Diamond Bar Municipal Code Ch. 5.00 Business Licenses Generally

The following words, terms and phrases, when used in this title, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Applicant means a person who has applied for, but not obtained, a business license or renewal required by this title.

Application means a written request made to the city by the applicant for a business license or renewal required by this title.

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.

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

Business license means a license issued pursuant to this title by which each business owner having a business or is doing business in the city is required to provide general information to the city and obtains a license prior to conducting business in the city.

City means the City of Diamond Bar.

Director means the director of community development.

Home based business means a business conducted within a residential dwelling unit or structure, employing occupants of the dwelling unit, with the business activity being subordinate to the residential use of the property.

Person means and includes any business owner, individual, firm, co-partnership, joint venture, association, corporation, estate, business trust, or any other group or combination acting as a unit.

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

(Ord. No. 09(2007), § 1, 12-4-07)

The purpose of this title is to establish a regulatory mechanism whereby the city may review the management and ownership of specific types of businesses, maintain an accurate record of businesses conducting business in the city for statistical purposes and to assist in zoning compliance. The business license program is not designed to raise revenue, nor is it a substitute for land use regulations.

(Ord. No. 09(2007), § 1, 12-4-07)

(a) Business license.

(1) No person shall conduct any business in the city without first having obtained a business license, paid the applicable business license fee and complied with any and all applicable provisions of this Code.

(2) A separate business license shall be obtained for each business location and for each separate type of business at the same location.

(3) A home based business shall be required to obtain a business license prior to conducting business within a residential dwelling unit or on residential property.

(4) Except as otherwise provided in this title, an employee of a business that has obtained a valid Diamond Bar Business License is not required to obtain a separate business license.

(5) A business license shall not be issued to a business that requires training or state licensing for the business owner, or for each technician or employee, until satisfactory proof of training or licensing is provided to the city. These businesses include without limitation, barbers, cosmetologists, estheticians and manicurists.

(6) A business license shall not be issued to a business that requires Workers' Compensation Insurance until satisfactory proof of having Workers' Compensation Insurance is provided to the city.

(b) Fee required.

(1) Every person engaging in business in the city shall pay a business license fee as prescribed by resolution adopted by the city council.

(2) When a business license fee is imposed upon any business pursuant to this title and such business is conducted at one or more fixed places of business and one or more branch establishments, the fee shall be computed as if each fixed place of business and branch establishment are separate and independent.

(3) The business license fee is not a revenue raising device, but shall bear a reasonable relationship to the costs incurred by the city in reviewing, processing and action upon the application.

(4) The city council shall, from time to time, review the resolution fixing the business license fee and shall adjust the business license fee to reflect the city's costs.

(c) The following businesses are exempt from paying the business license fee upon satisfactory proof that the business meets the requirements for the exemption:

(1) Non-profit and charitable organizations;

(2) Businesses exempt from paying fees under the Constitution of the United States or the State of California, or under the laws of the State of California.

(d) Evidence of doing business. When a 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 a person holds an active license or permit issued by a government agency indicating that such person is in business in the city, then these facts shall be considered prima facie evidence that such person is conducting a business in the city for purposes of this title.

(Ord. No. 09(2007), § 1, 12-4-07)

(a) Applications for a business license shall be filed with the city and shall comply with the following requirements:

(1) Completion of an application on the form designated by the city and signed by the applicant under penalty of perjury;

(2) Applications shall be filed a minimum of 30 days prior to the date requested for issuance of the permit;

(3) Payment of the applicable filing fee; and

(4) Such other information as may be required by the city.

(b) Except as otherwise provided in chapters 5.04 and 5.08 of this title, the city shall process the application and issue a business license upon receipt of a completed application and the required fee. The application may be reviewed by the department of finance, community development and other city departments or governmental agencies to determine if the business operations and premises to be occupied meet the requirements of federal, state, and/or local laws.

(c) Contents of general business license application.

(1) Each business license application shall contain the following:

a. Business name;

b. Business address;

c. Permanent mailing address of the applicant;

d. Phone number;

e. Fax number;

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

g. State resale permit;

h. State employer I.D. number;

i. State contractors/business and profession license number (if applicable);

j. Description of the business being conducted;

k. Days and hours of operation:

l. Start date;

m. Type of ownership;

n. Owners or principal officers;

o. Description of all vehicles and mechanical equipment owned by or under the control of the business;

p. Business license number (in the case of a renewal application);

q. Business license fee paid;

r. Health permit number (if applicable);

s. Workers' Compensation Insurance Policy number, date and date of expiration (if applicable);

t. Proof of any other required county, state or federal training and/or license or permit; and

u. Such other information as may be required by the application form or requested by the city for enforcement and administration of this title.

