Lomita Municipal Code Ch. 2 Business Licenses, Rules and Regulations

No person shall commence or carry on, either directly or indirectly, any business, profession, trade or occupation as hereinbefore defined within the City of Lomita, whether or not said person has a fixed place of business within the City of Lomita or elsewhere, without complying with the terms and the provisions of the business license law. The business license law contains both revenue and regulatory measures. The provisions herein contained for the payment of a license fee in a specified amount are revenue measures. The provisions herein contained prohibiting or regulating certain types of businesses, requiring the issuance of permits, requiring the registration of certain businesses and otherwise imposing regulations in respect to the conduct of businesses are regulatory.

Any person doing or conducting business in the City of Lomita without a business license from the City of Lomita shall be guilty of a separate infraction for each day during which said business is so conducted. Each infraction shall be punishable by a fine of one hundred dollars ($100.00) for the first violation, a fine of two hundred dollars ($200.00) for the second violation within one (1) year and a fine of five hundred dollars ($500.00) for each subsequent violation within one (1) year of the second violation. The city manager, or his designee, shall be authorized to issue citations for any violation constituting an infraction. Any person violating any other of the provisions of the business license law or knowingly or intentionally misrepresenting to any authorized officer of the city any material fact in procuring a license or permit herein provided for, shall be guilty of a misdemeanor and upon conviction thereof shall be punishable by a fine of not more than five hundred dollars ($500.00) or by imprisonment in the city jail or the county jail of Los Angeles County for a period of not more than six (6) months or by both fine and imprisonment.

(Ord. No. 492, § I, 12-2-91; Ord. No. 699, § 1, 4-2-07)

No license issued under the provisions of this title shall be construed as authorizing the conduct of or continuance of any illegal or unlawful business.

All business licenses required by the provisions of this title shall state upon the face thereof the following:

(a) The name of the person to whom the business license is issued;

(b) The type of business licensed;

(c) The location or address of the business licensed;

(d) The date of the expiration of the business license;

(e) Any conditions imposed pursuant to section 6-2.26 of this Code;

(f) That the possession of the business license shall not authorize, permit or allow the person to do any act which such person would not otherwise be lawfully entitled to do.

(Ord. No. 639, § 5, 5-21-01)

Any person required to have business license under the terms and provisions of the business license law who fails to pay any sum therein required of said person to the city when due and owing shall be deemed indebted to the city and shall be liable in an action by and in the name of the city in any court of competent jurisdiction for the recovery of such amount plus penalties as herein after set forth.

The city clerk or his authorized deputy shall serve as license collector and administrator of the business license law. He shall formulate in writing all necessary rules and regulations to carry out the provisions of this law, and in general shall do all things necessary and proper to carry out the spirit and intent of this law.

The city may deny a license to any applicant under the following circumstances:

(a) If the applicant is indebted to the city for any unpaid license fee.

(b) If the business for which the application is filed is in violation of any provision of this Municipal Code, of the city's rules and regulations, or of state or federal law.

This section does not prohibit the city from entering into an agreement with the applicant to pay off any amount owed or to comply with governing laws, rules and regulations or to issue a conditional license as provided for in section 6-2.26 herein.

(Ord. No. 492, § I, 6-2.05)

No license issued pursuant to this business license law shall be transferable; provided that where a license is issued authorizing a person to conduct a business at a particular location, such licensee may upon application therefor and paying a fee of five dollars ($5.00) have the license previously issued amended so as to authorize the conduct of such business from such other location.

Duplicate license may be issued by the city clerk to replace any license previously issued which has been lost or destroyed, upon applicant therefor filing an affidavit attesting to such fact and at the time of filing such affidavit paying to the city clerk a fee of one dollar ($1.00) therefor.

Except as otherwise specifically provided by the provisions of this title, all licenses must be kept and posted in the following manner:

(a) Subject to other provisions of this title, any licensee engaged in business at a fixed place of business shall keep the license issued posted in a conspicuous place upon the premises where such business is in conduct.

(b) Any person engaged in business in the city, but not operating from a fixed place of business, shall keep the license issued to him upon his person at all times while engaged in such business.

