Chapter 2.10 — BUSINESS REGULATION
South Gate Municipal Code · 2026-07 edition · updated 2026-09-27 · South Gate
Article I Business Permits Generally
§ 2.10.010. Title.¶
This chapter shall be known, and may be cited as, the "Business Regulation Ordinance." (Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.020. Purpose.¶
The purpose of this chapter is to protect the public health, welfare and safety by:
A. Obtaining adequate information regarding the ownership and operation of businesses within the city and facilitating contact between the city and those businesses;
B. Regulating the operation of certain specified businesses to ensure that such operation does not adversely affect the public health, welfare, and safety;
C. Providing for a healthy and stable business community within the city's boundaries;
D. Collecting statistical information concerning businesses located or operating within the city's boundaries;
E. Monitoring sales tax registration and compliance.
(Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.030. Applicability.¶
This chapter shall apply to all businesses located or operating within the boundaries of the city. (Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.040. Definitions.¶
A. For the purpose of this chapter, the following terms shall have the following meanings:
"Agent" means a person who acts for, on behalf of, or in the place of another person.
"Agency review" or "departmental review" means that process by which business permit applications are reviewed by designated city departments to determine whether the proposed operations of a particular business are in conformity with the requirements of this chapter and of this code.
"Business" means an establishment engaged in one or more commercial or mercantile activities for the purpose of earning, in whole or in part, a profit or livelihood, whether or not a profit or livelihood is actually earned thereby.
"Business activity" means a commercial or mercantile activity, together with all devices, machines, articles and appurtenances used therein, which is conducted for the purpose of earning, in whole or in part, a profit or livelihood, whether or not a profit or livelihood is actually earned thereby.
"Employee" means any person engaged in the operation or conduct of any business in the city, whether as an owner, a member of the owner's family, or as a partner, agent, manager, solicitor, apprentice, trainee or any other category of person employed or working in such business.
"Permit" means the certificate issued by the tax collector or by the city council, as may be appropriate, as a prerequisite to operating any business which is governed by the provisions of this chapter.
"Permittee" means any person holding a permit to operate a business within the city.
"Person" means any individual, partnership, corporation or joint venture which conducts or purports to conduct a business activity within the city.
"Sexually oriented business" means adult bookstores, nude or semi-nude entertainment, escort bureaus and introductory services, massage establishments, model studios, adult motion picture theaters and picture arcades showing adult entertainment pictures.
"Tax collector" means the director of finance or the designee of the director of finance.
B. The definitions set forth in Chapter 2.08, as they relate to words, terms and phrases utilized in this chapter, shall be applicable in interpreting and construing such words, terms and phrases.
(Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.050. Permits required.¶
A. Generally. It is unlawful for any person to commence or conduct, or purport to commence or conduct, either directly or indirectly, any business activity in the city without first having procured a business permit, where required, and paying the required fees therefor.
B. When Permit Required. All business activities specified in Section 2.10.150 shall be authorized by a business permit issued pursuant to this chapter.
C. Advertising Businesses. No person shall advertise or announce a business activity located in the city until a business permit has first been obtained as required by this chapter. "Advertising or announcing" includes, but is not limited to, disseminating pamphlets or handbills, publishing newspaper announcements and purchasing radio or television commercials.
D. Managers. Where the provisions of this chapter governing particular business activities require a manager, such individual, unless he or she is the person to whom the permit for the business activity is issued, must obtain a manager's permit and pay the required fee therefor. The application for a manager's permit shall be on a form provided by the tax collector and shall, to the extent feasible, be submitted concurrently with the application for business permit required by Section 2.10.130.
(Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.060. Permits—Duration.¶
A. Original Issuance. The duration of a business permit which is initially issued to an applicant pursuant to the provisions of this chapter shall be the same as the duration of the business license which is issued pursuant to Chapter 2.08, and shall expire on December 31st, if the annual license period is the calendar year, or on June 30th, if the annual license period is the fiscal year.
B. Renewals. The renewal of a business permit issued pursuant to the provisions of this chapter shall be applied for at the same time as application is made for renewal of the business license which is issued pursuant to Chapter 2.08, and the duration of such permit renewed shall be one year, whether based upon a calendar year or a fiscal year.
(Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.070. Permits—Issuance to persons operating under fictitious business names.¶
A business permit may be issued to a person operating under a fictitious business name who has complied with all applicable provisions of the California Business and Professions Code. Otherwise, all permits shall be issued in the true name of the person applying for a permit, as it appears on the application for a permit.
(Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.080. Unlawful business.¶
No business permit issued under the provisions of this chapter shall be construed as authorizing any business activity which is prohibited under the laws of the United States, the federal and state constitutions, this code or any other applicable law, ordinance, rule or regulation. Any such business permit shall be void.
(Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.090. Duplicate permit.¶
A permittee shall report to the tax collector the loss of any business permit, whether in the form of a sticker, tag, card, paper, certificate or otherwise. The tax collector shall issue to the permittee a duplicate permit upon the payment of the prescribed fee established by resolution of the city council.
(Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.100. Presentment of permit.¶
A. Posting. Every person required to have a business permit pursuant to the provisions of this chapter, and who conducts, manages or carries on a business activity at a fixed location, shall post such permit in a conspicuous place at the business location.
B. Carrying. Every person required to have a business permit pursuant to the provisions of this chapter, and who does not have a fixed place of business, shall carry such permit at all times when conducting the business activity for which such permit was issued.
C. Presentation on Demand. Every person required to have a business permit pursuant to the provisions of this chapter shall produce the permit when so requested by any city official who is authorized to issue or collect permit fees, or who is authorized to conduct inspections or otherwise enforce the provisions of this chapter or of this code.
(Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.110. Substitute for other provisions.¶
No person required by this chapter to pay permit fees shall be relieved from the payment of any applicable license fees or from compliance with any regulations required by any other provisions of this code.
(Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.120. Fees.¶
Business permit fees shall be established by resolution of the city council. (Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.130. Applications.¶
A. Generally. Every person commencing or conducting, or purporting to commence or conduct, any business activity required to be permitted pursuant to this chapter shall file an application for a business permit and pay the required fees therefor. Applications for business permits shall be provided by the tax collector.
B. Application Deadlines.
Every person engaging in or operating a regulated business activity on the effective date of this chapter shall apply for an original business permit, or for the renewal of a business permit, not later than the deadline for submittal of the renewal application for a business license.
Every person commencing or purporting to commence a regulated business activity after the effective date of this chapter shall apply for a business permit not less than thirty days prior to commencing such business activity.
The required fees shall be paid at the time the application for a business permit, or for the renewal of a business permit, is submitted.
C. Submission of Applications. The tax collector shall determine whether an application is complete. If an application is determined to be complete, the application shall be accepted. If it is determined that the application is incomplete, the applicant shall be notified as to the information required to complete the application. An application shall not be considered filed until it has been determined to be complete.
(Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.140. Business permits—Contents.¶
A. The application for a business permit shall be signed by an individual applicant or a soleproprietorship applicant, or by an authorized signatory for a partnership or corporate applicant. The application shall contain the following information, to the extent applicable:
The full name and address of the applicant:
a. If the applicant is an individual or a sole proprietorship, the name and residence address of the individual applicant or of the individual conducting the sole proprietorship shall be set forth,
b. If the applicant is a partnership, the name and residence address of each general partner shall be set forth. If one or more of the general partners is a corporation, the provisions of subparagraph (c) pertaining to a corporate applicant shall apply to each corporate general partner,
c. If the applicant is a corporation, the name shall be set forth as it appears in the articles of incorporation, and the address set forth shall be the principal executive office for the conduct of business in the state of California or if none, the principal executive office in the applicant's state of incorporation. If the capital stock of the corporate applicant is not publicly traded, the additional information set forth below shall also be provided:
(i) The name and residence address of each director of the corporation,
(ii) The name and residence address of each executive officer of the corporation, i.e., president, vice president, secretary, treasurer, etc.,
(iii) The name and residence address of each shareholder owning ten percent or more of the outstanding capital stock of the corporation,
(iv) The name and business address of the person designated by the corporation to accept service of process in the state of California;
The address of the intended business. A person may not use a post office box, mailbox or message service as the address of the business for purposes of this chapter. A post office box, mailbox or message service may be used as the mailing address of the business for business purposes only;
- A description of the facility proposed to house the intended business activity;
A description of the intended business activity and, if a new business, the estimated starting date of such business activity;
If the business is advertised to the public and operates under a name other than the name of the applicant, such other name or designation shall also be set forth;
The names, addresses and telephone numbers of at least two individuals who may be contacted by the city in case of an emergency;
With regard to each of the individuals required to be identified by name and address as specified in subsection (A)(1) of this section, the applicant shall describe in narrative form the details of any of the following events that occurred during the previous five years:
a. Such individual was convicted in a criminal proceeding or is a named subject of a pending criminal proceeding (excluding traffic violations and infractions),
b. Such individual, or any partnership or corporate entity with which such individual was affiliated as a partner, officer, director or as a shareholder owning ten percent or more of the outstanding capital stock, was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining or otherwise limiting such individual or entity from engaging in or continuing any conduct or practice in connection with the operation of this type of business activity, or a substantially similar business activity,
c. Such individual, or any partnership or corporate entity with which such individual was affiliated as a partner, officer, director or as a shareholder owning ten percent or more of the outstanding capital stock, in previously operating or engaging in the operation of this type of business activity, or a substantially similar business activity, in this or any other city or state, under license or permit, has had such license or permit denied, revoked or suspended,
d. With regard to any of the events required to be described pursuant to this subsection, the applicant shall be entitled to document and explain any mitigating circumstances associated with such events.
