CC - Business License ordinance - Internal File 024
TO: HONORABLE MAYOR
AND MEMBERS
R EMEAD CITY COUNCIL
FROM: FRANK G. TRIPEPI, CITY MANAGER
DATE: AUGUST 7, 1991
RE: BUSINESS LICENSE ORDINANCE
Mayor Imperial has requested that this item be placed on the Agenda
for discussion purposes.
According to the recent business census, authorized by the City
Council, there are approximately 1,100 businesses within the City of
Rosemead. Approximately 420 of those are licensed by the City of
Rosemead. The City has adopted by reference the Los Angeles County
Business License Ordinance which is a regulatory ordinance in
nature. It is proposed that the Council adopt a business license
registration fee. The purpose of this fee would be to make sure
every business within the City of Rosemead has authorization to
operate. The fee charged would cover the cost of administering the
program.
Attached is a copy of a sample ordinance from the City of Lancaster.
Their fees are based on the number of employees. It would be our
recommendation that if the Council wishes to proceed, we look into
the basic cost of administering the program and charge every business
a flat fee in addition to any other fee established by the County
ordinance.
RECOMMENDATION
It is recommended that if the Council wishes to proceed, that staff
be directed to draft an ordinance for further consideration by the
dp Council.
I FGT: j s
Attachments COUNCIL AGENDA
A:08139lj (1) AUG 1,8.1981.
ITEM No. M-A
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AGENDA ITEM:
DATE:
ORDINANCE NO. 566
AN ORDINANCE OF THE CITY OF LANCASTER, CALIFORNIA,
AMENDING CHAPTER 4 OF ARTICLE VI OF THE LANCASTER
MUNICIPAL CODE RELATING TO BUSINESS LICENSES.
THE CITY COUNCIL OF THE CITY OF LANCASTER DOES HEREBY ORDAIN AS
FOLLOWS: .
Section 1. The Lancaster Municipal Code is hereby amended by deleting Sections 6.4.1 to
6-4.3 in their entirety and replacing them with the following:
"PART A. BUSINESS LICENSE ORDINANCE
6-4.1. Definitions. For purposes of this Chapter:
A. "Business" means professions, trades, occupations, and each and every.
kind of calling whether or not carried on for profit,
B. "City Manager" means the City Manager of the City of Lancaster or any
other City officer or employee responsible for administering this Chapter.
C. "Finance Director" means the Finattce Director of the Ciry of Lancaster.
D. "Person" means all domestic and foreign corporations, associations,
syndicates, joint stock corporations, partnerships of every kind, clubs, businesses,
trusts, societies and individuals transacting and carrying on any business in the City
other than as an employee,
E. "Sworn Statement" means an affidavit sworn to before a person
authorized to take oaths or a declaration or certification made under penalty or
perJury-
6-4.2. License Required. It shall be unlawful for a person to transact any business*
in the City without fist having obtained a business license. A business license authorizes
the licensee to transact business at the location designated on the license.
A. Branch Establishments, Separate business licenses shall be obtained for
each separate location in the City where a particular business is conducted. For
purposes of this Section, vending machines and games of skill and science
including but not limited to video games, which are not owned by the person
ttansaedng a licensed business where such machines or games are located, shall
constitute a separate business for which a separate business license shall be
obtained by the Owner of such machines or games. A separate business license
shall not be required if such machines or games ate owned and operated by the
owner of the business where such machines are located and which are operated
only as an incident to another licensed business conducted on the premises.
B. Delivery and Sales Fran Vehicles. Every person not having a fixed
place of business in the Crri who sells goods, wares of other merchandise, or
provides services for a fee from a vehicle shall be required to obtain a business
license for engaging in such sales,
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Page 2
C. Evidence of Doing Business. Any person who uses signs, circulars.
cards, telephone books, newspapers, or other form of advertisement to represent
that he is transacting business in the City, shall be deemed to be transacting
business in the City for purposes of this Chapter and shall be required to obtain a
license. unless evidence is presented to the contrary to the City Manager.
6-4.3. Application for License. It shall be the sole responsibility of every person
required to obtain a business license to make application therefore on a form provided by
the City Manager. Applications shall be subject to verification by the City Manager. Any
person who makes a false statement in the application shall be guilty of a misdemeanor.
A. Processing of Application. Upon application and payment of the
requited license fee, the City Manager shall issue a temporary license which shall be
valid for a period of fifteen (15) days plus such additional time allowed under
existing ordinances to correct any deficiencies or as approved by the City Manager
and process the application. The entire application must be completed in English.
If necessary, applications shall be submitted by the City Manager to appropriate
City departments to determine whether the business to be transacted and premises to
be occupied meet the requirements of State laws and City ordinances.