(Ord. No. 09(2007), § 1, 12-4-07)

Upon the payment for a business license and pursuant to any applicable provisions of chapters 5.04 and 5.08 of this Code, the city shall issue a business license to the applicant which shall contain the following:

(a) Type of business;

(b) Name of business;

(c) Business location;

(d) Business owner;

(e) Expiration date;

(f) Business license number;

(g) Amount of fee paid for business license; and

(h) Such other information as deemed necessary by the city.

(Ord. No. 09(2007), § 1, 12-4-07)

(a) Except as otherwise provided in this title, when an applicant submits a timely business license renewal application and pays the renewal processing fee as set by resolution of the city council, the city shall renew the license, to be effective upon the expiration of the old license. In the case of a business activity having a fixed location, application for a license for a different location is not a renewal and shall be deemed a new license application.

(b) Renewal application deadlines. Every person desiring to continue in business after the expiration of the license period shall file a renewal application and pay the required renewal fee not less than thirty days prior to the expiration of the license period.

(c) Late applications. Renewal applications submitted after the application deadline are subject to the delinquent business license fees set forth in section 5.00.070. Late renewal applications will not be processed until the applicant has paid all required fees.

(Ord. No. 09(2007), § 1, 12-4-07)

(a) Delinquency fees. Any person engaging in business in the city who fails to pay the appropriate business license fee shall be subject to the following:

1. Applications for a business license that are not accompanied by the required business license fee or any delinquency fees that have accrued will not be processed until such fees have been paid in full.

2. For person's conducting business without having obtained a business license, the required fee shall be doubled for each consecutive 30-day interval that the business was conducted without a license calculated from the first day the person engaged in the business provided that the total amount of fee and the late fee combined shall not exceed $500.00.

3. For failure to pay the annual renewal fee when due, the required fee shall be doubled on the day following the last day of each consecutive 30-day interval following the due date while the fee remains unpaid provided that the total amount of fee and the late fee combined shall not exceed $500.00.

(b) Action to collect. Should legal action be required to collect any delinquent fee, an additional amount shall be charged equal to the cost incurred by the city in collection of the fee, including reasonable attorneys fees.

(Ord. No. 09(2007), § 1, 12-4-07)

Editor's note— Ord. No. 06(2016), § 1, adopted November 1, 2016, repealed § 5.00.080, which pertained to temporary license. See Code Comparative Table for complete derivation.

(a) Generally. The operative date for a new business license shall be the date of approval of the application.

(b) Renewals. The operative date for a business license renewal shall be the date following the date of expiration of the previous year's license.

(Ord. No. 09(2007), § 1, 12-4-07)

No business license fees or delinquent fees collected shall be refundable.

(Ord. No. 09(2007), § 1, 12-4-07)

Upon filing a statement indicating that a business license has been lost or destroyed, and after paying a replacement fee, a duplicate business license shall be issued by the city.

(Ord. No. 09(2007), § 1, 12-4-07)

(a) Transfers of ownership. A new business license is required whenever there is a transfer in ownership of a business. The following transactions shall be considered transfers:

(1) The addition or withdrawal of a new partner or partners; or

(2) The transfer of a business from one partnership to another; or

(3) The transfer of a business from a partnership to a corporation; or

(4) The transfer of a business from one corporation to another; or

(5) The transfer of a business from a corporation to a partnership; or

(6) The transfer of a business from a corporation to an individual, or vice versa, unless the corporation and the individual are the same person; or

(7) The transfer of a business from a partnership to an individual, or vice versa; or

(8) The transfer of a majority share of stock in a corporation from one shareholder to another.

(b) Change of name. A new business license is required whenever there is a change of name of a business. If there is no transfer of ownership or change in the nature or scope of business or in the business location and if the licensee operating under the previous name had a valid business license at the time of the change of name, the new license shall be issued upon filing of a complete application and payment of all required fees.

(c) Change of location. A new business license is required whenever there is a change in location of a business.

(d) Change in business. A new business license is required whenever there is a change in the nature or scope of the business.

(Ord. No. 09(2007), § 1, 12-4-07)

The assignment of or attempt to assign any license issued pursuant to this title is unlawful and any such assignment or attempt to assign a license shall render the license null and void.

