Chino Hills Municipal Code Ch. 5.04 Business Licenses Generally

For the purposes of this chapter, unless otherwise specifically provided, the words and phrases used in this chapter are defined as follows:

"Branch establishment" means a location where a business is conducted in addition to its fixed place of business.

"Business" means any employment avocation, occupation, profession, trade, calling, lawful game, show, exhibition, event, venture, fund-raising activity, commercial enterprise, company, corporation, joint enterprise, place of business, partnership or other activity or enterprise engaged in for gain, profit, benefit, advantage or livelihood, whether or not a gain, profit, benefit, advantage or livelihood is earned by such business.

"City" means the city of Chino Hills.

"Collector" means the city official charged with the administration of this chapter.

"Employee" means any person who receives his or her compensation from an employer that carries worker's compensation insurance, makes all necessary payroll deductions from such compensation, directly supervises and assumes all other responsibilities as an employer. Any person who is not an employee shall be deemed self-employed and in business for himself or herself subject to the provisions of this chapter.

"Fixed place of business" means the principal place of business of a business within the city at which the principal tools, equipment or machinery used in a business are customarily stored or located, or at which are maintained the principal stock, materials or supplies, and the books and records used in a business.

"License" means the valid receipt issued by the Collector, which indicates that any fee imposed by this chapter has been paid to the city. The business license is a receipt only and shall have no other legal effect.

"Licensee" means any person holding a license issued pursuant to the provisions of this chapter.

"Person" means and includes any individual, firm, copartnership, joint venture, association, corporation, estate, trust, Massachusetts business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular number.

"Premises" means all lands, structures, places, and also the personal property, equipment and appurtenances connected or used in any business.

"Sworn statement" as used in this chapter means an affidavit sworn to before a person authorized to take oaths, or a declaration or certification made under penalty of perjury.

"Yard sale" means any event where items of personal property owned, utilized, or maintained by occupants of premises other than a licensed commercial business, are to be offered for sale to the general public. This shall include garage, patio, rummage, and other similarly conducted sales.

(Ord. 92-05 § 1; Ord. No. 370, § 4, 7-13-2021)

This chapter is enacted for the purpose of keeping record of business locations and zoning and for statistical purposes.

(Ord. 92-05 § 2)

A. License and Fee Required. No person shall conduct any business in the city without first having obtained a business license, paid the appropriate license fee, and complied with any and all applicable provisions of this code. In any business where a county, state, federal license is required, such license shall be exhibited to the Collector before a city business license is issued. Failure of the applicant for a business license to exhibit or be in actual possession of a county, state, or federal license or failure of the Collector to verify the legitimacy or applicant's possession of such license shall not constitute negligence on the part of the city.

B. Exception. This section shall not be construed to require any person to obtain a business license where such requirement conflicts with applicable statutes of the United States or of the state of California.

(Ord. 92-05 § 3)

Every person engaging in business in the city shall pay a business license fee as prescribed by resolution. The amount or rate of the applicable business fee shall bear a reasonable relationship to the service to be performed by the city and the costs incurred by the city in reviewing, processing and acting upon the application. The City Council shall, from time to time, review the resolution fixing business license fees and shall retain, revoke, modify, adjust, add or determine any amount or rate of such business license fees. Such resolution shall have the force of law and shall be binding on all persons engaging in business in the city and shall be adopted at a noticed public hearing.

(Ord. 92-05 § 4)

The amount of any license fee and penalty imposed by this chapter shall be deemed a debt to the city. An action may be commenced in the name of the city in any court of competent jurisdiction for the amount of any delinquent license fee and penalties.

(Ord. 92-05 § 5)

The payment of a fee required by this chapter and the issuance of a license to any person, shall not entitle the licensee to engage in any business unless the licensee has complied with all other applicable federal, state, or local laws; nor shall the licensee be excused from the payment of any license, certificate, registration, insurance, bond, cash deposit, or permit fee or tax required under any other provision of this code or any ordinance of the city; nor shall the licensee be authorized to conduct any business or activity in violation of any federal, state, or local law.

