BACKGROUND
The Business License Code has remained largely unchanged for many years, with modifications made only when necessary. Despite these limited updates, business owners and a pplicants have continued to receive consistent service without interruptions in the licensing process. Over time, new sections and definitions have been added gradually to reflect shifts in industry practices, societal and cultural trends, and emerging local issues. As businesses have evolved and increasingly resist rigid classification, th e City is now proposing a broader, more flexible approach to encompass a wider range of business types under this Update.
A full rewrite of the Business License Code has never occurred, largely because updating the code was viewed as a time-intensive undertaking, and the fact that the Code was outdated was not viewed as a hindrance to licensing practices . However, allowing a patchwork of outdated rules to persist is no longer good practice. A comprehensive code update is now needed to create a consistent framework for all businesses operating within the C ity. Many obsolete or overly specific provisions have lingered simply because they were easy to ignore, but that will be addressed by this update.
PROPOSAL
The Business License Code has been modernized to remove redundancies and outdated language, update business categories, and streamline structure and formatting to align with the City’s Development Code. This effort simplifies licensing, reflects current economic realities, and ensures the c ode keeps pace with the City’s evolving business environment. The goal is to make the business licensing process clear and to ensure effective compliance when enforcing its requirements.
The proposed update represents a near -complete reorganization, with significant restructuring and removal of obsolete sections. The final draft can be found under Attachment No. 1, with the original Code under Attachment No. 2. The changes were so extensive that producing a redline comparison is not feasible.
The Business License Division has been continually working on this update since 2022, coordinating with a consultant, Avenu Insights & Analytics, as well as the City’s attorney firm Best Best & Krieger LLP (BBK) for their guidance and feedback on changes to the Code.
Business License Code Update
December 9, 2025
ANALYSIS
The update to the Business License Code is driven by the City’s commitment to maintain a streamlined, business-friendly process. While the current code generally functions well and has presented few challenges for businesses, modernizing the code will align it more closely with the City’s broader economic development goals.
This update removes outdated language and processes, clarifies licensing requirements, and eliminates unnecessary barriers, thereby creating a clearer, more efficient framework that supports both business growth and the City’s responsibility to protect public health, safety, and welfare.
The Business License Code requires full reorganization, clearer terminology, and improvements to the overall process. Staff have identified several issues that necessitate these amendments to ensure the code remains clear, efficient, and aligns with current best practices. The update will remove archaic procedures and simplify implementation as well.
Summary of Proposed Changes:
• Comprehensive reformatting and reorganization
• Consolidates business types into a table and simplifies related code provisions.
• Updates section numbering and sequencing for easier reference. • Clarifies taxes and fees for specific license types.
• Distinguishes between business licenses and business permits while reducing the number of permit categories.
• Adds explanatory language throughout for greater clarity. • Moves the definitions section toward the end for consistency.
Additional language was included to clarify the distinction between a business permit and a business license —where a permit authorizes certain activities, and a license grants permission for regulated ones. The number of permit categories was consolidated to simplify staff review. Overall, these revisions are administrative and organizational in nature, designed to reduce ambiguity, improve readability, and maintain the original intent of the code.
Business License Code Update
December 9, 2025
Sections deleted or moved:
o Amusement and Game Machines (Was moved to the City’s Development Code)
o Firework Stands and Displays
o Keeping of Poultry and Animals
o Closing Out Sales
o Taxicabs
o Well Drilling
o Billboards
o Yard Sales (Was moved to the City’s Development Code in 2016) o Slaughterhouse
o Tip Sheet
The above sections were deleted because they are outdated, have never been used, are prohibited in the City, or are no longer applicable (e.g., Tip Sheets, Slaughterhouse, Keeping of Poultry and Animals, Closing Out Sales, Well Drilling).
Other sections, such as those related to Taxicabs, were removed because they are regulated by another entity, the California Public Utilities Commission. Additional topics, including Amusement and Game Machines, Billboards, and Yard Sales were relocated in 2016 and are now addressed in the Development Code.
