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HomeMy WebLinkAboutFS 2010-11-02 Item 2C - Ordinance - Business License Code Changes *ILA ;l1' tticiw 4s City of Tukwila a b ro Jim Haggerton, Mayor 2 IN FORMATIONAL MEMORANDUM 190 TO: Mayor Haggerton Finance and Safety Committee FROM: Jennifer Ferrer -Santa Ines, Senior Fiscal Coordinator DATE: October 26, 2010 SUBJECT: Denial or Revocation of Business License(s) Resulting from Unpaid /Delinquent Accounts, Repealing Codes no longer Current, Changing Language to reflect Finance assuming Business Licensing from the City Clerk ISSUE The City currently has a number of unpaid and /or delinquent customer accounts (including utility payments, non sufficient fund checks and accounts receivables) whose collectability could increase if there was enforceable action that could be taken in response to non payment. TMC Title 5 Business Licenses and Regulations, Chapter 5.16 "Card and Pool Rooms Chapter 5.40 "Massage Establishments" are no longer needed because no State Code require pool tables to be separate from areas where minors are allowed and RCW 35.21 692 does not allow or impose requirements that are different than other businesses if the massage establishment has a massage practitioner's license issued by the State. The Finance Department has assumed Business Licenses from the City Clerk's Office. Language in the Code needs to be updated to reflect this change. BACKGROUND Current Tukwila Municipal Code, Section 5.04.110 addresses the denial and revocation of business licenses that were 1) procured by fraud or false information in the application, 2) non- compliance of building, structure, equipment, operation or 3) location of the business for which the license was issued, or the license holder has knowingly violated any provisions of any chapter of the Tukwila Municipal Code. Repealing Chapter 5.16 "Card Pool Rooms" Per the City Attorney, this language is old and probably written when it was common for pool tables to only be in bars etc. Currently there is not any State Code requiring pool tables to be separate from areas where minors are allowed. Repealing Chapter 5.40 "Massage Establishments" Per RCW 35.21.692 we cannot charge a massage business more or impose requirements that are different than other businesses such as therapists (if they have a massage practitioner's license issued by the State). Therefore we require proof of their massage practitioner's license from applicable businesses each year. Effective November 15, 2010, the Finance Department will be assuming all Business License responsibilities from the City Clerk's Office. The current language in the Code refers to the City Clerk and needs to be changed to the Finance Director. 15 INFORMATIONAL MEMO Page 2 DISCUSSION The current ordinance addresses reasons for denial and revocation of a business license as mentioned above; however, it does not address revocation or denial as a penalty for non- payment. If the City added a new section to the existing ordinance addressing licensee default in any payment of any fee, or tax due to the City under the TMC or City Policy, that would constitute grounds for denial or revocation of their business license until said fee or tax was paid. Existing TMC 5.16 Card and Pool Rooms” was created in 1951, when it was common for pool tables to be located in bars and /or taverns etc. Currently there are not any State Laws that state that pool tables must be separated from areas where minors are allowed. Today this type of establishment is required to get a business license and each pool table is licensed as well. Existing TMC 5.40 "Massage Establishments since RCW dictates and regulates Massage Establishments, it is no longer necessary for the City to have additional codes. The State code takes priority over City code. Since the Finance Department has become the issuing office of Business Licenses, the code language needs to be updated to reflect this change. Currently the code refers to the City Clerk. When the Finance Department absorbs these responsibilities, the code will need to refer to the Finance Director. RECOMMENDATION The Council is being asked to approve the attached Ordinance, approve the repeal of TMC 5.16, TMC 5.40 and approve the language updates for the issuing department. The Council is being asked to consider this issue at the November 2, 2010 Finance Safety Committee meeting, November 8, 2010 Committee of the Whole Meeting and the November 15, 2010 Regular Meeting. ATTACHMENTS Draft Ordinance 16 DRAFT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING TUKWILA MUNICIPAL CODE CHAPTER 5.04 'BUSINESS LICENSES AND REGULATIONS" TO UPDATE THE ISSUING DEPARTMENT AND TO CLARIFY PROCEDURES FOR DENIAL OR REVOCATION; REPEALING VARIOUS ORDINANCES AS CODIFIED AT TUKWILA MUNICIPAL CODE CHAPTERS 5.04, BUSINESS LICENSE AND REGULATIONS, 5.16, "CARD AND POOL ROOMS," AND 5.40, "MASSAGE ESTABLISHMENTS PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the current Business Licenses and Regulations section of the Tukwila