9. Business Registration ProgramPlanning Department
241 1" Avenue East
Kalispell, NIT 59901
Phone: (406) 758-7940
Fax: (406) 758r-7739
www. kaiis p ell. co mlp Tannin e
REPORT TO: Honorable Mayor and City Council
FROM: Jane Howington, City Manager
PJ Sorensen, Planner
SUBJECT: Business Registration Program
DATE: June 7, 2010
BACKGROUND: Earlier this year, the Council discussed the issue of business licenses and
directed staff to bring forward a proposal for consideration. There are many benefits of such a
program, both for the individual businesses and the City as a whole. For example, obtaining a
business license can help a business make the right decisions before they invest in a particular
piece of property. For the City, better knowledge about which businesses are coming and going
leads to better administration of life/safety codes, and can help with economic development
information.
Recognizing these benefits, every other large city in Montana (as well as many smaller ones) has
utilized business licenses in one form or another for a long time. The models range from Great
Falls where it is merely a business registration program to Billings where it is labeled as an
annual business tax., with many alternatives in between. In fact, it is such a common expectation
that staff routinely receives calls from new businesses asking about how to obtain a license.
When told that we don't have one, they usually won't believe it at first.
Staff has put together a draft ordinance based upon several assumptions about the goals and basic
concepts for the program. The two primary assumptions are (1) that the Council is interested in
more of a business registration concept as opposed to a compliance certificate model; and (2)
that the program should be revenue -neutral (i.e. charging fees sufficient to cover costs and not
generate revenue).
By a business registration, it is assumed that the goal of the program would be to provide an
updated list of businesses, provide information to businesses before they open, and allow for the
City to be aware of any issues which may need to be addressed. Staff included a provision in the
proposal which states that a business registration certificate "shall certify only that a completed
form and fee were duly submitted, and shall not certify compliance with any other federal, state,
or local law, code, or regulation."
The compliance certificate option, in contrast, would involve a certification by the City that the
business would be in compliance with City regulations. A compliance certificate gives an added
level of security to the business, but the certification process would be much more involved than
a simple business registration. It would take substantially more staff time and, as a consequence,
would lead to a higher fee to maintain a revenue -neutral program.
Under either option, the fees would need to be set by the Council under a separate fee schedule
adopted by resolution. The basis for the fee would be largely dependent upon whether the
Council pursues a business registration or compliance certification concept. other
considerations would include software and other operating costs of the program. Council should
also take into consideration that we are already providing a level of service to businesses as part
of our annual inspection program. The program, which is currently provided free of charge,
involves annual inspections for bars, restaurants, day cares, and other uses which have state
licenses requiring such inspections. we also regularly provide fire inspections for all
commercial properties.
Additionally, staff assumed that the program would be a free-standing city code section
administered by the Finance Department (possibly with additional staff to support the program),
involve annual renewals, and have a one to two year phase -in for existing businesses.
While the proposed ordinance may be satisfactory, there are likely at least three areas which may
require additional discussion and direction from the Council: (1) Does the Council prefer a
business registration or compliance certification model; (2) Should the program be revenue -
neutral or fee -generating; and (3) where would the program be housed (Finance is the typical
location, although some communities choose Community Development or the Planning
Department for administration) ?
RECOMMENDATION: Council should make a motion to direct staff to bring the ordinance
forward and discuss implementation.
ALTERNATIVES: VES: As suggested by the Council.
ATTACHMENTS: Draft Ordinance
Business Registration Form example
Respectfully submitted,
PJ Sorensen Jane Howington
Planner II City Manager
Report compiled. June 1, 2010
C: Theresa white, Kalispell City Clerk
Ka is eR Business Registration Program
Section 15.3.100: Purpose. The purpose of this chapter is to better provide public services
and promote the public health, safety, and welfare through a business registration program. The
program will provide better information for the administration of public safety functions such as
annual fire inspections and emergency response, as well as other city programs such as economic
development, building codes, zoning, and provision of public utilities. The business registration
program is not intended to certify compliance with any federal, state, or local law.
Section 15.3.110: Defm.itions:
(1) Business: Any individual or entity engaged in the purchase, sale, offering for
sale, or other transaction involving the handling or disposition of any article, service,
substance or commodity for livelihood or profit, or the management or occupancy of the
office buildings, offices, recreation or amusement enterprises, or the maintenance and use
of buildings, offices, structures, or premises by professions and trades or persons
rendering services.
Section 15.3.120. Business Registration Required -- New Businesses. Any business to be
located within the city limits of Kalispell shall submit a business registration application form to
the Finance Department and receive a business registration certificate prior to opening. Annual
renewals of the business registration certificate shall be submitted by the business prior to
January 31 each year for continued operation.
Section 15.3.130: Business Registration Required -- Existing Businesses. Businesses it
existence at the adoption of this chapter shall submit a business registration application form to
the Finance Department within one year of the date of adoption. Annual renewals of the
business registration certificate shall be submitted by the business prior to January 31 each year
for continued operation.
Section 15.3.140. Exemptions. Temporary activities of one -week or less located on
publicly owned property, including, but not necessarily limited to public parrs and fairgrounds,
are exempted from the business registration requirement.
Section 15.3.150: Business Registration application Form Requirements. The business
registration form and renewal form shall include the following:
(1) Name and address of the business;
(2) Phone number and other contact information;
(3) Type and description of business activity;
(4) Number of employees;
(5) Date that the business started at this location;
(6) For new registrations, the previous use of building space;
(7) Presence of hazardous chemicals or other hazardous conditions; and
(8) Payment of a fee as established by resolution by the City Council.
Section 15.3.1 o 0 Business Registration Certificate. Upon receipt of a completed business
registration application form and the associated fee, the Finance Department shall issue a
business registration certificate or renewal certificate, as appropriate. The certificate shall certify
only that a completed forn and fee were duly submitted, and shall not certify compliance with
any other federal, state, or local law, code or regulation.
Section 15.3.160: Failure to Register. Any business which fails to register as provided by
this chapter may be subject to penalties as a municipal infraction pursuant to Chapter 1, Article 11
of the Kalispell City Code. Each day of continued violation shall constitute a separate,
additional violation. The Finance Director or the Director's authorized agent is hereby
authorized to enforce this chapter by issuing a civil citation.
City of Kalispell Business Registration Application
❑ New Registration/Transfer to New Location ❑ Annual Renewal
Name of Business:
Address of Business:
Contact Name:
Emergency Contact/Phone Number:
Contact Phone Number:
Type of Business and Detailed Description of Business Activity:
Number of Employees: Full-time:
Date Business Startedlwill Start at this Location:
Part Time:
---Previous use of Building Space (new registrations only):
Please describe any hazardous chemicals or other dangerous conditions which may be present at
the business location (attach additional sheets if necessary):
I understand that this business must be operated in compliance with all applicable federal,
state, and local laws, codes, and regulations. I understand that the issuance of a business
registration certificate does not certify compliance with any such laws, codes, or regulations,
and that the business is responsible for ensuring that its activities are in compliance.
Signature
Printed Name
Date
Title
Office Use only
Fee Payable: $ - - Cash/Check No.:
Business Registration No.:
Receipt No. :
Processed By: