It is the intent of the City Council of the City of Downey, by the adoption and amendment of the provisions of this chapter, to provide regulatory provisions and procedures for the orderly and lawful revocation of business licenses.
(Added by Ord. 1304, adopted 9-25-12)
(a) 
The City Council finds that the provisions of this chapter are to be used for those general business activities when there are no express provisions regulating the modification, suspension, and/or revocation of licenses and/or permits for a particular type of business. To the extent that this chapter may be in conflict with other chapters of this title which expressly provide for suspension, revocation or denial of a business license and/or permit for a specific type of business, the express provisions of that specific chapter shall control over the provisions of this chapter.
(b) 
Grounds for Suspension or Revocation. The Tax Collector shall suspend or revoke any license and/or permit issued pursuant to this chapter, if the Tax Collector makes any of the following findings and/or determinations:
(1) 
There exists any ground for denial of the license/permit pursuant to Section 6206(b) of this article;
(2) 
The licensee/permittee or his or her agent, employee, partner, director, controlling stockholder, or manager has knowingly made any false, misleading or fraudulent statement of material facts in the application for a license or permit or in any report or record required to be filed by law;
(3) 
The licensee/permittee or any employee, agent, or manager of the licensee/permittee, has violated or is violating any condition of approval imposed upon such license and/or permit, or upon any other entitlement granted by the City or other government agency;
(4) 
The licensee/permittee or any employee, agent, or manager of the licensee/permittee has violated or is violating any ordinance, law, or regulation of the City, County of Los Angeles, State of California, or the United States of America, in the course of exercising any rights under the business license/permit;
(5) 
The licensee/permittee, or any employee, agent, or manager of the licensee/permittee, has caused, allowed, suffered, or failed to exercise reasonable diligence and care to prevent the use of the business or the business premises as a base for unlawful or criminal activity, including, but not limited to, solicitation, prostitution, illegal gambling, or the use and/or sale of illegal narcotics;
(6) 
The licensee/permittee, or any employee, agent, or manager of the licensee/permittee, operates the business in violation of any notice of denial, order of suspension, or order of revocation issued pursuant to the provisions of this chapter;
(7) 
The licensee/permittee has been held liable for, or has been convicted of, any offense involving the maintenance of a nuisance resulting from any act performed in exercising any rights under the business license/permit; and/or
(8) 
The continued operations under the license and/or permit would endanger, disrupt or otherwise be detrimental to the public peace, health, safety, morals or general welfare of the City or its inhabitants, or constitute a public nuisance.
(c) 
Grounds for Summary Suspension or Revocation. The Tax Collector shall summarily suspend or revoke any license and/or permit issued pursuant to this article, if the Tax Collector determines that any ground for suspension or revocation pursuant to subsection (b) exists to the extent or degree that it creates an imminent peril to the public health, welfare, morals, or safety.
(d) 
Order of Suspension/Revocation.
(1) 
Suspension. The Tax Collector shall serve a written order of suspension upon the licensee/permittee stating the grounds for suspension and informing the licensee/permittee of his or her appeal rights (including method and timeline for requesting appeal). The order shall also advise the licensee/permittee of the length of the suspension and the effective date of the suspension.
(i) 
A license/permit may be suspended for a period not to exceed 15 calendar days for each violation.
(2) 
Revocation. The Tax Collector shall serve a written order of revocation upon the licensee/permittee stating the grounds for revocation and informing the licensee/permittee of his or her appeal rights (including method and timeline for requesting appeal). The order shall also advise the licensee/permittee of the effective date of the revocation.
(e) 
Effective Date of Suspension or Revocation.
(1) 
General. Except as provided in subsection (e)(2), any license or permit suspended or revoked pursuant to the provisions of subsection (b) of this section shall become effective, and the licensee/permittee shall cease all operations authorized under such license and/or permit, no later than 10 calendar days from the service of the order of suspension or order of revocation. Where an appeal is timely filed in accordance with the provisions of subsection (f), the notice of suspension or notice of revocation shall be stayed pending the City Council's resolution of the appeal pursuant to the provisions of this chapter.
(2) 
Summary Suspension/Revocation. Any license or permit suspended or revoked pursuant to the provisions of subsection (c) of this section shall become effective immediately upon service of the order of summary suspension/revocation, and the licensee/permittee shall immediately cease all operations authorized under such license and/or permit, pending the City Council's resolution of the appeal pursuant to the provisions of this chapter. A suspension or revocation pursuant to the provisions of subsection (c) shall not be stayed by the filing of a request for an appeal or during the pendency of an appeal thereof.
(f) 
Appeal.
(1) 
Request for Appeal. Any licensee/permittee may appeal any notice of denial, order of suspension, or order of revocation issued by the Tax Collector by filing a request for an appeal with the City Clerk, and tendering a filing and processing fee as set by resolution of the City Council, within 10 calendar days of service of the notice/order of such denial, suspension, or revocation. The request for an appeal must be made in writing and must contain the following information:
(i) 
The name of the appellant and the address of the applicable business establishment where the appellant was authorized (or was seeking to be authorized) to conduct business pursuant to the license or permit that was denied or is subject to the order;
(ii) 
The date of denial, suspension, or revocation by the Tax Collector;
(iii) 
A statement as to all grounds for appeal in sufficient detail to enable the City Council to understand the nature of the controversy, however, a licensee/permittee may only challenge a summary suspension/revocation based upon the grounds for the suspension/revocation and not the Tax Collector's determination that such grounds existed to the extent or degree that it creates an imminent peril to the public health, welfare, or safety;
(iv) 
The signature of the appellant under penalty of perjury as to the contents of the request for appeal.
