Commerce Municipal Code Ch. 5.04 Business Licenses

This chapter, together with Chapter 5.05, shall be collectively known and referred to as the "business license code of the city."

(Ord. 132 §1(part), 1968).

It is the intent of the city council, by the adoption of the business license code, to provide regulatory provisions only with regard to specific businesses, as set forth in Chapter 5.05, and to prescribe a schedule of business registration fees for revenue purposes only for all businesses in the amounts and manner as set forth in this chapter. In the event that any business regulated by the business license code which is now or hereafter declared by appropriate legal authority to be regulated exclusively by laws of the state, the provisions of the business license code shall not be deemed to apply to such business except for the imposition of the business registration fee as set forth herein.

(Ord. 132 §1(part), 1968).

For the purpose of the business license code, certain words and phrases are herein defined, and the same shall be construed, in accordance with the same, unless it is apparent from the context that a different meaning is intended:

(1) "Business" means any commercial enterprise, trade, calling, vocation, profession or any other means of livelihood, whether or not the same is carried on for monetary or material gain or profit.

(2) "Business registration fee" or "fee" means a business registration fee or fee imposed pursuant to the provisions of this chapter by reason of the conduct of business within the boundaries of this city which may now or hereafter exist.

(3) "City" means the city of Commerce.

(4) "City attorney" means the duly appointed, acting and qualified city attorney of city.

(5) "City administrator" means the duly appointed, acting and qualified city administrator of city.

(6) "Coin" means any slug, token, plate, disc, plug, key, check or other device or thing of value.

(7) "Conduct" means, and includes, the conducting, managing or carrying on of a business, either as an owner, officer, agent, manager, employee, servant or lessee.

(8) "Council" means the city council of city.

(9) "Employee" means individuals engaged or used in the conduct of business, including all individuals actively participating in the conduct of such business at the premises occupied by the applicant, whether as owners, partners, managers, employees, leased employees or individuals that are utilized through a temporary personnel agency or service. Such persons shall not include other vendors utilized by the applicant.

(10) "License" means a business license issued pursuant to the provisions of the business license code.

(11) "Licensee" means a person holding a valid license issued pursuant to the provisions of the business license code.

(12) "License collector" means an officer or employee of the city who is appointed by the city administrator as the city's license collector, whose primary duty is to enforce the provisions of the business license code.

(13) "Notice, written" means a written communication required to be given hereunder, which shall be addressed to the party involved, at his last known address, postage prepaid, which is deposited in the course of transmission of the United States Postal Service.

(14) "Permit" means a permit required to be issued allowing the conduct of any business referred to in Chapter 5.05. (15) "Permittee" means a person holding a valid permit issued pursuant to the provisions of Chapter 5.05. (16) "Person" means any individual, corporation, partnership, association, incorporated or not, Massachusetts, business or common law trust, societies, joint venture, or other associations of individuals transacting or conducting any business in the city.

(17) "Premises" means all land, buildings, structures, equipment and appurtenances connected with, or used in, conducting any business.

(Ord. 590 §1, 2005; Ord. 132 §1(part), 1968).

Persons required to pay a fee pursuant to this chapter shall not be relieved from the payment of any tax for the privilege of doing such business required under any other provisions of the municipal code, and shall remain subject to all other applicable regulatory provisions of other municipal code provisions and provisions of the business license code.

(Ord. 132 §1(part), 1968).

Neither the adoption of the business license code nor its superseding of any portion of any other ordinance or municipal code provision of the city shall, in any manner, be construed to affect prosecution for violation of any other ordinance or municipal code provision committed prior to the effective date of the ordinance codified herein; nor shall the same be construed as a waiver of any license or any penal provision applicable to any such violations; nor shall the same be construed to affect the validity of any bond or cash deposit or tax imposed, whether or not paid, required by any other ordinance or municipal code provision.

(Ord. 132 §1(part), 1968).

The issuance of a license or permit pursuant to the business license code shall not entitle the licensee or permittee to engage in any business or other activity in violation of any other applicable law.

(Ord. 132 §1(part), 1968).

No license or permit issued hereunder shall be transferred or assigned, nor shall such be construed as authorizing any person other than the licensee or permittee, to engage in the licensed business.

(Ord. 132 §1(part), 1968).

No license fee shall be required for, of, or from, the following:

(1) Those persons engaged in a business exempted by virtue of the Constitution and the laws of this state or the United States; nor

(2) Any institution or organization which conducts a business wholly for the benefit of charitable purposes and from which profit is not derived either directly or indirectly by any person; nor shall any license be required for the conducting of any entertainment, dance, concert, exhibition or lecture relating to scientific, historical, literary, religious or moral subjects whenever the receipts from the same are to be appropriated to any religious, charitable, educational or benevolent purpose, 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 person; nor

(3) Any employee or direct agent of a licensee conducting the business of such licensee, except for any person who performs services for the applicant at the premises occupied by the applicant, including "leased" employees or individuals that are utilized through a temporary personnel agency or service; nor

(4) The conducting of any boarding home, boarding school, lodging house, apartment house, or home for the aged containing less than four sleeping rooms, or the conducting or any boarding house, day school or day nursery accommodating less than four persons for remuneration; nor

(5) To conduct a sale at public auction of articles of

Nothing in this section or any subsection hereof shall exempt any person from complying with any of the regulatory measures or provisions of any other municipal code provision of the city.

(Ord. 590 §2, 2005; Ord. 132 §1(part), 1968).

In no event shall any mistake made by the license collector in stating the amount of the fee or in receiving such 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 activity without a license or for refusing to pay the fees specified herein. Overpayments shall be reimbursed upon approval of the city administrator.

(Ord. 132 §1(part), 1968).

(a) Every general contractor shall require all subcontractors for the performance of any work on each project in the city under his control or direction, whether the subcontract is written or oral, to have a business license as herein provided for the year or years in which such subcontractor's work is to be done at the time such subcontract is made and before permitting such subcontractor to begin to perform services on any project of the general contractor. Failure of such general contractor to comply with the foregoing provisions of this subsection shall render such general contractors liable to the city for an additional license fee equal to the amount of such subcontractor's unpaid license fee, plus any penalties for delinquency accruing thereon.

(b) Each general contractor shall furnish the building division with a list of all subcontractors who are to do work on any project of such general contractor in the city upon forms furnished by the city.

(Ord. 469 §1, 1992).

For failure to pay an annual, semi-annual or quarterly fee when due, the license collector shall add a penalty of fifty percent of the amount of such fee on the thirtieth day of each month after the due date thereof; and/or failure to pay a monthly, weekly or daily license fee when due, the license collector shall add a penalty of fifty percent of the fee on the day following the due date thereof. In no event shall any penalty imposed hereunder exceed an amount equal to one hundred percent of such fee.

(Ord. 141 §1, 1969: Ord. 132 §1(part), 1968).

The amount of any fee and penalty imposed hereunder shall be deemed a debt to the city, and any person carrying on any business without first having procured a license from the city so to do, shall be liable to city for an amount equal to the amount of such fee and penalty.

(Ord. 132 §1(part), 1968).

The conviction and fine or imprisonment of any person for engaging in any business without first obtaining a license or permit to conduct any business shall not relieve such person from paying the fee herein imposed, nor shall the payment thereof prevent a criminal prosecution for the violation of any of the provisions of the business license code. 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. 132 §1(part), 1968).

Violation of the provision of this chapter may be prosecuted as an infraction or a misdemeanor pursuant to provisions of Section 1.12.011.

(Ord. 303 §2, 1981).

(Ord. No. 647, § 1, 11-5-2012)

The Los Angeles County Sheriff shall have and exercise the power to make arrests for the violation of any of the provisions of the business license code, and to enter, free of charge, at any time, any place of business for which a license or permit is required by the business license code, and to demand the exhibition of a current license or permit by any person engaged or employed in the transaction of such business. Failure to exhibit the license or permit upon demand is a violation of the provisions of the business license code.

(Ord. 132 §1(part), 1968).

Any trained city employee over eighteen years of age, when designated to do so by the city administrator, may enforce any provisions of this chapter, by following the procedure for the issuance of citations and giving cite notices as authorized by California Penal Code Sections 836.5 and 853.6. The city administrator is authorized to designate any trained persons in the employ of the city to enforce such provisions as provided in this chapter.

(Ord. 324 §1, 1983).