B. The application for a business permit shall also contain such additional information as may be required by this chapter in connection with the specific business activity for which a permit is requested, or which the tax collector may deem to be necessary and appropriate for the purpose of evaluating the ability and willingness of the applicant to comply with all regulatory conditions and restrictions authorized by this chapter to be imposed, and to thereby protect the health, safety and general welfare of the community.
(Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.150. Businesses requiring a business permit.¶
A. No person shall commence or conduct, or purport to commence or conduct, any of the following business activities without first obtaining a valid business permit and paying the permit fee therefor, in the amount established by resolution of the city council:
- Adult-oriented business;°
- 1.5. Adult-oriented business employee;°
Ambulance operator and ambulance driver or attendants;+
Auction house;+
Bath parlor;*°
Bench installation;
Billiard parlor/pool hall;*°
Bingo for charitable purposes;°
Bowling alley;°
Boxing or wrestling arena;*°
Carnival and concession;+°
Close-out, bankruptcy or fire sale;+°
Dance hall and dances;*°
Day care center or day nursery;°
Drive-in or take-out restaurant;
Entertainment;*°
Escort bureaus and introductory services;*°
Fireworks sales (retail);°
Fireworks sales (wholesale);
Fireworks (storage);
Fortunetelling;
Game arcade;*°
Garage sale (residential zone);
Golf range;°
Gun dealer;*
Health club;°
Home occupation (residential zone);
Hospital or similar business;°
House and street numbering;*+°
Hypnotist;+
Indoor merchandising center;°
Junkyard, junk storage yard, salvage yard and automobile wrecking yard;
Locksmith;
Massage establishment and massage technician;*°
Material recovery facility;*+°
Miscellaneous business conducted wholly or partially in the open (not within an enclosed building);°
Mobile home park;°
Model studio;*°
Motel-residential;°
Motion picture theater;°
Parking lot (commercial);
Pawnbroker and secondhand dealer;°
Peddler and solicitor (commercial);
Picture arcade;*°
Private patrol service and patrol officer;
Public dump;*
Rebound tumbling center;°
Riding academy or equestrian center;
Shooting gallery;°
Sidewalk vendor;+
Skateboard center;°
Skating rink;°
Social club (proprietary);*°
Solicitation for charitable purpose;
Taxicab and taxicab driver;*+°
Tow truck and non-owner tow truck driver;+
Used vehicle sales;*°
Used equipment sales;°
Vehicle, trailer or equipment rental.
- indicates that such business activity requires a hearing before the city council before issuance of a business permit.
- indicates that such business activity is subject to insurance or bond requirements.
° indicates that such business activity requires a permitted manager pursuant to Section 2.10.050.
B. The regulations pertaining to specified businesses or business activities requiring a business permit are set forth in Article II of this chapter commencing with Section 2.10.400.
(Ord.1948 § 1 (part), 5-25-1993; Ord. 1980 § 3, 1-24-1995; Ord. 2265 § 1, 10-13-2009; Ord. 2266 § 1, 10-27-2009; Ord. 2023-04-CC § 1, 7-11-2023)
§ 2.10.160. Fingerprinting and photo identification.¶
Fingerprinting and photo identification may be required by the tax collector in connection with an application for a particular business permit.
(Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.170. Review and approval.¶
A. Responsibility. The responsibility for approving business permit applications shall be as follows:
Business Permit Applications Which Do Not Require Hearings. These business permit applications shall be subject to the approval of the tax collector as the reviewing authority. Any person may appeal the tax collector's decision on the application in a manner consistent with the requirements of Section 2.10.340. The timely filing of an appeal shall entitle the appellant to a hearing.
Business Permit Applications Which Require Hearings. These business permit applications shall be subject to the approval of the city council as the reviewing authority.
B. Preconditions to Approval. Before any business permit is issued, the reviewing authority shall ensure that the applicant has agreed to abide by all the conditions and restrictions authorized by this chapter to be imposed on the particular business involved.
(Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.180. Investigation.¶
A. Generally. Once a completed application is filed, and the applicant has paid the prescribed business permit fee, the tax collector shall initiate an investigation of facts relating to the business permit application with appropriate city officers and departments. This review process shall ensure that the action to be taken on each business permit application is consistent with the intent and purpose of this chapter.
B. First Amendment Activities. In the case of businesses involved primarily in first amendment activities, the review process shall be completed within forty-five days, and the decision of the tax collector or the city council approving or denying the business permit shall be made within said forty-five day period, unless the applicant consents to a longer period.
(Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.185. Consideration of applicant's criminal record and prior business history.¶
A. The information disclosed by an applicant for a business permit pursuant to Section 2.10.140(A)(7) shall be reviewed and considered by the tax collector or the city council, as applicable, in evaluating the ability and willingness of the applicant to comply with all regulatory conditions and restrictions imposed by this chapter on the specific business for which a permit is requested and to thereby protect the health, safety and general welfare of the community.
