Chapter 5.01 — LICENSING PROCEDURE

Except as otherwise defined in this Title, the various businesses, trades, professions, industries, occupations, callings and activities provided in this title to be licensed and regulated shall be defined in accordance with the meanings and connotations generally given them by those engaged in such activities and as recognized generally by the public.

(Prior code § 6100; Ord. No. 2219, § 2, 2-7-2017, eff. 4-25-2017).

As used in this chapter, "average number of employees" means the average number of employees employed in the city in applicant's business in the year immediately preceding the year for which the license is being issued; or for new businesses, the estimated average number of employees expected to be employed in the city in applicant's business in the period of time for which the license is to be issued. In computing the fee, the average number of employees must include owners, managers, family members, associates, agents, and all other persons engaged in the conduct of the business.

(Ord. 1434 § 1(part), 1982).

No one may engage in any business in the City of Campbell unless and until they obtain and maintain a business license pursuant to this Title, and pay all required taxes and fees.

(Ord. No. 2219, § 3, 2-7-2017, eff. 4-25-2017)

(a)

Charities. The provisions of this title shall not be deemed or construed to require the payment of a license fee to conduct any business or require the payment of any license fee from any institution or organization which is conducted, managed, or carried on wholly for the benefit of charitable purposes and from which profit is not derived, either directly or indirectly by any individual, firm, or corporation; nor shall any license be required for the conducting of an entertainment, dance, concert, exhibition or lecture on scientific, historical, literary, religious, or moral subjects whenever the receipts from the same are to be appropriated to any church or school, or to any religious or benevolent purpose within the city; nor shall any license be required for the conducting of any entertainment, dance, concert exhibition, or lecture whenever the receipts from the same are to be appropriated for the purposes and objects for which such association or organization was formed, and from which profit is not derived, either directly or indirectly, by any individual,

firm or corporation. Nothing in this section contained shall be deemed to exempt any such institution or organization from complying with the provisions of this title requiring such institution or organization to obtain a permit from the city council or proper officer to conduct any business.

(b)

Public Utilities. The terms and provisions of this chapter shall not be deemed nor construed to apply to:

(1)

Any public utility which makes an annual payment to city under a franchise or similar agreement, and

(2)

Any public utility subject to the provisions of the Public Utility Act of the State of California, and the regulations of the Public Utilities Commission. It is provided further, that the exemption contained in this section shall not be construed to preclude the city from granting or requiring such franchises and agreements providing for annual payment to the city as may now or hereafter be authorized by the laws of the State of California, nor to vitiate any franchise or agreement heretofore entered into by any public utility and city.

(c)

Non-Commercial Speech. The provisions of this Title shall not be deemed or construed to require the payment of a license tax from any person, institution or organization to engage in non-commercial speech protected by the First Amendment of the United States Constitution or Article I, Section 2 of the California Constitution. For purposes of this subsection, non-commercial speech shall mean speech that does not directly or indirectly name, advertise, promote, propose or call attention to a business, product, accommodation, service or other commercial activity, or commercial transaction, or otherwise involve a commercial transaction.

(Prior code § 6101).

(Ord. No. 2132, § 2, 8-30-2010, eff. 7-1-2011)

Every person claiming to be entitled to exemption from payment of any license fee provided for in this title upon the grounds that the imposition of such fee casts an unlawful burden upon his right to engage in commerce with foreign nations or among the several states or conflicts with the regulation of interstate commerce by the United States, shall file a verified statement with the city clerk disclosing the interstate or other character of his business entitling such exemption. Such statement shall state the name and location of the person for which the orders are to be solicited or secured, the name of the nearest local or state manager, if any, and his address, the kind of goods, wares, merchandise or services to be delivered or performed, the place from which the same are to be shipped or forwarded or the services performed, the method of solicitation or taking orders, the location of any warehouse, factory or plant within the state of California, the method of delivery, the name and residence of the applicant, and all other facts necessary to establish such claims of exemption. A copy of the order blank, contract form or other papers used by such

person in taking orders shall be attached to the affidavit. If it appears that the applicant is entitled to such exemption, such applicant shall forthwith be issued a free license.

