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Agenda Item
ASR
Control 21-000737 |
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MEETING DATE: |
10/19/21 |
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legal entity taking action: |
Board of Supervisors |
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board of supervisors
district(s): |
All Districts |
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SUBMITTING
Agency/Department: |
Sheriff-Coroner
(Approved) |
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Department contact
person(s): |
Brian Wayt (714) 647-1803 |
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Noma Crook (714) 834-6681 |
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Subject: Approve New Business License
Fees
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ceo CONCUR |
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Clerk of the Board |
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Concur |
Approved Resolution to Form |
Public Hearing |
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3 Votes Board Majority |
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Budgeted: No |
Current Year Cost:
N/A |
Annual Cost:
N/A |
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Staffing Impact: |
No |
# of Positions:
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Sole Source:
N/A |
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Current Fiscal Year Revenue: $31,675
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Prior Board Action: 12/3/1991
#48 |
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RECOMMENDED ACTION(S):
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1. |
Find that the proposed fees are Statutorily Exempt from the provisions of the CEQA pursuant to Section 21080(b)(8) of the Public Resources Code and Section 157273 of the CEQA Guidelines as the establishment or modification of rates, fees and charges, which are for the purpose of meeting operating expenses, including employee wage rates and fringe benefits, purchasing or leasing supplies, equipment or materials as set forth herein. |
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2. |
Conduct the public hearing. |
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3. |
Adopt a Resolution that: |
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a. |
Finds that adoption of the Resolution approving the fees is statutorily exempt from the provisions of the California Environmental Quality Act pursuant to Section 21080(b)(8) of the Public Resources Code and Section 15273 of the CEQA Guidelines as the establishment or modification of rates, fees and charges that are for the purpose of meeting operating expenses, including employee wage rates and fringe benefits, and purchasing or leasing supplies, equipment or materials. |
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b. |
Finds that the fees meet the requirements set forth in subdivision (e)(2) to Section 1 of Article XIIIC of the California Constitution, and are therefore exempt from the definition of a tax as used therein. |
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c. |
Finds that the revenue resulting from the fees established pursuant to this Resolution will not exceed the Sheriff-Coroner Department’s reasonable cost for processing business licenses. |
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d. |
Approves the proposed fees set forth in the Resolution for the Sheriff-Coroner Department's processing of new and renewed business licenses, effective November 19, 2021, and superseding Resolution No. 91-1410. |
SUMMARY:
Approval of the new fees will allow the Sheriff-Coroner Department to fully recover the costs for processing licenses for the businesses required to be licensed by Section 5-1-29 of the Orange County Codified Ordinances and for which the Sheriff-Coroner Department is the license issuing officer pursuant to Section 5-2-1.
BACKGROUND INFORMATION:
California Government Code Section 66018 authorizes the Board of Supervisors (Board) to establish a fee based on the administrative costs of processing business licenses.
Following a Sheriff-Coroner Department (Sheriff) cost study conducted in 1991, on December 3, 1991, the Board approved new and revised business license fees charged to persons and organizations located in the unincorporated areas of Orange County. Previously, on October 19, 1988, by Resolution, the Board approved business license fees charged by Sheriff that excluded massage establishments and massage technicians. The revised fees for massage establishments and massage technicians were adopted by a separate Resolution on June 28, 1989.
As of 2021, a cost study was recently prepared by Sheriff's staff to determine the actual current administrative costs associated with processing applications for new and renewed business licenses. The results of the 2021 Sheriff's cost study are set forth in the table below:
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Business/Organization |
New Application |
Annual Renewal |
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Bingo Game |
$50.00 |
$50.00 |
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Business Solicitor/Canvasser/Peddler |
$268.00 |
$215.00 |
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Coin Dealer |
$268.00 |
$215.00 |
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Dance Instructor |
$436.00 |
$436.00 |
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Dance Studio |
$436.00 |
$436.00 |
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Escort |
$436.00 |
$436.00 |
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Escort Bureau |
$436.00 |
$436.00 |
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Figure Model |
$436.00 |
$436.00 |
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Figure Model Studio |
$436.00 |
$436.00 |
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Gun Dealer |
$294.00 |
$242.00 |
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Introductory Service |
$436.00 |
$436.00 |
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Junk Collector |
$268.00 |
$215.00 |
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Junk Dealer |
$268.00 |
$215.00 |
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Massage Establishment |
$436.00 |
$436.00 |
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Massage Tech/Practitioner |
$436.00 |
$436.00 |
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Pool Room |
$268.00 |
$215.00 |
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Public Dance |
$268.00 |
$215.00 |
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Secondhand Dealer |
$314.00 |
$261.00 |
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Taxicabs |
$268.00 |
$215.00 |
Additionally, under Penal Code Section 326.5, subdivision (l)(1), the fee for a bingo game initial license or renewal license shall not exceed $50. If a license is denied for a bingo game, 50 percent of the fee will be refunded to the applicant as required by Penal Code Section 326.5, subdivision (l)(1).
A Notice of Public Hearing has been published to comply with Government Code Section 66018 that requires a local agency to hold a public hearing when new fees are adopted or existing fees are increased. The proposed fees and supporting cost study were reviewed by the Auditor-Controller.
Sheriff now requests approval of the new business license fees effective November 19, 2021, which would allow Sheriff 30 days to notify and seek adoption by the city councils of each of the cities that contract with Sheriff for law enforcement services and require licensing of the same businesses.
Compliance with Proposition 26: The fees do not fall within the definition of a tax under Proposition 26 because they are exempted by California Constitution Article XIIIC, Section 1, Subdivision (e)(2). Subdivision (e)(2) exempts from the definition of a tax, “a charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.” This exemption applies because the fee amounts are limited to no more than what is necessary for the Sheriff to recover the reasonable costs of processing the business licenses.
Compliance with CEQA: The adoption of the Resolution approving the fees is statutorily exempt from the provisions of the California Environmental Quality Act pursuant to Section 21080(b)(8) of the Public Resources Code and Section 15273 of the CEQA Guidelines as the establishment or modification of rates, fees and charges that are for the purpose of meeting operating expenses, including employee wage rates and fringe benefits and purchasing or leasing supplies, equipment or materials.
FINANCIAL IMPACT:
The proposed new fees will result in full cost recovery for processing business licenses, except for bingo game licenses, which fees are capped by statute. This revenue will be included in the Mid-Year Adjustment Report for FY 2021-22 Budget for Budget Control 060, Sheriff-Coroner and will also be part of the budgeting process for future fiscal years.
STAFFING IMPACT:
N/A
ATTACHMENT(S):
Attachment A - Draft Resolution
Attachment B - Government Code Section 66018
Attachment C - California Constitution Article XIIIC, Section 1
Attachment D - Orange County Codified Ordinances, Sections 5-1-29 and 5-2-1
Attachment E - Fee Checklist and Cost Study
Attachment F - Notice of Public Hearing
Attachment G - Public Resources Code
Section 21080
Attachment H - Penal Code Section 326.5
Attachment I - Board Resolution 91-1410