(c) Vehicles, carts, baskets. As directed by the city clerk, each person driving, operating or having control of any wagon, cart or other vehicle, or using or controlling any tray, basket or other receptacle, or controlling, possessing or operating any machine, device or equipment, including vending machines, where a license is required under the provisions of this title, shall fix thereon a license tag or plate or decal as issued by the city clerk and at the place directed by the city clerk; or, if the city clerk shall so direct, shall procure a license holder and fix thereon for the purpose of holding the city license; or, if the city clerk shall so direct, shall carry a license or identification card as directed by the city clerk upon his person. Any license plate or tag or decal shall be placed so that it is always plainly visible. No person shall keep any license place, tag, decal or identification card longer than thirty (30) days after the expiration of the term for which the license is issued; and no person, except the licensee or his authorized agent, shall take or remove any license plate, tag or identification card from the person lawfully entitled to the same or remove the same from the place where posted or fixed.

It shall be the duty of the city clerk and/or his authorized deputy or law enforcement or contractual representative of the city to enforce each and all of the provisions of this title and of any other chapter of this Code requiring the payment of any license fee. In addition, the city clerk shall be responsible for the issuance of permits and licenses provided for in this title and/or for the proper processing as required in this title of all applications and/or permits.

Every person who engages in, conducts, manages, or carries on any activity for which a license is required by this title without first having been issued a license or having filed a license application so to do and having paid the fee, if any, for such license or license application as provided in this title is guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not more than five hundred dollars ($500.00) or by imprisonment in the county jail of Los Angeles County for a period of not more than six (6) months or by both fine and imprisonment.

(a) License application. The operation of persons operating under a license application shall expire upon the final determination of the application or at the end of sixty (60) days whichever first occurs; except that if the license collector finds, and upon the approval of all departments and officers to whom the application was referred, that at the end of sixty (60) days the application has not finally been acted upon through no fault of the applicant and that cancellation of the right to operate under the license application will cause unnecessary hardship to the applicant inconsistent with the purposes and intent of this title, or that the hardship to the applicant by the denial of an extension would be disproportionate to any benefit to the public, he may extend such temporary license for a period not to exceed thirty (30) days.

(b) Exception. Nothing in section 6-2.09 or any of the subsections of section 6-2.09 shall be construed, in any way, as intending to allow or allowing any person to commence or engage in any operation coming under any permit requirements of this title without first having in his possession the valid permit so to do.

The city clerk or his authorized deputy, or the license enforcement agency as defined in section 6-2.11, shall examine all places of business in the city to ascertain whether or not the provisions of this chapter have been complied with. Said city clerk, his deputy or said license enforcement agency or agencies, the city attorney and any duly authorized employee shall have the power to examine all necessary books and records of all persons doing business in the city required to be licensed by the terms of this chapter for the purpose of ascertaining the amount of license fee required to be paid by the provisions hereof. Said officer and each and all of his deputies and duly authorized employees shall have the power and authority to enter free of charge and at any reasonable time any place of business required to be licensed by the provisions of this chapter and to demand an exhibition of such license, books or other matters of record. Any person having any such license heretofore or hereafter issued in his possession or under his control who fails to exhibit said license, books or other matters of record on demand shall be guilty of a violation of this Code. It shall be the duty of the city clerk, his deputies or the contractual law enforcement agencies of the city, to cause a complaint to be filed against any and all persons found to be in violation of any provision of this chapter.

(Ord. No. 461, § 1, 4-16-90)

For the purpose of the enforcement of this chapter, the city clerk may with prior consent of the council deputize a qualified accountant to examine the necessary books and records of any person doing business in the city required to be licensed by the terms of this chapter. Any person having any such license heretofore or hereafter issued in his possession or under his control who fails to exhibit said license, books or matters of record to and allow examination by said accountant so deputized shall be guilty of a violation of this Code.

(Ord. No. 461, § 2, 4-16-90)

The conviction or imprisonment of any person for violating any of the regulatory provisions of the business license law shall not relieve such person from paying the license fee to conduct such business, nor shall the payment of any license fee prevent a criminal prosecution for the violation of a regulatory provision of the business license law. All remedies prescribed hereunder shall be cumulative, and the use of one (1) or more remedies by the city shall not bar the use of any other remedy for the purpose of enforcing the prosecution of violations of this title.

Deputy license collectors shall be directly responsible to the city clerk and under his control and direction. Said city clerk and said deputy license collectors shall have the power to examine all places of business and persons in their respective territories liable to pay a license, and to see that such licenses are taken out.

Except in cases specifically provided for otherwise in this title, the license term for licenses issued hereunder shall be for a term of twelve (12) months commencing from the first day of the calendar year quarter in which the license is first issued. Semiannual licenses shall be from the first day of the quarter of the calendar year in which the same is issued for a period of six (6) months. Quarterly licenses shall be from the first day of the calendar quarter in which the license is issued to and through the last day of said calendar quarter. Monthly licenses shall be from the first day of the calendar month in which said licenses are issued to the end of said calendar month. Weekly licenses shall commence on Monday of each week and shall terminate on Sunday. Daily licenses shall commence at 12:01 a.m. of any day and shall terminate at midnight of said day.

