Clearlake Municipal Code Art. 6-3 Applicability; Fees; Applications; Penalty

It shall be unlawful for any person to engage in a business within the City without first having procured a business license from the City. (Ord. #42, S4A)

Separate licenses must be obtained for each branch, establishment, or separate place of business in which a business is carried on. (Ord. #42, S4B)

If more than one business activity be engaged in at a single location by different business owners or by a single business owner, each of such business owners or businesses shall be licensed separately. It shall be presumed that a single owner conducts only one business activity at a single location unless one of the following conditions is present: a. The owner maintains separate books of account or payrolls for separate business activities; b. The owner was required to obtain different state or federal regulatory licenses from different agencies in order to conduct two or more types of activity. (Ord. #42, S4C)

Except as provided herein, persons required to pay a license fee for transacting and carrying on any business under this section shall not be relieved from the payment of any license fee for the privilege of doing such business required under any other ordinance, and shall remain subject to the regulatory provisions of other ordinances. (Ord. #42, S4D)

The following businesses need not obtain a City business license:

a. Any business which has obtained a franchise or license from the City where such franchise or license fee is based upon a percentage of revenue, or where such franchise or license confers an exclusive right on the holder. b. Any business which transacts business with the City and no other customer or client within the City. c. Any business which qualifies (after application) for an exemption on one of the following grounds: 1. The business had less than three thousand three hundred ($3,300.00) dollars in gross retail sales for the tax or accounting year immediately preceding application. 2. The business had less than two thousand three hundred ($2,300.00) dollars in gross receipts for the tax or accounting year immediately preceding application, is based at the applicant’s home, and has no other fixed place of business. 3. The business is located outside the City and had less than two thousand three hundred ($2,300.00) dollars gross receipts attributable to business done in the City during the tax or accounting year immediately preceding application. 4. The business is located outside the City, and its sole business activity within the City is the sale or delivery of goods for resale. (Ord. #42, S4E)

The issuance of a license under this section shall not entitle the licensee to engage in any business or do any act, which, for any reason, is in violation of any federal, state, or municipal law, rule, or regulation. (Ord. #42, S4F)

A business license shall be non-transferable, except as to a change of address. Upon any change of ownership of a business, a new license will be required. (Ord. #42, S4G)

a. None of the license fees provided for by this section shall be so applied as to occasion an undue burden upon interstate commerce or be violative of the equal protection and due process clauses of the Constitutions of the United States and the State of California. In any case where a license fee is believed by a licensee or applicant for a license to place an undue burden upon interstate commerce or be violative of such constitutional clauses, he may apply to the Director of Finance for an adjustment of the fee. Such application may be made before, at, or within six (6) months after payment of the prescribed license fee. The applicant shall, by sworn statement and supporting testimony, show his method of business and the gross volume or estimated gross volume of business and such other information as the Director of Finance may deem necessary in order to determine the extent, if any, of such undue burden or violation. The Director of Finance shall then conduct an investigation, and, after having first obtained the written approval of the City Attorney, shall fix as the license fee for the applicant, an amount that is reasonable and nondiscriminatory, or if the license fee has already been paid, shall order a refund of the amount over and above the license fee so fixed. In fixing the license fee to be charged, the Director of Finance shall have the power to base the license fee upon any measure which will assure that the license fee assessed shall be uniform with that assessed on businesses of like nature, so long as the amount assessed does not exceed the license fee as prescribed by this section. b. Nothing in this section shall be deemed or construed to apply to any person transacting and carrying on any business exempt by virtue of the Constitution or applicable statutes of the United States or of the State of California from the payment of such fees as are herein prescribed. c. Any person claiming an exemption pursuant to this section shall file a sworn statement with the Director of Finance stating the facts upon which exemption is claimed, and in the absence of such statement substantiating the claim, such person shall be liable for the payment of the fees imposed by this section. d. The Director of Finance shall, upon a proper showing contained in the sworn statement, issue a license to such person claiming exemption under this section without payment to the City of the license fee required by this section. e. The Director of Finance, after giving notice and a reasonable opportunity for hearing to a licensee, may revoke any license granted pursuant to the provisions of this section upon information that the licensee is not entitled to the exemption as provided herein. (Ord. #42, S5)

The Director of Finance shall prepare and make available to persons applying for a business license a suitable application form, a properly validated portion or copy of which may be used as the issued license. Any person, corporation, or other entity applying for a license to engage in business within the City limits shall provide the following information in connection with his application: a. If the business, occupation, or profession requires a license or licenses from the State of California, the applicant must provide evidence that he possesses such license or licenses and that the license or licenses is in good standing. b. If the business is subject to collection of sales taxes, the applicant shall present evidence of a current permit from the State Board of Equalization showing an address within the City limits. c. In all cases, the applicant shall demonstrate that the business location is in compliance with applicable zoning laws, or that the business, occupation, or profession is exempt therefrom. d. Each application for a business license shall be accompanied by an application fee, which shall be deposited to the City general fund and shall not be subject to refund. (Ord. #42, S6)

