HomeMy WebLinkAboutO-3101 - Repealing MMC 5.02 Business LicensesCITY OF MARYSVILLE
Marysville, Washington
ORDINANCE NO. 3 1 0 \
AN ORDINANCE OF THE CITY OF MARYSVILLE, WASHINGTON,
REPEALING MARYSVILLE MUNICIPAL CODE 5.02 BUSINESS LICENSES,
IN ITS ENTIRETY, AND ADOPTING A NEW MARYSVILLE MUNICIPAL
CODE CHAPTER 5.02 BUSINESS LICENSES RELATED TO AMENDMENTS
REQUIRED PURSUANT TO ENGROSSED HOUSE BILL 2005.
WHEREAS, in the 2017 Legislative Session, Engrossed House Bill 2005 (RCW 35.90)
was adopted as a business license and tax simplification bill; and
WHEREAS, Engrossed House Bill 2005 requires adoption of a model business license
threshold, utilization of business licensing portals, such as the state's Business Licensing
Services (BLS) and FileLocal, and B&O tax service apportionment; and
WHEREAS, Marysville currently utilizes the state's BLS, which requires adoption of
the amendments required in Engrossed House Bill 2005, no later than October 17, 2018; and
WHEREAS, at a public meeting on October 8, 2018, the Marysville City Council
reviewed and considered repealing MMC Chapter 5.02 Business Licenses and adopting a new
MMC Chapter 5.02 Business Licenses, including revisions required by Engrossed House Bill
2005.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MARYSVILLE DO
ORDAIN AS FOLLOWS:
Section 1 . MMC Chapter 5.02 Business Licenses is hereby repealed in its entirety.
Section 2. Amendment of Municipal Code. In order to comply with Engrossed
House Bill 2005 (RCW 35.90), a new MMC Chapter 5.02 Business Licenses, is hereby adopted
as outlined in Exhibit A, attached hereto.
Section 3. Severability. If any section, subsection, sentence, clause, phrase or
word of this ordinance should be held to be invalid or unconstitutional by a court of competent
jurisdiction, such invalidity or unconstitutionality thereof shall not affect the validity or
constitutionality of any other section, subsection, sentence, clause, phrase or word of this
ordinance.
Section 4. Effective Date. This ordinance shall become effective five days after
the date of its publication by summary.
PASSED by the City Council and APPROVED by the Mayor this _<£3 __ day of
~o~~-iVif~---' 2018.
CITY OF MARYSVILLE
Code Amendment MMC Chapter 5.02 Business Licenses Page 1of10
Attest:
By:
DEPUTY CITY CLERK
Approved as to form:
By:
ER, CITY ATTORNEY
Date of Publication: Qf!:,.JoJ;er /&, 'lo/ig
Effective Date: OC1. fD kJer I B, 'lc>IB
(5 days after publication)
Code Amendment MMC Chapter 5.02 Business Licenses Page 2 of 10
Sections:
5.02.010
5.02.020
5.02.030
5.02.040
5.02.050
5.02.060
5.02.070
5.02.080
5.02.090
5.02.100
5.02.110
5.02.120
5.02.130
5.02.140
5.02.150
5.02.160
5.02.010
Definitions.
Exhibit A
Chapter 5.02
BUSINESS LICENSES
Business license required.
Activities that constitute engaging in business.
Exempt businesses.
Application procedure.
Procedures for issuance or denial of license.
Term of license.
Procedure for renewing licenses.
Fees -Penalty.
Ineligible activities.
Standards of conduct.
New location.
Suspension or revocation of licenses.
Summary suspension.
Sale or transfer of business -New license required.
Penalties for violation.
Definitions.
Except as otherwise expressly declared or clearly apparent from the context in which used,
the following definitions shall be applied in construing the provisions of this chapter:
"Business" means all services, activities, occupations, pursuits or professions located and/or
performed within the city with the object of pecuniary gain, benefit or advantage to the
person, or to another person or class, directly or indirectly, whether part-time or full-time.