(Prior code § 6101.1).

The provisions of this title shall not be construed as requiring farmers, poultry-men, or horticulturists to procure a license under this title for the privilege of selling exclusively their own produce. This exemption shall not apply to nurseries or other commercial establishments who buy goods for resale as well as selling their own produce. However, this requirement is not intended to relieve such activities of use permit provisions contained in zoning or other regulatory provisions of city.

(Prior code § 6101.2).

The provisions of this title shall not be deemed or construed to require the payment of a license fee to conduct any boardinghouse, lodginghouse or apartment house containing less than four sleeping rooms, or any private boardinghouse or other place where meals are sold having less than four boarders.

(Prior code § 6101.3).

Nothing in this title shall be deemed or construed to apply to any person conducting any business exempt by virtue of the Constitution or applicable statutes of the United States or of the state from payment to municipal corporations of fees as are prescribed in this title.

(Prior code § 6101.4).

Any person claiming an exemption shall file a verified statement or sworn affidavit with the city clerk stating the facts upon which exemption is claimed.

(Prior code § 6101.5).

The city clerk shall, upon a proper showing contained in the verified statement or sworn affidavit, issue a license to such person claiming exemption without payment to the city of the license tax required by this chapter.

(Prior code § 6101.6).

In all cases of doubt as to any applicant being entitled to an exemption from any license tax, or from the application of any of the provisions of this chapter the burden of establishing the right of such exemption

shall be upon the applicant. All applications for exemption in such cases shall be referred to the city council which shall consider and act upon the same and grant or refuse such exemptions as in the use of its discretion it deems just.

(Prior code § 6101.7).

II. - ISSUANCE

Every person required to have or obtain a license under this title shall, within a period of thirty days prior to the effective date of such license, apply to the city clerk for such license and pay or tender to the city clerk the amount of the fee therefor as set forth in Chapter 5.04. Upon receipt of such application and such fee, together with a certificate from the chief of the fire prevention bureau that the premises to be occupied meet standards of fire safety formulated by the bureau and a certificate of occupancy from the building inspector's office, the city clerk shall prepare and issue to every such person a license in such form as the city clerk shall provide, signed by the city clerk and impressed with the city seal, which license shall state the amount of the license fee paid therefor, the duration of the license, the name of the person to whom issued, the nature of the business licensed and the location or place where such business is to be carried on, and the number and description of the vehicle to be used in the conduct of such business in the city. The duration of the license shall be that set forth in Chapter 5.04. When the city council has adopted an ordinance regulating applicant's business or activity and requiring a separate permit be issued by the city council or the chief of police in addition to a business license, the city clerk shall not issue a business license to applicant until the appropriate permit has been approved.

(Ord. 1112 § 1, 1977: prior code § 6102).

In no event shall any mistake made by the city clerk in stating the amount of the license fee, or in receiving the license fee, prevent or prejudice the collection by the city of the amount actually due, together with all costs of collection, from any person for conducting any business without a license or for refusing to pay the license fees specified in this title.

(Prior code § 6102.1).

Annual licenses shall date from the first day of the month in which the license is purchased, effective for one year from the effective date; monthly licenses shall date from the first day of the calendar month for which they are issued; daily or weekly licenses shall be due and payable each day or week in advance.

(Ord. 1531 § 1(part), 1984: prior code § 6102.3).

III. - PAYMENT OF FEES

All annual license fees, under the provisions of this chapter, shall be issued on an anniversary date basis and shall be due and payable in advance on the anniversary date, which is the first day of the month in which the license was effective. No annual license issued on an anniversary date basis shall be prorated.

(Ord. 1531 § 1(part), 1984: prior code § 6103).

Except as otherwise provided in this title, license fees, other than annual required under this title, shall not be prorated and shall be due and payable as follows:

(1)

Monthly license fees on the first day of each and every calendar month;

(2)

Weekly license fees on the first day of each week;

(3)

Daily license fees each day in advance.

(Ord. 1531 § 1(part), 1984: prior code § 6104).

