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HomeMy WebLinkAboutORD 6037CITY OF RENTON, WASHINGTON ORDINANCE NO. 6037 AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTION 5-5-3 OF THE RENTON MUNICIPAL CODE, AMENDING BUSINESS LICENSE REGULATIONS TO EXEMPT CERTAIN RESIDENTIAL LANDLORDS FROM BUSINESS LICENSE REGISTRATION REQUIREMENTS, CLARIFYING APPLICATION REVIEW PROCESS AND THE CITY'S AUTHORITY TO DENY LICENSES, PROVIDING FOR SEVERABILITY, AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City desires to exempt landlords whose only business activity in the City is renting residential dwelling units from registering through the City's business license program so long as they separately register through the City's rental registration and inspection program; and WHEREAS, the City desires to clarify that business license and registration applications may be denied based upon a business's failure to establish their intent and ability to comply with laws and regulations applicable to such business; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION I. All portions of the Renton Municipal Code in this ordinance not shown in strikethrough and underline edits remain in effect and unchanged. SECTION II. Section 5-5-3 of the Renton Municipal Code is amended as follows: 5-5-3 GENERAL BUSINESS LICENSE REGISTRATION: A. General Business License Registration Required: 1. No person shall engage in business unless such person has submitted a general business license registration and holds a valid City of Renton general business license. The general business license shall not be transferable. If a person 1 ORDINANCE NO. 6037 maintains more than one place of business within the City a separate general business license registration is required for each, with the following exceptions: a. Temporary or portable sales which will only be required to submit one registration; and b. A separate license for landlords, as that term is defined in RMC 4- 5-125.C, is not required for each separate rental dwelling unit, as that term is defined in RMC 4-5-125.C; except that property managers who maintain off -site offices shall obtain a separate license for each off -site office. 2. If a person engages in no other activities in or with the City except the following, demonstrated through means satisfactory to the Administrator, it need not register: a. Acting within the scope of employment as an employee of a duly licensed City business; b. Owning or acting as lessor or sublessor of real property occupied with one (1) or more rental dwelling units, as that term is defined in RMC 4-5- 125.C, and such rental dwelling units are each registered pursuant to RMC 4-5- 125; except that a person who employs employees or rents a property meeting the definition of a short term rental, as that term is used in RMC 4-4-055 is not exempt from registration. MMOMMMMI M. ORDINANCE NO. 6037 c. Activities for which requirement of a business license would violate Washington State or federal law. B. General Business License Registration Fee: 1. General Business License Registration Fee Required: The general business license registration fee of one hundred fifty dollars ($150.00) shall be due and payable when filing a completed registration form as prescribed by the Administrator. The general business license registration fee may be adjusted from time to time, as published in the current City of Renton Fee Schedule. If a business enterprise's first date of engaging in business in the City is after July 1, a prorated half year general business license registration fee will be due in the amount of seventy-five dollars ($75). 2. Exemptions: The following are exempt from the general business license registration fee, if demonstrated through means satisfactory to the Administrator: a. Non -Profit Exemption: A person that can demonstrate that it is exempt from federal income taxation pursuant to 26 U.S. Code Subsections 501(c) or (d), as those subsections may be amended or recodified. b. Threshold Exemption: A person that can demonstrate that (1) its business has, as applicable to the type of business, an annual value of products, c ORDINANCE NO.6037 gross proceeds of sales, and gross income in the City equal to or less than two thousand dollars ($2,0001 aggregated, and (2) it does not maintain a place of business within the City. This exemption does not apply to a person whose business requires or obtains a regulatory license or specialized permit. 3. Time Within Which to Claim Overpayment of General Business License Registration Fee: If a person makes an overpayment of a general business license registration fee, and, within four (4) years after date of such overpayment, makes application for a refund or credit of the overpayment, its claim shall be allowed and be repaid from the general fund or be applied as a credit to annual renewal fees as approved by the Administrator. C. Issuance and Posting of General Business License: 1. All general business licenses shall be issued by the Administrator. The decision to issue or deny a general business license shall be made by the Administrator. The Administrator's final decision may be appealed in accordance with this Chapter. Any appeals to the Hearing Examiner shall be governed by the rules and procedures prescribed by RMC 4-8-110. 2. The Administrator shall keep a record of all the general business licenses issued by the City of Renton. Each license shall be numbered, and shall 4 ORDINANCE NO. 6037 show the name, place of business within the City and any other information as the Administrator shall deem necessary. 3. The general business license holder is required to ensure that at all times the license be posted in the place of business within the City for which it is issued, or in the case of a business enterprise with a temporary or portable sales location, be carried on the person of the holder thereof at all times during business hours or while such business is being carried on, and shall be displayed at the request of any interested person or City official or representative. 