one of the following reasons is determined to exist:

a. Three suspensions within any five-year period;

b. Loss of any insurance required by this title or any other title of the Wapato Municipal Code, federal, state, or county law;

c. Anything which causes a threat to the safety of persons or property.

3. The city clerk/treasurer shall mail written notice of all determinations to the licensee at the mailing addresses provided on the license application.

C. In lieu of suspension or revocation, the city council may issue a conditional business license outlining certain conditions that must be met prior to issuance of a business license and/or during the tenure of the business license. In the event a conditional license is granted by the city council, the applicant may appeal the conditions of the license in the same method as outlined in Section 5.02.130. (Ord. 2022-5 §1, 2022; Ord. 1163(part), 2007)

5.02.120 Denial of license.

The city clerk/treasurer may deny issuance of a business license for one or more of the following reasons:

A. The applicant is not eighteen years of age at the time of application. An applicant may submit written consent of his or her parents or guardians to make application together with a covenant from said parents or guardians that they will be responsible for a guarantee of performance of all related laws and ordinances of the applicant. The city clerk/treasurer may consider such written consent and covenant in determining whether it is appropriate to issue the license.

B. The applicant had a prior license revoked or suspended in this or any other jurisdiction.

C. The applicant is in violation of state and local law.

D. The applicant seeks a license to practice some illegal act or any act injurious to the public health or safety.

E. The applicant is not qualified under any specific provision of this title for any particular license for which he or she applies.

F. Complaints or objections are received by the city clerk/treasurer by any Wapato residents which would give good cause for denial of a license. Any person, including city officials, may submit such objections regarding the application for a license. The city clerk/treasurer may then request and receive information from all city departments to aid him or her in determining whether to issue or deny the license. Such information shall be confidential unless a hearing is requested on the application, or if the applicant requests the information in writing. All information and/or complaints will be investigated and considered prior to issuing, denying, or renewing any license. (Ord. 2022-5 §1, 2022; Ord. 1163(part), 2007)

5.02.130 Appeals.

Any business may appeal a suspension, revocation, or denial of a business license. The licensee may obtain an appeal by appealing, in writing, to the city clerk/treasurer. The city clerk/treasurer shall forward the appeal, as well as all complaints, objections, and investigations thereof, to the mayor within five business days for review. The appeal must state the grounds upon which the licensee is appealing.

The decision of the mayor may be appealed to the city council by appealing, in writing, to the city clerk/treasurer the mayor’s decision, within ten days of the mayor’s decision. The appeal must state the grounds upon which the licensee is appealing. The city clerk/treasurer shall forward the appeal, as well as all complaints, objections, and investigations thereof, to the city council within five business days for review.

The city council shall hold a public hearing to gather facts upon which to make a decision at the next regularly scheduled public meeting after the appeal is forwarded to it. The city council shall mail written notice of its decision to the licensee at the addresses stated on the license application. A decision shall be mailed within fourteen days of the hearing. The decision of the city council shall be appealable to the Yakima County superior court only upon grounds of being arbitrary and capricious. Any appeal must be filed with the Yakima County superior court, and a copy of the appeal forwarded to the city clerk/treasurer, within fourteen days of the mailing of the decision of the city council.

During the appeal period, a licensee may continue to operate its business if allowed by city council through its findings after public hearing on the appeal to the city council. If such a continuance is allowed, the licensee continues to be required to follow all local, state and federal laws relating to his or her business. (Ord. 2022-5 §1, 2022; Ord. 1163(part), 2007)

5.02.140 Termination and renewal of license.

Repealed by Ord. 2022-5. (Ord. 1163(part), 2007)

5.02.150 Posting requirements.

It shall be the duty of any person conducting a licensed business in the city to keep his or her license posted in a prominent place on the premises used for such business at all times, except that peddlers, hawkers and transients, and their employees, shall carry their license on their persons at all times when conducting their business and shall display it upon request by any public safety official or their designee. (Ord. 2022-5 §1, 2022; Ord. 1163(part), 2007)

5.02.160 Cleanup requirements.

A. Each business shall keep all exterior premises of the business, including, but not limited to, alleyways, rights-of-way and buildings, reasonably clean and clear of all litter and trash, and the exterior of the premises free of graffiti.

B. All businesses serving, handling or dealing in food, in any way, must comply with all county and city code sections relevant to its business, in addition to the provisions of this title.

C. All businesses must comply with Chapter 8.16 regarding garbage collection service, in addition to the provisions of this title.

D. Any violation of this section will be considered a nuisance under Chapter 8.24. (Ord. 2022-5 §1, 2022; Ord. 1163(part), 2007)

5.02.170 Regulations.

A. The regulations set forth in this title are not exclusive. Other regulations set forth in the Wapato Municipal Code shall apply when appropriate from their meaning and context.

B. Any violations of Title 15 which result in the suspension, revocation or denial of a business license shall be appealed through the Title 15 appeal procedure. (Ord. 2022-5 §1, 2022; Ord. 1163(part), 2007)

5.02.180 Nonprofit city event license.

Nonprofit community organizations from the city, including, but not limited to, the Chamber of Commerce, the Lions Club, and other similar nonprofit community organizations from the city conducting a community event, are required to obtain a nonprofit city event business license for the community event directly from the city. Business or fund-raising activities which are conducted at a community event sponsored by a nonprofit community organization will not be required to obtain a business license if the businesses and vendors are registered with and operating under the nonprofit business license of the sponsoring nonprofit community organization. Businesses not registered with the sponsoring nonprofit community organization must be licensed for business in accordance with other requirements of this chapter. For purposes of this section, a “community event” means any event sponsored by a nonprofit community organization. The nonprofit business license required by this section is valid only for community events which are conducted on city property with the prior approval of the city council and will be valid only for the duration of the specific community event for which it was issued. (Ord. 2022-5 §1, 2022; Ord. 1163(part), 2007)

5.02.190 Severability.

If any section, subsection, paragraph, sentence, clause or phrase of this title is declared unconstitutional or invalid for any reason, such decision shall not affect the validity of the remaining parts of this title. (Ord. 2022-5 §1, 2022; Ord. 1163(part), 2007)

5.02.200 Savings clause.

Repealed by Ord. 2022-5. (Ord. 1163(part), 2007)

5.02.210 Definitions.

The definitions set forth in this section shall apply throughout this title, unless context clearly requires otherwise. Additional definitions pertaining to specific words in other chapters may be found in those chapters.

A. “Business” means all vocations, occupations, professions, and activities which are conducted for private profit, directly or indirectly, and, for the purposes of this chapter, the leasing or renting of any residential unit (apartment, house, or other dwelling) shall be considered to be a “business.” The term “engaging in business” is further defined in Section 5.02.035.

B. “Business Licensing Service” and “BLS” mean the office within the Washington State Department of Revenue providing business licensing services to the city.

C. “City” means the city of Wapato.

D. “Person” means any individual, sole proprietorship, partnership, association, cooperative, corporation, nonprofit organization, state or local government agency, and any other organization required to register with the city to do business in the city and to obtain one or more licenses from the city or any of its agencies.

E. “Title” means Title 5 of the Wapato Municipal Code, as existing or amended. (Ord. 2022-5 §1, 2022; Ord. 1163(part), 2007)