No person shall engage in or conduct any business in the city without first paying the business license fee for such business in the amount hereinafter set forth, and obtaining the license therefor.

(1) No person shall conduct any business in the city without having an unrevoked license from the city so to do, valid and in effect at the time, and without complying with any and all regulations of such business contained in this code. No person who is an employee or who is the direct representative of a licensee shall be required to pay such fee for the doing of any part of work in the business of such licensee.

(2) Every person who operates any business, whether upon a cost, rental or commission basis as a concession or upon rented floor space in or upon the premises of any person licensed under any provision of this chapter, shall be required to obtain a separate and independent license pursuant to the appropriate provisions hereof, and shall be subject to all provisions of this chapter.

(Ord. 132 §1(part), 1968).

Separate licenses must be obtained for each branch or separate place of business which is a part of any business licensed, or required to be licensed hereunder.

(Ord. 132 §1(part), 1968).

In the event that any person is conducting, managing or carrying on, at one location, more than one business required to be licensed hereunder, then each business is required to obtain a business license and pay the fees applicable to the license.

For the purposes of this section, games of skill and science shall be treated as a separate business for which a separate license shall be obtained, unless the same are operated by an otherwise licensed person who is the owner of the principal business being conducted.

(Ord. 190 §1, 1973; Ord. 141 §2, 1969; Ord. 132 §1(part), 1968).

(Ord. No. 647, § 2, 11-5-2012)

No license issued pursuant to this chapter shall be transferable.

(Ord. 252 §1, 1978: Ord. 132 §1(part), 1968).

Where a business license has heretofore been issued to any person by the city and the fee paid therefor under the provisions of any ordinance heretofore enacted and the term of such license has not expired as of the effective date hereof, a new license for the business shall not be required until the expiration of the term of such unexpired license.

(Ord. 132 §1(part), 1968).

A duplicate license may be issued by the license collector to replace any license previously issued hereunder which has been lost or destroyed, upon the licensee filing an affidavit attesting to such fact, and the payment of a filing and processing fee in the sum of fifty dollars.

(Ord. 252 §2, 1978: Ord. 132 §1(part), 1968).

All licenses shall be kept by the licensee and conspicuously posted and located on the premises utilized by the licensee. 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 such business. Any licensee to whom a license has been issued for the operation of a wheeled vehicle shall be issued by the license collector, in addition to the license certificate, a paper or metal license certificate and the certificate shall at all times during the effective dates thereof be affixed to the windshield or left front door in the case of a sticker, or on the rear of the vehicle in a conspicuous place in case of a metal license plate.

(Ord. 132 §1(part), 1968).

Every person required to have a license under the provisions of this chapter shall make application for the same to the license collector of the city and shall present the application to the license collector, along with the prescribed fee therefor. Each license application shall contain at least the following information:

(1) The name of the person or entity making the application;

(2) The names and residence addresses of the major officers (if a corporation) or the partners (if a partnership) of the applicant;

(3) The nature of the business to be licensed;

(4) The place where such business is to be transacted and carried on;

(5) The numbers of any sales and/or use tax permits held by the applicant;

(6) The number of employees or people working at the applicant's place of business for the month of September, as reported by anyone to the California Employment Development Department on Form DE 3DP for the third quarter of the current year;

(7) The average number of individuals engaged, employed or used in the conduct of such business during the six-month period immediately prior to the filing of the application;

(8) The number of square feet in any enclosed premises occupied by the applicant;

(9) Such other statistical information as the license collector deems to be reasonably necessary for the purpose of assisting the city in performing its governmental functions;

(10) Any statements or estimates provided by an applicant regarding the number of employees or people working at applicant's place of business shall not be conclusive upon the city or upon any officer thereof as to the matters set forth therein, and the same shall not prejudice the rights of the city to recover any amount that might be ascertained to be due from such applicant, in addition to the amount shown by such statement to be due in case such statements are found to be incorrect. The correctness of all such statements shall be subject to the verification by the license collector of the city or his properly authorized deputies who are authorized and empowered to inspect and audit the books and records of any and all persons licensed to carry on any trade, business, occupation or calling in this chapter specified; except utilities operating under the jurisdiction of the Public Utilities Commission of the State of California.