This definition includes, without limitation, home occupations, peddlers, hawkers, and the
rental of four or more residential dwelling units. It also includes the activities of businesses
which are located outside the city where sales or services are solicited by the physical
presence of business representatives inside the city, and it includes general and specialty
contractors with offices outside the city who do work on property located inside the city.
Businesses which are exempt from this chapter are listed in MMCS.02.040.
"Director" means the means the director of the community development department or his
or her designee.
"Engaging in business" means commencing, conducting, or continuing in business, and also
the exercise of corporate or franchise powers, as well as liquidating a business when the
liquidators thereof hold themselves out to the public as conducting such business. The City
expressly intends that engaging in business include any activity sufficient to establish nexus
for purposes of applying the license fee under the law and the constitutions of the United
States and the State of Washington. Nexus is presumed to continue as long as the taxpayer
benefits from the activity that constituted the original nexus generating contact or
subsequent contacts. See MMC 5.02.030 for a list of example activities that constitute
"engaging in busine.ss."
"Person" means one or more natural persons of either sex, corporations, partnerships,
associations or other entities capable of having an action at law brought against such entity,
but shall not include employees of persons licensed pursuant to this chapter.
Code Amendment MMC Chapter 5.02 Business licenses Page 3 of 10
5.02.020 Business license required.
It is unlawful for any person to engage in business in the city without having first obtained a
business license from the city. If more than one separate business is conducted on a single
premises, a separate license shall be required for each such business. If a business actively
operates from more than one location in the city, a separate license shall be required for
each location.
5.02.030 Activities that constitute engaging in business.
This section sets forth examples of activities that constitute engaging in business in the
City. The activities listed in this section are illustrative only and are not intended to narrow
the definition of "engaging in business." If an activity is not listed, whether it constitutes
engaging in business in the City shall be determined by considering all the facts and
circumstances and applicable law.
(1) Without being all inclusive, any one of the following activities conducted within the
City by a person, or its employee, agent, representative, independent contractor, broker or
another acting on its behalf constitutes engaging in business and requires a person to
register and obtain a business license.
(a) Owning, renting, leasing, maintaining, or having the right to use, or using,
tangible personal property, intangible personal property, or real property permanently or
temporarily located in the City.
(b) Owning, renting, leasing, using, or maintaining, an office, place of business,
or other establishment in the City.
(c) Soliciting sales.
(d) Making repairs or providing maintenance or service to real or tangible
personal property, including warranty work and property maintenance.
(e) Providing technical assistance or service, including quality control, product
inspections, warranty work, or similar services on or in connection with tangible personal
property sold by the person or on its behalf.
(f) Installing, constructing, or supervising installation or construction of, real or
tangible personal property.
(g) Soliciting, negotiating, or approving franchise, license, or other similar
agreements.
(h) Collecting current or delinquent accounts.
(i) Picking up and transporting tangible personal property, solid waste,
construction debris, or excavated materials.
(j) Providing disinfecting and pest control services, employment and labor pool
services, home nursing care, janitorial services, appraising, landscape architectural services,
security system services, surveying, and real estate services including the listing of homes
and managing real property.
(k) Rendering professional services such as those provided by accountants,
architects, attorneys, auctioneers, consultants, engineers, professional athletes, barbers,
baseball clubs and other sports organizations, chemists, consultants, psychologists, court
reporters, dentists, doctors, detectives, laboratory operators, teachers, veterinarians.
(I) Meeting with customers or potential customers, even when no sales or orders
are solicited at the meetings.
(m) Training or recruiting agents, representatives, independent contractors,
brokers or others, domiciled or operating on a job in the City, acting on its behalf, or for
customers or potential customers.
(n) Investigating, resolving, or otherwise assisting in resolving customer complaints.
(o) In-store stocking or manipulating products or goods, sold to and owned by a
customer, regardless of where sale and delivery of the goods took place.
Code Amendment MMC Chapter 5.02 Business licenses Page 4 of 10
(p) Delivering goods in vehicles owned, rented, leased, used, or maintained by
the person or another acting on its behalf.
