San Luis Obispo Municipal Code Art. I General Provisions

The purpose of the city’s business license regulations is to provide for necessary regulation of lawful businesses being conducted within the city in the interest of the public health, safety and welfare of the people of the city. While due diligence will be exercised in reasonably assuring compliance with all city policies, regulations and ordinances before issuing a business license, the primary focus of the city’s business license regulations is to provide reasonable assurance that businesses operating in the city are doing so in compliance with the city’s planning and building policies, regulations and ordinances; in compliance with the city’s business tax provisions as set forth in Chapter 3.01; and in compliance with the city’s storm water quality ordinance, set forth in Chapter 12.08. (Ord. 1543 § 3, 2010; Ord. 1474 § 1, 2005)

It shall be unlawful for any person to transact and carry on any business in the city not otherwise exempt without first having procured a business license from the city and complied with all of the applicable provisions of this chapter. (Ord. 1474 § 1, 2005)

For the purposes of this chapter, unless otherwise apparent from the context, certain words and phrases used in this chapter are defined as follows:

A. “Business” shall mean and include professions, trades, vocations, rentals, leases, enterprises, establishments and occupations, and all and every kind of calling, any of which is conducted for the purpose of earning in whole, or in part, a profit or livelihood, whether or not a profit or a livelihood actually is earned thereby, whether paid in money, goods, labor or otherwise, and whether or not the business has a fixed place of business in the city.

B. “Finance director” shall mean the individual designated by the city administrative officer to issue business licenses pursuant to the provisions of this chapter. The finance director may designate others to perform these duties on her or his behalf.

C. “Person” shall mean and include all domestic and foreign corporations, associations, syndicates, joint-stock corporations, partnerships of every kind, clubs, Massachusetts trust, business and other common law trusts, societies and individuals transacting and carrying on any business in the city, other than an employee.

D. “Sworn statement” shall mean an affidavit sworn to before a person authorized to take oaths or a declaration or certification made under the penalty of perjury. (Ord. 1474 § 1, 2005)

A business license issued pursuant to this chapter does not authorize, permit or allow the license holder to do any act or conduct any business of any kind which is otherwise prohibited by city policies, regulations or ordinances; or any state or federal statute, law, rule, order or regulation. (Ord. 1474 § 1, 2005)

Before issuing a business license, the finance director shall exercise due diligence in providing reasonable assurance that the business is in compliance with city planning and building policies, regulations and ordinances. This will include establishing procedures as needed to ensure appropriate review by staff in the city’s department of community development before issuing or renewing business licenses. (Ord. 1474 § 1, 2005)

The following persons and organizations are exempt from the provisions of this chapter:

A. Minors Under the Age of Eighteen. Businesses owned and conducted by minors under the age of eighteen years shall be exempt from the business license provisions of this chapter where all of the following conditions exist and legal documentation is provided to support that:

1. All persons engaged in the operation of the business are under the age of eighteen years.

2. All persons engaged in the operation of the business have a bona fide ownership interest in the business.

B. Charitable, Religious and Nonprofit Organizations. The provisions of this chapter shall not be deemed or construed to require the issuance of a business license to conduct, manage or carry on any business, occupation or activity of any institution or organization recognized by a tax board of the state with a “Statement of Domestic Nonprofit Organization” or the Internal Revenue Service of the United States, which is conducted wholly for the benefit of charitable, religious or nonprofit purposes, and from which profit is not derived, either directly or indirectly, by any person.

The exemption provisions of this section shall not be construed to extend to any person, business, corporation, or organization receiving a fee, wage, stipend, salary, remuneration, compensation, or pay for the performance of any business, occupation or activity related to exempt organization activities. Any such person, business, corporation or organization shall be subject to the business license provisions of this chapter and shall obtain a business license prior to any business, occupation or activity being undertaken.

C. Conflicts with Federal and State Laws or Contractual Agreements. The provisions of this chapter shall not be construed to require a person to obtain a business license prior to doing business within the city if such requirement conflicts with the applicable statutes, laws or constitution of the United States or the state of California or other contractual obligations or franchise agreements. The finance director may develop administrative guidelines concerning exemptions, apportionment and any other matters which she or he determines as necessary for the lawful and effective implementation of this chapter. (Ord. 1474 § 1, 2005)