(Ord. 590 §3, 2005; Ord. 470 §1, 1992; Ord. 132 §1(part), 1968).

The amount of business license tax to be paid to the city by any person engaged in or carrying on any business in the city of Commerce shall be the sum of six dollars multiplied by the total number of employees, plus .0070 dollar per total square foot of enclosed premises occupied by the licensee. The minimum tax payable under this section shall be seventy-five dollars. The maximum tax payable under this section shall be three thousand four hundred dollars. The business license tax payable under this section shall be collected each calendar year by the city of Commerce business license division.

On January 1st of each calendar year, such tax payable under this section shall be increased by an amount determined by applying the percentage increase in the Consumer Price Index (CPI) for the Los Angeles/Riverside/Orange County Schedule for All Urban Consumers, for all items as established by the United States Department of Labor, Bureau of Labor Statistics for the twelve months ending September 30th of the previous year. Rates thereby established shall not exceed three percent in any one year and the minimum and maximum amount shall be rounded to the nearest dollar. If the CPI percentage decreases in a given year, the tax payable under this section shall be the same rate paid in the preceding year.

(Ord. 553 §1, 2001: Ord. 470 §2, 1992: Ord. 328 §1, 1983: Ord. 252 §3, 1978: Ord. 132 §1, 1968).

(a) Every person engaged in the business of, or who in conjunction with any other business, houses or maintains, coin-operated vending machines for the sale of goods, wares or merchandise or services in the city shall pay an annual license tax calculated upon the gross receipts from sales made through such machines as follows: thirty dollars per year for the first ten thousand dollars of annual gross receipts or part thereof, three dollars and fifty cents per one thousand dollars on each additional sum in excess thereof, but in no case shall the tax on gross receipts exceed the sum of fifteen hundred dollars for any one year.

(b) The fees prescribed in this section for the first unit of gross receipts shall be due and payable at the time the application for the license is filed. Within thirty days after the end of the year for which the license is issued or at the time an application is filed for the renewal of the license, whichever is earlier, the licensee or applicant, as the case may be, shall file a declaration under penalty of perjury specifying the total amount of gross receipts received from the operation of the machines received within the city during the license period. If any additional taxes are due upon the basis of the gross receipts from any such machines, the additional tax shall be paid at the time the declaration is filed and before any renewal license is issued.

(c) New Installation. Whenever any person subject to the tax herein specified claims or actually maintains a machine or group of machines which are newly installed or which have no previous gross receipts on which a tax can be calculated, then the claimant shall pay the minimum tax of thirty dollars.

(d) As used in this section, "gross receipts" means the total number of dollars actually removed from all declared machines during the license period without any deduction whatsoever.

(Ord. 461 1, 1992; Ord. 328 2, 1983; Ord. 252 4, 1978; Ord. 190 2, 1973).

(a) Annually, upon application for a business license, the owner/operator shall furnish the finance director with the number and location of all machines owned, operated or serviced by the applicant within the city.

(b) Each owner/operator of a machine vending products or services within the city shall place his name and address on each machine in a place where it may be seen by anyone using the machine.

(c) An official city sticker shall be affixed in a conspicuous place to each vending machine for which the current business license tax has been paid.

(Ord. 461 §2(part), 1992).

The term "coin-operated vending machine" as used in Section 5.04.221 shall not include laundry machines when such machines are used in a laundromat business which is subject to a business license tax under other provisions of this title.

(Ord. 461 §2(part), 1992).

(a) Every person engaged in the business of, or who in conjunction with any other business, houses or maintains mechanical or electronic games, as defined in subsection (b), shall pay an annual business license tax of sixty dollars for each machine operated within the city, but in no case shall the business license tax for mechanical or electronic games exceed the sum of five hundred dollars for any one year.

(b) For the purposes of this section "mechanical or electronic games" means any machine, apparatus, contrivance, appliance or device which may be operated or played upon the placing or depositing therein of any coin, check, slug, ball, or any other article or device, or by paying therefor either in advance or after use, involving in its use either skill or chance, including but not limited to tape machine, card machine, pinball machine, bowling game machine, shuffleboard machine, marble game machine, horse racing machine, basketball game machine, baseball game machine, football game machine, electronic video game, or any other similar machine or device.

(Ord. 461 §2(part), 1992).

