| ITEM #: 11. DATE: 05/20/2024 AI #:2037 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | AMEND ARTICLE 8-7 BUSINESS REGISTRATION PERMITS |
| STAFF PRESENTER(S): | Roric Massey, City Attorney |
SUMMARY
This amendment to Article 8-7 of the Goodyear City Code will require all persons conducting business within the City of Goodyear to obtain a business license prior to commencing any business operations within the city. The amendment provides for enforcement and penalties for non-compliance as well as exemptions to obtaining a business license.
STRATEGIC PLAN ALIGNMENT
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RECOMMENDATION
ADOPT ORDINANCE NO. 2024-1608 AMENDING ARTICLE 8-7 BUSINESS REGISTRATION PERMITS, PROVIDING FOR CORRECTIONS; PROVIDING FOR SEVERABILITY; PROVIDING FOR PENALTIES, AND AN EFFECTIVE DATE. (Roric Massey, City Attorney)
FISCAL IMPACT
There is no direct budget impact associated with the approval of this text amendment. The current fee for a business registration permit will remain the same for the business license.
BACKGROUND AND PREVIOUS ACTIONS
Currently, the City of Goodyear requires every person conducting business within the city to register the business with the city and obtain a business registration permit. The amendment to Article 8-7 will change the current process to require all businesses conducting business within the city to obtain a business license prior to commencing any business operations within the City of Goodyear. The change from a business registration permit to a business license is needed because a business registration permit is a catalogue of each business but a business license is the city giving permission to conduct business within city limits, and without such permission the business being conducted is unlawful.
An amendment to Article 8-7 was taken to council on April 29, 2024, however, the agenda item was tabled in order to address council concerns related to the licensing of small businesses, independent contractors, children’s activities and associated civil penalties for violations of the amended Article 8-7.
A work session was held on May 13, 2024, at the work session additional amendments to Article 8-7 were presented to council members for review. Among the changes presented were; to further define and clarify Casual Sale and Activity, the addition of persons and professions that are exempt from obtaining a business license within section 8-7-5, the clarification that the city may provide a person operating a business without a license a warning and 30 days to correct the violation, and the clarification that after being cited for the first offense, subsequent penalties for operating without a license are not less than $1,000 but not more than $2,500.
At the same work session council members provided feedback that all business license applications should contain proof of any state or federal licensing required to conduct the business, this requirement was subsequently added to the amended Article 8-7.
All currently issued business registration permits expire each calendar year and must be renewed on or before December 31 of each year. Every person that has been issued a valid business registration permit by the city shall be allowed to continue to operate as if they have been issued a business license until such business registration permit expires and shall submit an application to the city to renew any business registration permit as a business license on or before December 31, 2024.
The amendment to Article 8-7 shall require any person engaged in any business within the city to first obtain a business license by applying to the city for a business license and paying a fee. The application shall contain proof of any required state or federal licensing needed to conduct the business. The city shall review the application and conduct any needed inspections of the business property.
Certain activities or institutions shall be exempt from obtaining a business license including those conducting a casual activity or sale, federal, state, or municipal governments, religious institutions, public schools, those with city franchise agreements or telecommunication license agreements, Home Occupations that do not receive customers, independent contractors who only offer items for sale on behalf of a parent company, tutors or those providing educational services within a home, real estate sales professionals, babysitters and care givers that are not required to be licensed, special event vendors and any person or business exempted by state law from obtaining a business license.
After being issued a license, the business must display their license at a fixed location within the city at all times or to carry their license with them if there is no fixed location. City police officers and code compliance officers shall have the authority to inspect the business at reasonable times and require the operator of the business to produce their license upon demand.
The amendment to Article 8-7 allows a business license to be suspended or revoked for City Code violations and the business must cease all operations once the license is suspended or revoked. The city may impose fines for non-compliance under the amendment to Article 8-7 and every person that violates a provision may be pursued civilly or criminally.
An amendment to Article 8-7 was taken to council on April 29, 2024, however, the agenda item was tabled in order to address council concerns related to the licensing of small businesses, independent contractors, children’s activities and associated civil penalties for violations of the amended Article 8-7.
A work session was held on May 13, 2024, at the work session additional amendments to Article 8-7 were presented to council members for review. Among the changes presented were; to further define and clarify Casual Sale and Activity, the addition of persons and professions that are exempt from obtaining a business license within section 8-7-5, the clarification that the city may provide a person operating a business without a license a warning and 30 days to correct the violation, and the clarification that after being cited for the first offense, subsequent penalties for operating without a license are not less than $1,000 but not more than $2,500.
At the same work session council members provided feedback that all business license applications should contain proof of any state or federal licensing required to conduct the business, this requirement was subsequently added to the amended Article 8-7.
All currently issued business registration permits expire each calendar year and must be renewed on or before December 31 of each year. Every person that has been issued a valid business registration permit by the city shall be allowed to continue to operate as if they have been issued a business license until such business registration permit expires and shall submit an application to the city to renew any business registration permit as a business license on or before December 31, 2024.
The amendment to Article 8-7 shall require any person engaged in any business within the city to first obtain a business license by applying to the city for a business license and paying a fee. The application shall contain proof of any required state or federal licensing needed to conduct the business. The city shall review the application and conduct any needed inspections of the business property.
Certain activities or institutions shall be exempt from obtaining a business license including those conducting a casual activity or sale, federal, state, or municipal governments, religious institutions, public schools, those with city franchise agreements or telecommunication license agreements, Home Occupations that do not receive customers, independent contractors who only offer items for sale on behalf of a parent company, tutors or those providing educational services within a home, real estate sales professionals, babysitters and care givers that are not required to be licensed, special event vendors and any person or business exempted by state law from obtaining a business license.
After being issued a license, the business must display their license at a fixed location within the city at all times or to carry their license with them if there is no fixed location. City police officers and code compliance officers shall have the authority to inspect the business at reasonable times and require the operator of the business to produce their license upon demand.
The amendment to Article 8-7 allows a business license to be suspended or revoked for City Code violations and the business must cease all operations once the license is suspended or revoked. The city may impose fines for non-compliance under the amendment to Article 8-7 and every person that violates a provision may be pursued civilly or criminally.
STAFF ANALYSIS
Currently city code requires a person to obtain a business registration permit rather than a business license. The amendment to Article 8-7 requires anyone operating a business within city limits to obtain the city’s permission to conduct business by receiving a business license. A business license requirement is necessary in order to allow the city to impose penalties for unlawful operation of a business and impose fines for non-compliance.
Staff recommends the adoption of Ordinance No. 2024-1608 amending Article 8-7 of Goodyear City Code.
Staff recommends the adoption of Ordinance No. 2024-1608 amending Article 8-7 of Goodyear City Code.