Citrus Heights Municipal Code Div. 3 Special Business Licenses and Employee Permits

(a) There are certain types of businesses which require special investigation, review, and regulation in order to ensure that the public health, safety, and welfare is adequately protected. The necessity to conduct such investigation, review, and regulation arises for reasons which include, but are not limited to, the following:

(1) The tendency of certain types of businesses to engage, whether intentionally or unintentionally, in the promotion of crime;

(2) The fact that patrons of particular types of enterprises are vulnerable to fraudulent charging or other practices either because of the nature of the business; the type of service or merchandise offered; the circumstances under which the merchandise or service is purchased; or for other reasons;

(3) The fact that certain types of enterprises create health or safety risks which require special regulation; and

(4) The fact that certain types of enterprises require access to private property, particularly residential property, or frequently residential neighborhoods, generating high risks to the safety of persons and property.

(b) Other types of businesses provide services essential to the health, safety or welfare of the community and require special regulation in order to ensure delivery of such services in a volume, manner and quality sufficient to ensure protection of the community.

(c) The purposes of this division are to establish special regulations applicable to the types of enterprises regulated under this division and to regulate such enterprises through a special business licensing procedure in order to protect and safeguard the health, safety and welfare of the citizens within the city.

(Ord. No. 2008-09, § 3, 5-8-2008)

(a) No person shall, unless under and by authority of a valid unexpired and unrevoked special business license, conduct or operate within the city, whether singularly or in connection with another type of enterprise, the following:

(1) Any enterprise or activity for which a special business license is required by other provisions of this Code, including but not limited to, adult oriented businesses, cardrooms, and bingo halls;

(2) Antique dealers in firearms, jewelry, art objects, furniture or other valuables;

(3) Wrecking yards, automobile dismantlers, and marketers of used parts for automobiles, which includes the buying and selling of automobile parts or scrap metal;

(4) Automobile repairs, when the person makes calls at the home or business of the customer to make repairs;

(5) Circuses and carnivals, including the maintenance of animals for display to, riding by or petting by children;

(6) Sales of concealable firearms, including gunpowder;

(7) Home repair services, consisting of services related to the repair or maintenance of single-family residential dwellings, mobile homes, gardens or trees by persons who are not licensed to perform such services by the state, including businesses offering energy-saving appliances, equipment, or services, whether in connection with solar, wind or other power;

(8) Purchase or sale of metals, including scrap metals;

(9) Repossession or storage of automobiles or any other thing of value;

(10) Private security companies, unless licensed by the State of California;

(11) Motorcycle sales, including the sale of new and used parts;

(12) Janitorial, maid or carpet cleaning services;

(13) Reserved;

(14) Pool halls;

(15) Dance facilities;

(16) Pool cleaners;

(17) Mobile food vendors, as that term is defined by the zoning code.

(b) The city may require a special business license as a condition on a permit required by the zoning code, when required to ensure the health, safety or welfare of the public.

(c) A person shall be deemed to operate or conduct an enterprise or activity and violate this Code if the person, without an applicable special business license in effect, supervises, inspects, directs, organizes, manages or controls or is in any way responsible for or in charge of the enterprise or activity for which the license is required.

(Ord. No. 2008-09, § 3, 5-8-2008; Ord. No. 2012-003, § 3, 2-15-2012)

If a person conducts or operates more than one of the types of business required to have a special business license, a separate special business license shall be required for each type of enterprise which the person operates or conducts.

(Ord. No. 2008-09, § 3, 5-8-2008)

(a) In addition to the provisions of this chapter, adult oriented businesses, massage establishments, cardrooms, and bingo halls are subject to special regulations governing their operations.

(b) The issuance of a general business license to a business required to have a special business license shall not excuse the business from obtaining a special business license pursuant to this division, and the issuance of a special business license shall not relieve the holders of the requirement to obtain a general business license.