The license collector shall issue numbered plates or stickers to each licensee who is issued a license for conducting business by vehicle as defined herein, one plate for each vehicle as defined herein, one plate for each vehicle so used, which plate shall be placed conspicuously on the vehicle.

(Ord. 132 §1(part), 1968).

Annual licenses shall date from the first day of January of each year; quarterly licenses shall be valid for a period of three months from the date of issuance. For annual licenses, the full yearly license fee shall be paid for licenses purchased in the first quarter of the year, seventy-five percent of such fee shall be paid for licenses purchased in the second quarter of the year, fifty percent of such fee shall be paid for licenses purchased in the third quarter of the year and twenty-five percent of such fee shall be paid for licenses purchased in the fourth quarter of the year.

(Ord. 474 §1, 1993: Ord. 234 §1(part), 1977: Ord. 132 §1(part), 1968).

All annual license fees, under the provisions of this chapter, shall be due and payable in lawful money of the United States in advance on the first day of January of each year. Any person doing business for less than the full year shall pay the amount of the fee for a full year.

(Ord. 304 §1, 1981: Ord. 234 §1(part), 1977: Ord. 132 §1(part), 1968).

The license collector shall mail renewal notices to each licensee approximately forty-five days prior to the expiration date of the license of such licensee. Such notice shall require the licensee to notify the license collector, in writing within fifteen days of licensee's receipt of such notice, as to whether or not licensee intends to renew such license.

(Ord. 141 §4, 1969).

Concurrently with the issuance of a license for any mechanical amusement device which may be operated as a game, contest or amusement, or any weighing machine, or machine or device furnishing astrological readings, foot-ease service, automatic shoe shining, automatic instrumental or phonographic music, the license collector shall issue and furnish an identification card for each such device or machine so licensed. Such identification card shall be and remain attached to said device or machine at all times. A change in the particular device or machine at the place of business specified on the license may be made at the option of the owner or operator thereof at any time during the period designated in said license, where such change is the substitution of a device or machine of the same type and the owner or operator thereof shall notify the license collector of such change.

(Ord. 141 §3, 1969; Ord. 132 §1(part), 1968).

Upon any revocation of a license, no part of the fee collected shall be returned. 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.

(Ord. 132 §1(part), 1968).

Any license issued under this chapter is subject to revocation for cause in the manner provided herein.

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, except that a written report of the sheriff or any officer or employee of the city disclosing violations of any law by the licensee or his agents or employees shall be deemed a complaint within the meaning of this section. All complaints must be verified unless made by officers or employees in their official capacity.

Except as otherwise specifically provided in this chapter, the following are the grounds which shall, exclusively, constitute a 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 or morals, or shall be found to constitute a public nuisance; or

(2) Violation of any law; or

(3) The misrepresentation of a material fact by any applicant in obtaining a license hereunder; or

(4) A plea, verdict or judgment of guilty to any public offense involving moral turpitude charged against the licensee.

(Ord. 132 §1(part), 1968).

Written complaints against any licensee shall be filed with the license collector, who shall conduct an investigation to determine whether said complaint is sufficient to show probable cause for the institution of formal revocation proceedings against such licensee. Upon completion of such investigation, the license collector shall report the results thereof to the city administrator, together with his recommendations as to whether formal proceedings should be initiated or whether the complaint should be disregarded. The city administrator, based upon such report and such additional investigation as he may deem appropriate, shall determine whether or not the complaint constitutes a sufficient basis for initiation of proceedings to revoke the license of the individual involved. If the city administrator determines to initiate such proceedings, he shall set the matter for a hearing at the next most convenient city council meeting. The complainant, the licensee, and other persons requesting the same, shall be given at least five days' written notice of the time and place of such hearing. At the time of said hearing, the city council shall determine whether sufficient basis exists for revocation of said license as set forth in Section 5.04.280 hereof. The proceedings before the council shall be an informal administrative hearing and the rules of evidence, as generally applied in judicial proceed ings, shall not be applicable thereto, except that the substance of said rules shall be observed in conjunction with the evidence presented to the council for its consideration. The right of subpoena shall be extended to the complainant and licensee.

The decision of the city council shall be final and conclusive.

(Ord. 132 §1(part), 1968).