1 ORDINANCE NO.
AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING
SECTION 3.04.140 (LICENSE APPLICATION) OF CHAPTER
3.04 (GENERAL PROVISIONS) OF TITLE 3 (BUSINESS
LICENSES) AND SECTION 17.38.060 (INTEREST) OF
CHAPTER 17.38 (DEFERRAL OF CERTAIN IMPACT FEES)
OF TITLE 17 (LAND DEVELOPMENT AND RESOURCES) OF
THE ANAHEIM MUNICIPAL CODE AND FINDING AND
DETERMINING THAT THIS ORDINANCE IS NOT SUBJECT
TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
(CEQA) BECAUSE IT WILL NOT RESULT IN A DIRECT OR
REASONABLY FORESEEABLE INDIRECT PHYSICAL
CHANGE IN THE ENVIRONMENT BECAUSE THERE IS NO
POSSIBILITY IT WILL HAVE A SIGNIFICANT EFFECT ON
THE ENVIRONMENT AND IT IS NOT A PROJECT
PURSUANT TO CEQA GUIDELINES SECTIONS 15060(C)(2),
15060(C)(3) AND 15378
WHEREAS, pursuant to the City’s police power, as granted broadly under Article XI, Section 7 of the California Constitution and Section 400 of the City Charter, the City Council has the authority to enact and enforce ordinances and regulations for the public peace, health and welfare of the City and its residents; and
WHEREAS, Title 3 of the Anaheim Municipal Code imposes license taxes upon businesses, trades, professions, calling and occupations in the City of Anaheim; and WHEREAS, Section 3.24.010 (Contractors – License Tax) requires every person who engages in the business of general or engineering contracting within the City (“Contractors”) to pay a license tax; and
WHEREAS, pursuant to Section 3.24.010 (Contractors – License Tax), the term Contractor includes subcontractor and specialty contractor; and WHEREAS, any person required or desiring to obtain a business license pursuant to Title 3 must submit a license application submitting the information required by the City in the manner designated by the Collector, which is the City official charged with the administration of Title 3; and
WHEREAS, pursuant to Chapter 15.03 (Building Standards Codes and Administrative Provisions pertaining to Building and Construction), the City Council of the City of Anaheim has adopted, by reference, the 2022 Edition of the California Building Code that among other things, requires an owner or an owner’s authorized agent who intends to construct, enlarge, alter, repair, move, demolish or change the occupancy of a building or structure, to make an application to the City’s Building Official and obtain the required permit; and 2 WHEREAS, the City’s Building Official may suspend or revoke a permit issued pursuant to Chapter 15.03 whenever the permit is issued in error or on the basis of incorrect, inaccurate or incomplete information; and
WHEREAS, prior to building permit issuance, Contractors must provide a Subcontractors/Professional Service List identifying the licensing information for all contractors, subcontractors, professional services and individuals performing any work on building structures or projects; and
WHEREAS, Ordinance No. 6562 adopted on November 28, 2023 expanded the scope of the information disclosed by Contractors to include any final determinations for state or federal labor code violations within the prior five (5) years, and make the same disclosures applicable only to projects involving 20 or more residential dwelling units or 20,000 or more square feet of commercial or industrial development; and
WHEREAS, these disclosures are intended to recognize and promote the value of fair labor and business practices; and
WHEREAS, the City now desires to reinforce that the expanded scope of disclosure applies to projects involving the construction of 20 or more new residential dwelling units; the remodel or renovation of 20 or more existing residential dwelling units provided the valuation of the work meets or exceeds a valuation of $1,000,000; the construction of 20,000 or more square feet of new commercial or industrial development; or the remodel or renovation of 20,000 or more square feet of existing commercial or industrial development provided the valuation of the work meets or exceeds a valuation of $1,000,000 and modify the timing for compliance; and WHEREAS, as a separate matter, by the adoption of Ordinance No. 6155 on September 1, 2009, the City Council established a permanent fee deferral program to stimulate and encourage the construction of new residential and non-residential developments within the City, which program allowed for the deferral of the time for payment and collection of certain development fees authorized under the Anaheim Municipal Code upon the request of an applicant and under certain circumstances (the "Fee Deferral Program"); and WHEREAS, prior to the adoption of the Fee Deferral Program, which is codified in Chapter 17.38 (Deferral of Certain Impact Fees) of the Anaheim Municipal Code, development fees were generally required to be paid by applicants for new residential and non-residential developments either prior to the approval of the final map pertaining to the development or at the time of issuance of building permits for construction. The Fee Deferral Program allowed for deferral of the time for payment and collection of such fees until prior to final inspection or issuance of a temporary or permanent certificate of occupancy, whichever occurs earlier; and WHEREAS, by the adoption of Ordinance No. 6300 on June 17, 2014, the City Council determined that it was in the public interest and for the public benefit to stimulate and encourage new residential and non-residential development projects in the City of Anaheim by permanently eliminating the security provision of the Fee Deferral Program and limiting the interest charge provision to amounts deferred in excess of $1,000,000; and 3 WHEREAS, effective January 1, 2025, Senate Bill No. 937 (Reg.Sess. 2023-2024) requires the City to defer certain fees for designated residential development and prohibits the City from collecting interest or any other fees on any deferred amount; and WHEREAS, the City Council now desires to amend Chapter 17.38 to maintain compliance with State law; and
WHEREAS, pursuant to the California Environmental Quality Act (Public Resources Code Section 21000 et seq. herein referred to as “CEQA”) and the State of California Guidelines for Implementation of the California Environmental Quality Act (commencing with Section 15000 of Title 14 of the California Code of Regulations; herein referred to as the "State CEQA Guidelines"), the City is the "lead agency" for the preparation and consideration of environmental documents for this Ordinance; and
WHEREAS, the City Council finds and determines that this Ordinance is not subject to CEQA pursuant to Sections 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines, because it will not result in a direct or reasonably foreseeable indirect physical change in the environment because there is no possibility it will have a significant effect on the environment and it is not a "project", as defined in Section 15378 of the CEQA Guidelines.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ANAHEIM DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. That subsections .080 and .090 of Section 3.04.140 (License Application) of Chapter 3.04 (General Provisions) of Title 3 (Business Licenses) of the Anaheim Municipal Code be, and the same are, hereby amended and restated to read in full as follows:
.080 If the application is for Contractors as defined in Chapter 3.24 of this Title, at least ten (10) business days prior to final inspection, Contractors shall under penalty of perjury provide a complete list of all subcontractors, professional services or individuals for which a license is required under this Title on a form provided by the Collector and/or the Building Official as that term is defined in Chapter 15.05 of Title 15.
