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Ordinance 4135ORDINANCE NO. 4135 AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, AMENDING CHAPTER 4.72 OF THE EDMONDS CITY CODE RELATED TO BUSINESS LICENSING, PROVIDING FOR SEVERABILITY, ESTABLISHING AN EFFECTIVE DATE AND PROVIDING FOR CORRECTIONS. WHEREAS, in the 2017 Legislative Session, the State Legislature passed Engrossed House Bill 2005, which amended RCW 35.90 requiring cities with a business license requirement to administer their business license through the State's Business License System (BLS) by 2022 or FileLocal by 2020; and WHEREAS, cities were required to develop a model ordinance for business licensing, which includes a mandatory definition of "engaging in business" and a minimum threshold exemption to establish when out-of-town or transient businesses are required to be licensed; and WHEREAS, the City of Edmonds is currently scheduled to partner with the State BLS in the 2019 calendar year; and WHEREAS, as a condition of partnering with the State BLS, the City of Edmonds must incorporate a new definition of "engaging in business" and a minimum threshold exemption into its existing business license code; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Amendment. Chapter 4.72 of the Edmonds City Code, entitled "Business License," is hereby amended to read as follows (new text is shown in underline; deleted text is shown in StFike throuo): 4.72.010 Definitions In construing the provisions of this chapter, save when otherwise declared or clearly apparent from the context, the following definitions shall be applied: A. Person. The term "person" shall include one or more persons of either sex, corporations, partnerships, associations, or other entity capable of having an action at law brought against such entity, but shall not include employees or persons licensed pursuant to this chapter. -1- B. Business. The term "business" includes all services and activities engaged in with the object of pecuniary gain, benefit or advantage to the person, or to any other person or class, directly or indirectly, whether part- time or full- im4Ail_, except there ASS •Ilyi,�YYl�ySI�SY■ POOR. S�SrJ� 4.12 i 4.20 Licenses); (Liquer i _T_,.0 , 4.56 k-s) (Sound , TTa C. En a in& in business. The term "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. 1 ) This section sets forth examr7les of activities that constitute enaa2inp- in business in the City, and 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. The activities listed in this section are illustrative only and are not intended to narrow_ the definition of flengaging in business" in subsection . If an activiV is not listed whether it constitutes engaging in business in the City_shall be determined by considering all the facts and circumstances and applicable Iaw. (2) 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 en a in r 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 oermanently or temporarily located in the City. -2- b Ownine, renting, leasing, using, or maintaining, an office lace of business, or other establishment in the City. c Solicitin 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 contralti product inspections, warranty work or similar services on or in connection with tangible personal propertty 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. (1) Picking W 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 managingreal property. (k) Rendering professional services such as those provided by accountants architects attorneys, auctioneers consultants engineers, professional athletes barbers baseball clubs and other 0 orts organizations, chemists, consultants, psychologists, court reporters, dentists doctors detectives laboratory operators, teachers veterinarians. (1) 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 OIL 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. -3- (p) Deliverin_g moods in vehicles owned, rented. leased, used, or maintained by the person or another acting on its behalf. (3) If a person, or its employee, agent, representative, independent contractor, broker or another acting on the person's behalf, engages in no other activities in or with the City but the following, it need not register and obtain a business license. (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. �fl Conducting advertising through the mail. (gj __Soliciting safes by phone from a location outside the City. (4) 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 (3). The City expressly intends that engaging in business include any activity sufficient to establish nexus for pMoses of Uplying 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. C. I