ORD NO. 2018-21 RELATING TO BUSINESS LICENSES AMENDING BIMC 5.04, 5.12, 5.16, 5.24, 5.28 & 5.40ORDINANCE NO. 2018-21
AN ORDINANCE of the City of Bainbridge Island, Washington, relating to
business licenses and amending Chapters 5.04, 5.12, 5.16, 5.24, 5.28 and 5.40 of
the Bainbridge Island Municipal Code (BIMC) to update items in accordance with
the State of Washington business license system requirements.
WHEREAS, the City of Bainbridge Island requires certain businesses to obtain business
licenses; and
WHEREAS, Engrossed House Bill (EHB) 2005 was passed by the Washington State
Legislature with an effective date of July 23, 2017; and
WHEREAS, EHB 2005 is intended to simplify the administration of municipal general
business licenses for the applicants and improve the business climate; and
WHEREAS, EHB 2005 requires that all cities with business licenses administer their
business licensing through the state's business license system (BLS) by 2027 or through the
FileLocal system by 2020; and
WHEREAS, the City of Bainbridge Island will administer its business licensing through
BLS starting in 2018; and
WHEREAS, the BLS has requested changes to the BIMC to align with BLS business
practices.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BAINBRIDGE
ISLAND, WASHINGTON, DOES ORDAIN AS FOLLOWS:
Section 1. Chapter 5.04 of the Bainbridge Island Municipal Code is hereby amended to read as
follows:
5.04.010 Purpose.
The provisions of this chapter are an exercise of the police and taxation powers of the city to
license for revenue purposes and to govern the privilege of engaging in business in the city.
5.04.020 Definitions and presumption.
A. This chapter incorporates by reference all definitions set forth in Chapter 82.04 RCW,
hereafter amended, except where a conflicting definition is stated in this chapter.
B. "Director" means the director of finance and administrative services for the city.
C. "Business Licensing Service" or "BLS" is the office within the Washington State
Department of Revenue providing business licensing services to the cit .
Page 1 of 10
QD. Businesses or persons soliciting business within the city or using either a business
telephone number or business address within the city shall be presumed to be engaged in
business within the city.
5.04.030 License required.
Every person who engages in business activities within the city 4h4"ffly4ef must obtain
the a city business license for the privilege of engaging in business within the city for
The fee for the business license shall be in the amount
established by resolution of the city council. No person shall engage in any business for which a
business license is required under this chapter without being so licensed, regardless of the
amount of income received, except as otherwise provided in this title.
5.04.040 License — Application and issuance.
A. Business licenses must be obtained and the fee paid before a business commences
operation within the city. The license fee shall be considered delinquent if not paid when
due.
B. The business license required by this chapter shall expire onrti.,^,,.,. ber ''dr -
f .....3..ieh it rn issued the date established by the Business Licensing Service and must be
renewed on or before that expiration date. " new lieense shall be mquifed fer- aeh yeaf
ead the fee paid en eF befere the last day of Febfuafy.
C. Applications for business licenses shall be made te and isstied by the finanee director
on forms pfevided by the , whieh shall state the residenee of the applieaK
the naur-e
must be submitted to the Business Licensin
Service through the online license application or on a business license application form
provided by BLS and must include all fees due, including the city license fee the BLS
handling fee required by RCW 19.02.075, and all fees for other licenses being requested
on the application The application information will be forwarded to the city for review.
If the director finds that the application is complete and correct, that all required fees
have been paid, and all laws and requirements have been complied with, the business
license shall be i-ssataproyed for issuance through BLS.
D. The director shall, when appropriate, refer applications to the department of planning
and community development, the department of public safety, the Bainbridge Island Fire
Department, and other governmental agencies for their review.
single lieense-
F -.E. Neither the filing of an application for a license, or the renewal thereof, nor the
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.
Page 2 of 10
5.04.045 State marijuana license required for any marijuana business.
A. Businesses that are subjeet to the r-eqttiremen4s ef Chapter ^I
14 55 WAG fef mar-�u
businesses shall first ebtain a valid basiness keense (9131 Number-) issued by the siate o
Washington undeF the aforesaid ehaptef befefe obtaining a eity of Bainbridge island
BA. Marijuana businesses subject to the requirements of Chapter 314-55 WAG
Applieantsapplying for a city of Bainbridge Island business license must pr -e ide the eity
a cepy efthehave obtained a marijuana business license issued by the Washington State
Liquor Control Board pursuant to WAGChVter 314-9M55 WAC Prior to
iraneeayproval of athe city business license. For annual renewals of the city business
license for operation of a marijuana business, the business must provide a eapycontinue
to hold a valid marijuana license issued by the Washington State Liquor Control Board
pursuant to Chapter 314-55 WAC to receive the city's approval of the business' city
business license renewal application.
lieense shall be aeeempanied by a one hour fee, pufsuant to the fees adopted undef B!
