Agenda Item Wording:
title
Business Regulations Amendment - Second reading and public hearing for Ordinance 2024-02 to amend Visalia Municipal Code Chapters 5.04 and 5.28 to include general updates and to address changes required for compliance with other sections of the Visalia Municipal Code.
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Deadline for Action: 3/18/2024
Submitting Department: Finance and Technology Services
Contact Name and Phone Number:
Melody Murch, 559-713-4379, melody.murch@visalia.city <mailto:melody.murch@visalia.city>
Department Recommendation:
Staff recommends the City Council hold a public hearing for the second reading of Ordinance No 2024-02 to amend the following Visalia Municipal Code (VMC) Chapters included in Title 5 “Business Regulations”:
1. VMC Chapter 5.04 “Business Licenses Generally”.
2. VMC Chapter 5.28 “Hotels and Lodging Houses”.
The amendments and additions to the VMC sections listed above are required to address outdated references and information, and to comply with other sections of the VMC.
Background Discussion:
The information below was previously provided to City Council on March 4, 2024 by agenda item 23-0466 as part of the first reading of the ordinance.
The current version of Title 5, Business Regulations, in the Municipal Code has been in place since the last amendment occurred in 1995 (Ordinance No. 95-17, adopted June 26, 1995). The amendments proposed in this item are the result of the recent VMC amendment addressing Short-term Rentals which became effective on December 6, 2023. The recently adopted Short-term Rental ordinance requires some clarification of business definitions contained within Title 5, Chapter 5.04 and Chapter 5.28. Staff has also reviewed the entire 5.04 and 5.28 chapters, and this amendment contains updates to clarify language and address outdated references, as well as updates to reflect current business practices and procedures. The full text of Title 5, Chapters 5.04 and 5.28, including clearly marked changes, is included in Attachment A to this item, and discussed below. This amendment includes three types of changes which are: clarifications and corrections, reclassifications, and revisions.
Clarification and Correction: The amendment contains the following clarifications and corrections:
• Gender Pronouns. Throughout Title 5, Chapters 5.04 and 5.28, references to “his/her”, “himself/herself”, “him/her”, and “he/she” have been replaced with the gender-neutral terms “their”, “themself”, “itself”, “it”, “them”, and “they”.
• Business Tax Certificate. The definition of “Business Tax Certificate” has been expanded to clarify the terms interchangeability with the terms “Business License”, “City Business License”, “City of Visalia Business License”, and “Business Tax Permit”.
• Employee. The definition of “Employee” has been amended to include volunteers, for the purposes of VMC Title 5.
• Grammer and “Typos”. Various minor grammatical and typographical errors have been corrected. These corrections do not result in any material changes.
• Outdated References. Outdated references have been updated or removed. These clarifications do not result in any material changes.
Reclassification: The amendment contains the following reclassifications:
• Definitions. The definition sections of 5.04.010 and 5.28.010 contain statements which have been moved to more appropriate code sections or amended for uniformity. Specifically:
o A portion of the “Administrative and Corporate Headquarters” definition has been moved to section 5.04.070 F.
o A portion of the definition for “Real Estate Developer” has been moved to section 5.04.070 G., where it addresses both Real Estate Developers and Subdividers.
o The chapter 5.28 definition section (5.28.010 Definitions) has been revised to reference the definitions contained in section 5.04.010 to ensure uniformity throughout Title 5 of the VMC.
Revision: The amendment contains the following revisions to the definition section, 5.04.010:
• Annual Gross Receipts. The definition for “Annual Gross Receipts” has been combined with the “Gross Receipts definition.
• Business Day. A definition for “Business Day” has been added.
• Close of Business. A definition for “Close of Business” has been added.
• Gross Receipts. Item 8. of the “Gross Receipts” definition has been amended to remove language that could require double payment of business tax to both the City of Visalia, and another City in which the acts or services are performed.
• Lodging House Business. The definition of “Lodging House Business” has been amended for clarification and to exclude the newly added definition for “Short-term Rental”.
• Real Estate Developer. The definition of “Real Estate Developer has been revised to exclude the newly added definition for “Real Estate Subdivider”.
• Real Estate Subdivider. A definition for “Real Estate Subdivider” has been added.
• Rental of Commercial Property. The definition of “Rental of Commercial Property Business” has been revised to include property licensing agreements. An example of a property licensing agreement would be the licensing of a small space within a supermarket to an optometrist. This example creates both a new and separate business and/or location, as well as a commercial landlord arrangement.
• Rental of Residential Property. The “Rental of Residential Property Business” definition has been amended to exclude the newly added definition for “Short-term Rental”.
• Short-term Rental. A definition for “Short-term Rental” has been added.
• Interstate Commerce. Confusing language in Section 5.04.090 D. has been amended to clarify that if audit of a business located outside the COV that is consummating transactions within the COV results in an increase of the assessment amount during a period for which tax has been paid and a certificate issued, that the increase will begin at the time of the next billing period.
• Provisional Certificate. Section 5.04.130 B. has been revised to reflect that a provisional certificate will be issued when an entity has paid their business tax but is out of compliance with any city ordinance and/or the requirements of another regulatory agency. Because the business tax certificate is simply a receipt for payment, it cannot be withheld, but issuance of a provisional certificate informs the viewer the business is non-compliant.
• Confidential Information. Section 5.04.160 D. has been revised to allow, rather than require, city attorney review of the requested disclosure of account information to the business owner. Most requests by business owners for disclosure of their own account information are routine, and only requests that are out of the ordinary will be questioned and reviewed by the city attorney.
• Fee Changes. Sections 5.04.190, 5.04.210, 5.04.260, 5.04.400 B., and 5.04.420 have been revised to reflect the general City practice that referenced fees will be set by the City’s annual rates and fees process.
• Tax - How and When Payable. Section 5.04.230 A. has been amended to make payment due by close of business as defined in the Title 5 definitions, rather than a specific time of day.
• Distribution of Printed Matter. Section 5.04.280 has been amended to comply with section 9.24.010 of the VMC which declares the distribution of printer matter unlawful within the COV.
• Chapter 5.28 Title Change. The title of Chapter 5.28 has been revised to include short-term rentals, and to remove reference to “hotels” which are included in the definition of “Lodging Houses”.
A full review for update of the remaining chapters of Title 5 of the VMC is underway, and recommended amendments for the remaining sections will be brought to Council by Chapter, as they are completed.
Fiscal Impact:
None.
Prior Council Action:
● 3/4/24: Council conducted a Public Hearing and first reading of Ordinance 2024-02
● 6/26/95: Title 5, “Business Regulations”, was last amended by Council on June 26, 1995 (Ordinance No. 95-17).
Other: N/A
Alternatives: None recommended.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to introduce the second reading of Ordinance 2024-02 for the amendment Visalia Municipal Code (VMC) Chapters 5.04, “Business Licenses Generally”, and 5.28, “Hotels and Lodging Houses” included in Title 5 “Business Regulations”.
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Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments:
Attachment A: Draft Ordinance 2024-02 Re: Chapter 5.04 and 5.28 Business Regulations.