(Ord. 92-05 § 6)

When any person by use of signs, circulars, cards, telephone book, or newspapers, advertises, holds out, or represents that such person is conducting business in the city, or when any person holds an active license or permit issued by a governmental agency indicating that such person is in business in the city and such person fails to deny by a sworn statement given to the Collector that he or she is not conducting a business in the city, after being requested to do so by the Collector, then these facts shall be considered prima facie evidence that such person is conducting a business in the city.

(Ord. 92-05 § 7)

A. When a license fee is imposed upon any business pursuant to this chapter and such business is conducted at one or more fixed place of business and one or more branch establishment, the fee shall be computed as if each such fixed place of business and branch establishment were a separate and independent business.

B. A separate license shall be obtained for each location of the business and for each separate type of business at the same location. Each license shall authorize the licensee to transact and carry on only the business licensed by such license at the location specified in the license, and in the manner designated in such license.

C. Warehouses and distributing plants used in connection with and incidental to a business shall not be deemed to be a separate fixed place of business or branch establishment.

(Ord. 92-05 § 8)

The Collector shall maintain in confidence the business affairs, operations or other information contained in any business license application and any information obtained from an investigation of records of a business; provided that nothing in this section shall be construed to prevent the examination of records by federal or state officials, a grand jury or court of law upon subpoena, or other agents of the city for the purpose of auditing the accounts of the Collector or administering or enforcing this chapter; nor shall this section prohibit the disclosure of the names and business addresses of licenses, the general type of their business, and general statistics regarding business license fees collected in the city.

(Ord. 92-05 § 9)

Although the following may be exempt from a city business license fee, they shall apply for and obtain a city business license:

A. Constitutional and Statutory Exemptions. This chapter shall not be construed to require the payment of a license fee by any person engaging in business when such person or business is exempt by virtue of the Constitution or applicable statutes of the United States or of the state of California, or by any ordinance of the city.

B. Interstate Commerce. No license fee provided for by this chapter shall be so applied as to impose an undue burden upon or unlawful interference with interstate commerce. Where a licensee or applicant for a license believes a license fee places an undue burden upon or unlawfully interferes with interstate commerce, such person may apply to the Collector for an exemption of the fee. Application for exemption of the fee shall be made during application for a license. The licensee or applicant for a license shall, by sworn statement and supporting testimony, demonstrate to the Collector the interstate commerce character of the business entitling the licensee or applicant to such exemption. The statement shall contain the name and address of the company or firm for which the orders are to be solicited or secured; the name and address of the nearest local or state manager, if any; the kind of materials or merchandise bought or sold in commerce; the place from which the same are to be shipped or forwarded; the method of solicitation or taking orders; the address of any warehouse, factory, or plant within the state; the method of delivery; the name and address of the applicant for the method of delivery; the name and address of the applicant for the exemption; and any other information required by the Collector to establish such claim of exemption. The Collector shall then conduct an investigation to determine the facts and, if warranted, issue a fee- exempt license.

C. U.S. Veterans. Every soldier, sailor, or marine of the United States who has received an honorable discharge or a release from active duty under honorable conditions from such service may distribute circulars, peddle, and vend any goods, wares, or merchandise owned, except alcoholic beverages, without payment of a business license fee.

D. Nonprofit and Charitable Organizations. Except as otherwise provided, this chapter shall not be deemed or construed to require the payment of a license fee to engage in any business operated for nonprofit purposes where such business is conducted, managed or carried on by and/or only for the benefit of any nonprofit organization, including fraternal societies, orders or organizations, religious, charitable, philanthropic, scientific, literary or educational organizations, amateur sports or humanitarian organizations, civic leagues, social welfare and employees' organizations, nonprofit pleasure and recreation clubs, political organizations, home owners' associations, and military, federal, state, county or municipal organizations. The Collector shall require any information or evidence necessary to establish profit status.

E. Public Utilities. This chapter shall not be deemed or construed to require payment of a license fee by any public utility which pays to the city a franchise tax; provided that a license fee shall be required for any retail sales conducted in the city by such public utility. Where a license fee is imposed on a public utility, it shall not differ from the rate imposed on mercantile, manufacturing and other business corporations.

F. Employees of Licensees. Except as otherwise provided, no person acting solely as an employee or as the direct representative of a business which holds a business license shall be required to pay a business license fee.

