Belmont Municipal Code Art. I General Provisions

This chapter sets minimum qualification and operational performance standards upon regulated business owners and operators to promote legitimate business activities, discourage illegitimate activity, and to mitigate the potential for avoidable negative effects related to the business's presence and operation. Compliance with this chapter does not relieve or lessen regulated business owners and operators of responsibility for negative health, safety or welfare impacts or nuisances caused by or related to the presence or operation of the business, whether occurring on or off the premises.

(Ord. No. 2024-1176, § 1, 2-13-24)

The definitions in this section apply to the words and phrases use in this chapter unless the context clearly indicates otherwise.

Applicant means all business owners and operators of a regulated business.

Applicant representative means the person designated in an application as the primary operator of the regulated business.

Business entity means any organization or enterprise whether or not operated for profit, including but not limited to a proprietorship, partnership, firm, business trust, joint venture, syndicate, corporation or association.

Business Owner means any of the following persons:

(1) Any person who has a direct or indirect investment in a business entity that owns, manages, or operates a regulated business unless the person demonstrates to the satisfaction of the registration authority that the person who has no control over or right to influence directly or indirectly the management or operation of the business.

(2) Any person who is a member of a limited liability company that owns, manages, or operates a regulated business.

(3) Any person who is a general partner of a general or limited partnership that owns, manages or operates a regulated business.

(4) A sole proprietor of a regulated business.

Convicted and conviction means a plea or finding of guilty or plea of no contest.

Investment means any financial interest in or security issued by a business entity, including, but not limited to, common stock, preferred stock, rights, warrants, options, debt instruments, and any partnership or other ownership interest owned directly, indirectly, or beneficially.

Premises includes any structure or portion of structure or exterior or outdoor area in close proximity to a regulated business which is subject to lawful possession or control by a responsible person.

Operator includes any person who has the right to direct and control some or all business operations, whether independently or in concert with others.

Registration Certificate means a certificate issued by the registration authority to a regulated business upon registration.

Registration Authority means the chief of police, his or her authorized representatives, or the person designated by the city manager.

Regulated business means a business regulated by this chapter.

Responsible person means

(1) a person in possession of real property comprising the premises;

(2) a registration certificate holder under this chapter;

(3) each person upon whom a duty, requirement or obligation is imposed by this chapter;

(4) each person who is otherwise responsible for the operation, management, or policy of a regulated business; and

(5) an employee who is in apparent charge of the premises.

(Ord. No. 2024-1176, § 1, 2-13-24)

This chapter regulates the following businesses:

(a) Massage businesses as defined in article two.

(b) Cannabis businesses as defined in article three.

(Ord. No. 2024-1176, § 1, 2-13-24)

It is unlawful for any person to establish or operate a regulated business within the City unless the business is registered and holds a valid City registration certificate in good standing under this chapter.

(Ord. No. 2024-1176, § 1, 2-13-24)

(a) An application to register a regulated business, together with the required application fee, must be filed with the City Clerk who will forward the application to the registration authority. A new or renewal application may not be processed without the required application fee.

(b) A registration application must be filed:

(1) for new registration at least 45 days before the proposed operation of the regulated business;

(2) for registration renewal at least 45 days before the expiration of the current registration.

(c) (1)

If the registration authority determines the application is incomplete or that additional information is necessary to determine whether registration of the business complies with this chapter, the registration authority must promptly inform the applicant in writing to cure the incompleteness or provide additional information required within 30 days or such time as the registration authority determines to be reasonable under the circumstances.

(2) If the applicant does not cure all incompleteness or provide all additional information requested within the time specified by the registration authority, the registration authority may deny the application.

(d) An applicant whose application is denied for incompleteness is not eligible to reapply for 90 days.

(Ord. No. 2024-1176, § 1, 2-13-24)

(a) Form. An application to register or renew registration must be on a form approved by the registration authority. The registration authority may develop a form for mandatory use. The application must include the information and documents in subsection (b) and any additional information or documents that the registration authority determines appropriate to carry out the intent and purpose of this chapter.

(b) Applicant contents. A registration application must include the following.

(1) Applicant information. The legal name and address of the applicant and the applicant's representative if applicable.

(2) Business information.

(A) Legal name of the regulated business and if a business entity proof of registration in good standing with the California Secretary of State and Franchise Tax Board;

(B) The form of business under which the regulated business will be operating (i.e., corporation, general or limited partnership, limited liability company, or other form) and state of organization;

(C) If the regulated business is an entity, corporate formation and organization documentation (i.e., articles of incorporation, management agreement, partnership agreement, etc.)