Overhaul of appeal process
Previously, a decision by the Business License Officer could be appealed to the Business License Review Board, and that decision could, in turn, be appealed to the City Council. To simplify and modernize the process, the appeal procedure has been revised so that appeals are now heard directly by a Hearing Officer, who is the City Manager or their designee. The Hearing Officer’s decision is final and not subject to further appeal.
A two -tiered appeal process is uncommon. Most cities provide a single standard appeal, typically to the Hearing Officer, who is either the City Manager or their designee. Arcadia’s current process, which allows appeals to both the Business License Review Board (Planning Commission) and the City Council, is not typical. The proposed code update would eliminate the need for the Business License Review Board in this context, reducing the number of hearings required for relatively minor business license matters and aligning the City with standard practice.
Business License Code Update
December 9, 2025
Overall, these changes are primarily administrative and are not expected to have a significant impact on existing or prospective businesses. Most updates concern internal processes and should not materially affect the public’s experience in obtaining a business license.
ENVIRONMENTAL ANALYSIS
The California Environmental Quality Act (CEQA) require s that certain projects be reviewed for environmental impacts and that environmental documents be prepared. The proposed update to the businesses, professions, trades and occupations, are exempt from the requirements of CEQA pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that the proposed municipal code amendments would not have a significant effect on the environment and, thus, are not subject to CEQA review.
PUBLIC COMMENTS/NOTICE
A public hearing notice for this item was published in the Arcadia Weekly on November 20, 2025, and posted at the City Clerk’s Office, City Council Chambers, at the Arcadia Library, and on the City’s Business License website on November 19, 2025. In addition, the Arcadia Chamber of Commerce and the Downtown Arcadia Improvement Association were specifically notified of the proposed changes , given their role in the local business community . As of December 5, 2025, no comments were received.
RECOMMENDATION
It is recommended that the Business License Review Board adopt Resolution No. 2179 finding that the Business License Code Update (Ordinance No. 2411) is Categorically Exempt under the California Environmental Quality Act (“CEQA”) and forwarding a recommendation to the City Council to approve the comprehensive update to Article VI of the Arcadia Municipal Code regarding Businesses, Professions, Trades and Occupations.
Business License Code Update
December 9, 2025
Approved:
Lisa L. Flores
Deputy Development Services Director
Attachment No. 1: Resolution No. 2179 with Final Draft of the Business License Code Update
Attachment No. 2: Article VI of the Arcadia Municipal Code
Attachment No. 5
Preliminary Exemption Assessment
Preliminary Exemption Assessment FORM “A”
PRELIMINARY EXEMPTION ASSESSMENT
1. Name or description of project: ORDINANCE NO. 2411 AMENDING ARTICLE VI OF THE
ARCADIA MUNICIPAL CODE REGARDING THE
BUSINESSES, PROFESSIONS, TRADES, AND
OCCUPATIONS (BUSINESS LICENSE) CODE
2. Project Location – Identify street
address and cross streets or attach
a map showing project site
(preferably a USGS 15’ or 7 1/2’
topographical map identified by
quadrangle name):
Citywide
3. Entity or person undertaking
project:
A. City of Arcadia
B. Other (Private)
(1) Name
(2) Address
4. Staff Determination:
The Lead Agency’s Staff, having undertaken and completed a preliminary review of this project in accordance with the Lead Agency's "Local Guidelines for Implementing the California Environmental Quality Act (CEQA)" has concluded that this project does not require further environmental assessment because:
a. The proposed action does not constitute a project under CEQA. b. The project is a Ministerial Project.
c. The project is an Emergency Project.
d. The project constitutes a feasibility or planning study. e. The project is categorically exempt.
Applicable Exemption Class:
f. The project is statutorily exempt.
Applicable Exemption:
g. The project is otherwise
exempt on the following basis:
15061(b)(3) – Class 1 (Common sense exemption)
h. The project involves another public agency which constitutes the Lead Agency.
Name of Lead Agency:
Date: November 10, 2025 Staff: Simon Vuong, Economic Development Manager