G. Domestic Household Help. The license provisions of this chapter shall not be deemed to include or apply to domestic household help in the employ of an individual homeowner.

(Ord. 92-05 § 10)

(Ord. No. 313, 8-8-2017)

Any person claiming an exemption pursuant to this chapter shall file a sworn statement with the Collector stating the facts upon which such exemption is claimed; in the absence of such statement substantiating the claim, such person shall be liable for the payment of the appropriate business license fee as set forth by resolution. The Collector shall, upon verification of the information contained in the sworn statement, issue a license to such person claiming exemption. Upon information that the licensee is not entitled to the exemption, the Collector, after giving notice and a reasonable opportunity for hearing to a licensee, may revoke any license and shall require the licensee to pay the amount of the licensee fee determined to be due the city. Nothing contained in this section shall be construed to exempt any person from complying with any and all other applicable federal, state, or local laws.

(Ord. 92-05 § 11)

Every person required to have a business license shall apply to the Collector for a license. Upon receipt of a completed application and any fees required, the Collector shall process the application and issue a business license. The amount of the fees due shall be determined in accordance with a schedule established by resolution. The Collector may submit the application to other city departments or governmental agencies to determine if the business premises to be occupied meet the requirements of federal, state, and local laws.

(Ord. 92-05 § 12)

Each business license application shall contain the following:

A. Business name;

B. Business address;

C. Mailing address;

D. Phone number;

E. Employer I.D. number (or Social Security number);

F. State resale permit;

G. State employer I.D. number;

H. State contractors/business and profession license number;

I. Type of business being conducted;

J. Start date;

K. Expiration date;

L. Type of ownership;

M. Owners or principal officers;

N. Standard industrial classification code;

O. Business license number;

P. Amount paid;

Q. Health permit number;

R. Workers' Compensation Insurance Policy number, date and expiration date, if any;

S. Such other information as may be required by the application form or requested by the Collector for the enforcement and administration of this chapter.

(Ord. 92-05 § 13)

Upon the payment of the prescribed license fee, the Collector shall issue to the applicant a license which shall contain the following:

A. Type of business;

B. Location;

C. Business tax number;

D. Expiration date;

E. Amount paid;

F. Name of business;

G. Owner;

H. Such other information as deemed necessary by the Collector.

(Ord. 92-05 § 14)

Any person applying to renew a business license shall submit to the Collector a completed application for renewal and pay the appropriate license fee as set forth by resolution.

(Ord. 92-05 § 15)

A. Annual. For businesses established prior to the adoption of this chapter, license fees shall be due and payable annually in advance, on the first day of the second month following the month in which the ordinance codified in this chapter was adopted. For businesses established after the adoption of this chapter, license fees shall be due and payable annually in advance on the first day of the month following the anniversary date on which a license was originally payable.

B. Other than Annual. Except as otherwise provided, license fees other than annual shall be due and payable as follows:

1. Monthly. Monthly license fee, on the first day of each and every month;

2. Weekly. Weekly license fees, in advance on Monday of each week; and

3. Daily. Daily license fees, in advance each day.

(Ord. 92-05 § 16)

If deemed necessary for administrative purposes, the Collector may establish alternative license periods for individual business or for certain classes of businesses on a fiscal year, calendar year, or other basis. In no instance shall a license period extend for a period in excess of one year, or less than one day.

(Ord. 92-05 § 17)

No business license fees or penalties collected shall be refundable in any manner; provided that where a licensee establishes to the satisfaction of the Collector that an amount was paid in excess of the correct amount due for a first license, a refund of the excess amount paid shall be made by the Collector. Claims for refund shall be made by sworn statement with supporting testimony and must be filed with the Collector within a period of thirty (30) days from the day on which the first license expired. Claims for refund may be made only by a person named on the business application, a designated guardian, executor, administrator or heir. No refund for overpayment shall be made where the license was issued under a misrepresentation of fact by the applicant.

(Ord. 92-05 § 18)

In no case shall any mistake of the Collector in stating the amount or terms of a license, or the time for which the license is valid, prevent or prejudice the collection, by the city, of what shall be actually due from any person engaging in business in the city.