(Ord. No. 09(2007), § 1, 12-4-07)

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

(Ord. No. 09(2007), § 1, 12-4-07)

(a) Any person engaging in business at a fixed location 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.

(b) Any person engaging in business, but not operating at a fixed location or branch establishment in the city, shall be in possession of a business license at all times while engaged in such business in the city.

(Ord. No. 09(2007), § 1, 12-4-07)

(a) Authority to enforce. The city shall have authority to enforce each of the provisions of this title. The Los Angeles County Sheriff's Department and other city departments shall render assistance in the enforcement of this title as may be necessary. The city attorney is authorized to file a complaint against any persons found in violation of this title.

(b) Entry to inspect. The city, deputy sheriff, fire inspector, and other city officers empowered to enforce the provision of this title, shall have the power and authority to enter into a business, free of charge and at any reasonable time, and required to see the business license posted in a conspicuous place upon the premises.

(Ord. No. 09(2007), § 1, 12-4-07)

(a) License validity and grounds for suspension. Whenever the provisions of this title require an applicant for any business license to procure, post or maintain in effect any surety or policy of insurance, any business license so issued is good only while such surety or policy of insurance is in full force and effect. The license shall automatically be suspended without notice if at any time such surety or policy of insurance is not in full force and effect. The director of community development shall notify the licensee in writing of any suspension, pursuant to this section and within ten days thereafter, the licensee may request in writing a hearing before the city council. The city council shall hold a public hearing in a manner consistent with chapter 5.04, and as indicated by the evidence received at the hearing, may revoke the license or terminate the suspension and restore the license. If the licensee does not request a hearing, the license is automatically revoked at the end of ten days following the notification of suspension.

(b) Cancellation of insurance. Except as otherwise provided, a policy of insurance required under this title shall not be accepted unless it is not subject to cancellation or unless it provides that it shall not be canceled until 30 days after the insurer or surety gives notice thereof to the director. If a licensee learns that such a policy of insurance will be or has been canceled, such licensee shall notify the director within three days of such notice. If a new policy of insurance acceptable to the director is filed before the old one is canceled or expires, then the license will continue in full force. Any employee, officer or department informed of any change or cancellation of any insurance policy required under this title shall immediately notify the director of such change or cancellation.

(c) Contents of insurance policy. In every instance where an insurance policy is required for the licensing of a particular business, such insurance shall fulfill the following requirements unless the director directs otherwise:

(1) It shall be primary and not contributing to any other insurance maintained by the city;

(2) It shall name the City of Diamond Bar, its city council, and its officers, agents and employees as additional insureds;

(3) Its liability limit shall be a minimum of $1,000,000.00;

(4) It shall bear a deductible in an amount satisfactory to the director;

(5) It shall be provided by an insurer satisfactory to the City of Diamond Bar; and

(6) It shall provide the director with 30 days prior notice of any cancellation or modification of the policy.

(d) Indemnification. Whenever this title requires that a business license applicant or licensee indemnify the city, the applicant or licensee shall be required to sign an indemnification statement that reads substantially as follows:

It shall be a condition of each license issued under this section that the licensee agrees to indemnify, hold harmless, and defend the city and its council and each member thereof, and every officer and employee of the city, from any and all liability or financial loss resulting from any suits, claims, losses, or actions brought by any person and from costs and expenses of litigation, including attorney fees, by reason of injury to any person, including, but not limited to, officers and employees of the licensee, performed under and pursuant to such license or any and all activities, operations, and conditions in any manner connected therewith or pertaining thereto. Such indemnity shall include, but not be limited to, any and all liabilities, demands, claims, damages, losses, costs and expenses caused or alleged to have been caused by any negligent or other act of any such licensee.

(Ord. No. 09(2007), § 1, 12-4-07)

Any person violating this title shall be guilty of a misdemeanor as provided in section 1.04.010(a). The commencing or conducting of any such business without having first procured such license, or without having complied with any and all such requirements or provisions shall constitute a separate violation of this Code for each and every day that such business is so commenced or conducted. It is a violation of this title to knowingly make a false statement in any application for a license or permit or in any report required under this title.

(Ord. No. 09(2007), § 1, 12-4-07)

The city shall withhold a business license to engage in business from any person when there are pending violations of any City Code against such person and/or business applying for a business license, or when a debt is owed to the city as a result of a violation of this Code.

(Ord. No. 09(2007), § 1, 12-4-07)

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

(Ord. No. 09(2007), § 1, 12-4-07)