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Ordinance 2023-4538 ORDINANCE NO. 2023-4538 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,AMENDING CHAPTER 102 OF THE CODE OF THE CITY OF MIAMI BEACH, ENTITLED "TAXATION," BY AMENDING ARTICLE V, ENTITLED "LOCAL BUSINESS TAX," BY AMENDING SECTION 102-373 THEREOF, ENTITLED "INVESTIGATION TO DETERMINE COMPLIANCE WITH ARTICLE," BY REINFORCING THE AUTHORITY OF CITY DEPARTMENTAL PERSONNEL TO ENTER PUBLIC AREAS OF BUSINESS ESTABLISHMENTS IN ORDER TO INVESTIGATE OR DETERMINE COMPLIANCE WITH THE CITY CODE, AND BY AMENDING SECTION 102- 377 THEREOF, ENTITLED "PENALTIES, ENFORCEMENT; COLLECTION OF DELINQUENT FEES AND TAXES, AND CRIMINAL PENALTIES" BY ENHANCING THE PENALTIES FOR BUSINESSES THAT REPEATEDLY OPERATE WITHOUT PROCURING THE REQUIRED LOCAL BUSINESS TAX RECEIPT; AND PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE. WHEREAS, the City consistently finds businesses that operate without first obtaining the required local business tax receipt; and WHEREAS, the current penalties, as set forth in the City Code, and Special Magistrate proceedings, have not been effective in curtailing such businesses operating without a business tax receipt; and WHEREAS, the specter, and potential imposition, of more stringent penalties for those businesses continuing to operate without a business tax receipt, despite having previously been cited for doing so, is essential in remediating this ongoing issue; and WHEREAS, it is also essential that personnel from appropriate City departments (Police, Fire, Code, and Building) are authorized to enter the public areas and spaces contained within commercial business establishments, for the purpose of determining compliance with this article and chapter 18 of the City Code; and WHEREAS, the City Administration believes that the proposed amendments will be effective in deterring and curtailing the operation of businesses without first obtaining the required business tax receipt, or otherwise operating in violation of this article or chapter 18 of the City Code; and WHEREAS, the amendments set forth below are necessary to accomplish the objectives identified above, in order to protect the health, welfare, and safety of the City's residents and visitors by ensuring that businesses are operating in a manner consistent with the City Code. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AS FOLLOWS: SECTION 1. Those Sections of the City's Local Business Tax Ordinance, as such Ordinance is codified in Sections 102-373 and 102-377 of the City Code, shall be amended as follows and hereinafter set forth below: CHAPTER 102 TAXATION ARTICLE V. LOCAL BUSINESS TAX' * * *• . Sec. 102-373. — Investigation to determine:compliance with article. , The city manager,.or his the city manager's designee, may investigate persons and/or establishments engaged in any business encompassed by this article and make such inquiry as shall be necessary to determine whether or not such persons have procured a business tax receipt as required by this article, or engaged in conduct which violates this article or chapter 18. City police, fire, code, and building department personnel shall be authorized to enter all public areas and spaces of commercial business establishments operating in the city whenever such areas and spaces are open to the public. Sec. 102-377. — Penalties, enforcement; collection of delinquent fees and taxes, and criminal penalties. (a) Any person who shall carry on or conduct any business for which a tax receipt is required by this article without first obtaining such tax receipt shall be issued a violation for the offense, which shall The enhanced enforcement for this violation shall be pursuant to subsection 102 377(d) herein be subject to the following fines and.penalties: . . (1) First offense within a 12-month period: punishable by a $1,000.00 civil fine, and the business shall 'be prohibited from operating until the required -tax receipt is obtained. (2). Second offense within a 12-month period: punishable by a $3,500.00 civil fine, and the business shall be prohibited from operating for a period of 10 days from the date of the second violation or until the required tax receipt is obtained, whichever is later. (3) Third offense within a 12-month period: punishable by a $5,000.00 civil fine, and the business shall be prohibited from operating and applying for a tax receipt for a period of 13 months from the date of the third violation. Additionally, no new tax receipt shall be issued during such 13-month period to any other business, person, firm, corporation or entity in which the violator (taxee), or any of its corporate officers in the immediately preceding 12-month period, or any person owning, directly or indirectly, ten percent or more of the violator (taxee) in