B. Extension of Time. The City Manager may extend the time for filing an
application required pursuant to this Chapter for good cause, for a period not
exceeding thirty (30) days, and may waive any penalty that would otherwise accrue
thereon-
6-4.4. Exemption. This Cher shall not apply to any business exempt from
federal income-taxes under Section 501(c)(3) of the Internal Revenue Code or exempt
under the United States or California Constitutions. Any person claiming an exemption
pursuant to this Section shall file a swam statement with the Finance Director stating the
facts upon which the exemption is claimed and shall furnish such information and
verification as rcgUired. In the absence of a sworn statement, persons claiming an
exemption shall be liable for payment of the business license fee.After giving notice and a
reasonable opportunity for hearing, the City Manager may revoke a business license
granted pursuant to this Section if it is determined that the licensee is not entitled to the
exemption.
6-4.5. Tercet of License. Licenses shall be for a term of twelve (12) months
commencing on the first day of the month when the license application and fee are received
by the City Manager-
6-4.6. License Fee. Each applicant shall pa an annual business license fee when
application is made unless exempt under Section 6 A. The City's issuance of a receipt to
the business license applicant for payment of the fee shall not constitute the receipt of a
business license. The fee shall be refunded only if the license is denied The amount of the
license fee shall cover the com of processing the application and shall be established by
resolution of the City Council
A. Error in Calculating Fee. In no case shall any error in calculating or in
stating the amount of a license fee prevent the collection of the correct amount due
from any person transacting business in the City.
B. License Fee a Debt The amount of any license fee and penalty imposed
by this Chapter shall constitute a debt to the City.
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Page 3
C. Refunds. Upon approval of the Finance Director, the City Treasurer
may refund any license fee or penalty erroneously collected. However, no license
fee shall be refunded if the applicant engaged in the business for which the license
is sought ptior to application for the license. License fees shall not be refunded for
any fraction of a year that business is not conducted.
6-4.7. Due Daze For License Fee. The license fee for a new business is due upon
application for a business license. The fee for renewal of all business licenses is due the
fast day of the month following the expiration date stated on the license.
6-4.8.Penalty.
A. Failure to Pay Fee. For fail= to pay a license fee when due, the
Finance Director shall add a penalty of twenty percent (20%) of the license fee on
the fast date of the month following the due date and ten percent (10%) each month
thereafter while the fee remains unpaid, provided that, the amount of the penalty
shall not exceed fifty percent (50%) of the amount of the license fee due.
B. Fail= to Obtain License. If a person fails to obtain a business license.
.the license fee due shall be that amount due and payable from the first dare when the
person engaged in business in the City, together with the penalty described in
Subsection A above.
6-4.9. Issuance of License. Upon the approval of an application for a business
license and payment of the required business license fm the Finance Director shall issue a
business license to the applicant.
6-4.10. Grounds for Denial.of License.. The.City Manager shall not have the
authority to deny issuance of a business license for any reason other than failure to comply
with this Chapter or an ordinance of the City.
64.11. AppeaL If an applicant for a business license is aggrieved by any decision
of the City Manager regarding the issuance, denial or revocation of a business license or
failure to grant an exemption from this Chapter, the applicant may appeal the decision by
submitting a notice of appeal in accordance with the Uniform Appeal Procedure set forth in
Article IL Chapter 8 of the Lancaster Municipal Code.
6-4.12. Contents of Lacrose. Each license issued shall contain-
issued. The name and mailing address of the person to whom the license is
(2) The frame of business.
(3) The address of the business.
(4) The expiration date of the license.
(5) Telephone number of business
(6) Exact nature of business, (Business Code)
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Page 4
(7) Such other information as deemed necessary and established by
resolution of the City Council.
64.13. Amendment of Licenses. A license may be amended to reflect a change in
business name and/or maili ng address upon filing a statement of such fact and payment of a
fee to the Finance Director, which shall be established by resolution of the City Council.
The unexpired business license previously issued shall be returned to the Finance Director
prior to the issuance of the amended license. A license may not be amended to reflecta
change in the person(s) transacting the business or a change in the type of business
transacted, a new business license must be obtained as provided herein.
6-4.14. Transfer of Licenses. Licenses issued pursuant to this Chapter shall rot be
transferable. However, a license may be amended to authorize the transaction of business
at a location where the business shall be moved in accordance with Section 6-4.13.
64.15. Duplicate License. A duplicate license may be issued by the City Manager .
to replace any business license previously issued which has been lost or destroyed upon
filing a statement that the license has been lost or destroyed and paying a fee to the Finance
Director, which shall be established by resolution of the City Council.
6-4.16. Posting Licenses.
A. Fixed Location. Any licensee transacting business at a fixed location in
the City shall post their business license in a conspicuous location on the premises,
open to public view and available formi specnon whom such business is transacted.