(2) Section 5.02.040 establishes safe harbors for certain of those activities so that a
person who meets the criteria may engage in de minimus business activities in the City
without having to pay a business license fee.
5.02.040 Exempt businesses.
To the extent set forth in this section, the following persons and businesses shall be exempt
from the registration, license, and/or license fee requirements as outlined in this chapter:
(1) Any person or business whose annual value of products, gross proceeds of sales, or
gross income of the business in the city is equal to or less than $2,000. The exemption does
not apply to regulatory license requirements or activities that require a specialized permit.
(2) Nonprofit activities carried on by religious, charitable, benevolent, fraternal or social
organizations;
(3) Public utility companies;
(4) Any instrumentality of the United States, state of Washington, or political subdivision
thereof with respect to the exercise of governmental functions;
(5) National banks, state banks, trust companies, mutual savings banks, credit unions
and building and loan associations, with respect to their banking business, trust business, or
savings and loan business;
(6) Farmers or gardeners selling their own unprocessed farm products raised or grown
exclusively upon lands owned or occupied by them;
(7) Garage sales conducted on residential premises in compliance with the city zoning
code;
(8) Any business which operates only during the annual Strawberry Festival, and which
is authorized by the entity which holds the Strawberry Festival Master Permit;
(9) Any business which sublets or purchases space from a farmer's market where the
sponsor leases property owned by the city of Marysville; provided, the sponsor/lessee shall
not be exempt from the business license requirements of this chapter.
(10) Any person, or its employee, agent, representative, independent contractor, broker
or another acting on the person's behalf, that engages in no other activities in or with the
City but the following:
(a) Meeting with suppliers of goods and services as a customer.
(b) Meeting with government representatives in their official capacity, other than
those performing contracting or purchasing functions.
(c) Attending meetings, such as board meetings, retreats, seminars, and
conferences, or other meetings wherein the person does not provide training in connection
with tangible personal property sold by the person or on its behalf. This provision does not
apply to any board of director member or attendee engaging in business such as a member
of a board of directors who attends a board meeting.
(d) Renting tangible or intangible property as a customer when the property is
not used in the City.
(e) Attending, but not participating in a "trade show" or "multiple vendor events".
Persons participating at a trade show shall review the City's trade show or multiple vendor
event ordinances.
(f) Conducting advertising through the mail.
(g) Soliciting sales by phone from a location outside the City.
(11) A seller located outside the City merely delivering goods into the City by means of
common carrier is not required to register and obtain a business license, provided that it
engages in no other business activities in the City. Such activities do not include those in
subsection (10).
Code Amendment MMC Chapter 5.02 Business Licenses Page 5 of 10
5.02.050 Application procedure.
(1) No business license shall be issued or renewed except upon written application made
to the city of Marysville community development department or designated licensing official.
Each application shall be signed by the person who intends to conduct, operate or engage in
the business for which the license is to be issued, and shall state the nature of the business,
its proposed address and telephone number, the names and addresses of all owners of the
business (or their registered agent), and such other information as may be required by the
city of Marysville community development department or designated licensing official. A
nonrefundable application fee, as identified in MMC 5.02.090(1), shall accompany the
application. In the event that the license is granted, the application fee shall be credited
toward payment of the annual license fee.
(2) If the applicant is a partnership, the application must be made and signed by one of
the partners; if a corporation, by one of the officers thereof; if a foreign corporation,
partnership or nonresident individual, by the resident agent or local manager of the
corporation, partnership or individual.
(3) If the business premises are to be located on property owned by another person, the
application shall include written evidence of the property owner's consent.
(4) If the applicant or the business applying for a license is regulated, licensed or
certified by any other governmental agency or professional association, the application must
include written evidence of good standing with said regulatory authority. In such cases the
continuing validity of the city business license shall be conditioned upon compliance with the
requirements of the regulatory authority.
(5) Neither the filing of an application for a license or the renewal thereof, nor any
payment of any application or renewal fee, shall authorize a person to engage in or conduct
a business until such license has been granted or renewed.