(Ord. No. 2008-09, § 3, 5-8-2008)

(a) Under this division, the chief of police shall investigate the background of the owner and persons managing or supervising the business as deemed appropriate. The chief of police shall evaluate each application to determine whether the individual's involvement in the operation of the enterprise involves an unreasonable risk to the health, safety or general welfare of the public. Applicants for special business licenses shall be fingerprinted and photographed, and consideration shall be given to the criminal record, if any, and character of the owner and other persons connected with the business, the business responsibility of the firm and the owner, and the manner in which the owner intends to conduct the business.

(b) The finance director shall issue the special business license not later than 60 days after the date a complete application is filed, unless grounds for denial established in this chapter exist.

(Ord. No. 2008-09, § 3, 5-8-2008)

(a) The finance director may issue a special business license upon such conditions relating to the method or manner of operation of the business as he/she deems necessary to adequately protect members of the public in their patronage or dealings with the business or to reduce the incidence, detect the commission, or identify perpetrators of crime.

(b) Such conditions may be imposed at the time a special business license is initially issued, upon renewal of the license, or at any time during the term of the license.

(Ord. No. 2008-09, § 3, 5-8-2008)

(a) Written notice of conditions imposed on the special business license and the reasons for the conditions shall be provided to the applicant or license holder.

(b) Conditions imposed at the issuance of the special business license become effective immediately following the date of service of the notice thereof. The applicant is entitled to appeal the conditions within the time and manner prescribed; however, the business license shall not be effective until the appeal is finally determined.

(c) Conditions imposed at the time of renewal or during the term of the general business license become effective 15 days following the date of service of the notice thereof; however, if an appeal is filed within the time and manner prescribed, the conditions shall not become effective until the appeal is finally determined.

(Ord. No. 2008-09, § 3, 5-8-2008)

The holder of a special business permit shall maintain a register of all persons employed by the business on a form provided by the city. The register shall include the name, date of birth, current address, and copy of photo identification for each employee. This register shall be available for inspection to city personnel at all times during regular business hours.

(Ord. No. 2008-09, § 3, 5-8-2008)

(a) At least 60 days prior to expiration of a special business license, the finance director shall mail the licensee an application for renewal. The application for renewal shall be on such a form and include such information as is prescribed and required by the finance director.

(b) The licensee shall file the application for renewal, and any applicable fees, with the finance director prior to the expiration of the immediately proceeding license.

(c) The finance director shall investigate and process an application for renewal of a special business license in the same manner as an initial application for a special business license. The chief of police shall perform such investigation and examination of the applicant as he or she deems appropriate. Within 60 days after receiving a complete application, the finance director shall issue the special business license unless grounds for denial identified in this chapter exist.

(d) With respect to any application for renewal filed on or before the date of expiration of the immediately preceding license, the finance director shall extend the term of the immediately preceding license, without charge, during the period of any investigation required in order to determine whether the license should be renewed.

(e) An application for renewal of a special business license will be deemed received late and subject to a penalty of 50 percent of the application processing fee if the complete application, including all fees, is not received by the finance department within 60 days of the date of expiration of the immediately preceding license. If the business continues to operate without a valid special business license, the business may also be subject to all other penalties authorized by the City Code.

(Ord. No. 2008-09, § 3, 5-8-2008)

(a) With respect to certain types of businesses protection of the public health, safety, and welfare require that personnel retained by the enterprise to perform specified functions or duties be of good moral character, not have been convicted of particular criminal offenses, and, in certain instances, possess minimum skills necessary to ensure public safety.

(b) The procedures set forth in this division relating to employee permits shall be applicable to all personnel required by this Code to obtain employee permits, including, adult oriented businesses, cardrooms, and bingo halls.

(Ord. No. 2008-09, § 3, 5-8-2008)

Whenever personnel of a particular business are required to meet minimum qualifications or possess a permit or license, it shall be unlawful for a person to perform the duties or functions specified and unlawful for the holder of a special business license to permit the person to perform such duties or functions, unless the person has first applied for and obtained an employee permit.