B. Not at Fixed Location. Any licensee who does not transact business at a
fixed location in the City shall keep his business license upon his person at all times
while transacting business. Any licensee who does not transact business at a fixed
location in the City and uses a vehicle for the purpose of transacting such business
shall display his business license on the tear of such vehicle, in public view. to
indicate that business license fees have been paid for that period of time. Perscnts'
using a vehicle solely for the purpose of delivering goods, wares or merchandise
are not required to display a business license on their vehicle.
6-4.17. Revocation of Licertse, The City Manager may revoke any license issued
under this Chapter if it is determined that the licensee has obtained the license by
of the or has failed to comply with the provisions of this Chapter. The decision
ty Manager to revoke a license may be appealed in accordance with Section 6-
4.11.
6.4.18. Regulatory Measure. The fee established pursuant to this Chapter is for
processing the applications required by this Chapter. Persons required to pay a license fee
for transacting business under this Chapter shall not be relieved from the payment of such
fee under any other provision of this Code and shall remain subject to the regulatory
provisions of other ordinances.
64.19. Compliance with Other Laws. The payment of a license fee and the
issuance of a license shall not entitle the licensee to transact any business unless the licensee
has complied with all requirements of this Chapter and any other applicable federal. suite or
local regulations pertaining to such business.
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Page 5
6.4.20. Information Confidential. Any statement or information filed pursuant to
this Chapter shall be confidential and shall not be subject to public inspection except for the
following information provided in the business license application: business name-
business telephone, business mailing and street address, the exact nature of the business
for which the license is required."
Section 2. Revise 'Pan B. PEDDLERS AND VENDORS" as follows:
"A. Renumber existing Section 64.7 to 6-4.21 and delete existing Sections
6.4.11, 6-4.12 and 6-4.13.
B. Amend existing Section 6-4.8 to read as follows:
6.4.22. Posted Premises. No person shall engage in the sale of, taking order.; or
soliciting orders for goods, services, wares or merchandise as defined in Section 64.21
upon any premises without a prior invitation from the occupant thereof if such premises is .
posted against such solicitation by means of a notice prominently displayed on or near the
main entrance to the premises or on or near any residence located thereon upon which is
printed the legend: "NO SOLICITORS" (or words of similar import).
C. Amend existing Section 6-4.9 m read as follows:
6.4.23. Failure to Leave Poses. No person shall engage in the acts specifirxi in
Section 6-4.21 upon any premises after having been asked by the owner or occupant
thereof to leave such premises.
D.Amend existing Section 6-4.10 to read as follows:
64.24. Prohibited Practices.
(1) Other than upon prior initiation of the occupant. the activities definod in
Section 6-4.21 shall be prohibited prior to 9:00 a-im and after 6:00 p.m.
(2) At the time of initial contact with a prospective cusoomer no person shall
fail to verbally identify himself.
(3) No person shall misrepresent his purpose or use any false, deceptive or
misleading migepesentatitn to induce the sale or use any plan, scheme or ruse
which tmsrepttsents the true status or mission of the person making the call.,".
Section 3. Renumber enlisting Sections 6-4.15 and 6-4.16 of "Part C. BURGLAR AND
ROBBERY ALARM ORDINANCE to 6-4.25 to 64.26. Delete existing Section 6-4.17.
Section 4. Renumber existing Sections 6-4.18 and 64.19 of "Part D. REGISTRATION
OF SECONDHAND PURCHASES" to 6-4.27 and 6-4.28.
Section S. Add "PART E. VIOLATIONS AND PENALTIES" to read as follows:
"PART E. VIOLATIONS AND PENALTIES
6-4.29. Violation. Any person violating this Ordinance shall be guilty of a
m;~ot.
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Page 6
6.4.30. Penalty. In accordance with Chapter 2 of the Code, any person
co
Tbou=d nvicted of a misdemeanor shall be punished by a fine of not more than one
eedin Dollars ($1,000) or itrptisontoent in the County Lail for a period not
exceeding six (6) months, or both such fine and imprisonment. Fach day or a,ty
portion thereof that a person violates any provision of this Otdittance shall
constitute a separate offense.'.
Section 6. The City Clerk shall certify to the adoption of this Ordinance and shall cause the
same to be posted or published in the manner required by law.
PASSED, APPROVED and ADOPTED this day of , 1991 by the following vote:
AYES:
NOES:
ABSENT:
REV. HENRY W. HEARNS, Mayor
City of Lancaster
ATTEST:
PATRICLA A. GAYLOR, Acting City Clerk
City of Lancaster
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AGENDA ITEM: _ 1 G
DATE: S
RESOLUTION NO, 91-96
A RESOLUTION OF THE CITY COUNCIL OF TFIE CITY OF
LANCASTER. CALIFORNIA. DESIGNATING A.FEE
SCHEDULE FOR BUSINESS LICENSES ISSUED UNDER THE
CITY'S BUSINESS LICENSE ORDINANCE.