Unless specified otherwise in this title, or in any special permit or license, all licenses shall be subject to renewal upon the anniversary date of said license and the fee for the same shall be then immediately due and owing. Every person failing to pay said license fee on said due date shall become subject to a penalty of ten (10) percent of the amount of such license for each thirty-day period thereafter until the same plus said penalty has been paid in full.

All license fees shall be paid in advance to the city clerk in lawful money of the United States. The amount to be paid shall be determined in accordance with the terms and provisions of this title by the city clerk.

No person charged with the enforcement of any of the provisions of the business license law shall knowingly accept or receive any sum for any license which is less than or greater than the amount actually to be paid under the provisions of the business license law. Notwithstanding the foregoing, the city manager, in the exercise of discretionary powers, may waive any penalty assessed hereunder which is less than fifty dollars ($50.00) or cost for collection of which would exceed the amount of the penalty. Such a waiver may only be granted after the tax has been paid. If such a waiver is granted, the delinquent taxpayer must pay simple interest on the delinquent tax, from the date of delinquency, in lieu of a penalty, in the amount of one (1) percent per month.

(Ord. No. 492, § I, 12-2-91; Ord. No. 699, § 1, 4-2-07)

All applications for licenses shall be in writing upon a form to be issued by the city. In order for the applicant to be considered complete the applicant, in addition to a fully accurate completed application form, shall submit at the time of application its employer identification number; taxpayer identification number; sales tax number; and most recent state income tax return. The failure to fully complete the city-issued license form or to provide any of the above information shall be deemed an incomplete application. Any applicant filing an incomplete application shall be deemed to be in violation of this title if it proceeds to engage in business in the City of Lomita.

(Ord. No. 492, § I, 12-2-91)

The license fee imposed hereunder shall be in the amounts established in chapter 5 of this title VI. Calculation of the tax shall be made as follows:

(a) Continuing businesses. Any business in operation during the twelve (12) months preceding the date the tax is due shall have its business license tax calculated based upon the gross receipts of the business during the twelve (12) months prior to the date the tax is due or the gross receipts reflected by the most recent state tax return filed by the taxpayer at the option of the city manager or his designee.

(b) Renewing businesses with less than a full year in Lomita. Any business which has been in business in the City of Lomita for less than twelve (12) months prior to the date its business license renewal tax is due shall have its tax calculated based upon the extrapolation of its gross receipts over a twelve-month period. This extrapolation will be accomplished by taking the total gross receipts of the business and dividing it by the number of months the business has been in operation in the City of Lomita and multiplying that figure by twelve (12).

(c) New businesses. Any business which has not previously operated in the City of Lomita which desires a license shall submit to the city an estimate of gross receipts for its first twelve (12) months doing business in the city. The city manager or his designee shall review said estimate and may make whatever adjustments he deems reasonable in light of the number of employees, the assets, facilities, or past history of any business being taken over by the applicant.

(d) When gross receipts are not available. If gross receipts for city activity cannot be determined or when cash received is not reflective of the extent of business activity carried on in the city, the city manager or his designee may opt to use the gross expenses of a business in lieu of gross receipts to calculate the tax imposed by this title.

(Ord. No. 492, § I, 12-2-91; Ord. No. 699, § 1, 4-2-07)

If any person required by this section to file a business license application or to provide any information to the city fails to do so, that person shall be required to pay a penalty of two hundred dollars ($200.00) per day until such time as the application or information required by this section is properly filed with the city clerk. Said penalty must be paid before a license may be issued. In addition, any person failing to file the application required by this title VI or failing to provide information requested by the city shall be guilty of a violation of this title VI, which shall be punishable as provided herein.

(Ord. No. 492, § I, 12-2-91)

If any person fails to file an application statement required by the business license law within the time prescribed hereby, or after demand therefor, made by the city clerk, fails to file a corrected application statement, the city clerk may determine the amount of the license fee due from such person from such information as he may be able to obtain and if necessary may estimate the fee required to be paid hereunder upon the basis of external indices on hand, capital invested, dividends paid, sales or other taxes paid, number of persons employed, or by considering other facts. In such a case the city clerk shall give notice of the amount so assessed by serving the same personally or by depositing the same in the United States Post Office in the City of Lomita, California, with postage prepaid thereon, addressed to the person so assessed at his last known address. The amount therein set forth shall be assessed as of that date and shall be due and owing as of the first time said amount would have been due and owing under the business license law in the amount set forth in said business license law plus all penalties imposed in said law.