(Ord. No. 2008-09, § 3, 5-8-2008)

(a) Applications for an employee permit shall be filed on a form and shall contain such information as required by the finance director.

(b) Applications for employee permits shall be filed in the office of the finance director. The finance director shall collect any fees required for the application, ensure that the application is complete and refer the application to relevant city departments for review.

(c) An application is deemed complete and validly filed when the finance director has received all information required by the employee permit application and this Code, and has received any fees associated with the application.

(Ord. No. 2008-09, § 3, 5-8-2008)

The chief of police shall conduct such investigation of the background of the applicant for an employee permit as is necessary in order to determine whether the minimum qualifications which have been prescribed are satisfied and as otherwise deemed appropriate. Such investigation shall include the fingerprinting and photographing of the applicant.

(Ord. No. 2008-09, § 3, 5-8-2008)

The finance director shall issue the employee permit within 60 days after the date the application is deemed complete unless grounds for denial established in this chapter or otherwise applicable code sections exist.

(Ord. No. 2008-09, § 3, 5-8-2008)

(a) An employee permit is not transferable or assignable from one person to another, or from one business to another.

(b) The permit shall contain such information as the finance director requires. The employee shall carry the permit on his/her person at all times services authorized by the permit are being performed, and shall display the permit for inspection upon request by the finance director or chief of police.

(Ord. No. 2008-09, § 3, 5-8-2008)

Applications for renewal of employee permits shall be filed, processed, and issued in the same manner as initial applications for employee permits.

(Ord. No. 2008-09, § 3, 5-8-2008)

(a) The finance director shall deny an initial application for or application for renewal of a special business license if the finance director finds in writing:

(1) The applicant failed to provide information in connection with the application requested by the city, preventing the chief of police from make his or her determination as to suitability to conduct or work at the business;

(2) Statements made in the application or any information submitted supplementary to the application are incorrect or untrue;

(3) That any of the following persons have been convicted of a crime and the time for appeal has elapsed or when an order granting probation is made suspending the imposition of sentence, irrespective of the entry of a subsequent order under Penal Code § 1203.4, or has done any act involving dishonest, fraud or deceit with intent to substantially injure another; and the chief of Police concludes that by reason of the crime or act the applicant would not conduct the business enterprise in a law-abiding manner or would conduct the business in a manner which does not subject patrons of the business enterprise to risk of harm or criminal, deceitful or otherwise unethical practices:

a. A general or limited partnership or a partnership which possesses an ownership interest in the enterprise;

b. A joint venturer in a joint venture which possesses an ownership interest in the business and if one or more of the joint venturers is a partnership or corporation, those partners, directors or stockholders to whom the requirements of this section would apply if the partnership or corporation were the sole owner of the enterprise;

c. A sole proprietor when the enterprise is a sole proprietorship;

d. A director, when either a commercial or non-profit corporation possesses an ownership in the business; or

e. A member of a governing body or other board or committee to which management is entrusted, when an unincorporated association possesses an ownership interest in the business; or

f. A president, general manager, vice-president, chief assistant manager, secretary, treasurer or any officer with equivalent or similar authority employed or retained by the firm possessing an ownership interest in the business.

(4) That a basis for denial of the license as authorized by this Code exists, including provisions governing adult oriented businesses, massage establishments, cardrooms, and bingo hall.

(b) Notwithstanding such information in this subsection, an application shall not be denied solely on the basis that a person has been convicted of a felony if the person has obtained a certificate of rehabilitation under Penal Code § 4852.06 et seq., or that the person has been convicted of a misdemeanor if the person has met all applicable requirements of the criteria of rehabilitation developed to evaluate the rehabilitation of a person when considering the denial of a license under Penal Code § 4852(6).

(c) The finance director shall also deny an application for renewal of a special business license if he/she determines that one or more conditions applicable to the previous license have been violated or the business does not comply with city, state, federal or otherwise applicable codes, rules, regulations or laws.