WHEREAS, the City Council of the City of Lancaster has adopted Ordinance No. 566.
amending Chapter 4 of Article VI of the Lancaster Municipal Code; and
WHEREAS, each applicant for a business license is required to pay a fee upon application
for the license unless exempt by the Ordinance; and
WHEREAS, Section 6.4.6 of said Ordinance requires the City Council to establish the
amount of the fee which shall cover the costs of processing an application for a business license:
and
WHEREAS, Sections 6.4.13 and 6-4.15 of said Ordinance require the City Council to
establish the amount of the fee required for amendment of licenses and issuance of a duplicate
license, respectively.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LANCASTER DOES
HEREBY RESOLVE, DETERMINE, AND FIND AS FOLLOWS:
Section 1. The amount of the business license fee required under Section 6-4.6 for an
applicant shall be determined as follows:
Number of Employees. Agents,
Basic Ice se K=sentatives. or Tahconnactors
$50.00 1-25
70.00 26-50
90.00 51-75
110.00 76 plus
Section 2. The amount cf the business license fee required under 6-4.2 A. for the second
and subsequent branch establishment shall be ten dollars ($10.00), with the understanding that all
employees ate counted in the basic license fee for the main branch.
Section 3. The amount of the fee tequircd under Sections 6-4.13 and 6-4.15 shall be ten
dollars ($10.00).
Section 4. Businesses having a franchise granted by the City will not be required to pay as
the fee is presumed to be included in the franchise fees paid.
Section 5. On or prior to July 1 of each year, the City Council may adjust the amount of
the business license fee and fee for the duplicate license, according to the Consumer Price Index
for California.
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RESOLUTION NO. 91-96
Business License Fee Schedule
Page 2
PASSED, APPROVED, and ADOPTED by the Ciry Council of the City of Lancaster this
day of 1991, by the following vote:
AYES:
NOES:
ABSENT:
REV. HENRY W- HEARNS, Mayor
City of Lancaster
PATRICIA K. GAYLOR, Acting City Cleric
City of Lancaster
TOTAL PAGE.009 *M
wool*
V. MATTERS FOR DISCUSSION & ACTION
A. BUSINESS LICENSE ORDINANCE
Mayor Imperial requested this on the agenda to be used for
registration and regulation purposes only. Mr. Imperial cited
problems with unscrupulous vendors and business practices and was
concerned with serving the people and protecting their rights.
Councilman Bruesch suggested that existing ordinances regarding
vendors and peddlers be strengthened along with occupancy permits and
also requested periodic updating of the business inventory taken last
year.
MOTION BY COUNCILMAN TAYLOR, SECOND BY COUNCILMAN BRUESCH that
this ordinance not be considered at this time. Vote resulted:
Yes: Bruesch, Taylor, Clark
No: Imperial
Absent: McDonald
Abstain: None
The Mayor declared said motion duly carried and so ordered.
VI. STATUS REPORTS - None
VII. MATTERS FROM OFFICIALS
A. AB 3 (Brown) - REGIONAL GOVERNMENT LEGISLATION
MOTION BY COUNCILMAN TAYLOR, SECOND BY COUNCILMAN BRUESCH that the
Council oppose AB 3 (Brown) and authorize the Mayor to forward the
appropriate correspondence. Vote resulted:
Yes: Bruesch, Taylor, Imperial, Clark
No: None
Absent: McDonald
Abstain: None
The Mayor declared said motion duly carried and so ordered.
B. COUNCILMAN TAYLOR
1. Asked staff for a report regarding Mary Redd's denial
for housing assistance.
2. Reported an incident at the In-n-Out Burger and
requested the following to be verbatim:
TAYLOR: Another item that I had, Mr. Mayor. I had a little
difficulty with a member of the Sheriff's Department on August the
2nd, a week ago Friday, up at the In-n-Out Burger on Rosemead
Boulevard and I would ask that we get a written report back involving
the three officers and I believe there was a woman ride-along with the
sergeant that was there that night. I'm not happy with the attitude
of the particular deputy. My son was pulling into the Burger King
restaurant there and he was given a citation which whether he deserved
it or not that will be evaluated but when I was...he asked me to come
up there and the...I walked over to the deputy's car and the comment
was he said first off do you have any questions and I said no. And
then as I stood by the car there and his comment came back to me
directly. He said in general terms that I don't want to have any
attitude problem with you. And basically I hadn't discussed anything
with him. So, due to that approach that he handled I had received
complaints in the past about the deputies at In-n-out Burger. So,
there was a sergeant involved. And that's basically it was as my son
was in line ordering the hamburgers this particular deputy came over
to the car and ordered him out of his Toyota pickup truck and he told
his girlfriend to drive the truck and he had asked the officer
basically what had happened, what was wrong. And he said come around
CC 8-13-91
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