The city clerk shall have, in addition to all other powers conferred upon him, for good cause shown, the power to extend the time for filing any such statement for a period not to exceed thirty (30) days, and in such case waive any penalty that would have otherwise accrued, and with the approval of the council and the written approval of the city attorney, to compromise any claim for license fee subject to the provisions of this article.

All applications filed pursuant to the provisions of this section for the purpose of ascertaining business license fees shall be deemed confidential in character and shall not be subject to public inspection. It shall be the duty of the city clerk to preserve and keep said statements so that the contents thereof may not become known except to the persons required by law with the administration or enforcement of this chapter.

(a) Religious, charitable, fraternal, educational, military, state, county or municipal organizations. The provisions of this business license law shall not be deemed or construed to require the payment of a license fee to conduct, manage or carry on any business or require the payment of any license of any institution or organization so conducted, managed or carried on fully for the benefit of charitable purposes or 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, concert, exhibition or lecture on scientific, historical, literary, religious or moral subject whenever the receipts of such entertainment, concert, exhibition or lectures are to be appropriated to any religious facility (as defined in Title XI) or school or to any religious or benevolent purpose in the City, nor shall any license or permit be required for the conducting of any recreation, entertainment, dance, concert, exhibition or lecture by any religious, charitable, fraternal, educational, military, state, county or municipal organization or association, whenever the receipts of any such entertainment, dance, concert, exhibition or lecture are to be appropriated for the purpose and objectives for which such association or organization was formed and from which profit is not derived either directly or indirectly by any person. The provisions of this article shall not be deemed or construed to require the payment of a license by any religious, charitable, fraternal, educational or military organization or association conducting casual sales, concerts, dances, entertainment, exhibitions or lectures or other activities for fund raising purposes and where the funds so derived are retained strictly for charitable, religious, educational, fraternal or military purposes and do not go to the benefit or use or profit of any person.

(b) Infirm. The council may, upon written evidence received from a Lomita religious facility (as defined in Title XI) or recognized charitable organization or civic association, or city clerk or deputy license collector, or other competent source, that any person by reason of physical infirmity, unavoidable misfortune, or unavoidable poverty, merits exemption from the operation of any license required by any provision of this article, allow such person an exemption of twenty ($20.00) dollars on one license for the conduct of any one business licensed by any provisions of this article, or a free license to peddle or solicit within the City.

(c) Exemption where business within city is conducted only occasionally and incidentally. Any person otherwise coming within the definition of the business license law, who does not have a fixed place of business within the City and who is called into the City or called upon to perform a service or act within the City which is merely occasional and incidental to a business being conducted elsewhere, shall be entitled to an exemption from the payment of any license fee imposed under the business license law. The city council hereby finds that "occasional and incidental" shall have the following meaning:

(1) Delivery from outside the City to a point within the City or delivery from a point within the City to a place outside the City of goods, wares, merchandise, food products, or personal property of any nature where five (5) or less of any such deliveries are made by the person making the deliveries within any fiscal year, as established by the calendar year; or

(2) The performances of acts or services of an emergency nature in order to protect the health, life or property or right or rights of anyone living, residing, owning property or being situated within the City of Lomita and where performed five (5) or less times within said City during any fiscal year established by the calendar year.

(d) Minors. Minors under the age of eighteen (18) years shall be entitled to a free license for engaging in part time activities coming within the definition and license requirements of this article but they shall be subject to all permit and registration procedures.

(e) Interstate commerce. Every person claiming to be entitled to exemption from the payment of any license provided for in this section upon the ground that such license casts a burden upon his rights to engage in commerce with foreign nations or among the several states, or conflicts with the regulations of the United States Congress respecting interstate commerce, shall file a verified statement with the city clerk disclosing the interstate or other character of his business entitling such exemption. Such statement shall state the name and location of the company or firm for which the orders are to be solicited or secured, the name of the nearest local or state manager, if any, and his address, the kind of goods to be delivered, the name from which the same are to be shipped or forwarded, the method of solicitation or taking orders, the location of any warehouse, factory or plant within the State of California, the method of delivery, the name and location of the residence of the applicant and any other facts necessary to establish such claim of exemption. A copy of the order blank, contract form or other papers used by such person in taking orders shall be attached to the affidavit for the information of the city clerk.

If it appears that the applicant is entitled to such exemption, the city clerk shall forthwith issue a free license. In case of dispute the decision of the city attorney shall be final.