enta�[A2i Unit. The term "rental unit" shall mean a separate room or apartment leased for human occupancy and contained within a single structure, and shall include the operations of rooming houses, boarders within private residences and the operation of bed and breakfast establishments. D. Private Residence. The term "private residence" shall mean a separate, free- -4- standing structure leased for residential purposes and human occupancy by one "family" as defined by ECDC 21.30.010. E. Day. The term "day" when used in this chapter shall refer to days on which the city of Edmonds City Hall is open for business. Any day which is defined as a holiday by ordinance and any day on which City Hall has been closed by executive order shall not constitute a "day." [Ord. 3900 § 2, 2012; Ord. 3834 § 3, 2011; Ord. 3439 § 1, 2003; Ord. 2562, 1986; Ord. 2536 § 2, 1985; Ord. 2315 § 1, 1982]. 4.72.020 Business license required. It shall be unlawful for any person to operate, engage in or practice any business in the city of Edmonds without first having obtained a business license from the city. If more than one business is located on a single premises, a separate license shall be required for each separate business conducted, operated, engaged in or practiced. [Ord. 3282 § 1, 1999; Ord. 1139 § 1, 1965]. 4.72.021 Threshold_ Exemption. To the extent set forth in this section the following persons and businesses shall be exeni t from the re istration license and/or license fee re uirements as outlined in this Chapter: A. 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 $12,000 and who does not maintain a olace of business within the city shall be exempt from the eneral business license requirements in this chapter_The exemption does not apply to regulatory license requirements or activities that require a specialized permit. B. Those businesses or occupations which are regulated pursuant to, or for which licenses or franchises are required by, the following chapters of the Edmonds City Code: 3.20_ (.Business License and Occupation Tax); 4.13 (Motor Vehicle `]Vreckersh 4.14 (Peddlers, Solicitors and Street Vendors); 4.20 (Liquor Licenses 4.48 (Cabaret Dances); 4.50(Licensing of Public Massage Parlors and Public Bathhouses 4.56 (Sound Trucks); 4.60 (,Taxicabs): 4.68 (Communily Antenna Television Systems), 4.75 (Pawnbrokers); -5- 4.72.023 Registration of transient accommodations. Repealed by Ord. 3900. [Ord. 2566 § 1, 1986]. 4.72.030 Procedure. A. Application for the business license shall be made in writing to the city clerk upon a form provided by the city clerk, and the applicant shall at the same time deposit with the city clerk in advance the license fee herein required. The application shall state the nature and address or addresses of the business or businesses, or proposed business or businesses, of the applicant, and such other information as requested by the city clerk. B. If the applicant be a partnership, the application must be made 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. C. The city -clerk shall present all applications for licenses to the mayor. The mayor shall cause an investigation of the application to be made by the proper city officials and shall grant or refuse to grant the license within 15 days of the date of application. If an application is refused the reason for refusal shall be designated on the application. The fee shall not be refunded. [Ord. 1139 § 1, 1965]. 4.72.040 Fee — Terms — Penalty. A. Commencing January 1, 1977, business licenses required to be obtained pursuant to this chapter shall be issued on a calendar year basis and shall expire on December 31 st of the year for which they are issued. B. Fees for an annual business license issued hereunder shall be as follows: 1. The fee for an application for a new business license for any business that is not a home occupation, as provided in ECDC 20.20,010, to be operated from any real estate within the city of Edmonds shall be $125.00; 2. The fee for an application for a new business license for a new home occupation business, as provided in ECDC 20.20,010, to be operated from any residential real estate within the city of Edmonds shall be $100.00; 3. The fee for an application for a new business license for any other business conducted for, under contract with or by providing services to any person within the city shall be $50.00; and 4. The fee for an application for an annual renewal of a business license shall be $50.00 for any business operated within the city of Edmonds. C. All businesses required to renew licenses hereunder shall obtain the same and pay all fees required on or before January 31 st of each respective year. Any business