5.02.060 Procedures for issuance or denial of license.
After receiving a complete application for a business license the city shall follow the
following procedures:
(1) The city of Marysville community development department or designated licensing
official shall forward copies of the application to appropriate city officials for their comments
regarding compliance with regulations under their jurisdiction. The city of Marysville
community development department or designated licensing official shall consider all
materials and comments submitted and shall issue or deny the license within 20 working
days after the date on which a completed application was filed unless the applicant agrees
to an extension of said time period in writing.
(2) A business license may only be denied by the city of Marysville community
development department or designated licensing official on one or more of the following
grounds:
(a) If the business or the premises on which it is located do not comply with all
applicable regulatory codes of the city, the Snohomish health district, and the state of
Washington;
(b) If the application is incomplete or if it contains any material
misrepresentation;
(c) If the application does not propose adequate measures for the protection of
public health, safety and welfare in terms of pedestrian and vehicular traffic control,
security, avoidance of public nuisances and avoidance of consumer fraud;
(d) If the person making the application, if licensed, is likely to present a danger
to the public health, safety, or welfare by reason of any of the following:
(i) The applicant or his or her employee or agent has committed a crime
or other violation of law which bears a direct relationship to the conduct of the business
under the license issued pursuant to this title. The director may consider any relevant
violation of law regardless of whether the same act was charged as a civil infraction or crime
Code Amendment MMC Chapter 5.02 Business Licenses Page 6 of 10
or resulted in a finding of committed or conviction or if it is deferred or subject to pretrial
diversion. If an applicant appeals a denial of a license under this subsection, the violation
must be proved by a preponderance of the evidence; provided, however, that a finding of
not committed on a civil infraction or a verdict of not guilty on a criminal charge precludes
use of that act as a basis for a violation under this chapter.
(ii) The applicant has had a similar license revoked or suspended by the
city or has had a similar license revoked or suspended by any other jurisdiction or
administrative authority.
(iii) The director has reasonable grounds to believe applicant to be
dishonest or to desire such license to enable applicant to practice some illegal act or some
act injurious to the public health or safety;
(e) If the applicant is not qualified under this chapter or is in violation of this
chapter.
(3) If the city of Marysville community development department or designated licensing
official denies a license, written notice of said denial, stating the reasons therefor, shall be
sent to the applicant within one working day thereafter. The applicant shall have a period of
10 working days after the date of license denial to appeal the same to the city1s hearing
examiner. Upon receiving written notice of appeal the hearing examiner shall hold a public
hearing within 21 days thereafter to consider, de nova, whether to issue or deny the
license. The applicant shall be given not less than seven days1 advance written notice of the
hearing. The decision of the hearing examiner shall be announced at the conclusion of the
hearing and shall be final, subject only to a petition for writ of certiorari being filed with the
Snohomish County superior court within 14 days following the date of the hearing
examiner1s decision.
5.02.070 Term of license.
All business licenses issued pursuant to the provisions of this chapter shall be valid for a
period of one year after the receiving date is stamped on the application at City Hall; all
renewals thereafter shall be for a period of one year commencing on the anniversary of said
receiving date.
5.02.080 Procedure for renewing licenses.
All business licenses issued pursuant to the provisions of this chapter may be renewed by
following the procedures specified above for original applications; provided, that application
forms for renewals may be abbreviated by only requesting updated or changed information.
5.02..090 Fees -Penalty.
(1) The annual fee for each business license required by this chapter, and each renewal
thereof, shall be as follows:
(a) All new businesses: $65.00;
(b) Renewals: $40.00;
(c) Short-term businesses: $7.00 per day.
(2) There shall be assessed a late payment penalty of $20.00 for each 30 days of
delinquency after a license fee or renewal fee is due. This penalty shall be added to the
license fee.
(3) Any business relocating to another address in the city shall pay an administrative
transfer fee of $5.00 to have its business license reissued to reflect the new address.
5.02.100 Ineligible activities.
Notwithstanding any other provisions of this chapter, a license hereunder may not be issued
to or held by any person who uses or occupies or proposes to use or occupy any real
property or otherwise conducts or proposes to conduct any business in violation of the
provisions of any ordinance of the city or the statutes of the state of Washington or any
Code Amendment MMC Chapter 5.02 Business Licenses Page 7 of 10
other applicable law or regulation. The granting of a business license shall not authorize any
person to engage in any activity prohibited by a federal, state or local law or regulation.