(Ord. No. 2008-09, § 3, 5-8-2008)

The finance director's denial of an initial application or application for renewal of an employee permit shall be denied if the finance director finds in writing that the applicant does not meet the qualifications necessary for issuance of a permit as required by this Code.

(Ord. No. 2008-09, § 3, 5-8-2008)

(a) The finance director's denial of an initial application or application for renewal of either a special business license or employee permit shall be in writing, with the reasons stated therefor. Written notice of the denial, together with a copy of this division, or any applicable code provisions applicable to the license or permit, shall be served upon the applicant.

(b) Denial of an initial application or application for renewal of a special business license shall prohibit operation of the enterprise at any location within the city.

(c) With respect to denial of an application for renewal of a special business license or employee permit, the immediately preceding special business license or employee permit shall be deemed to be in full force and effect for a period of 15 days following the date of service upon the applicant of the notice of denial. If the holder of the license files an appeal within the time and manner prescribed, the immediately preceding special business license or employee permit shall continue in full force and effect until the appeal is finally determined.

(Ord. No. 2008-09, § 3, 5-8-2008)

A special business license or employee permit may be suspended for not longer than one year or revoked during its term if the finance director finds in writing:

(1) That any grounds for denial of an initial application exist, including but not limited to, untrue statements made in the application or conviction of a crime that may inhibit the persons ability to conduct the business in a law abiding manner; or

(2) The business is operated in a manner, or is housed on premises, or within a building which violates, or is in violation of any city, state, federal, or otherwise applicable codes, rules, regulations or laws; or

(3) The holder of the license has violated one or more conditions imposed upon the license; or

(4) The holder of an employee permit does not meet the qualifications necessary for issuance of a permit, or any other applicable law, as required by this Code, including those regulations applicable to adult oriented businesses, cardrooms or bingo halls.

(Ord. No. 2008-09, § 3, 5-8-2008)

(a) The finance director may revoke a special business license or employee permit by issuing a written notice of the suspension or revocation, stating the reasons therefor, and serving the notice and a copy of this division or any otherwise applicable code sections, upon the holder of the license or permit.

(b) The revocation or suspension shall become effective 15 days following the date of service upon the licensee of the notice of revocation. If the holder of the license files an appeal within the time and manner prescribed, the license shall remain in effect until the appeal is finally determined.

(c) A special business license or employee permit may be temporarily suspended pending expiration for the time of appeal, if the finance director finds that such temporary suspension is necessary in order to protect against a serious and immediate threat to the health, safety or welfare of the public caused by exercise of the license or permit. If the finance director orders a temporary suspension, the notice of suspension shall be delivered to each place of business licensed or to which the permit relates, served upon the licensee or permittee, and shall contain the following:

(1) The finding justifying the temporary suspension;

(2) The time, date, and place at which the licensee or permittee may appear in advance of the commencement of the temporary suspension for the purpose of showing cause to the hearing officer as to why the suspension is not necessary; and

(3) The time and date on which the temporary suspension commences, which shall not be earlier than 24 hours following the time and date of delivery of the notice.

(Ord. No. 2008-09, § 3, 5-8-2008)

(a) The holder of a special business license or employee permit or applicant therefor may appeal from the following:

(1) The denial of an initial application or application for renewal of a special business license or employee permit; or

(2) The imposition of conditions on an initial special business license at the time of issuance; or

(3) The imposition of conditions on a special business license at the time of renewal of the license or during the term of the license; or

(4) The revocation or suspension of a special business license or employee permit.

(b) An appeal pursuant to this section shall be in writing, shall state the specific reasons for the appeal and the grounds asserted for relief, and be accompanied by a non-refundable appeals processing fee set by city council resolution. The appeal shall be filed with the finance director no later than 15 days after the date of service of the notice providing the grounds for appeal. The failure to file an appeal within the time or in the manner prescribed in this section, or to include the appeals processing fee, waives the right to appeal.