which fails to renew and pay the license fees within said period of time shall, in addition to any other penalties provided in this chapter, be assessed a penalty for such late application and/or payment. The penalty for late renewal and/or payment made between February 1 st and February 28th of each respective year shall be equal to 100 percent of the license fee for said business. The penalty for late renewal and/or payment made after February 28th of each respective year shall be equal to 200 percent of the license fee for said business. D. Repealed by Ord. 3036. [Ord. 3976 § 1, 2014; Ord. 3710 § 1, 2008; Ord. 3282 § 2, 1999; Ord. 3084 § 1, 1996; Ord. 3036 §§ 1, 2, 1995; Ord. 2191 §§ 1, 2, 1981; Ord. 1828 § 1, 1976; Ord. 1139 § 1, 1965]. 4.72.050 Ineligible activities. Notwithstanding any provisions hereof to the contrary, a license hereunder may not be issued to 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 of Edmonds or the statutes of the state of Washington. The granting of a business license shall in no way be construed as permission or acquiescence in a prohibited activity or other violation of the law. [Ord. 1139 § 1, 1965]. 4.72.055 Denial of license — Hearing. In the event that a license is denied under this chapter based on the provisions of ECC 4.72.050, or for any other lawful reason, the applicant may request a hearing. Such request shall be in writing and filed within 10 days of the date of written denial by the city of a license application. A hearing shall be scheduled within 30 days before the hearing examiner. The hearing shall proceed in the following format: A. The applicant/appellant shall present proof of the nature of the activities which it seeks to conduct pursuant to a business license in the city of Edmonds. B. The city shall have the burden of establishing, by a preponderance of the evidence, that the activities are in violation of a provision of any ordinance of the city of Edmonds, or the general statutes of the state of Washington. C. The applicant/appellant may then present any rebuttal testimony which it wishes to present. The hearing examiner shall enter written findings of fact and conclusions of law. No motion for reconsideration shall be available to either party. Appeal of the final decision shall be to the Snohomish County superior court in accordance with the applicable laws of the state of Washington. [Ord. 3834 § 1, 2011]. 4.72.060 Revocation or suspension. The mayor or his designee may, at any time, suspend or revoke any license issued hereunder whenever the licensee or officer or partner thereof has been convicted in any court of competent jurisdiction of violating any statute of the United States or the state of Washington or any ordinance of the city of Edmonds upon the business premises stated in the license or in connection with the business stated in the license; where the business -7- activity violates ECC 4.72.050; or where the place of business does not conform to the ordinances of the city of Edmonds. Prior to such suspension or revocation, the permittee shall be provided an opportunity for a hearing. The licensee shall be notified in writing by sending a written notice to the address stated on the license of the intention of the city to revoke or suspend said license. The applicant may then appeal by filing written notice with the city clerk within 10 days of the notice of revocation or suspension. The city clerk shall schedule a hearing within 20 days before the hearing examiner. The licensee may appear at that time and be heard in opposition to such revocation or suspension. [Ord. 3834 § 2, 2011; Ord. 1139 § 1, 1965]. 4.72.065 Transfer or sale of business — New license required. Upon the sale or transfer of any business licensed by this chapter, the license issued to the prior owner or transferor shall automatically expire on the date of such sale or transfer and the new owner intending to continue such business in the city of Edmonds shall apply for a new business license pursuant to the procedures established by this chapter. [Ord. 2315 § 2, 1982]. 