(D) Address and telephone number of the regulated business;

(E) A complete list of all of the regulated business's current and anticipated employees and any independent contractors anticipated to periodically supply or participate in the operation of the regulated business;

(F) A complete list of all person who currently hold a financial interest or held a financial interest in the regulated business in the previous 24 months;

(3) Real Property. For the physical location from which the regulated business will operate in the City, provide the following.

(A) The address of the location and assessor's parcel number for the unit of real property comprising the location.

(B) Documentary evidence of the applicant's legal right to occupy and use the location which may include a deed granting a fee simple interest or lease agreement.

(C) A current preliminary title report for the unit of real property comprising the location.

(D) A chain of title report showing all conveyances for the previous five years and all instruments reflected in the chain of title for the previous five years for the unit of real property comprising the location.

(4) Business Owners.

(A) Legal names, and if a business entity, the principal place of business and state of corporate organization, of all owners of the regulated business; for a general partnership, the names of the individual partners; for a limited partnership, limited liability company, or a corporation, the name of the entity.

(B) Residential address and telephone number of all business owners who are natural persons.

(C) Business address and telephone number of all business owners;

(5) Background application. For each owner of a regulated business, a background check application with the following information. The registration authority may accept:

(A) the owner's business, occupation, and employment history if a natural person for the seven years preceding the date of the application,

(B) the inclusive dates of any employment history,

(C) the name and address of any regulated business or similar business owned or operated by the owner wherever located,

(D) Applicant must complete a California Department of Justice Live Scan BCIA 8016 form and submit to a live scan fingerprinting process through the Belmont Police Department or an authorized law enforcement agency unless the applicant currently holds a valid CAMTC license and the registration authority in its sole discretion approves processing the application without a separate Live Scan submission;

(E) If the business owner is a natural person, a current driver's license or identification issued by a state or federal governmental agency or other authenticable photographic identification bearing a bona fide seal by a foreign government;

(F) Any arrest or conviction within the previous seven years for violation of local, state or federal law;

(G) Any administrative or civil proceeding in which a license, permit, or other permission to operate a business was suspended or revoked or in which a civil penalty or fine was imposed or stipulated to in the previous seven years.

(6) Real Property Owners. Provide the following for each real property owner:

(A) If a natural person, their residential address and telephone number.

(B) Business address and telephone number.

(C) A statement that the real property owner acknowledges their responsibilities under this chapter and consents to the applicant operating the regulated business on the property.

(D) A complete and accurate description of the nature and extent of any financial interest in the regulated business.

(7) Attestations. From each business owner and real property owner, a signed statement:

(A) attesting under penalty of perjury that all of the information contained in the application is complete, true and accurate to the best of their knowledge;

(B) acknowledging that all business and property owners are jointly and severally responsible for the lawful operation of the business and conduct of the business's employees, agents, and independent contractors engaged in business activity on the premises; and,

(C) acknowledging that failure to comply with any local, state, or federal law, or the provisions of this chapter may result in revocation of the business's registration certificate.

(b) Signature. The application must be signed by all business owners and the signatures notarized. Signatures for business entities must conform to the following requirements unless alternative requirements are approved by the city attorney.

(1) For a general partnership, the application must be signed by each of the partners.

(2) For a limited partnership, the application for any registration must be signed by each of the general partners.

(3) For a limited liability company that has elected to be managed by its members, the application must be signed by each member or by an officer authorized by the articles of organization or the operating agreement to bind the company. In the case of a limited liability company that has elected to be managed by a manager or managers, the application must be signed by the manager or managers or by an officer authorized by the articles of organization or the operating agreement to bind the company.

(4) For a corporation, the application must be signed by two officers of the corporation, one from each of the following categories.

(A) the chairperson of the board, the president, or a vice president, and

(B) the secretary, assistant secretary, chief financial officer, or assistant treasurer.

(c) Addresses. Address information required by this section must be a physical address and may not be a USPS Post Office box or private mail box.

(Ord. No. 2024-1176, § 1, 2-13-24)

(a) Registration certificate. Registration is specific to the ownership and the location of the business. The registration authority effectuates registration by issuing a registration certificate to the applicant representative.

(b) Term. Registration is valid for a period ending on June 30 th that is greater than one year and up to two years from the date the registration authority issues a registration certificate unless revoked, surrendered, or expires by change of ownership or location. Suspension of a registration certificate does not extend the term of registration.