' ed
e0efdinatien with the state, and reseafek regarding required land tise and distane
DB. No person shall be deemed to have any entitlement or vested right to licensing under
this chapter by virtue of having received any prior license or permit from the city,
including, by way of example, any zoning permit, medical marijuana license, wholesale
food manufacturer's license, or any other license. In order to lawfully engage in the
business of producing, processing or selling recreational marijuana in the city, a person
must qualify for and obtain a license in accordance with this chapter and Chapter 314-55
WAC.
EC. Prior to the city's issuance of the business license herein, the applicant shall obtain
other required permits related to the operation of the business, including, without
limitation, any development approvals or building permits required by this code, the
building code and the zoning code and by BIMC 18.09.030.K.
ED. Upon receipt of a completed business license application, the city may circulate the
application to all departments of the city to determine whether the application is in full
compliance with all applicable laws, rules and regulations. By way of illustration and not
limitation, these departments may include the city of Bainbridge Island department of
community development, the Bainbridge Island fire department, and the Bainbridge
Island police department.
GE. The city may, prior to issuance of the license, perform an inspection of the proposed
licensed premises to determine compliance with any applicable requirements of this
section or other provisions of the Bainbridge Island Municipal Code.
Page 3 of 10
5.04.050 License — Nontransferable.
The business license issued under this chapter shall be personal and nontransferable and shall at
all times be posted in the place of business for which it is issued. Where a licensee's place of
business is changed, the licensee must notify the Business Licensing, Service regarding issuance
ofsha ,..,.,.a., *'t^��a Q a new license shall e issa^ for the new place of
business A change of business location may require submission of a new
business license application and pUment of the respective fees. The city will be informed of the
change of location and will review the new location before issuance of a new license. No
licensee shall allow another person to operate a business under, or display, the license, nor shall
another person operate under or display the license.
5.04.055 Standards of conduct.
Every licensee under this chapter shall:
A. Permit reasonable inspections of the business premises by governmental authorities
for the purpose of enforcing the provisions of this chapter;
B. Comply with all federal, state, and city statutes, laws, ordinances, and regulations
relating to the business premises and the conduct of the business thereon;
C. 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;
D. Refrain from operating the business after expiration of a license or during the period
that the license may be suspended or revoked.
5.04.060 License — Suspension, denial or revocation.
A. A business license may be suspended, denied, or revoked by the city without notice
for any of the following causes:
1. The licensee or any of its officers, directors, agents, or employees while acting
within the scope of their duties has violated or failed to keep the building,
structure, or equipment of the licensed premises in compliance with applicable
health, building, fire, or safety laws, ordinances, or regulations;
2. The licensee or any of its officers, directors, agents, or employees while acting
within the scope of their duties has violated or failed to comply with the standards
of conduct specified in this chapter;
3. The license was procured by fraud or false representation of fact;
4. The licensee or any of its officers, directors, agents, or employees has been
convicted of a crime involving the business;
5. The license was issued through mistake or inadvertence.
Page 4 of 10
B. A business license may be revoked on 20 days' written notice to the licensee where
the licensee fails to pay the annual license fee applicable business and occupation tax,
together with any penalties due thereon, within six months after the fee or tax is due and
owingTh , ti all have the Fight to fi,"After revocation
. r-�-�n�rrr-r�c�-c-rrn�e=s �e� rcrrr , reinstatement of the
business license requires submittinga�new application through the Business Licensing
Service,wit-bin 10 days of such reveea iea, the lieensee r ya nd also requires paw ment
of all fast amounts due and owing.
C. Upon suspension, denial or revocation of a license, the director shall, by certified mail,
give written notice of such action to the applicant or licensee, including a written report
summarizing the complaints, objections, and/or information received and considered by
the director and further stating the reason for the action. Notice mailed to the mailing
address on the application or most recent renewal shall be deemed received three days
after mailing. Appeal of the director's decision shall follow the appeal procedures set
forth in this chapter.
5.04.070 License — Multiple locations.
If business is transacted by one person at two or more separate locations within the city, a
separate license shall be obtained and displayed in each location at which business is transacted.
5.04.075 License — Multiple businesses at the same location
A Multiple business activities under common ownership and conducted at the same
h sical location may be conducted under a single license.