B. In no event shall a prior criminal record, whether considered alone or in conjunction with prior injunctive relief, or the prior denial, revocation or suspension of a business license or permit, constitute the sole basis or justification for the denial of a business permit unless the tax collector or the city council, as applicable, after reviewing and considering all relevant facts and circumstances, finds and determines as follows:
That, with regard to a proposed business activity primarily involving first amendment activities, the issuance of the permit would constitute a clear and present danger of a serious, substantive evil; or
That, with regard to a proposed business activity not involving first amendment activities, the applicant's prior criminal record includes one or more convictions for a crime involving moral turpitude which is substantially related to the business activity for which the permit is requested and, when considered alone or in conjunction with prior injunctive relief or the prior denial, revocation or suspension of a business license or permit, the issuance of the permit would be detrimental to the health, safety and general welfare of the community.
C. Whenever the city council, whether upon an appeal from a determination by the tax collector or in the course of any hearing required by this chapter to be conducted by the city council, determines that it is necessary to discuss and determine whether an applicant for a business permit or business permit renewal, which applicant, or any individual affiliated with a partnership or corporate applicant as a partner, officer, director or as a shareholder owning ten percent or more of the outstanding capital stock, has a criminal record, is sufficiently rehabilitated to obtain the business permit, the city council may hold a closed session with the applicant and the applicant's attorney, if any, for the purpose of holding the discussion and making the determination. Such closed session shall be held pursuant to Section 54956.7 of the Government Code, as it now exists or may hereafter be amended.
(Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.190. Notice and hearing.¶
A. Notice.
Notice where City Council Review Required. Upon receipt in proper form of a business permit application requiring city council review and approval, as specified in Section 2.10.150, notice of the hearing shall be given at least ten days prior thereto in the following manner:
a. Notices of hearings shall be posted next to the west and south facing main entrance doors of city hall, 8650 California Avenue, and inside the Leland R. Weaver Library (inside main entrance), 4035 Tweedy Boulevard, and published in a newspaper of general circulation, ten days prior to the original date of hearing. and
b. Notice shall be mailed, postage prepaid, to those individuals or community or neighborhood groups that have requested from the city written notification of business permit applications. Such notice shall include the information specified in subsection (A)(1)(a) of this section.
Notice where City Council Review Not Required. Upon receipt in proper form of a business permit application for a business activity not requiring city council review and approval as specified in Section 2.10.150, the tax collector shall notice review of the application in the following manner: notice of the submission of a completed application, the period during which any interested party may make written comment regarding the application, the nature of the business activity proposed to be operated and the location of such proposed business activity, shall be noticed as required above in subsection (A)(1)(a) of this section.
B. Hearings. The city council shall conduct all hearings required of it under this chapter. Such hearings shall be conducted as follows:
Testimony. At the time set for the hearing, or on any date to which the hearing may be continued, the city council shall hear the applicant, who may present any facts to show why the permit should be granted, and shall hear testimony from all other interested persons who attend the hearing to state reasons why the permit should or should not be granted.
Filing Protests. Any interested person, at any time after the filing of an application or before the close of the hearing regarding such application, or at any time after the filing of an application and before the close of the tax collector's review, may file written letters of support or protest, for or against the granting of such application. In considering the application, the tax collector or city council, as applicable, shall give consideration to all such documents so filed.
(Ord. 1948 § 1 (part), 5-25-1993; Ord. 2159 § 1, 3-23-2004)
§ 2.10.200. Grounds for denial of business permit.¶
A. Business Activities Involving First Amendment Activities. Neither the tax collector nor the city council shall approve an application for a business permit for a business activity primarily involving first amendment activities if any of the following findings are made:
The building, structure, premises or the equipment used to conduct the business activity, fails to comply with all applicable health, zoning, fire, building and safety laws of the state of California or of the city; provided, however, that this subsection shall not be construed to require that the applicant actually be in compliance with such laws at the time set for review and approval. The tax collector or the city council, as applicable, may approve a business permit and condition its operative date upon the later submission by the applicant to the tax collector of a certificate of occupancy issued by the department of building and safety or other satisfactory evidence that the business activity is then in compliance with all applicable laws.
The applicant has knowingly made any false, misleading or fraudulent statement of material fact in the application for the business permit or in any report or statement required to be filed with the tax collector or the city council.
The business is prohibited by any local or state law, statute, rule or regulation, or is prohibited in the particular location or zone by any ordinance, statute, rule or regulation.
The city council has made the findings and determination as specified in Section 2.10.185 relating to an applicant for a permit for a proposed business activity involving first amendment activities.