(2) 
Upon receipt of such written appeal and fee, the City Clerk shall immediately set the matter for consideration by the City Council at its next most convenient regular meeting, or otherwise transmit the appeal to the mayor for the purpose of calling a special meeting to consider the appeal, provided that no appeal hearing related to a suspension or revocation pursuant to subsection (c) shall be commenced in excess of 30 days from the timely filing of a request for appeal and payment of applicable fees without the consent of the appellant. The City Clerk shall issue written notice of the time and place of an appeal hearing to the appellant at least seven consecutive calendar days prior thereto. If a request for an appeal is not timely submitted (with all applicable fees) to the City Clerk, the notice of denial, order of suspension, or order of revocation shall be deemed final and binding, and the licensee/permittee shall be deemed to have failed to exhaust all administrative remedies.
(3) 
Appeal Hearing. An appeal hearing conducted pursuant to the provisions of this section, shall comply with the following:
(i) 
The appeal hearing shall proceed solely on those issues or defenses raised in the request for an appeal filed by the appellant, and all matters not contested in said request shall be deemed admitted into evidence;
(ii) 
The City shall have the burden to establish the grounds for the denial, suspension, or revocation that has been contested by the appellant by a preponderance of the evidence. The notice of denial, order of suspension, or order of revocation (and all documents or reports relied upon and/or prepared in relation to the notice or order) shall be admitted into evidence and shall constitute prima facie evidence of the grounds for denial, suspension, or revocation;
(iii) 
The appellant shall be given an opportunity to testify and to present written and/or oral evidence relevant to the matters raised in the request for an appeal filed by the appellant, and shall have the right to examine and cross-examine any documents and witnesses presented by the City in support of the denial, suspension or revocation. The unexcused failure of the appellant to appear at the appeal hearing shall constitute a withdrawal of his or her request for an appeal hearing and the denial, suspension, or revocation as issued by the Tax Collector shall be deemed final and binding;
(iv) 
Appeals hearings are to be conducted informally, and formal rules of evidence need not be followed;
(v) 
Written notice of the City Council's determination of whether to suspend, revoke, reinstate or conditionally reinstate the license and/or permit shall be issued to the appealing party within 10 business days of the decision. The determination of the City Council shall be final and conclusive;
(vi) 
The licensee/permittee may seek prompt judicial review of such administrative actions in a court of competent jurisdiction as provided by law, pursuant to Section 1094.6 of the California Code of Civil Procedure.
(Added by Ord. 1304, adopted 9-25-12)
(a) 
Notwithstanding any other provisions of this chapter, and except as provided otherwise in this section, no business license shall be issued to any individual or organization, or to any employee or agent thereof, during a period of license restriction. As used herein, "period of license restriction" means a period of 12 months commencing immediately upon the effective and final date of denial, suspension, or revocation of the business license for that individual or organization.
(b) 
Prior to issuing any business license, the Tax Collector may request that an applicant provide additional information and/or documentation that the Tax Collector reasonably deems necessary to determine whether the applicant is an agent or employee of an individual or organization subject to a period of license restriction. An applicant's failure or refusal to provide such information or documentation shall constitute grounds for denial of the business license application.
(c) 
Any individual or organization, or employee or agent thereof, may apply for relief from the period of license restriction by filing an appeal in the manner set forth in Section 6301(f) herein. Upon such filing, the City Council shall conduct a hearing on the appeal in the manner, and according to the timeline, set forth in Section 6301(f) of this chapter. If the City Council determines that good cause exists, the individual or organization, and employees or agents thereof, shall not be subject to any period of license restriction as specified in this section. Otherwise, the period of license restriction shall remain binding upon the individual or organization, and employees or agents thereof, subject to subsequent appeals which may be filed no more frequently than once every six months from the date of the last City Council denial. As used herein, "good cause" exists when the City Council makes each of the following determinations and/or findings:
(1) 
The appellant has demonstrated that all circumstances and/or conditions which gave rise to the original business license suspension or revocation have been fully and satisfactorily cured or corrected;
(2) 
The appellant has demonstrated proof of his/her commitment and ability to prevent such circumstances from reoccurring, and to prevent any other violations from occurring;
(3) 
Neither the appellant nor any other individuals employed by or associated with the proposed business are subject to any civil, criminal, or administrative proceedings which would affect the business's good standing;
(4) 
The appellant has demonstrated that the proposed business is materially different from that originally licensed or, if not materially different, will be subject to standards of operation which would prevent violations from occurring or reoccurring;
(5) 
The appellant has demonstrated that the proposed business will be sited at a different location from that originally licensed or, if it will be sited at the same location, sufficient modifications to the location have been or will be made which would prevent violations from occurring or reoccurring; and
(6) 
The appellant has demonstrated that all other necessary permits, entitlements, and approvals for the proposed business have been approved and are in effect.
(Added by Ord. 1304, adopted 9-25-12)