If any annual or quarterly license remains unpaid at the end of the calendar month in which it becomes due and payable, a penalty of five percent per month shall be added to the same for each month that it remains unpaid, not exceeding in the aggregate a total of fifty percent of the amount of the license fee. Any such penalty so imposed shall be collected by the person in charge of the collection of the license to which the penalty is added.

(Prior code § 6105).

The amount of any license fee imposed by this title shall constitute a debt to the city and any person engaging in business in the city without having a license from the city clerk to do so, shall be subject to an action in the name of the city in any court of competent jurisdiction for the collection of the amount of the license fee imposed by this title.

(Prior code § 6106).

The conviction and punishment of any person having engaged in business without a license shall not excuse or exempt such person from the payment of any license fee due or unpaid at the time of such conviction, and nothing in this chapter shall prevent criminal prosecution for any violation of any provisions of this chapter.

(Prior code § 6107).

IV. - MISCELLANEOUS REGULATIONS

Every person having a license under the provisions of this title for engaging in business at a fixed place of business shall keep such license posted for exhibition while in force in some conspicuous part of the place of business. Every person having such a license, and not having a fixed place of business, shall carry such license with him at all times while carrying on the business for which the same is granted. Every person having a license shall produce and exhibit the same, when applying for a renewal thereof, and whenever requested to do so by any police officer, or by any person authorized to issue or inspect licenses or collect license fees.

(Prior code § 6108).

A duplicate license may be issued by the city clerk to replace any license previously issued under this title which has been lost or destroyed, upon the licensee filing an affidavit attesting to such fact, and at the time of filing such affidavit paying to the city clerk a duplicate license fee of one dollar.

(Prior code § 6109).

Where a license is issued authorizing a person to conduct a business at a particular place, such licensee may upon application therefor and paying a fee of one dollar have the license amended to authorize the conduct of such business under the license at some other location to which the business has been or is to be moved.

(Prior code § 6110).

Where there has been a change in ownership of a previously licensed business and the change consists solely of either the addition of owner or the withdrawal of an owner an amended license shall be issued in respect to the business upon the payment of the fee of one dollar.

(Prior code § 6110.1).

Where a license has been issued by the city for any business and the tax or fee paid therefor under the provisions of any ordinance heretofore enacted and the term of such license has not expired, then the license fee prescribed for the business by this title shall not be payable until the expiration of the term of such unexpired license.

(Prior code § 6111).

Upon such revocation of a license, no part of the license fee collected shall be returned but shall be forfeited to the city. When the license of any person is revoked for any cause, no new or other license shall be granted to such person within six months from the date of such revocation.

(Prior code § 6113).

The fee for any license required by this title shall be that set forth in Chapter 5.04, for the particular business involved. The fee and the duration of the license shall be annual, quarterly, monthly, weekly, or daily as indicated in Chapters 5.04 and 5.08.

(Prior code § 6117).

No license under this title shall be transferred or assigned nor shall such license be construed as authorizing any person other than the licensee, engaged in the licensed business.

(Prior code § 6118).

V. - DENIAL AND REVOCATION

The city may deny an application for a permit required under this title under any of the following circumstances:

(a)

The operations under the proposed application would be contrary to the public health, safety, peace, and welfare of the neighborhood or city as a whole, or would constitute a public nuisance;

(b)

The proposed operations would constitute a violation of applicable law;

(c)

The application contains misrepresentation of a material fact by the applicant;

(d)

The applicant has operated similar establishments which had a history of any of the foregoing grounds for denial;

(e)

The proposed establishment, due to its nature, location, or operation, would cause an undue misallocation of police and safety personnel; or

(f)

The permit would result in an undue concentration of live entertainment establishments.

(Ord. 1791 § 1(B), 1990).

(a)

Prior to denial of a permit under this title, the city council shall hold a hearing, noticed as provided in subsection (b).

(b)

Notice of the hearing shall be sent to the applicant, at the address stated on the application, by first class mail at least five days prior to the hearing. The notice shall state the date, time, place and nature of the hearing.

(c)

At the hearing the applicant may present any relevant evidence as to why his permit should not be denied. The city council shall consider all of the information presented to it, and determine whether or not to deny the application. If the city council denies the application, the applicant shall not be permitted to conduct the proposed business within the city.

