Goodyear business owners may soon need to apply for a business license from the city.
The business permit was initially introduced to the city council as part of a two-step solution to the influx of group homes and sober living homes in the city.
On April 29, the council approved a zoning ordinance that is expected to help solve the problem by establishing buffer requirements and requiring group homes to apply for business permits from the city.
However, the city is still working out issues with the business permit proposal. The City Council voted unanimously to table the original measure, but officials want the measure to be voted on as soon as possible so it can go into effect July 1, along with buffer requirements.
The Business License Program applies to all Goodyear businesses. Here's what you need to know:
What is the difference between business registration and business license?
The city currently only requires business registration. The program was implemented in 2006, according to City Attorney Rorick Massey.
When a company registers with the city, it simply lets the city know that it will do business there. But there is no permitting or regulatory process, Massey said.
Under the new program, businesses must obtain a license from the city to legally operate, meaning the city can regulate them and impose penalties if they violate the rules.
Many cities, including Avondale, Buckeye, Surprise and Glendale, require businesses to obtain a business license.
Once the City Council passes the ordinance, the city will contact businesses to ensure they are contacted by the July 1 implementation date. City Manager Wynette Reed said businesses will receive a letter or email if the city has one available.
Massey said the city plans to convert registrations for existing businesses into licenses this year without requiring any action on the part of the businesses. But next year, all businesses will have to apply for a license from the city. Businesses currently need to register annually and will continue to need to apply for a license every year.
The fee to apply for a license is $75, the same as the fee to obtain registration.
The license requires all businesses to allow the city to conduct property inspections to ensure compliance with city ordinances. Companies must also display their licenses.
Business owners also need to check whether they are licensed to operate any business they operate. For example, salon owners will need to show proof of their cosmetology license, Massey said, and attorneys will need to show proof of their license to practice law in the state.
City hopes to crack down on unlicensed group homes
This is where the connection with the group home becomes important. The city is cracking down on illegal and unlicensed homes, so all operators will need to prove they have the proper licenses to operate. To operate legally, you must obtain a license from the Arizona Department of Health Services.
Additionally, employees must be on-site during business hours.
If a business provides false information to the city or operates illegally, its license is in jeopardy and can be suspended, Massey said.
Businesses operating without a license will be fined $300 for the first time. For a second violation, that fee increases to $1,000, Massey said. Because each day is a different violation, businesses can be fined up to $1,000 per day. Massey said businesses could be fined up to $500 if they don't allow city inspectors access.
Some organizations, such as churches, are exempt.
City Council expresses concern over home-based businesses and lemonade stands
Councilor Vicki Gillis expressed concern that the fees would not be high enough to encourage companies, particularly those making large profits from illegal operations, to obtain licenses.
Massey said after the civil penalty, the city could move forward with criminal violations.
Councilman Bill Stiepp asked if neighbors selling Tupperware would need to obtain a business license from the city. Home-based businesses require a license, but the city will not inspect the property, Massey said.
Accountants and others who work from home or connect with the public online will need to obtain a license to operate, but will not be subject to inspection, Massey said.
Mr. Stipp expressed concerns about closing home-based businesses and requiring freelancers to obtain business licenses. One problem may be solved, but another may arise, Stippe said.
“I think this is the worst possible case for government intervention. There are bad guys out there somewhere that we're going to deal with, and we're going to punish those people,” Stippe said.
But Massey said those companies, or anyone doing business in Goodyear, now have to register with the city. The process to obtain a license is similar, just go online and fill out the paperwork.
Councilwoman Sheri Lauritano said she thinks the city's licensing plan is too broad. She requested clippings for people like home-based businesses and dog walkers.
But Massey said the city is recommending a broad brush to balance licenses in a nondiscriminatory manner. And the city has already instituted several carve-outs by not allowing people to get tested.
Councilman Brannon Hampton expressed concern that children would need a business license if they wanted to set up a lemonade stand or sell Girl Scout cookies.
“I don't think our goal is to close the lemonade stand,” Massey said.
The City Council ultimately decided to introduce an ordinance that would further protect home-based businesses and lemonade stands.
Massey wants to get the proposal back to City Council as soon as possible to stick to the proposed July 1 implementation date.
How to file a complaint against an unregistered group home
To report suspected code compliance issues in group homes or sober living homes, residents can download the Goodyear mobile app or use the city's website. Non-emergency criminal matters can be filed with the Goodyear Police Department through the city's website. Residents are encouraged to call us directly to report crimes that require immediate attention.
Here's where to contact the reporter: ahardle@gannett.com or call 480-259-8545. Follow her on X (formerly Twitter). @AlexandraHurdle.