B Except as provided in subsection A of this section, if more than one business is
operated at the same location, each person operating a separate business must obtain and
display their own license for their respective business at that location
5.04.080 Exempt activities.
The following activities shall be exempt from the licensing provisions of this chapter:
A. The exercise of governmental functions performed by any instrumentality of the
United States, the state of Washington, or any political subdivision thereof;
B. Farmers or gardeners selling their own farm products raised and grown exclusively
upon lands owned or occupied by them;
C. Garage sales conducted on residential premises in compliance with this code;
D. The mere delivery of goods or services to the customer or client by businesses where
the sale occurred on business premises outside of the city, and was the only event
occurring within the city except that the performance of contracting or subcontracting
services is not an exempt activity; or
E. Any business activity which is owned and operated solely by a person under the age of
18, and which does not generate a gross income of more than $2,500 per year.
Page 5 of 10
5.04.090 Payment of license fees.
A. There shall be a license fee imposed for the privilege of doing business as set by
resolution of the city council.
B. Payment of the fee imposed by this chapter shall be due on or before the
commencement of business and Fenewed on w bef r„ the last day of TI.sL....i ffy of
sueeessive ration date of the license.
C. On or before the due date, every person required to pay a license fee or a tax as set
forth by this chapter shall file a license renewal with the Business LicensingService, or,
for taxes, �•ri*�a written return with the city upon such form and including such
information as the director shall require, together with the payment of the amount of the
feetax.
D. Nonprofit activities carried on by religious, charitable, educational, benevolent,
fraternal, or social organizations which have been determined by the Internal Revenue
Service of the United States to be exempt from the payment of income tax shall be
exempt from the license fee.
5.04.190 License — Fee additional to others.
The license imposed and levied by this chapter shall be in addition to any license fee or tax
imposed or levied under any law or other ordinance of the city, except as otherwise expressly
provided.
5.04.200 License fee — Collection.
The license fee imposed by this chapter, and all penalties assessed thereon by the ci shall
constitute a debt to the city, and may be collected by court proceedings in the same manner as
any other debt in like amount, which remedy shall be in addition to all other existing remedies.
Any judgment entered in favor of the city shall include an award to the city of all court and
collection costs including attorneys' fees. Amounts delinquent more than 90 days may be
assigned to a third party for collection, in which case the amount of any collection charges shall
be in addition to all other amounts owed. Amounts due shall not be considered paid until the city
has received good funds for the full amount due or has discharged the amount due and not paid.
5.04.210 Over or underpayment of fees.
In the event that any person makes an overpayment, and within two years of the date of such
overpayment makes application to the ci for a refund or credit, the person's claim shall be
allowed and a refund made by the city upon determination by the director that no other sums are
owed by the person to the city. If a person determines that the fees have been underpaid and
without notice by any party pays the amount due to the city, the amount underpaid and corrected
by the person shall not be subject to a cit penalty.
Page 6 of 10
5.04.220 Appeal procedure.
A person who has had a license suspended, denied, or revoked or who has been aggrieved by the
amount of the license fee determined to be due to the city by the director under the provisions of
this chapter may appeal to the city council from such determination by filing a written notice of
appeal with the city clerk within 20 days from the date on which such person is given notice of
the license fee. The city council or a committee of the city council shall, as soon as practicable,
fix a time and place for the hearing for such appeal. Notice of the hearing shall be given to the
appellant by certified mail at least five days prior to the date of the hearing. The licensee may
appear at the hearing and be heard in opposition to such denial, suspension or revocation or to
the fee imposed. The decision of the city council or its committee shall be announced at the
conclusion of the hearing and shall be final, subject only to a writ of certiorari being filed with
the Kitsap County superior court within 14 days following the date of the decision of the city
council or a committee of the city council.
5.04.230 License — Confidentiality of applications.
The applications made to the city pursuant to this chapter are subject to confidentialily governed
by RC W 19.02.115, and shall not be made public, and shallur be subject to inspection except as
allowed or
.,erequired by law.
5.04.240 Duties of the director.
A. The director shall keep full and accurate records of all funds received under the
provisions of this chapter. Upon receipt of any license fee or penalties collected under the
provisions of this chapter, the director shall deposit the amounts collected into the current
expense fund of the city.
B. In order to carry out the provisions of this chapter, the director shall have the power to
adopt, publish and enforce rules and regulations consistent with this chapter.