B. Business Activities Not Involving First Amendment Activities. Neither the tax collector nor the city council shall approve an application for a business permit for a business activity not primarily involving first amendment activities if any of the following findings are made:
The building, structure, premises or the equipment used to conduct the business activity, fails to comply with all applicable health, zoning, fire, building and safety laws of the state of California or of the city; provided, however, that this subsection shall not be construed to require that the applicant actually be in compliance with such laws at the time set for review and approval. The tax collector or the city council, as applicable, may approve a business permit and condition its operative date upon the later submission by the applicant to the tax collector of a certificate of occupancy issued by the department of building and safety or other satisfactory evidence that the business activity is then in compliance with all applicable laws;
The applicant has knowingly made any false, misleading or fraudulent statement of material fact in the application for the business permit or in any report or statement required to be filed with the tax collector or the city council;
The business is prohibited by any local or state law, statute, rule or regulation, or is prohibited in the particular location or zone by any ordinance, statute, rule or regulation;
- The city council has made the findings and determination as specified in Section 2.10.185 relating to an applicant for a permit for a business activity not involving first amendment activities.
- (Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.210. Effect of business permit denial.¶
A. Limitation on New Applications. If an applicant's business permit application for a particular business activity has been denied, the tax collector shall not process a new application by that applicant for that business activity for a twelve-month period after the denial unless the tax collector determines that the reason for the denial has been cured and no longer exists.
B. Appealability. The denial of an application by the tax collector may be appealed to the city council in a manner consistent with Section 2.10.340. If the denial of an application for a business primarily involving a first amendment activity is appealed, the appeal shall be heard within thirty days of the date on which a timely and complete notice of appeal is received.
(Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.220. Permit required for each business activity.¶
When any person is engaged at one location in more than one business activity for which a business permit is required, such person shall be deemed to be conducting each business activity separate and apart from any other business activity. The total fees for all business activities shall be determined by reference to the fee schedule established by resolution of the city council, as authorized by Section 2.10.120.
(Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.230. Business permit—Operative date.¶
A. Generally. The operative date for the initial business permit shall be the date of approval of the application by the tax collector or the city council, unless a later date is specified; provided, however, that no permit period for the initial business permit shall extend beyond any permissible license period which pertains to the business.
B. Renewals. The operative date for a business permit renewal shall be as specified in Section 2.10.060.
(Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.240. Insurance and bond requirements.¶
A. Permit Validity and Grounds for Suspension. Whenever the provisions of this chapter require an applicant for any business permit to procure, post or maintain in effect any bond, undertaking, deposit or policy of insurance, any business permit issued is valid only while such bond, undertaking, deposit or policy of insurance is in full force and effect. The business permit shall automatically be suspended without notice if at any time such bond, undertaking, deposit or policy of insurance is not in full force and effect. The tax collector shall notify the permittee in writing of any suspension pursuant to this section. Within ten days thereafter, the permittee may request in writing a hearing before the city council. The city council shall hold a hearing in a manner consistent with Section 2.10.190 and, as warranted by the evidence received at the hearing, may revoke the permit or terminate the suspension and restore the permit. If the permittee does not request a hearing, the permit is automatically revoked at the end of ten days following the notification of suspension.
B. Cancellation of Insurance or Bond.
Except as otherwise provided, a policy of insurance or a bond or undertaking required under this chapter shall not be accepted unless it provides that it shall not be cancelled until thirty days after the insurer or surety gives notice thereof to the tax collector. If a permittee learns that such a bond, undertaking or policy of insurance will be or has been cancelled, such permittee shall notify the tax collector within three days of such notice. If a new bond, undertaking or policy of insurance acceptable to the tax collector is filed before the previous one is cancelled or expires, then the permit shall continue in full force;
Any employee, officer or department of the city which is informed of any modification or cancellation of any insurance policy, undertaking or bond required under this chapter shall immediately notify the tax collector of such modification or cancellation.
C. Contents of Insurance Policy. Except as otherwise provided, in every instance where an insurance policy is required for the permitting of a particular business, such insurance policy shall comply with the following requirements unless the reviewing authority, upon application, notice and hearing, directs otherwise:
It shall be primary and not contributing to any other insurance maintained by the city;
It shall name the city, its officers, agents and employees, as an additional insured;
Its liability limits shall be as specified in the regulations pertaining to the specific business;
It shall bear a deductible in an amount approved by the tax collector;
It shall be issued by an insurer approved by the city;
It shall be endorsed so as to provide the tax collector with thirty days prior notice of any cancellation or modification of the policy.
D. Indemnification. Whenever this chapter requires a business permit applicant or permittee to indemnify the city, the applicant or permittee shall be required to execute an indemnification statement in substantially the following form:
"It shall be a condition of this permit issued under the Business Regulation Ordinance that the permittee agrees to indemnify, hold harmless, and defend the City, its City Council, and each member thereof, and every officer, agent 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 all costs and expenses of litigation, including attorneys' fees, by reason of damage to any property or injury to any person, including, but not limited to, officers and employees of the permittee, performed under and pursuant to this permit, and 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 this permittee."
(Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.250. Business permit renewal.¶
A. Generally. Except as otherwise provided in subsection E of this section, when an applicant timely submits a business permit renewal application, the tax collector shall renew the permit effective upon the expiration of the prior permit.