Municipal Code were last updated in 1996, by Ordinance No 1788 and operational changes require an update to the regulations; and WHEREAS, Tukwila Municipal Code Chapter 516 is no longer applicable because State Statute no longer has provisions regarding pool /billiard tables to be segregated from minors, and WHEREAS, per RCW 35.21.692, State licensed massage practitioners may not be subject to additional licensing requirements, therefore Tukwila Municipal Code Chapter 5 40 is no longer valid, and WHEREAS, the Finance Department has become the issuing office for Business Licenses within the City and housekeeping amendments are required to reflect this change in City operations; and WHEREAS, the City Council has considered the provisions of Tukwila Municipal Code Chapter 5 04 and desires to clarify the procedures for denial or revocation of business licenses; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. TMC Chapter 5.04 is amended to read as follows: TMC Section 5.04.010 "Definitions." For the purpose of this chapter, the following definitions shall apply: 1 "Business," means any operation performed by any person which involves the manufacturing or processing of materials of any type, the sale of goods, wares or merchandise, the rendition of services or the repair of goods, wares or merchandise to the general public or a portion thereof for any consideration at each established place of business, store, office, shop or yard within the City limits. 2. "Department," means Finance Department. 3. "Director," means the Finance Director or his or her designee. 4. "License or licensee," as used generally in this chapter, means and includes respectively the words "permit" or "permittee" or the holder for any use or period of time of any similar privilege, wherever relevant to any provision of this chapter or other law or ordinance. W.\ Word Processing Ordinances Business Licenses Generaldoc C•n,rl, Page 1 of 5 17 5. Nonprofit or'anization" includes individual oerson(s), partnerships, ioint ventures, societies, associations, churches, clubs, trustees, trusts or corporations; or any officers, agents. employees, factors or any kind of personal representatives of any thereof, in any capacity, acting either for himself or any other person under either personal appointment or pursuant to law who qualifies under definition of and certification by the Internal Revenue Service as nonprofit. 6. "Person," means any individual, receiver, agent, trustee in bankruptcy, trust, estate, firm, co- partnership, joint venture, company, joint stock company, business trust, corporation, society, or group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit or otherwise. 7 "Person engaged in business" means the owner or one primarily beneficially interested in lawful business for profit and not employees. 8. "Horne occupation" means any business conducted in a residence within the corporate city limits of Tukwila, such business being subject to the requirements set forth in TMC 18.06.430. TMC Section 5.04.012 "Purpose." The purpose of this chapter is to regulate and insure the legal conduct of businesses, assist in the effective administration of health, fire, building, zoning and other codes of the City, to impose fees for revenue purposes, and to provide a means for obtaining public information and compiling statistical information on existing and new businesses in the City. TMC Section 5.04.015 "Business License Required." No person or persons shall conduct, maintain, overate, or engage in any business within the City without first applying for and obtaining a business license and paving the fee(s) as prescribed herein unless the business is exempt. The exemption is only from the need to obtain a business license and shall not be construed as relief from compliance with other requirements of the Tukwila Municipal Code. TMC Section 5.04.020 "Application and fees required." A. Any person desiring to establish or conduct any business enterprise or undertaking within the corporate limits of the City shall first apply to the City Clerk Finance Department for a license to conduct such business. The application shall be upon a form furnished by the Finance Department on which the applicant shall state the company name and address; the nature of the business activity or activities in which he desires to engage; the place where the business will be conducted, the number of employees, whether full or part -time, on the payroll as of January 1, or, if a new business, the number to be employed on the opening date; and other information pertaining to the business as required by the City. B The application must be accompanied by a check, cash or money order for the amount of the license fee. All fees will be based on the number of employees, whether full or part -time, as follows: 0 to 10 $100.00 11 to 20 $150.00 21 to 50 $300.00 51 to 100 $400 00 101 and up $600.00 Home Occupation (pursuant to TMC 5 04.010) $50 00 TMC Section 5.04.030 "Renewal." Upon review and approval of the application, the City Clerk