(Ord. 92-05 § 19)

A. Duplicate License. Upon a licensee filing a statement indicating that a license has been lost or destroyed, and after paying a fee as established by resolution, a duplicate license shall be issued by the Collector.

B. Modification to License. Where a license is issued authorizing a person to engage in a business under a particular business name or at a particular location, the licensee may, upon application, and paying a minimal fee to cover administrative cost as established by resolution, have the license amended to reflect a new business name or some other location to which the business has or is to be moved.

C. Transfer of License. Upon the change of ownership of a business a city business license is transferable subject to the filing of a new application and the paying of a transfer fee as set by resolution.

(Ord. 92-05 § 20)

Whenever any payment, statement, report or other communication is received after a deadline prescribed by this chapter, but is received in a sealed envelope bearing a postmark dated on or before such deadline, the Collector may regard such payment, statement, report or other communication as having been received in a timely manner.

(Ord. 92-05 § 21)

Any person engaging in business at a fixed place of business or branch establishment in the city shall keep a business license posted in a conspicuous place upon the premises where the business is carried on. Any person engaging in business, but not operating at a fixed place of business in the city, shall be in possession of a business license or an authorized facsimile at all times while on such business in the city.

(Ord. 92-05 § 22)

A. Authority to Enforce. The Collector shall have the authority to enforce each of the provisions of this chapter. The Police Department and other departments of the city shall render assistance in the enforcement of this chapter as may, from time to time, be necessary. The Collector shall have the authority to request the City Attorney to file a complaint against any and all persons found to be violating any of the provisions of this chapter.

B. Entry to Inspect. The Collector, in the exercise of the duties imposed by this chapter, and every police officer, fire inspector and other officers of the city empowered to enforce the provisions of this code, shall have the power and authority to enter into or upon, free of charge, and at any reasonable time, the premises of any place of business required to be licensed and demand that any person in charge of such place of business exhibit a license to engage in business. Any person engaging in business in the city who is required to be in possession of a business license, and who fails to exhibit such license on demand by the Collector or any police officer, fire inspector or other officer of the city empowered to enforce the provisions of the municipal code is guilty of a misdemeanor.

(Ord. 92-05 § 23)

A. Penalties for Delinquency. Any person engaging in business in the city who fails to pay the appropriate business license fee shall be subject to the following penalties:

1. For failure to pay a license fee when due, the Collector shall add a penalty of ten (10) percent of such license fee on the day following the last day of each consecutive thirty (30) day interval following the due date while the license fee remains unpaid; provided that the total amount of the penalty to be added shall not exceed one hundred (100) percent of the amount of the license fee due. The city will make every effort to give notice to businesses prior to date of renewal.

2. For failure to secure a license to engage in business, the license fee due and payable shall be that amount due and payable from the first date the person engaged in business, together with applicable penalties provided in subsection (A)(1) of this section.

3. For failure to pay the amount which was actually due, it shall be deemed that to the extent of the deficiency, there was a failure to pay a license fee when due. Penalties provided in subsection (A)(1) of this section shall be assessed on the amount of the deficiency from the date when such amount was first required to be paid. Nothing in this subsection shall be construed to apply to any person when the deficiency is the result of an error by the Collector in calculating the amount of the license fee due and when such error is not the result of misrepresented facts supplied to the Collector by any such person.

B. Action to Collect. Notwithstanding subsection (A)(1) of this section, should court action be required to collect any license fee and/or penalties, an additional penalty shall be charged equal to the cost incurred by the city for the court action, including attorney fees. All penalties shall be added to the license fee and shall become due and payable along with the delinquent license fee.

(Ord. 92-05 § 24)

The Collector shall withhold from any person a license to engage in business where there are pending violations of this code against such person applying for a license, or when any person owes a debt to the city as a result of a violation of this code.

(Ord. 92-05 § 25)

It is unlawful for any person to violate any provision of this chapter, or knowingly or intentionally misrepresent to any officer or employee of this city any material fact in procuring a business license. Any person violating or failing to comply with any of the requirements of this chapter shall be guilty of a misdemeanor. The conviction and punishment of any person in violation of this code shall not excuse or exempt such person from the payment of any license fees or penalties due or unpaid at the time of such conviction. A violation is subject to punishment in accordance with Section 1.36.010 et seq. of the Chino Hills Municipal Code.