(f) Exemption under other provisions of state law. Every person claiming to be entitled to an exemption from payment of any license fee provided for in this section upon the ground that such license fee is exempt under state law shall file a verified statement with the city clerk disclosing the character of said business entitling such exemption. Said statement shall state the name and location of the company or firm claiming the exemption, the type of business conducted and facts establishing that said person, organization or firm comes within the exemption of the state law.

Additional information shall be supplied to the city clerk or city attorney upon request in order to ascertain whether or not the claimant meets the exemption of the state law. In case of dispute, the decision of the city attorney shall be final.

(g) [This subsection intentionally left blank.]

(h) Secondhand goods. When any person is engaged in any business licensed under the provisions of this article and as an incident to this business accepts secondhand goods as part payment on any new merchandise, such person shall not be required to obtain a license as a secondhand dealer for the doing of such acts, shall not be considered as dealing in secondhand merchandise.

(i) Exempt licenses to be endorsed. Whenever the city clerk shall issue any license granting any exemption provided for in this chapter, the person to whom such license is issued shall endorse thereon his signature in ink in the presence of the city clerk or deputy license clerk or deputy license collector, and no such license shall be transferable. Any such exempt license shall be issued by the city clerk, or deputy license collector, only for the minimum license period of any such business, and may be renewed for the same period under the same conditions and in the same manner as originally obtained.

(j) Revocation of license examinations. At any time that it shall appear to the satisfaction of the permit hearing board that none of the conditions specified in this chapter as meriting exemption from license requirements exists as to any person to whom any such exemption has been allowed, the permit hearing board may revoke such exemption and the exempt license issued thereunder. The revocation shall be in accordance with the procedure set forth in chapter 3 of the business license law.

(k) Existing county license exemption. Any license heretofore issued to conduct a business covered by the provisions of this ordinance prior to the effective date of this ordinance, which license has an expiration date subsequent to the effective date of this ordinance, shall remain in effect until such expiration date, at which time all such licensees shall be subject to the fee provisions of the business license law of the City of Lomita. All regulatory provisions of this ordinance shall become immediately effective and shall apply to any person conducting a business affected by such regulations within the City of Lomita.

(Ord. No. 542, § 1, 5-1-95; Ord. No. 748, § 2(pt. 2), 1-17-12)

If a license is denied or an application therefor withdrawn, the city clerk shall retain, to partially cover the costs of the investigation, all penalties collected and ten dollars ($10.00) of the license fee collected. The balance shall be refunded to the applicant. Where a business license application is accompanied by an application for a permit, and both license and permit applications are denied, the city clerk shall retain only the permit fees.

(a) If any officer or department finds that the facts are such that the issuing of a license with conditions will eliminate any ground for denial, such officer or department will recommend that such license will be issued subject to such conditions. This recommendation is to be submitted to the city clerk and license collector.

(b) Notification of conditions. If no officer or department to which an application is referred recommends that the license be denied, but, one (1) or more officers or departments recommend that the license be subject to conditions, the license collector shall so notify the applicant in writing that he intends to grant the license subject to conditions, which shall be specified in the notice and that the applicant, if he takes exception to the conditions or any part of the conditions, may request a hearing before the city council within five (5) days after receipt of such notice. Such request for hearing must be in writing.

(c) Right to impose or change conditions. If at any time it appears to the city council or other body having jurisdiction that there are grounds for revocation of a license, but that such grounds could be eliminated by the imposition of conditions or of additional conditions, or by the amendment of any existing condition to such license, it may notify the licensee in writing that it intends to impose or amend such conditions and that the licensee may within five (5) days after receipt of such notice request a hearing as provided for in section 6-2.26(b).

(d) Change of conditions. If a licensee applies in writing to the city council or other body having jurisdiction for a change in the conditions to which his license is subject, the city council or other body having jurisdiction as the case may be may grant such application in whole or in part or may deny such application based upon the facts found by such body.

(e) Nothing in subsections (a), (b), (c) or (d) of this section shall be construed to restrict, in any way, the right of the city council to deny any application for a license.

Where a taxpayer is a corporation which knowingly fails and refuses to file an application for a business license and/or fails to pay the amount of the business license tax or misrepresents or falsifies any information requested by the city or willfully refuses to provide any information requested by the city, chief executive officer and the treasurer of said corporation or any other officer instrumental in applying for the business license may be held personally liable for any amount of unpaid taxes or penalties assessed against the taxpayer and shall be criminally liable for a violation of this title.

(Ord. No. 492, § II, 12-2-91)