NZ-
.,
RM
Page 7of10
5.04.260 Violation — Penalty.
A. It shall be a violation of this chapter:
1. For a person required to obtain a business license under this chapter to fail or
refuse to secure the business license or to fail to pay the fee imposed;
2. For a person to make any false representation in connection with application for
a business license under this chapter;
3. For a person to evade payment of the fee or any part thereof,
4. For a person to fail to appear and/or refuse to testify in response to a subpoena
issued hereto;
5. For a person to testify falsely upon any investigation of the correctness of a
return, or upon the heading of any appeal; or
6. For a person to in any manner hinder or delay the city or any of its officers in
carrying out the provisions of this chapter.
B. It shall be unlawful for any person to conduct business within the city limits when not
in compliance with this chapter.
C. A person violating any of the provisions of this chapter, upon conviction thereof, shall
be punished by a fine of not more than $500.00 or by imprisonment for not more than six
months, or by both such fine and imprisonment. Each such person is guilty of a separate
offense for each and every day during the portion of which any violation of any provision
of this chapter is committed, continued or permitted by any such person and he is
punishable accordingly.
5.04.270 Successor liability.
A. Whenever any person required to be licensed by this chapter quits business, or sells
out, exchanges, or otherwise disposes of his/her business or stock of goods, any
owtgLi ndin license fees or penalty payable to the city shall immediately become due and
payable, and such person shall, within 30 days, file the required forms and pay the fees
due. Any person who becomes a successor to such person shall become liable for the full
amount of the prior owner's license fees and penalties due and owing and shall withhold
from the purchase price a sum sufficient to pay any amount due from the seller until such
time as the seller shall produce a receipt from the city clerk showing payment in full of
any amount due or a certificate that no license fees are due. The payment of the fees by
the successor shall, to the extent thereof, be deemed a payment upon the purchase price,
and if such payment is greater than the purchase price, the amount of the difference shall
become a debt due such successor from the seller. The successor's liability shall be
limited to the purchase price or the fair market value of the business if no cash transaction
took place.
B. No successor shall be liable for any license fees due from the person from whom
he/she has acquired a business or stock of goods if he/she gives written notice to the city
clerk or director of such acquisition, and no assessment is issued by the director within
six months of receipt of such notice against the former operation of the business and a
copy of the assessment mailed to the successor.
Page 8 of 10
W--
5.04.280 Limitations on license.
Notwithstanding any provisions to the contrary, a license issued under this chapter shall 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 an
ordinance of the city of Bainbridge Island, specifically including the city's zoning laws, or of the
laws 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. Because the issuance of
a license under this chapter specifically denies the applicant authority to violate any law or
regulation, the city shall not be held liable for the actions of any licensed business by virtue of
having issued a license to conduct business.
Section 2. Section 5.12.010 of the Bainbridge Island Municipal Code is hereby amended to read
as follows:
5.12.010 License — Required.
It is unlawful for any person, firm or corporation to open, carry on, or maintain any business on
which premises pool or billiard tables, foosball games and shuffleboards are maintained within
the city without first obtaining a license therefor, in accordance with the provisions of this
chapter. This license is in addition to an, business license that may be required under Chapter
5.04 BIMC.
Section 3. Section 5.16.020 of the Bainbridge Island Municipal Code is hereby amended to read
as follows:
5.16.020 License — Required.
No person, firm or corporation shall open up, conduct, manage, operate or maintain a cabaret
without having a license to do so issued by the city clerk in accordance with the provisions of
this chapter. This license is in addition to any business license that may be required under
Cha ter 5.04 BIMC.
Section 4. Section 5.24.020 of the Bainbridge Island Municipal Code is hereby amended to read
as follows:
5.24.020 License — Required.
It is unlawful for any person, firm or corporation to operate within the city any game of skill
without first obtaining a license therefor, in accordance with the provisions of this chapter. This
license is in addition to any business license that may be required under chanter 5.04 BIMC.
Page 9 of 10
Section 5. Section 5.28.020 of the Bainbridge Island Municipal Code is hereby amended to read
as follows:
5.28.020 License — Required.
It is unlawful for any person, firm or corporation to operate within the city, any coin-operated
music box, commonly known as a jukebox, without first obtaining a license therefor in
accordance with the provisions of this chapter. This license is in addition to an business license
that mgy be required under ChLapter 5.01 BIMC.
Section 6. This ordinance shall take effect and be in force on July 12, 2018.
PASSED by the City Council this 26th day of June, 2018.
APPROVED by the Mayor this 26th day of June, 2018.
Kol Medina, Mayor
ATTEST/AUTHENTICATE:
Christine Brown, rty Clerk
FILED WITH THE CITY CLERK June 8, 2018
PASSED BY THE CITY COUNCIL June 26, 2018
PUBLISHED: June 29, 2018
EFFECTIVE DATE: July 12, 2018
ORDINANCE NO: 2018-21
Page 10 of 10