(Ord. 92-05 § 26)

Any person aggrieved by any decision of the Collector with respect to the issuance or denial of a business license shall have the right to appeal to the City Council through appropriate procedures.

(Ord. 92-05 § 27)

A. The Collector is charged with the duty of carrying out and enforcing the provisions of this chapter.

B. In addition to all other powers conferred upon him or her, the Collector shall have the authority for good cause shown, to extend the time for filing any required sworn statement for a period not exceeding thirty (30) days and in such case to waive any penalty which would otherwise have occurred. He or she shall have the further authority, with the consent of the Council, for good and satisfactory cause shown, order the issuance of a license for less than the fees provided.

(Ord. 92-05 § 28)

All remedies prescribed in this chapter shall be cumulative, and the use of one or more remedies by the city shall not bar the use of any other remedy for the purpose of enforcing the provisions of this chapter.

(Ord. 92-05 § 29)

A. No license shall be issued to a business which requires Workers' Compensation insurance until satisfactory proof of having Workers' Compensation Insurance or other proof of compliance with the provisions of Labor Code Section 3700 is provided to the Collector.

B. This section can be satisfied if the applicant signs a certificate which reads as follows or as approved by the Director of Industrial Relations:

I certify that in the performance of work for which this license is issued, I shall not employ any person in any manner so as to become subject to the Workers' Compensation laws of California

C. If, after signing the certificate, the applicant becomes subject to Workers' Compensation laws, the applicant shall immediately comply with the provisions of Labor Code, Section 3700 or the license shall be automatically revoked.

(Ord. 92-05 § 30)

Editor's note— Ord. No. 370, § 4, adopted July 13, 2021, repealed § 5.04.310 which pertained to the exception to unlawful hawking and derived from Ord. 92-05, § 31.

Business conducted by vehicle where an exchange of money takes place shall be deemed as conducting business in the city.

(Ord. 92-05 § 32)

A. Permit Required. It is unlawful for any person, firm, or corporation to conduct or carry on any sales activity commonly described as a yard, garage, patio, rummage or similar type sale within the city without first having obtained a separate permit for each sale.

B. Permit Fee. The fee for each permit shall be set by resolution.

C. Exemptions. The provisions of this chapter shall not apply to sales of personal property made under court order or process.

D. Frequency and Hours. An individual or household shall be limited to three sales per twelve (12) month period and each sale shall be limited to three consecutive days or two consecutive weekends of two days each. There shall be no consecutive sale and each sale shall be at least sixty (60) days after the last day of the preceding sale. Such sales may be conducted only between the hours of 8:00 a.m. and 6:00 p.m.

E. Only Applicant's Own Personal Property to be Sold. Before a permit may be issued a sworn statement must be filed with the Collector stating that all property to be sold is the applicant's own personal property and has not been acquired or consigned to him or her for the purpose of resale. If occupant of premises is selling another's property such property owner must also sign a sworn statement stating that it is his or her own personal property.

F. Display of Goods. Sale goods may not be displayed in the public right-of-way, and all sale goods shall be arranged so that fire safety service and other officials may have access for inspection at all times during the sale. Sale goods may only be displayed on the days of and between the hours of sales as provided in this chapter.

G. Signs. No other signs shall be permitted, except one double-faced sign, not to exceed six square feet in area and the maximum height shall be five feet. Such sign shall have a maximum height of four feet when placed within the front yard or side street yard setback area. The sign shall be permitted only on the property where such sale is located. Such sign may be posted twenty-four (24) hours prior to the sale and must be removed immediately following sale.

H. Enforcement. The Collector is authorized and directed to enforce the provisions of this chapter. He or she may delegate his or her powers and duties to assistants and safety personnel.

I. Violation—Penalty. Any person violating any of the provisions of this section shall be guilty of an infraction and, upon a first conviction of such violation, shall be punished by a fine. For second and third convictions, additional fines will be added. The amount of the fines will be as set forth by resolution.

(Ord. 92-05 § 33)

Unless previously and expressly invited to enter onto the premises, it is unlawful for any person to enter onto private property that is posted with an unobstructed sign or placard open to public view which prohibits soliciting.

(Ord. No. 370, § 6, 7-13-2021)