.090 If the application is for Contractors as defined in Chapter 3.24 of this Title that perform work on a project consisting of 1) construction of 20 or more new residential dwelling units; 2) remodel or renovation of 20 or more existing residential units, provided that the valuation of such remodel or renovation is $1,000,000 or more; 3) construction of 20,000 or more square feet of new commercial and industrial building area; or, 4) remodel or renovation of 20,000 square feet of commercial or industrial building area, provided that the valuation of such remodel or renovation is $1,000,000 or more, the information provided pursuant to subsection .080 of Section 3.04.140 shall be provided prior to permit issuance and also prior to final inspection, and shall disclose any final determinations pertaining to state or federal labor code violations and any criminal convictions, judgments or penalties paid to a government agency related to the provisions of the California Labor Code or the Federal Labor Standards Act within the prior 5 years.
4 SECTION 2. That new subsection .091 of Section 3.04.140 (License Application) of Chapter 3.04 (General Provisions) of Title 3 (Business Licenses) of the Anaheim Municipal Code be, and the same is hereby added to read in full as follows:
.091 At any time between permit issuance and final inspection, if a change occurs in any information submitted to the City pursuant to subsection .090, Contractors shall submit updated information to the City within 72 hours of Contractors’ knowledge of such change, excluding weekends and Holidays. If a Contractor is a subcontractor, the subcontractor must submit updated information to the Contractor within 72 hours of subcontractor’s knowledge of such change, excluding weekends and Holidays.
SECTION 3. That Section .060 (Interest) of Chapter 17.38 (Deferral of Certain Impact Fees) of Title 17 (Land Development and Resources) of the Anaheim Municipal Code is hereby amended to read as follows:
.060 Unless prohibited by State law, interest shall be charged on amounts deferred of more than $1,000,000 pursuant to this chapter in an amount equal to the average annual rate of interest earned by the Treasurer of the City of Anaheim on the investment of pooled funds for the prior fiscal year.
SECTION 4. ENVIRONMENTAL REVIEW.
The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, because there is no possibility it will have a significant effect on the environment, and it is not a "project", as defined in Section 15378 of the State CEQA Guidelines.
SECTION 5. SEVERABILITY.
The City Council of the City of Anaheim hereby declares that should any section, paragraph, sentence, phrase, term or word of this Ordinance be declared for any reason to be invalid, it is the intent of the City Council that it would have adopted all other portions of this Ordinance independent of the elimination herefrom of any such portion as may be declared invalid. If any section, subdivision, paragraph, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each section, subdivision, paragraph, sentence, clause and phrase thereof, irrespective of the fact that any one (or more) section, subdivision, paragraph, sentence, clause or phrase had been declared invalid or unconstitutional.
SECTION 6. SAVINGS CLAUSE.
Neither the adoption of this Ordinance nor the repeal of any other ordinance of this City shall in any manner affect the prosecution for violations of ordinances, which violations were committed prior to the effective date hereof, nor be construed as a waiver of any license or 5 penalty or the penal provisions applicable to any violation thereof. The provisions of this Ordinance, insofar as they are substantially the same as ordinance provisions previously adopted by the City relating to the same subject matter, shall be construed as restatements and continuations, and not as new enactments.
SECTION 7. CERTIFICATION.
The City Clerk shall certify to the passage of this Ordinance and shall cause this Ordinance or a summary thereof to be printed once within fifteen (15) days after its adoption in the Anaheim Bulletin, a newspaper of general circulation, published and circulated in the City of Anaheim.
SECTION 8. EFFECTIVE DATE.
This Ordinance shall take effect and be in full force thirty (30) days from and after its final passage.
THE FOREGOING ORDINANCE was introduced at a regular meeting of the City Council of the City of Anaheim held on the ___________day of _________________, 2025, and passed and adopted on the _______day of ______________, 2025, by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
CITY OF ANAHEIM
By:__________________________________
MAYOR OF THE CITY OF ANAHEIM
ATTEST:
_____________________________________
CITY CLERK OF THE CITY OF ANAHEIM
154375.6 / LM