HomeMy WebLinkAboutStaff Report 3.E 11/19/2012 2ALU A gentacti Itenw#31
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DATE:, November 19, 2012
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: William Mushallo. Finance Director
Sue Simmons; Commercial Services Manager
SUBJECT: Resolution Imposing the SB 1186 State Mandated Fee of$1.00 on any Applicant
for a Business Licehseor Similar Instrument or Permit, or Renewal thereof, for
Purpose of Increasing Disability Access
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution Imposing the SB 1186
State Mandated Fee of$1.00 onany Applicant for a Business License or Similar Instrument or
Permit, or Renewal thereof, for Purposes of Increasing Disability Access.
BACKGROUND
•
On September 19,2012, Governor Brown signed into.law SB 1186 which, as of January 1; 2013;
adds a state fee of$1.00 on any application for local business license or similar instrument or
permit, or renewal thereof. The purpose of this fee is to increase disability access and
compliance with construction-related accessibility requirements and to develop educational
resources for businesses and local governrnentsf in order to facilitate compliance with federal and
state disability laws.
DISCUSSION
To provide funding the bill imposes an additional state fee of$1 on "any applicant for a.local.
business license,"or equivalent instrument or permit, or renewal thereof." All businessesare
subject to this fee including: rental properties, out-of-town businesses,;home-base_businesses,.
contractors, exempt businesses, and non-profits. The bill requires the City to collect the fees:and
transmit 30% of it to the State Architect for its disability related'program. The City will retain
70% of the fee: The funds are restricted for use to facilitate compliance with federal and state
disability laws and for associated administrative costs.
Agenda Review
City AttorneyLVw Finance Director City Manager
1
Pursuant to the attached resolution, and in order to comply with the legal mandates of SB 1186,
beginning on January 1, 2013, the City of Petaluma will charge an additional $1 fee on business
license renewals•and new business applications. The new law requiring this fee, Government
Code section 4467, will be in effect until Deceniber 31,2018, unless it is extended or modified.
The bill also requires local entities to transmit to local businesses;information regarding
compliance with and legal obligations under federal and state.disability laws. The City will add
this information to its business license applications and:renewals.
•FINANCIAL IMPACTS
This bill will impose, on and after January 1, 20.13, an additional state fee of$1 on any applicant
for a local business license or equivalent instrument or permit, or renewal thereof, for purposes
of increasing disability access and compliance with construction-related accessibility
requirements and developing educational resources to facilitate compliance with federal and state
disability laws. The City will retain 70% of the fees imposed. The City will use 5% of the 70%
amount to offset administration costs and the remaining portion to pay for facilitating
compliance with federal and state disability laws.
ATTACHMENTS
1. Resolution Imposing the SB 1186 State'Mandated Fee of$1.00 on any Applicant for a
Business License or Equivalent Instrument or Permit, or Renewal thereof, for Purposes of
Increasing Disability Access.
ATTACHMENT 1
RESOLUTION IMPOSING THE SB 1186STATE MANDATED FEE OF $1:0.0 ON ANY
APPLICANT FOR BUSINESS LICENSE OR EQUIVALENT INSTRUMENT OR
PERMIT, OR RENEWAL THEREOF, FOR PURPOSES OF INCREASING
DISABILITY ACCESS
WHEREAS, SB 1186 imposes, on and after January 1, 2013, an additional state fee of
$1 on any applicant for a local business license or equivalent instrument or permit, or renewal
thereof, for purposes of increasing disability access and compliance with construction-related
accessibility requirements and developing educational resources for businesses to facilitate
compliance with federal and state disability laws, as specified, and
WHEREAS, SB 1186 (Government Code section 4467) authorizes local government
entities to retain 70% of the fees imposed, of which 5% may be used for administrative purposes;
and
WHEREAS, in order to comply with the legal mandates of SB 1186, the City will charge
an additional $1 fee on business license renewals, new business applications, and equivalent
licensing and certification instruments during the period in which SB 1186 is in effect:
NOW,.THEREFORE, BE IT'RESOLVED'by the City2Council of the City of Petaldrnar ' " •
as follows:
On and after January 1, 2013, the City of Petaluma shall add a state-mandated fee of
$1.00 to any application fee for a business license or equivalent instrument or permit issued by
the City of Petaluma, with the funds therefrom,allocated as required by SB 1186 (Chapter 7.5,
commencing with Section 4465, of Division 5 of Title 1 of the Government Code). Said added
fee shall be charged until December 3.1,2018, unless the provisions of the Government Code
requiring said fee are extended or modified.
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