5.02.110 Standards of conduct.
Every licensee under this chapter shall:
(1) Permit reasonable inspections of the business premises by governmental authorities
for the purpose of enforcing the provisions of this chapter;
(2) Comply with all federal, state and city statutes, laws, regulations and ordinances
relating to the business premises and the conduct of the business thereon;
(3) Refrain from unfair or deceptive acts or practices, or consumer fraud, in the conduct
of the business, and avoid maintaining a public nuisance on the business premises;
(4) Refrain from operating the business after expiration of a license or during the period
that the license may be suspended or revoked.
5.02.120 New location.
A licensee shall have the right to change the location of the licensed business. Prior to such
a change, the licensee shall notify the city of Marysville community development
department or designated licensing official, in writing, and shall pay the administrative
transfer fee specified above.
5.02.130 Suspension or revocation of licenses.
(1) The director may suspend a business license whenever the licensee, or any manager,
officer, director, agent or employee of the licensee, has caused, permitted, or knowingly
done any of the following:
(a) Failed to keep the building structure or equipment of the licensed premises in
compliance with the applicable health, building, fire or safety laws, regulations or ordinances
in a way which relates to or affects public health or safety on the business premises;
(b) Failed to comply with the standards of conduct specified in this chapter;
(c) Whenever the licensee or any manager, officer, director, agent or employee
of the licensee engages in or knowingly permits conduct on the licensed premises that
violates any federal, state or city law or ordinance;
(d) Whenever operation of the business constitutes a public nuisance.
Such suspension shall remain in effect until the conditions causing the suspension are cured
and reasonable measures are taken to ensure that the same will not recur, as determined
by the director.
(2) The director may revoke a business license on any one or more of the following
grounds:
(a) Whenever the city learns that the licensee or any manager, officer, director,
agent or employee of the licensee made a material false statement or representation, or
failed to disclose any material information to the city, in connection with any application for
a business license or any renewal thereof;
(b) Whenever the licensee or any manager, officer, director, agent or employee
of the licensee fails within a reasonable time to cure a condition that caused a license
suspension;
(c) Whenever the licensee or any manager, officer, director, agent or employee
of the licensee knowingly permits conduct on the licensed premises that violates any
federal, state or city law or ordinance;
(d) Whenever the licensee or any manager, officer, director, agent or employee
of the licensee knowingly engages in unfair or deceptive acts or practices in the conduct of
the business;
(e) Whenever operation of the business constitutes a public nuisance.
Code Amendment MMC Chapter 5.02 Business licenses Page 8 of 10
(3) Whenever the director determines that there is probable cause for suspending or
revoking a business license, he or she shall notify the licensee of the suspension or
revocation and specify the grounds for suspension or revocation.
The director will notify a licensee of the suspension or revocation of that person's license by
personal service or by mailing. If by mailing, the notice shall be mailed first class and
certified mail to the address used in the licensee's license application or current address
provided by the license holder in writing. A licensee may, within 10 days from the date that
the suspension or revocation notice was delivered or mailed to the licensee, appeal such
suspension or revocation by filing a written notice of appeal ("petition") setting forth the
grounds therefor with the city clerk. The licensee must provide a copy of the petition to the
director and to the city attorney on or before the date the petition is filed with the city clerk.
The hearing will be before the hearing examiner and be conducted in accordance with the
procedures for adjudicative proceedings under Chapter 34.05 RCW. The hearing examiner
shall set a date for hearing the appeal and notify the licensee by mail of the time and place
of the hearing. The hearing shall be set no later than 21 days after the receipt of an appeal.
After the hearing, the hearing examiner shall enter appropriate findings of fact and
conclusions of law, and affirm, modify, or reverse the decision to suspend or revoke the
license.