B. Renewal Application Deadlines. Every person desiring to continue in business after the expiration of the permit period shall file an application for renewal not less than thirty days prior to the expiration of the permit period. In the case of a business activity having a fixed location, a permit application for a different location is not a renewal and shall be deemed to be a new application.
C. Late Applications—Before Expiration. The tax collector may accept an application for renewal after the time specified in subsection B of this section if it is filed before the expiration of the prior permit. The filing of such late application shall give the applicant no greater rights than upon the filing of an application for an original permit.
D. Late Application—After Expiration.
Except as otherwise provided in this section, the tax collector shall not accept a renewal application for a permit which has expired, or which for any other reason is not in full force and effect. The applicant may apply for a new permit if not prohibited from doing so by any other provision of this chapter, and such application shall be accompanied by the required fee for a new permit.
The tax collector may accept an application for a renewal after the time specified in subsection B of this section if it is filed not later than sixty days after the expiration of the prior permit and if the tax collector finds good cause as to why the application was not filed before the expiration of the permit period. When an application is submitted pursuant to this subsection, the fee shall be the renewal fee plus twenty-five percent thereof. Such application shall give the applicant no greater rights than upon the filing of an application for an original permit.
Good cause, pursuant to subdivision 2 of this subsection shall be found where:
a. A serious illness that required hospitalization or confinement to bed prevented timely application for renewal; or
b. Unforeseen and extraordinary circumstances prevented timely application for renewal.
E. Hearing Requirements for Certain Renewals.
If the city has received notice of any of the following upon or subsequent to the filing of any permit renewal application, the application for renewal may be set for hearing before the city council and noticed in a manner consistent with Section 2.10.190:
a. A transfer or change as specified in Section 2.10.260; or
b. A significant change in the operation of any permitted business which may involve noncompliance with city, county or state laws or regulations; or
c. Any city department or officer performing a review of the permit renewal application has notified the tax collector in writing that it recommends denial of, or the imposition of, new or additional conditions upon such permit, and such new or additional conditions are not acceptable to the permittee;
- d. The public works director notifies the tax collector that a requisite encroachment permit will not be renewed pursuant to Section 5.05.080.
The tax collector shall set for public hearing by the city council renewal applications for the following business permits when the permitted business is not customarily open to the general public because minors are excluded as a prevailing business practice:
a. Adult bookstores;
b. Adult motion picture theaters;
c. Bath parlor;
d. Billiard parlor/pool hall;
e. Entertainment (nude or semi-nude);
f. Escort bureaus and introductory services;
g. Massage establishments;
h. Model studios;
i. Picture arcades showing adult entertainment pictures.
(Ord. 2039 § 1, 10-13-1998; Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.260. Business permit transfers and changes.¶
A. Generally. No business permit issued under this chapter shall be transferred, nor shall any authorized location be changed, unless such transfer or change is approved in the same manner as an original permit for the business activity. Upon approval of the transfer or change, the transferee shall be issued a new permit for the business activity.
B. Transfers. The following transactions shall be deemed to be transfers:
The addition of a new partner or partners, or the withdrawal of a former partner or partners;
The transfer of a business from one partnership to another;
The transfer of a business from a partnership to a corporation;
The transfer of a business from one corporation to another;
The transfer of a business from a corporation to a partnership;
The transfer of a business from a corporation to an individual, or vice versa;
The transfer of a business from a partnership to an individual, or vice versa;
The transfer of a stock ownership interest in a corporation exceeding fifty percent from one shareholder to another shareholder or to another person.
C. Change of Location.
- Generally. Except as provided in subdivision 2 of this subsection, a permittee may transfer a business permit to a different location upon application to the tax collector who shall review such application in a manner consistent with Section 2.10.180.
- Effect of Hearing Requirement. Where this chapter would have required a hearing by the city council for the issuance of the original business permit, a permittee may not transfer a business permit to another location unless a hearing is conducted pursuant to Section 2.10.190, and the city council approves such transfer.
(Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.270. Modification, suspension or revocation.¶
Any business permit issued by the city may be conditioned, modified, suspended or revoked for cause by the city council pursuant to Sections 2.10.280 et seq. (Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.280. Revocation—Initiation of hearing.¶
A hearing to determine whether an existing permit shall be conditioned, modified, suspended or revoked shall be initiated by a written statement of charges. Such statement may be initiated by any commission, department, officer or agency of the city which is authorized or required to review or inspect the permitted business activity for compliance with city regulations. Such statement shall be submitted to the tax collector.
(Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.290. Revocation—Notice to permittee.¶
If the tax collector determines that a hearing is warranted, written notice of the hearing shall be given to the permittee not less than ten days prior thereto. (Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.300. Procedure for revocation hearing.¶
A. Right to Witnesses. The permittee or legal representative of the permittee shall have the right to bring witnesses to testify on behalf of the permittee.