4. The Administrator is authorized to implement procedures for accepting and processing applications to review the applicant's compliance or intended compliance with all laws and regulations that relate to the operation of the business. This includes, but is not limited to, compliance or intended compliance with land use, fire, building, or any health and safety regulation related to the operation of the business. Applications may be held and suspended during such review process to investigate the existence of suspected non- compliance. Applicants are required to cooperate with and respond to requests from the City for information during this process and failure to do so cooperate is sufficient grounds for the City to deny the application. Notwithstanding the City's review or information provided to the City by the applicant, the issuance or renewal of a business license shall not be construed as permission to conduct business in a way that violates any law or regulation. The issuance or renewal of a business license shall not prevent the Administrator from later denying or 5 ORDINANCE NO. 6037 revoking the license for violations of law nor prevent the City from taking enforcement action to abate, correct, and/or penalize for the violations of law — regardless of whether the Administrator had or should have had information that indicated the business had or intended to violate such laws or regulations at the time a business license was issued or renewed. D. Expiration and Renewal: 1. Expiration: Unless otherwise established by the Administrator, general business licenses expire on January 31 of the year after issuance and must be renewed by the due date as described in subsection D.2 below. 2. Due Dates: General business license registration fees are due by the last day of January. 3. Renewal Notice: The City may, but is not required, to mail renewal forms, but failure of the person to receive any such form shall not excuse the person from making application for and securing the license required and paying the license fee when and as due. E. Penalties: 1. Monetary Penalty for Failure to Obtain License: The penalty for failure to obtain a general business license shall not be less than two hundred and fifty dollars ($250.00) or as prescribed in the City of Renton Fee Schedule, plus payment of all license fee amounts that should have been paid for the last four (4) years, as determined by the Administrator, plus a penalty often percent (10%) per annum for all amounts owing, plus any accounting, legal or administrative ORDINANCE NO. 6037 expenses incurred by the City in determining the unreported, or the unpaid portion over the last four (4) years or in collecting the penalty. 2. Monetary Penalty for Failure to Pay License Fee: Failure to pay the license fee when due and payable shall result in a penalty of five percent (5%) of the amount of the license fee for the first month of the delinquency and an additional penalty of five percent (5%) for each succeeding month of delinquency, but not exceeding a total penalty of fifteen percent (15%) of the amount of such license fee. 3. Collection: Any license fee due and unpaid and all penalties under this Chapter may be collected by civil action, which remedy shall be in addition to any and all other existing remedies and penalties. 4. Denial, Suspension or Revocation of General Business License: a. The Administrator may deny or suspend any license application and/or revoke any license issued pursuant to this Chapter to any person or other license holder who: i. Is in default in any payment to the City, except for current taxes and other obligations not past due; ii. Has obtained a license or permit by fraud, misrepresentation, or concealment; iii. Is or has been convicted of, forfeits bond upon, or pleads guilty to any felony offense directly related to the operation of the applicant's or license holder's business; 7 ORDINANCE NO. 6037 iv. Makes false statements, misrepresentations or fails to disclose material facts to the City related to any permits or applications; v. Has operated or intends to operate the business in a way that Vv_iolates or allows employees, visitors, or patrons to violate federal, state, or municipal law, including but not limited to applicable; land use, building, safety, fire or health regulation on the premises on or in which business is conducted; or vi. Fails to obtain or maintain a valid state business license or special endorsement for a specific activity. vii. Fails to cooperate with or provide information to the City upon request during its review of the application. b. Chronic nuisance premises: i. In addition to the provisions of RMC 5-5-3.E.4.a, a general business license may be revoked if the commercial, entertainment or retail business enterprise, or the owner(s), person(s) in control, or the managing agent(s) of the business enterprise, permit, suffer, maintain, carry on or allow upon or within two hundred feet (200') of such business activities that meet or exceed the criteria identified in RMC 5-5-2.G (CHRONIC NUISANCE PREMISES). If the person in control is not the legal owner, the person in control and owner are both jointly liable for any chronic nuisance premises. Both the owner and person in control are subject to the provisions and remedies in this Chapter and RMC 1- 3-3. Application of either of these chapters against one party does not preclude N. ORDINANCE NO. 6037 application to another party who is an owner or person in control of a chronic nuisance premises. ii. Based on a chronic nuisance premises finding by the Administrator or by a court of competent jurisdiction, the license revocation period shall be as follows: (a) Ten (10) calendar days for a finding of a chronic nuisance premises as defined in RMC 5-5-2.G.1.a. (b) Thirty (30) calendar days for a finding of a chronic nuisance premises as defined in RMC 5-5-2.G.1.b. (c) Ninety (90) calendar days for a finding of a chronic nuisance premises as defined in RMC 5-5-2.G.1.c. (d) Immediately if the commercial, entertainment or retail business enterprise, or the person(s) in control, or the managing agent(s) of the business enterprise