Finance Director will issue a license to the applicant. The license shall grant to the applicant the privilege to conduct such business at a designated location in the City Such license may be renewed by payment of the year's fee prior to January 1. TMC Section 5.04.040 "Prorating fee." The license fee set forth in this chapter shall be for the calendar year, and each person engaged in business must pay the full license W. Word Processing \Ordinances \Business Licenses General.doc Cv:mrin Page 2 of 5 18 fee either for the current year or portion thereof during which year or portion thereof he engages in business. TMC Section 5.04.050 "Fee for Late Acquisition or Renewal." The license fee shall be increased for failure to acquire a license within 30 days of commencing business operations or for failure to renew said license within 30 days of expiration date in the following amounts: First 30 days, $20 00; each 30 days thereafter, $20 00 TMC Section 5.04.060 "Transferability The license granted in pursuance hereof shall be personal to the licensee and it shall not be assignable or transferable to any other person. TMC Section 5.04.070 "Change in Nature of Business." The license granted in pursuance hereof shall be used to conduct the business or type of business at the designated address for which such license is issued. Any change in the nature of the business shall necessitate a renewed application to the Finance Department. TMC Section 5.04.080 "Required Display It is unlawful for any person to engage in or carry on any business activity in the City without first procuring a license as provided in this chapter The license shall thereafter be prominently displayed in the place of business of the applicant. TMC Section 5.04.090 "Exemption." Nothing in this chapter shall be construed to require a license for any farmer, gardener, or other person to sell, deliver or peddle any fruits, vegetables, berries, butter, eggs, fish, milk, poultry, meats or any farm produce or edibles raised, caught, produced or manufactured by such person in any place within the State. TMC Section 5.04.100 "Failure to Pay Fee." If any person engaged in business fails or refuses to pay the license fee for any year as herein provided, they shall not be granted a license for the current year until such delinquent license fees as set forth in TMC 5 04.050 have been paid, in addition to the current years' required fee. Such fees may be collected by the City by proper legal action brought for that purpose if any person engaged in business fails or refuses to pay the license fee. This remedy is cumulative and not exclusive. TMC Section 5.04.105 "Issuance of Business License." A. A business license will only be issued provided the building, structure, operation or location of the business for which the license is sought complies with the requirements or standards of the Tukwila Municipal Code. B. In anv case where an applicant seeks a business license for a business to be located in a building or structure for which a building or land use permit is required to operate the business as proposed, whether as a newly constructed building or structure or a remodeled building or structure. the permit process, including final inspections /issuance of occupancy permits, shall be completed prior to issuance of a business license. C. In anv case where an applicant seeks a business license for a business to be located in a building or structure for which no building or land use permit is required to operate the business as proposed, the building department may require the business premises to be inspected for compliance with life and safety codes. If the inspection reveals outstanding code violations. the business license will not be issued until all life and safety code violations are resolved. TMC Section 5.04.110 "Denial Revocation." A. The Finance Director may denv any business license application pursuant to 5.04.105. B The Finance Director City Clerk may deny or revoke any license under this chapter for up to a period of one year where one or more of the following conditions exist: W. \Word Processing \Ordinances \Business Licenses General.doc CW:nnrl, Page 3 of 5 19 1. The licensee is in default of anv fee. charges or amounts due and payable to the City of Tukwila, as outlined in the Tukwila Municipal Code or City policy. 