(Ord. No. 2008-09, § 3, 5-8-2008)

(a) No later than 30 days following the filing of a timely appeal, a hearing shall be held to determine whether the appeal should be granted. The city shall provide the appellant written notice of the time, date, and place of the hearing no later than ten days before the hearing date.

(b) The finance director shall have the burden of proof during the hearing. The provisions of the California Administrative Procedure Act, Government Code § 11500 et seq., and formal rules of evidence do not apply at the hearing. At the conclusion of the hearing, the hearing officer shall prepare a written decision which either grants or denies the appeal and contains findings of fact and conclusions. The written decision shall be filed with the finance director no later than ten days following the date on which the hearing is closed. The finance director shall, within five days of the filing of such decision, serve the applicant or licensee with notice and copy of the written decision.

(c) With regard to an appeal from the imposition of conditions during the term of a special business license or employee permit, or on an application for renewal of a special business license or employee permit, the finance director must demonstrate by substantial evidence the necessity of the conditions. If the imposition of such conditions is upheld, the hearing officer shall specifically provide findings regarding the evidence within the record supporting the determination.

(Ord. No. 2008-09, § 3, 5-8-2008; Ord. No. 2016-010, § 1, 9-22-2016)

(a) With respect to appeals from the denial of an initial application for a special business license or employee permit, or the imposition of conditions on an initial application on a special business license, the hearing officer's decision is final upon service of the hearing officer's decision upon the appellant.

(b) With respect to an appeal from the denial of a renewal of a special business license from the imposition of conditions on a general business license at the time of renewal or during the term of a business license, or from the revocation of a special business license or employee permit, the hearing officer's decision is final 15 days after service of the hearing officer's decision on the appellant, unless city council review is requested either by the finance director or appellant.

(Ord. No. 2008-09, § 3, 5-8-2008)

(a) To request city council review of the hearing officer's decision, the applicant for a license, license holder, or finance director shall file a written request with the city clerk within 15 days following the date of service of the hearing officer's decision. The request for review shall state in detail the reasons for review, the error alleged in the hearing officer's decision, and include a copy of the hearing officer's decision attached to the request for review, and an appeals processing fee as set by city council resolution.

(b) Upon receipt of a request for review by city council, the city clerk shall schedule city council review not later than 30 calendar days following the date of filing of the notice of appeal. The city clerk shall provide notice of the time and date of the hearing to the appellant at least ten days in advance. The city council shall be authorized to deny the introduction of evidence and decide the matter after oral argument presented during the hearing, to admit supplementary evidence with respect to challenges or particular findings, or reject the findings and conclusions and conduct a de novo hearing. The determination by the city council granting or denying the appeal shall be final and shall be accompanied by findings of fact and conclusions, which may consist of an adoption by reference of those by the hearing officer.

(c) The city council is authorized to order the issuance or renewal of a license, may order the revocation of the license, suspend the license, or order the license to remain in effect upon such terms and conditions as the city council deems necessary and appropriate.

(Ord. No. 2008-09, § 3, 5-8-2008)

(a) The revocation of a special business license or employee permit shall terminate the right of the holder of the license or permit to engage in the business authorized by the license or perform the service authorized by the permit, as the case may be, anywhere within the city for a period of five years following the effective date of revocation. At the conclusion of such period, the former holder may file a written application for issuance of a new license or permit with the finance director. The finance director may grant or deny the application pursuant to such terms and conditions necessary to ensure compliance with the law, including conditions relating to the rehabilitation of the applicant.

(b) The revocation of a special business license shall automatically and without notice also revoke each general business license issued for the same business at each location where the business is located.

(c) If a special business license is revoked, neither the spouse, child, brother, sister or parent of the holder of the revoked license nor a person possessing an ownership interest in the enterprise for which the license was revoked or who was an employee thereof shall be entitled to issuance of a special business license for the business.

(Ord. No. 2008-09, § 3, 5-8-2008)