(c) Change of ownership. Registration expires upon the addition of any new owner of the regulated business. The new ownership must apply for registration, pay a new application fee, and secure a new registration certificate from the registration authority.

(d) Change of location. Registration expires upon a business changing its location.

(e) Not transferable. Registration and a registration certificate are not transferable to another person or location.

(f) Renewal. Registration may be renewed subject to the same requirements as registration, except as expressly otherwise provided in this chapter. A registration holder is solely responsible to timely submit a complete renewal application. Failure to timely submit a renewal application may result in the expiration of the registration before the renewal application is granted or denied.

(g) Other approvals. Registration required by this chapter is in addition to any other license or permit required under any other provisions of the Belmont City Code or Belmont ordinances, including but not limited to a business license, zoning administrator permit, conditional use permit, building permit, occupancy certification or permit, or any other permit or license required by law. The issuance of a registration certificate does not modify the requirements of any other permit or approval and is not a substitute for obtaining any other permit, license or approval otherwise required. The issuance of a registration certificate may not be construed as a factor in favor of the issuance of any other permit, license, or approval necessary under this Code for the operation of a regulated business.

(h) A regulated business whose registration has expired under subsections (b), (c) or (d) must immediately cease all business operation.

(Ord. No. 2024-1176, § 1, 2-13-24)

(a) Determination. Within 45 days of receiving a complete application, the registration authority must register the regulated business and issue a registration certificate to the owner unless he or she finds one or more grounds for denial under this section.

(b) Mandatory grounds for denial. The registration authority may not issue a registration certificate and must deny the application for registration if:

(1) The application fee has not been fully paid;

(2) The application, once complete, does not conform to the requirements of this chapter;

(3) The regulated business is disqualified from registration under Section 13-9;

(4) Registration or operation of the regulated business at the proposed location, as conditioned, is not consistent with state and local laws, rules, and regulations, or any final administrative decision or court order; or

(5) Another ownership group is or was operating a regulated business at that location and any one of the following conditions exist:

(A) the City has initiated administrative, civil, or criminal proceedings against one or more members of that ownership group for violation of this chapter and the proceedings, including any appeal, are not final;

(B) the regulated business registration is currently suspended;

(C) the regulated business registration was revoked within seven years from the date of the pending application, or;

(D) the ownership surrendered its registration certificate or any land use permit or other approval necessary to operate a regulated business on the premises within seven years from the date of the pending application while an enforcement proceeding was pending against one or more owners for conduct arising out of operation of the business.

(c) Permissive grounds. The registration authority may deny a registration application if:

(1) There are outstanding health, safety, zoning or nuisance violations associated with a condition or use of the property or the operation of an existing regulated business;

(2) An owner held an approval to operate a business located in another jurisdiction that if presently located in the City would be a regulated business and within the last seven years the owner either surrendered the approval while an enforcement proceeding was pending or had the approval revoked;

(3) An owner holds an approval to operate a business located in another jurisdiction that if presently located in the City would be a regulated business and enforcement proceedings are pending in that jurisdiction based on conduct that if committed in relation to a regulated business located in the City of Belmont would be grounds to deny or revoke registration. The registration authority must make an independent determination based on substantial evidence as to whether the conduct occurred; or,

(4) Another ownership group is or was operating a regulated business at that location and conduct occurred on the premises that would be grounds to deny or revoke a registration certificate or any land use permit or other approval necessary to operate a regulated business on the premises within seven years from the date of the pending application. The registration authority must make an independent determination based on substantial evidence as to whether the conduct occurred. If the registration authority finds the conduct occurred, the authority may deny the application unless the authority determines that the conduct likely will not reoccur.

(d) Written decision. If the registration authority denies the application, he or she must notify the applicant of the reasons for the denial in writing, the right of appeal under this chapter, and that the failure to request a timely appeal will waive the applicant's to right to contest the decision.

(e) Location. For purposes of subsection (b), location of a regulated business includes:

(1) the parcel which the business is located, or a contiguous parcel owned in whole or part by an owner of the parcel on which the business is located, and

(2) any unit within the same condominium subdivision.

(Ord. No. 2024-1176, § 1, 2-13-24)

(a) A massage business is disqualified from registration as provided in section 13-35.

(b) A cannabis business is disqualified from registration as provided in section 13-55.

(Ord. No. 2024-1176, § 1, 2-13-24)

(a) The registration authority must revoke the registration of a Massage Business found to be disqualified under 13-35(a) and a Cannabis Business found to be disqualified under 13-54(a).