2. The license was procured by fraud or by a false or misleading representation of fact in the application, or in any report or record required to be filed with the City Clerk Finance Department; 3 The building, structure, equipment, operation or location of the business for which the license was issued does not comply with the requirements or standards of the Tukwila Municipal Code; 4. The license holder, his or her employee, agent, partner, director, officer or manager has knowingly violated any provisions of any chapter of the Tukwila Municipal Code, or has knowingly permitted, failed to prevent, or has otherwise allowed a violation of any of the provisions of any chapter of the Tukwila Municipal Code to occur on his or her business premises. C. Upon determination that grounds for denial, suspension or revocation of a license exist, the City Clerk Finance Director shall send the license holder a Notice of Denial, Suspension or Revocation. Grounds for denial, suspension or revocation include, repetition of a violation of any provision of City policies or the Tukwila Municipal Code that has been accompanied by a warning notice of such violation or previous notice of the violation. The Notice of Denial, Suspension or Revocation shall set forth the grounds for and terms of the denial, suspension or revocation and a statement advising that the person may appeal from the Notice of Denial, Suspension or Revocation to the Hearing Officer, provided that the appeal is made in writing and filed with the City Clerk Finance Director within 10 days from the date of receipt of the Notice of Denial, Suspension or Revocation, and that failure to so appeal shall constitute a waiver of all rights to any additional administrative hearing or determination on the matter Upon issuance of such Notice, the license is suspended or revoked and is no longer valid and current, unless appealed as provided in this chapter, in which case the effect of the suspension or the revocation is stayed pending the outcome of the appeal. D Receipt of the Notice of Denial, Suspension or Revocation. The Notice of Denial, Suspension or Revocation shall be served upon the license holder either personally or by mailing a copy of such Notice by certified mail, postage prepaid, return receipt requested to such license holder to his or her last known address as provided in the license application. Alternatively, the Notice may be posted upon the premises where such license holder conducts his or her business, which is the subject of the denied or revoked license. TMC Section 5.04.112 "Appeal of Notice of Denial, Suspension or Revocation." A. Appeals from a Notice of Denial, Suspension or Revocation under this chapter shall be conducted in the same manner as appeals from a "Notice and Order" under Tukwila Municipal Code Chapter 8.45. B. The appeal shall be filed with the City Clerk's Finance Department's Office along with an appeal fee of $250.00. TMC Section 5.04.114 "Violations." Per TMC Section 8.45.030.C, it is unlawful for anv person or persons to engage in or conduct business within the City of Tukwila without first obtaining appropriate business licensing. A. A businesses' first violation of this chapter shall result in a license suspension for ninety (90) days. B. A businesses' second violation of this chapter shall result in a license suspension for one hundred eighty (180) days. C. A businesses' third violation of this chapter shall result in the revocation of the licence for one year. W.\ Word Processing Ordinances Business Licenses General.doc CW:mrh Page 4 of 5 20 TMC Section 5.04.115 "Penalties." Any violation of this chapter, or failure to comply with any of the requirements of this chapter, shall be subject to the penalties prescribed in Chapter 8.45 of the Tukwila Municipal Code "Enforcement and shall be imposed pursuant to the procedures and conditions set forth in that chapter TMC Section 5.04.116 "Effect of Denial or Revocation." No person or business may reapply for a business license merely by renaming the business. The denial or revocation of a license applies to any business entity, regardless of its name, that is operating under the same ownership and /or management and engages in substantially the same type of business enterprise as that of a business that has been previously denied a license or has had its license revoked under this chapter within a year of such application for a license. TMC Section 5.04.120 "Regulations Adoption and Publication Failure to Comply The City Clerk Finance Director shall have the power and it shall be her their duty from time to time to adopt, publish and enforce rules and regulations not inconsistent with this chapter or with the law, for the purpose of carrying out the provisions hereof, and it is unlawful for any person to violate or fail to comply with any such rule or regulation. Section 2. Repealer for Tukwila Municipal Code 5.04 "Business Licenses Generally." Ordinance Nos. 1788 51 (part), 1838 §3, 2120 §1, 2179 52, and 2299 §1, are hereby repealed. Section 3. Repealer for Tukwila Municipal Code 5.16 "Card and Pool Rooms." Ordinance Nos. 204, 416 (part), and 374 (part) are hereby repealed. Section 4. Repealer for Tukwila Municipal Code 5.40 "Massage Establishments." Ordinance No. 1534 52 (part) is hereby repealed. Section 5. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 6. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2010 ATTEST /AUTHENTICATED Christy O'Flaherty, City Clerk Jim Haggerton, Mayor Filed with the City Clerk: APPROVED AS TO FORM BY Passed by the City Council. Published: Effective Date: Shelley M. Kerslake, City Attorney Ordinance Number 14� \Word Processing Ordinances \Business Licenses General.doc cw: „rh Page 5 of 5 21