No suspension or revocation of a license or registration shall take effect until 10 days after
the mailing or hand delivery of the notice to the licensee. If appeal is taken in accordance
with this section, the suspension or revocation shall be stayed pending final action by the
hearing examiner. A license that is suspended or revoked must be surrendered to the city
on the effective date of such suspension or revocation. The decision of the hearing examiner
is final. The licensee or the director may seek review of the decision by the superior court of
Washington in and for Snohomish County within 14 days from the date of the decision. The
suspension or revocation will be stayed pending final action by the superior court on the
petition for review.
No portion of the license fee will be returned to the licensee due to suspension or revocation
of the license.
5.02.140 Summary suspension.
(1) Where conditions exist that are deemed hazardous to life or property, or where the
owner or his or her employee or agent has knowingly permitted a violation of the Uniform
Controlled Substances Act, a violation of any law against gambling, a violation of any law
against prostitution within the business, or a violation of any law against unlawful public
exposure, the director is authorized to immediately stop such hazardous conditions that are
in violation of this code, up to and including closing the business operation. Such order and
demand may be oral or written. A police officer or code enforcement officer or fire marshal
also may order a business to close under this section. The effect of the closure shall be to
suspend the owner's business license until such time it is reinstated by the director.
(2) At the time the director notifies the licensee of the summary suspension, either by
mail or hand delivery, the director shall also schedule a hearing to be held within three
business days from the date of the notice of summary suspension. Where an oral summary
suspension is ordered or demanded by another public official, the director will schedule a
hearing to be held within three business days from the date of the summary suspension and
the licensee will be notified by at least one of the following means: mail, facsimile, email,
personal service, or hand delivery. Such notices shall state the time and place of the
hearing.
(3) The decision of the director shall be final. The licensee may, within 10 days from the
date of the director's decision, appeal such suspension or revocation by filing a written
notice of appeal setting forth the grounds therefor with the city clerk. A copy of the notice of
appeal must be provided by the licensee to the director and the city attorney on or before
Code Amendment MMC Chapter 5.02 Business licenses Page 9 of 10
the date it is filed with the city clerk. The hearing examiner will set a date for hearing the
appeal and notify the licensee by mail of the time and place of the hearing. After the
hearing, the hearing examiner will make appropriate findings of fact and conclusions of law
and affirm, modify, or reverse the summary suspension and reinstate the license, and may
impose conditions on the continuance of the license.
(4) The decision of the hearing examiner shall be final. The licensee and/or the director
may seek review of the decision by the superior court of Washington in and for Snohomish
County within 21 days from the date of hearing examiner's decision.
5.02.150 Sale or transfer of business -New license required.
Upon the sale or transfer of any business which is licensed pursuant to this chapter, the
license issued to the prior owner shall automatically expire on the date of such sale or
transfer and the new owner shall apply for and obtain a new business license prior to
engaging in, conducting or operating the business.
5.02.160 Penalties for violation.
(1) Any person, including an employee, who conducts, operates, practices, or engages in
a business knowing that the license for that business is suspended or revoked or was denied
is guilty of a gross misdemeanor.
(2) Any person, including an employee, who fails to obey an order to close a business
under MMC 5.02.140 is guilty of a gross misdemeanor.
(3) Other violations of, or failure to comply with, any provision of this chapter shall
constitute a commercial violation and any person found to have violated any provision of
this chapter is punishable by a penalty as set forth in MMC 4.02.040(3)(g). Each day that a
violation continues shall constitute a new and separate violation.
( 4) The imposition of a penalty for violation of this chapter shall be in addition to any
other penalties provided for in any other ordinances of the city or any other ordinances or
laws applicable to the violation, and any premises upon which a business is operated in
violation of this chapter is hereby declared to be a public nuisance.
(5) Any license fee or penalty which is delinquent or unpaid shall constitute a debt to the
city and may be collected by a court proceeding in the same manner as any other debt in
like amount, which remedy shall be in addition to all other existing remedies.
(6) The city shall not enter into any contract or conduct any trade or commerce with any
business which fails to comply with this chapter.
Code Amendment: MMC Chapter 5.02 Business licenses Page 10 of 10