(b) The registration authority must either revoke or suspend the registration for a Massage Business found to be disqualified under 13-35(b) or a Cannabis Business found to be disqualified under 13-54(b).

(c) The registration authority must revoke a registration under subsection (b) unless he or she finds based on substantial evidence that the circumstance or conduct giving rise to the disqualification is not likely to be repeated.

(d) The registration authority may either revoke or suspend the registration for a regulated business determined to have violated the reporting or operating requirements in this chapter for the particular type of regulated business. When imposing a suspension, the registration authority may also impose operating conditions to discourage or prevent similar violations in the future.

(e) The remedies in this section are in addition to and cumulative of other remedies at law.

(f) Before suspending or revoking the registration of a regulated business under this section, the registration authority must provide the ownership notice and an opportunity to be heard in accordance with procedures in this chapter.

(Ord. No. 2024-1176, § 1, 2-13-24)

(a) This section applies to existing registrations only.

(b) The registration authority must serve a notice of intent to suspend or revoke a registration or condition or deny a registration renewal at least 14 calendar days before the effective date of the proposed decision. The notice must contain:

(1) A summary of the facts and evidence establishing the grounds for the condition, suspension, or revocation.

(2) A statement that the owner may request a meeting on the proposed registration decision by submitting a request in writing to the registration authority within seven calendar days of the date of service of the notice or appeal the registration decision as provided in Section 13-12 and that the failure to either request a meeting or timely appeal waives the right to contest the decision.

(c) The owner may request a meeting with the registration authority to present information as to why the proposed licensing decision should be modified or set aside by submitting a written request to the registration authority within seven calendar days of the date of service of the notice. The owner may appear at the meeting with or by a representative.

(d) Upon receipt of a timely request, the registration authority must schedule a meeting within five calendar days, or as soon as reasonably possible thereafter.

(e) The registration authority must render a written decision before the effective date of the proposed registration decision, or as soon as reasonably possible thereafter, confirming, modifying or setting aside the proposed registration decision unless the registration authority and the owner mutually agree in writing to extend the time to render a decision. The final decision must inform the owner of the right to appeal the decision to the city manager.

(Ord. No. 2024-1176, § 1, 2-13-24)

(a) An owner wishing to contest a registration decision denying a new registration or renewal, imposing modifications or conditions on a registration, or suspending or revoking a registration must timely appeal the matter to the city manager as set forth in this section. An owner who fails to submit a complete and timely notice of appeal waives the right to contest the registration decision.

(b) A written notice of appeal contesting the decision ("notice of appeal") must be submitted to the city clerk within 14 calendar days after service of the registration authority's decision. The notice of appeal must specify and contain:

(1) The name, address, and phone number of the appellant and the principal applicant or owner, and the name and location of the regulated business.

(2) A detailed factual basis for the appeal. Grounds for the appeal not reflected in the notice of appeal.

(3) A complete copy of the most recent application.

(4) A complete copy of the registration authority's written decision.

(c) Upon receipt of a complete and timely filed notice of appeal, the city manager must:

(1) hire or appoint a hearing officer and schedule a hearing not less than five business days, nor more than 14 calendar days from the date of the filing of the notice of appeal with the city clerk or as soon thereafter as reasonably possible, and

(2) serve a notice of the hearing on the principal applicant or owner providing the date, time and place of the hearing.

(d) Notwithstanding subsection (c), appeals of the denial of a new registration may be heard by the city manager and may be decided based on written submissions without a hearing.

(e) A hearing under this section is informal. All relevant evidence may be admitted if it is the sort of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs. Relevant admissible evidence includes, but is not limited to, incident reports and witness affidavits. A formal oath is not required for witnesses to provide testimony.

(f) The city bears the burden of proof at the hearing to establish facts sufficient to support the findings necessary for the registration decision.

(g) All parties may be represented by counsel, and may present oral and written evidence.

(h) Oral hearings are to be open to the public to observe unless the hearing officer determines that closure of the hearing is necessary to protect a witness, receive sensitive or confidential information, or maintain order. The hearing officer may exclude any person who disrupts the hearing.

(i) The hearing officer's duties include audio recording the proceedings and regulating the course of the proceeding. The hearing officer may limit the use of witnesses, testimony, evidence, rebuttal, and argument. The hearing official may allow the cross-examination of witnesses to the extent necessary to ensure a fair hearing and may limit cross-examination of witnesses as necessary to maintain proper decorum.