B. Rules of Evidence. Hearings need not be conducted according to technical rules of evidence. Oral evidence shall be taken only on oath or affirmation.
C. Decision. The city council shall issue its decision in writing. The decision shall contain a determination of the issues presented.
(Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.310. Grounds for revocation of business permit.¶
After hearing, the city council may condition, modify, suspend or revoke a business permit for any business activity required to be permitted under this chapter if the city council finds that one or more of the following conditions exist:
A. Business Activities Involving First Amendment Activities.
That the building, structure, premises or equipment used in the conduct of the business does not comply with any health, zoning, fire or building and safety laws of the state or ordinances of the city;
That the permittee, or any employee, agent or manager of the permittee, has violated any federal or state statute or any ordinance or regulation of the city in the course of exercising any rights under the business permit which is being considered for revocation;
That the permittee, or any employee, agent or manager of the permittee, has knowingly made any false, misleading or fraudulent statement of material fact in the application for permit, or in any report or statement required to be filed with the tax collector or the city council;
That the permittee, or any employee, agent or manager of the permittee, has published, uttered or disseminated any false, deceptive or misleading statements or advertisements in connection with the permitted business;
That the permittee has failed or refused to notify the tax collector of any change in facts as required by this chapter within five days after such change;
That the permittee, or any employee, agent or manager of the permittee, has violated any conditions or restrictions of the business permit;
That the permittee, or any employee, agent or manager of the permittee, has allowed, or failed to prevent, the use of the business as a base for unlawful or criminal activity, including, but not limited to, solicitation, prostitution or drug trafficking.
B.
Business Activities Not Involving First Amendment Activities.
That the building, structure, premises or equipment used in the conduct of the business does not comply with any health, zoning, fire or building and safety laws of the state or ordinances of the city;
That the permittee, or any employee, agent or manager of the permittee, has violated any federal or state statute or any ordinance of the city in the course of exercising any rights under the business permit which is being considered for revocation;
That the permittee, or any employee, agent or manager of the permittee, has been found to have committed a crime of moral turpitude which bears a substantial relationship to the conduct of the business activity for which the business permit is being considered for revocation;
That the permittee, or any employee, agent or manager of the permittee, has knowingly made any false, misleading or fraudulent statement of material fact in the application for permit, or in any report or statement required to be filed with the tax collector or the city council;
That the permittee, or any employee, agent or manager of the permittee, has published, uttered or disseminated any false, deceptive or misleading statements or advertisements in connection with the operation of the permitted business;
That the permittee has failed or refused to notify the tax collector of any change in facts as required by this chapter within five days after such change;
That the permittee, or any employee, agent or manager of the permittee, has violated any conditions or restrictions of the business permit;
That the permittee has been held liable for, or has been convicted of, any offense involving the maintenance of a nuisance resulting from any act performed in exercising any rights under the business permit which is being considered for revocation;
That the permittee, or any employee, agent or manager of the permittee, has violated any rule or regulation adopted by the city council or any other governmental agency relating to the permittee's business;
That the permittee has conducted the permitted business in a manner contrary to the public health, safety and welfare.
- (Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.320. Effect of revocation or suspension.¶
A. No refunds of any business permit fees shall be made to any permittee upon revocation of a business permit.
B. Following revocation of any business permit for cause under this chapter, no business permit to conduct the same business activity shall be issued to the same person for a period of one year.
C. Whenever a business permit is suspended or revoked, the tax collector shall take into possession the business permit for the subject business activity. The permittee shall surrender the business permit and permit stickers, or similar evidence of a permit, to the tax collector.
D. Upon revocation or suspension of a business permit, the permittee shall immediately cease operation of the business activity. Except as otherwise provided, if the permit is suspended, the permittee may resume operation upon expiration of the suspension period.
(Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.330. Conditions of approval.¶
A. Right to Condition Permit. The tax collector or the city council, as applicable, may condition any business permit if it is determined that grounds for denial or revocation exist, or that the manner in which the business has been conducted or operated is detrimental to the public health, safety and welfare, in that:
The permittee, or any agent, manager or employee of the permittee, has failed to maintain the premises in a neat and clean condition and has allowed the business premises to deteriorate and become blighted;
The permittee, or any agent, manager or employee of the permittee, has allowed, or failed to prevent, the use of the business premises by its patrons as a base for criminal or otherwise unlawful activity;
The permittee, or any agent, manager or employee of the permittee, has allowed, or failed to discourage, criminal or otherwise unlawful activity on or immediately adjacent to the business premises;
The permittee, or any agent, manager or employee of the permittee, has failed to provide adequate parking to serve its patrons, thereby causing patrons to cruise on neighborhood streets in search of parking, and causing other traffic-related noise and disturbances;
The permittee, or any agent, manager or employee of the permittee, has failed to control the actions of its patrons on or immediately adjacent to the business premises.