a. Licensing Period. 1. Business licenses, unless otherwise specifically provided, shall be issued for the period October 1 through September 30 of each year. The initial business license for businesses that commence on, or after, the first day of January shall be issued for the period commencing with the date the business first opened through September 30th and the license fee shall be pro-rated as follows: Between January 1 and March 31 3/4 of annual fee Between April 1 and June 30 1/2 of annual fee Between July 1 and September 30 1/4 of annual fee 2. Seasonal business licenses shall be issued for quarterly periods as follows: October 1 through December 31 January 1 through March 31 April 1 through June 30 July 1 through September 30 3. Special event business licenses shall be issued for a specific period of time not to exceed ten (10) days. b. License Fees. The following fees are hereby established for business licenses: 1. General business license annual fees shall be: 0 through 1 F.T.E. Employee $70.00 Over 1 through 5 F.T.E. Employees $90.00 Over 5 through 10 F.T.E. Employees $120.00 Over 10 through 25 F.T.E. Employees $150.00 Over 25 through 50 F.T.E. Employees $200.00 Over 50 F.T.E. Employees $300.00 (a) Formula for calculating Full Time Equivalent (F.T.E.). Total number of paid hours worked by all employees during the calendar year ending December 31 prior to the October licensing period divided by 2,080 hours.

(b) Commissioned Employees. F.T.E. for commissioned employees shall be calculated as .25 F.T.E. for each commissioned employee for each quarter during the calendar year prior to the October licensing period that said employee was paid a commission. (c) Exempt Hours. The following hours shall be exempt from the formula for calculating the total number of F.T.E. employees: (1) Hours worked by the proprietor and/or spouse of the proprietor. (2) Paid overtime hours. 2. Secondary business license annual fee shall be: 0 through 1 F.T.E. Employee $35.00 Over 1 through 5 F.T.E. Employees $45.00 Over 5 through 10 F.T.E. Employees $60.00 Over 10 through 25 F.T.E. Employees $75.00 Over 25 through 50 F.T.E. Employees $100.00 Over 50 F.T.E. Employees $150.00 The formula for calculating F.T.E. shall be the same as provided for under subsection 6-3.10b, 1 above. 3. Seasonal business license fee shall be as follows: January through March $20.00 April through June $20.00 July through September $20.00 October through December $20.00 4. Special category business license annual fee shall be as follows: (a) Beauty Shops $70.00 plus $5 for each booth (b) Real Estate Broker $70.00 plus $5 for each realtor and/or employee who was paid a commission or salary during the previous licensing period. (c) Flea Market $70.00 plus

$5 for each rental space 5. Special event business license fee shall be $75.00 per day. c. License Renewal. 1. Business licenses shall be renewed on, or before, September 30th of each year except as provided for in paragraph c, 2 below. 2. Renewal of business licenses for the period of October 1, 1994 through September 30, 1995 shall be renewed on, or before, October 31, 1994. (Ord. #42, S7A; Ord. #50-94, S1; Ord. #52-94, S5)

For failure to pay a license fee when due, the Finance Director shall add a penalty of ten (10%) percent of the license fee on the last day of each month after the due date thereof, providing that the amount of such penalty to be added shall not exceed fifty (50%) percent of the license fee due. (Ord. #42, S7B)

Licenses for business activity within the City limits by businesses located outside the City or for itinerant or door- to-door businesses will be annual licenses effective for one year from the date of issuance. (Ord. #42, S7C)

License fees shall not be subject to refund. Neither revocation of a business license nor termination of business by the proprietor shall result in any refund. (Ord. #42, S7E)

A duplicate license may be issued by the Director of Finance to replace any license previously issued hereunder which has been lost or destroyed upon the licensee filing statement of such fact, and at the time of filing such statement paying to the Director of Finance a duplicate license fee. (Ord. #42, S8)

a. Any licensee transacting and carrying on business at a fixed place of business in the City shall keep the license posted in a conspicuous place upon the premises where such business is carried on.

b. Any licensee transacting and carrying on business but not operating at a fixed place of business in the City shall keep the license upon his person at all times while transacting and carrying on the business for which it is issued. (Ord. #42, S9)

The City Council may exempt certain functions of charitable and nonprofit organizations from the payment of a license fee, provided that application is duly made, and provided that the activity and the sponsoring organization are exempt from state and federal income taxation. (Ord. #42, S10)

a. The City Manager shall designate one or more City employees to enforce this section. The City Manager is directed to use such reasonable and lawful means of investigation as will, in his opinion, result in effective compliance with this section. b. Any City employee designated to enforce this section shall have power to enter any place where business is believed to be conducted during those times when it is believed to be conducted for the sole purpose of determining (or gathering evidence of) that fact. The said employees are directed to report violations of this section to the City Manager who may refer the matter for civil or criminal enforcement or both. (Ord. #42, S11; Ord. #2012-153)

The amount of any license fee and penalty imposed by the provisions of this section 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. #42, S12)

All remedies prescribed hereunder 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 hereof. (Ord. #42, S13)

a. Any person aggrieved by the decision of the Director of Finance with respect to the issuance or denial of a business license may appeal to the City Council in the manner established by the City’s uniform appeal procedure. Licenses issued pursuant to this section may not be denied or revoked except for causes specified in this section. b. Whenever it shall appear to the Director of Finance that any material fact stated in support of an application for a business license is not true, any license issued pursuant to that application may be revoked after notice and an opportunity for hearing and any pending application may be denied. (Ord. #42, S14)

Any person who violates any provision of this section is guilty of an infraction, and upon conviction, shall be liable to the penalty established in Chapter I, Section 1-5. A person transacting business for which a license is required pursuant to the terms of this chapter without first obtaining such license shall be deemed to be guilty of a separate offense for each day, or portion thereof, during which the violation continues. (Ord. #42, S15)