permit, suffer, maintain, carry on or allow upon or within two hundred feet (200') of such business activities which amount to an emergency that a City administrator or law enforcement officer reasonably believes requires immediate action to prevent or eliminate an immediate threat to public health, morals, safety, or welfare of persons or property in the City of Renton. (e) As the objective of this subsection is to encourage compliance, if the person or persons who are responsible or in control of the place of business within the City abate the conditions) that created, caused, permitted, allowed, or necessitated the calls for service to the satisfaction of the E ORDINANCE NO. 6037 Administrator in consultation with the City of Renton Police Chief, the remaining period of revocation shall be waived and the license, subject to the payment of all applicable fees, penalties, and costs, shall be reissued. iii. If any person or persons who are responsible or in control of the place of business within the City create, cause, permit or allow incidents that amount to two (2) or more chronic nuisance premises findings as defined by RMC 5-5-2.G.1.c, the Administrator may suspend that license for one (1) year, without the opportunity to abate, and the Administrator may consider the circumstances and findings in any future application request by any person associated with the offending business enterprise or the person or persons who were responsible or in control of the offending business enterprise. iv. Any offense that amounts to more than a nuisance, including but not limited to class A or B felonies, may result in revocation that is not limited to RMC 5-5-3.E.4.b.ii, and other penalties and/or punishments consistent with the RMC and/or the RCW. 5. Engaging in Business Without a General Business License: It shall be illegal for any person and/or license holder to fail to obtain or maintain a general business license and yet engage in business within City limits. Each business enterprise, its owner or agent who fails to obtain or maintain a general business license, in addition to the fines/penalties contained in subsections 5-5-3.E.1 or 2 as they exist 9F Fnay be amended shall be guilty of a misdemeanor, and subject to the penalties of RMC 1-3-1, as it exists 9F may be aMPRPIPPI. 10 ORDINANCE NO. 6037 6. Gross Misdemeanor for False Statement or Representation: It shall be a gross misdemeanor under RCW 9A.72.040 (False swearing), as it exists or may be amended, punishable under RMC 1-3-1 for any person including but not limited to the owners, shareholders, partners, or principals, whether for themselves, for others or by others to sign a general business license application, which is required to maintain a general business license, to make any false or fraudulent application or false statement or representation in, or in connection with, any such application. 7. Order to Close Business Enterprise: Any law enforcement officer, code compliance officer, or the Administrator may serve a notice ordering a business enterprise to close and discontinue operation in the City which operates without a valid general business license, or which violates or otherwise fails to comply with any provision of this Chapter. That notice may be served in person or by certified mail, return receipt requested. The notice shall indicate the reason(s) that the business enterprise is ordered to close. 8. Appeals: a. A person shall have the right to appeal an adverse decision made by the Administrator under this Chapter by filing a written notice of appeal with the City Clerk within ten (10) calendar days of receipt of the decision, or within thirteen (13) calendar days of mailing of the decision, whichever is later. The written notice of appeal shall provide information asserting why the Administrator's decision should be reversed or modified. 11 ORDINANCE NO. 6037 b. For appeals of all decisions except those asserting an emergency, the Administrator shall review the appeal and enter an order affirming, reversing, or modifying the decision. The order shall be made in writing and a copy provided to the appellant either in person or by mail. The appellant shall have a right to appeal the order to the City's Hearing Examiner by filing a written notice of appeal with the City Clerk within twenty (20) calendar days of the date of the order. The rules and procedures governing such appeal shall be the rules and procedures prescribed by RMC 4-8-110. c. For appeals of decisions asserting an emergency, the appeal shall be scheduled for hearing directly with the City's Hearing Examiner at the earliest possible time after receipt of the appeal. The rules and procedures governing such appeal shall be the rules and procedures prescribed by RMC 4-8-110. 9. Prior to the Administrator issuing or reissuing a general business license all unpaid fees and penalties shall be paid. F. Rules: The Administrator shall have the authority to adopt, publish and enforce rules and regulations not inconsistent with this Chapter or with the law for the purpose of carrying out the provisions of this Chapter, and it shall be unlawful for any person to violate or fail to comply with any such rules or regulations. SECTION III. If any section, subsection, sentence, clause, phrase or work of this ordinance should be held to be invalid or unconstitutional by a court or competent jurisdiction, 12 ORDINANCE NO. 6037 such invalidity or unconstitutionality thereof shall not affect the constitutionality of any other section, subsection, sentence, clause, phrase or word of this ordinance. SECTION IV. This ordinance shall take full force and effect on January 1, 2022. No later than five (5) days prior to such effective date, a summary of this ordinance consisting of its title shall be published in the City's official newspaper. PASSED BY THE CITY COUNCIL this 22nd day of November, 2021. Jasor}1A. Seth, qftVi Clerk APPROVED BY THE MAYOR this 22nd day of Novembed, 2021. Approved as to form: Shane Moloney, City Attorney Date of Publication: 11/25/2021 (Summary) ORD:2188:11/2/21 onyo Pavone, Mayor OF RF &_ SEAL -� w 13