4.72.070 Penalty for violation. Any person, as defined herein, and the officers, directors, managing agents, or partners of any corporation, firm, partnership or other organization or business violating or failing to comply with any provisions of this chapter shall be guilty of a misdemeanor and, upon conviction, shall be punished by a fine in any sum not exceeding $250.00 or by imprisonment for a period not exceeding nine months, or both, and each day of violation shall constitute a separate offense. [Ord. 1139 § 1, 1965]. Section 2. Severability. If any section, paragraph, sentence, clause or phrase of this ordinance, or its application to any person or circumstance, be declared unconstitutional or otherwise invalid for any reason, or should any portion of this ordinance be preempted by state or federal law or regulation, such decision or preemption shall not affect the validity of the remaining portions of this ordinance or its application to other persons or circumstances. Section 3. Effective Date. This ordinance, being an exercise of a power specifically delegated to the City legislative body, is not subject to referendum, and shall take effect five (5) days after passage and publication of an approved summary thereof consisting of the title. Section 4. Corrections by City Clerk or Cade Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary non -substantive corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. APPROVED: MA OR DAVID O. EARLING ATTEST/AUTHENTICATED : CI CLERK, SCO ASSEY APPROVED AS TO FORM: BY CITY ATT NEY, JEFFREY B. TARADAY FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: PUBLISHED: EFFECTIVE DATE: ORDINANCE NO. November 23, 2018 November 27, 2018 November 30, 2018 December 5, 2018 4135 SUMMARY OF ORDINANCE NO.4135 of the City of Edmonds, Washington On the 27th day of November, 2018, the City Council of the City of Edmonds, passed Ordinance No. 4135. A summary of the content of said ordinance, consisting of the title, provides as follows: AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, AMENDING EDMONDS CITY CODE CHAPTER 4.72 RELATED TO BUSINESS LICENSING The full text of this Ordinance will be mailed upon request. DATED this 28th day of November, 2018. CItYfLERK, SCOTT SSEY -10- Everett Daily Herald Affidavit of Publication State of Washington } County of Snohomish } ss Dicy Sheppard being first duly sworn, upon oath deposes and says: that he/she is the legal representative of the Everett Daily Herald a daily newspaper. The said newspaper is a legal newspaper by order of the superior court in the county in which it is published and is now and has been for more than six months prior to the date of the first publication of the Notice hereinafter referred to, published in the English language continually as a daily newspaper in Snohomish County, Washington and is and always has been printed in whole or part in the Everett Daily Herald and is of general circulation in said County, and is a legal newspaper, in accordance with the Chapter 99 of the Laws of 1921, as amended by Chapter 213, Laws of 1941, and approved as a legal newspaper by order of the Superior Court of Snohomish County, State of Washington, by order dated June 16, 1941, and that the annexed is a true copy of EDH836257 ORD 4133-4135 as it was published in the regular and entire issue of said paper and not as a supplement form thereof for a period of 1 issue(s), such publication commencing on 11/30/2018 and ending on 11/30/2018 and that said newspaper was regularly distributed to its subscribers during all of said period. The amount of the fee for such publication is $56.76. r Subscribed and sworn before me on this day of %V, Notary Public in and for the State of Washington. City of Ed—d, - LEGAL ADS 114101416 SCOTT PASSEY RECEIVED DEC U lf1r� EDMONDS CITY CLERK AUBREY KNAPP Notary Public State of Washington My Commission Expires July 30, 2022 Classified Proof REC.EIVED INAN pf the o mends, ee 11(�taR DEC On the 27W day Or Naownter. 2013, We Clry auncif of She Clty of J I 7� �❑ Edmonds, pa59Bd It* fos owl rq Of�rlenree, the surnmarIes of 9ald wdlnamea rbnamng of trues arerovlded As lb WWII aRDINANCE N�. af33 AN ORDINANCE OF THE CITY OF EDMONDS, EDMONDS Wg3l1INGtoN pprovkletg far We annual lax levy INCREASING SHE EhtS PROPERTY 7A% LEVY by THE lllrrrr �)'! lrji� C� CITY CLERK CURRENT 101% LEVY LIMIT. Iherc Iaryl an aeltmalEd G TIME WHEN THE EMS LEVY OF 54.040.100. AND FIXI A SAME SHALL 3ECOME EFFECTIVE. OROINANC d d AN ORDINANCE ��� CITY OF EDMONDS, WASHINGTON. pcov-dmg fw tha annual tax " ny CONTINUING 7HE REGULAR PROPERTY TAX LEVY AT 100% OF THE CURRENT LEVY LIMIT, thereby 17�yyiInngg an O-455,677, esamatetl rogutaF PfaPoFW 101 18ry 01 PRESERVING Fi_ITURE LEVY CAPACITY AND FIXING A TIME WHEN THE SAME SHALL BECOME EFFECTIVE. AND FIXING A TIME WHEN THE SAME SHALL BECOME EFFECTIVE. CAR ANCE NO, 413 AN DROINANCE I pF EDNIONDS. WASHtNGTON, AMENDING CHAPTER 4.72 OF THE EDMONDS CITY GODS RELATED TO BUSINESS LICENSING, PROVIDING FOR SEVERABILITY, ESTA$USYIING AN EFFECTIVE DATE AND PROVIDING FCR CO R RECT IDN$, The toll to xl Of these Ordl nencea wlll be malldd upon re QUe5l DATED 1h15 28M dayof Npvembor, 2018 CITY CLERK. SCO T pASSF.Y Published: November30.20ta. EOH836257 Proofed by Sheppard, Dicy, 11/30/2018 12:03:44 pm Page: 2