(j) In the event the applicant or owner or his or her counsel fails to appear or present any evidence at the hearing, the hearing officer must render a determination based on the evidence in the record and offered at the hearing by the registration authority.

(k) The hearing officer must issue a written determination to the city manager within 10 calendar days following completion of the hearing. The determination must make written findings of fact and recommend a decision based upon the findings. The findings of fact must be supported by the weight of the evidence. The determination must explain the reasons for the recommendation. The failure of the hearing officer to issue a timely decision does not prejudice the city's right to act in the matter.

(l) Within five business days or as soon as reasonably practical thereafter of receiving the hearing officer's determination, the city manager must render a final registration decision based on the findings of fact contained in the hearing officer's determination, or remand the matter to the hearing officer to clarify the findings, make additional findings, or take additional evidence. The city manager's final licensing decision is conclusive as to the city and must inform the principal applicant or owner that the time limit to seek judicial review is governed by Code of Civil Procedure Section 1094.6.

(m) The city manager may establish rules or regulations governing the selection and duties of hearing officers.

(Ord. No. 2024-1176, § 1, 2-13-24)

(a) Massage businesses must comply with the operating requirements in Section 13-36.

(b) Cannabis businesses must comply with the operating requirements in Section 13-56.

(Ord. No. 2024-1176, § 1, 2-13-24)

The investigating and enforcing officials of the City, including but not limited to the police chief, health officer, building official and zoning administrator, or their designees, are authorized to enter the premises from time to time during regular business hours for the purpose of making reasonable inspections to observe and enforce compliance with the regulations, laws, and statutes and with the provisions of this chapter applicable to the regulated business, and to charge inspection fees established therefore.

(Ord. No. 2024-1176, § 1, 2-13-24)

(a) A registrant must report to the registration authority any of the following within 96 hours of the occurrence:

(1) arrests of any employees or owners of the regulated business for an offense other than a misdemeanor traffic offense;

(2) resignations, terminations, or transfers of an employee of the regulated business;

(3) any event involving the regulated business or individuals employed or contracted by the business that may constitute a non-compliance with this chapter or state law governing the regulated business or person engaged in activities related to the regulated business;

(4) any change in the ownership of the regulated business.

(b) This section requires reporting to the registration authority even if the regulated business believes that the registration authority has or will receive the required information from another source. Reporting does not relieve the registrant of any other requirements of this chapter including a requirement to cease operating.

(Ord. No. 2024-1176, § 1, 2-13-24)

(a) The owner of real property on which a regulated business operates must manage their property in a manner to avoid violation of this chapter.

(b) The owner of real property on which a regulated business operates must not create or allow others to create any nuisance condition on the property and must promptly abate any nuisance condition.

(c) A real property owner is liable for a nuisance condition or a violation of this chapter occurring on the real property where a regulated business operates regardless of any contract with any third party regarding the property or business. When there are multiple property owners, the property owners are jointly and severally liable.

(Ord. No. 2024-1176, § 1, 2-13-24)

(a) It is unlawful for a responsible person to establish or operate, or to allow the establishment or operation of a regulated business in violation of this chapter.

(b) Every building or place in which a regulated business is established or operated in violation of this chapter is a public nuisance that may be enjoined, abated, and prevented and for which damages may be recovered. Knowledge of a violation by a responsible person is not required for a violation to be a public nuisance, for civil damages to be imposed, or for the remedy of abatement.

(Ord. No. 2024-1176, § 1, 2-13-24)

(a) A violation of this chapter is a misdemeanor offense that may be charged as an infraction at the discretion of the initiating enforcement official.

(b) Violation of this chapter may be remedied by any means available to remedy a violation of this Code. The remedies are cumulative and non-exclusive.

(c) Notwithstanding Section 30-12, administrative fines issued under chapter 30 for violation of this chapter may be issued in amount between $100 and $1,000 as determined by the registration authority for each offense.

(d) Every person violating this chapter is subject to a civil penalty of $1,000 for each day of each violation which may be recovered in a civil action.

(e) An offense charged as a misdemeanor violation of this chapter is punishable by imprisonment in the county jail not exceeding six months, or by fine not exceeding $1,000, or by both.

(Ord. No. 2024-1176, § 1, 2-13-24)

This chapter is not intended to create a mandatory duty on the part of the city to protect any person from any injury or damage arising out of the establishment or operation of a regulated business or the enforcement or non-enforcement of this chapter.

(Ord. No. 2024-1176, § 1, 2-13-24)