B. Application to Modify Conditions. The city council may modify or eliminate any conditions previously imposed on a business permit upon written request of the permittee if it finds that the reasons for the original imposition of such conditions have been cured or no longer exist. Applications to modify conditions shall be noticed and set for public hearing in a manner consistent with Section 2.10.190.
C. Consent to Right of Entry. If the tax collector or the city council finds that unannounced inspections of the business premises are necessary to enforce the provisions of this chapter, either may impose as a condition of the permit that the permittee consent to entry of the permittee's place of business at all reasonable times by any city officer or employee authorized to enforce the provisions of this chapter or other provisions of the code. Upon presentation of proper credentials by any such officer or employee, the permittee shall allow such inspection.
D. Noise Abatement.
- Whenever, upon due notice and hearing pursuant to Section 2.10.190, it shall be determined by the city council that noise from any business activity permitted under this chapter interferes with the right of persons dwelling in the vicinity of such business activity to the peaceful and quiet use and enjoyment of their property, or that the business activity permitted under this chapter is in violation of the noise emissions ordinance of the city, the city council may require that the premises of the business activity be soundproofed to eliminate the noise or reduce it to a reasonable level. In taking any action under this section, the city council shall balance all of the interests of the respective parties, as well as the hardship which will result from any such noise mitigation measures. If the city council finds that the noise complained of is minimal or inconsequential, no action shall be taken under this section.
- (Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.340. Appeal from tax collector's decision to city council.¶
A. Filing. Any person aggrieved by any decision of the tax collector may file with the tax collector a notice of appeal to the city council within ten days of the date of mailing of the decision. The notice shall be signed by the appellant or the legal representative of the appellant and shall be sufficient if it states that the appellant appeals from a specified decision or a particular part thereof. The notice of appeal may state briefly the grounds upon which the appeal is based but shall contain no argument, evidence or legal points and authorities.
B. Effect of Notice of Appeal. If a timely appeal is filed, the effect, if any, of the tax collector's decision shall be stayed pending the city council's resolution of the matter, unless the tax collector specifically finds and determines that the public health and safety will be endangered by any such stay, in which case any business permit previously issued shall be immediately suspended.
C. Deposit of Estimated Costs. With every notice of appeal filed pursuant to this section, the appellant shall deposit with the tax collector an amount which the tax collector estimates will cover the cost of production of a transcript of documentation on the matter, including the record of any hearing conducted by the tax collector, which resulted in the decision on which the appeal is taken.
D. Accounting of Funds. The tax collector shall keep a permanent and accurate account of all deposits received on appeal. If the actual cost of the transcript exceeds the amount deposited by the appellant, the appellant shall pay the deficiency; if it is less, the tax collector shall refund the difference to the appellant.
(Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.350. Appeals—Notice of hearing.¶
Upon receipt of a timely notice of appeal and the deposit of estimated costs, the tax collector shall notify the city clerk of the request for appeal. The tax collector shall give not less than thirty days written notice to the appellant, and to the permittee if other than the appellant, of the date, time and place of the hearing. The notice shall also state whether the city council will allow the introduction of additional evidence. The tax collector shall, in addition, provide public notice in the same manner in which notice of the original public hearing for the subject permit was provided.
- (Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.360. Appeals—Hearing procedure.¶
A. Transmission of Evidence. Upon the filing of a notice of appeal and the deposit of estimated costs, the tax collector shall transmit to the city council the transcript of the documentation on the matter. Copies of the transcript shall also be delivered to the appellant and to the permittee, if other than the appellant.
B. Conduct of Hearing. Upon receipt of the transcript required by subsection A of this section, the city council shall conduct the appeal. The city council may, at its discretion, receive new evidence or testimony which is not part of the record upon a showing that it could not, in the exercise of due diligence, have been presented at the time of the tax collector's decision. The city council may hear and consider additional argument and points and authorities of law, and may require the parties before it to submit such argument and points and authorities of law prior to rendering any decision on the appeal.
C. City Council Action. Upon reviewing the evidence and considering the parties' arguments and any points and authorities of law submitted, the city council may:
Render a decision upholding, reversing or modifying in any respect the decision of the tax collector;
Remand the matter to the tax collector with directions;
Impose, as a condition of the continuation, reinstatement or reissuance of any business permit, a requirement that the permittee reimburse the city for all costs and expenses reasonably incurred in investigating, identifying and documenting any violation or breach of the conditions of the business permit for presentation to the city council.
(Ord. 1948 § 1 (part), 5-25-1993)
§ 2.10.370. Violations.¶
A. Generally. Unless otherwise provided herein, any person violating any of the provisions of this chapter shall be guilty of a misdemeanor and punishable as provided for in this code. Where the conduct constituting the violation is of a continuing nature, each day that the conduct continues shall be deemed a separate and distinct violation.
B. False Statements. Any person who knowingly makes any false statement in any application for the issuance or renewal of a business permit, or in any report required under this chapter, is guilty of a misdemeanor and punishable as provided for in this code.
(Ord. 1948 § 1 (part), 5-25-1993)
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