(Ord. 1791 § 1(C), 1990).

Any license issued under this title is subject to revocation for cause in the manner provided by law. Complaints against any licensee seeking a revocation of license must be in writing and must set forth one or more of the grounds hereinafter enumerated which shall constitute the basis for the revocation of the license issued thereunder.

A written report of the city clerk or of the chief of police or any officer or employee of the city disclosing asserted violations of law or ordinance by the licensee shall be deemed a complaint within the meaning of this chapter. All complaints must be verified unless made by police officers or employees in their official capacity.

(Ord. 1791 § 1(D), 1990; prior code § 6112).

The following are the grounds which shall constitute the basis for the revocation of licenses:

(1)

When the continuance of the operations of the licensee under such license shall be contrary to the public health, safety, peace, welfare and morals;

(2)

The violation of any of the penal provisions of this title, or any other applicable law;

(3)

The misrepresentation of a material fact by any applicant in obtaining any license under this title;

(4)

The plea, verdict, or judgment of guilty to any public offense involving moral turpitude charges against the licensee;

(5)

The conduct of the business constitutes a public nuisance, or is otherwise illegal, improper or disorderly.

(Ord. 1791 § 1(E), 1990; Ord. 1693 § 2(B)(1), (2), 1988; prior code § 6112.1).

(a)

Prior to revocation or permanent suspension of a license under this title the city council shall hold a public hearing, noticed pursuant to Section 5.01.155; provided, however, that no hearing shall be required if the licensee has been adjudged guilty of a violation of this title by a court of competent jurisdiction.

(b)

Notwithstanding subsection (a) of this section, the city council may temporarily suspend a license pending hearing if there is reasonable ground to believe that the continued operation of the licensee's business poses an existing and immediate threat to the public health or safety.

(Ord. 1791 § 1(F), 1990; Ord. 1693 § 2(C), 1988).

The city council shall cause to be given written notice of the time and place of the hearing of the complaint or report, which notice is to be given to the complaining party as well as the licensee. The hearing shall be set for a date not less than five days subsequent to the mailing of the notice. The notice shall be sent to the licensee by registered mail, addressed to the licensee at his address as shown in the license records of the city, and enclosed with such notice shall be a copy of the complaint or report filed with the city council. All hearings before the city council shall be conducted informally and the council shall not be bound by any statutory rules of evidence or procedure, but shall make inquiry in such manner as it deems advisable to protect the rights of the parties and to carry out the purposes of this code. Any licensee shall be entitled to have witnesses subpoenaed and to appear and give testimony with respect to the charges made against him. The decision and conclusion of the city council shall be final and conclusive. If the city council orders

the revocation of any license issued under this title, no person whose license has been revoked shall thereafter conduct such business in the city, until he receives a new license therefor.

(Ord. 1791 § 1(G), 1990; prior code § 6112.3).

VI. - ENFORCEMENT

The chief of police, or such other person who may be hereafter designated, and all police officers of the city shall have and exercise the power to make arrests for the violation of any of the provisions of this title and to enter, free of charge, at any time, any place of business for which a license is required by this title, and to demand the exhibition of such license for the current term by any person engaged or employed in the transaction of such business; and if such person shall then and there fail to exhibit such license, such person shall be liable for the penalty provided for violation of this title as set forth in Section 5.60.010.

(Ord. 1693 § 2(A), 1988).

The officer or officers designated by the city council by ordinance or resolution to perform the functions of license collector, and each of his or their assistants or deputies, shall have the power and authority to enter, free of charge, any reasonable time, any place of business licensed in this title, and demand an exhibition of its license and, with the prior consent of the city council, may deputize a qualified accountant to examine the necessary books and records of any such person in order to enforce the provisions of this title or to make an investigation to ascertain compliance with this title.

(Prior code § 6116).

The City Council may by ordinance increase the amount of any tax set forth in this title by no more than two percent per year to account for inflation.

(Ord. No. 2132, § 20, 8-30-2010, eff. 7-1-2011)