the preceding 12-month period, have any monetary or equitable interest. (4) Any offense committed during a period of time in which the city manager, or the ' city manager's designee, has declared a high impact period and established any high impact measure(s) pursuant thereto, shall authorize the city manager, or the city manager's designee, to prohibit the business from operating and applying for a tax receipt for a period of 13 months from the date of the violation. Additionally, the city manager, or the city manager's designee, may prohibit the issuance of any new tax receipt during such 13-month period to any other business, person, firm, corporation or entity in which the violator (taxee), or any of its corporate officers in the immediately preceding 12-month period, or any person owning, directly or indirectly, ten percent or more of the violator (taxee) in the preceding 12-month period, have any monetary or equitable interest. set forth in s„bsection 102 386(c)M\and (3) Businesses issued a notice of violation and prohibited from operating, pursuant to subsections (a)(1)—(a)(4) herein, may request a prompt post-closure hearing, before a special magistrate, by remitting a notice of appeal and request for hearing within 10 days of the issuance of the notice of violation. Enhanced enforcement for continuing violations shall be pursuant to subsection 102-377(d) herein. (b) Any person who violates any other provision of this article shall be cited with a notice of violation as provided in section 102-322 of this Code, and may be subject to one or more of the following enforcement/collection procedures: (1) Suspension/revocation proceedings as set forth in sections 102-383 through 102-385. (2) Suit for injunctive relief to enjoin operation of the business in violation of this article. (c) As an additional means of enforcement/collection and supplemental to the above, when a • notice or record of any past-due business tax/fees and penalties that become due and payable to the city after the effective date of this section is recorded in the public records of the county, the notice shall constitute a special assessment lien upon all real and personal property of the business owing such fees and penalties, and shall remain a lien equal in rank and dignity with the lien of ad valorem taxes, and shall be superior in rank and dignity to all other liens, encumbrances, titles and claims in, to or against the property involved. Such liens may be foreclosed or levied upon in the manner provided by law. (d) In addition to the above, a continued violation of subsection 102-377(a)for a period of 30 days or more without first obtaining a tax receipt, shall be punished .by imprisonment not . to exceed 60 days or by imposition of a fine not to exceed $500.00 or both pursuant to section 1-14 of the City Code. (e) As an additional means of enforcement end s„pplemental to the above if any per on cars on or conducts any b„siness for which a tax receipt is required by this article vccr r r��iei without first obtaining such tax receipt, then the city may prevent the business from operating until the required tax receipt is.obtained (f) An alcoholic beverage establishment that permits, allows, authorizes, grants, or approves the use of its premises by a promoter, who has violated the provision(s) of section 102- 360, shall be subject to the immediate closure of its business operations for the event duration. SECTION 2. REPEALER. All ordinances or parts of ordinances in conflict herewith be and the same are hereby repealed. SECTION 3. SEVERABILITY. If any section, subsection, clause or provision of this Ordinance is held invalid, the remainder shall not be affected by such invalidity. SECTION 4. CODIFICATION. It is the intention of the Mayor and City Commission of the City of Miami Beach, and it is hereby ordained that the provisions of this ordinance shall become and be made part of the Miami Beach City Code. The sections of this ordinance may be renumbered or relettered to accomplish such intention, and the word "ordinance" may be changed to "section," "article," or other appropriate word. SECTION 5. EFFECTIVE DATE. / This Ordinance shall take effect on the # day of Al rCIL.. , 2023. PASSED AND ADOPTED this 22 day of F{brim/ 2023. ATTEST: FEB Dark`Qglber, Mayor Z07.3 -;fir` 8 '',,,, Rafa E. Granado, City ClerkINCURP ORATED = APPROVED A6 `"= FORM & LANGUAGE eH 26;,_,-- &FOR EXECUTION (Sponsored by Commissioner Alex J. Fernandez) Underline denotes additions /-5 2-3 Striketh-reughdenotes deletions City Attorney Date Ordinances-R5 A MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Alina T. Hudak, City Manager DATE: February 22, 2023 10:15 a.m. Second Reading Public Hearing SUBJECT:AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 102 OF THE CODE OF THE CITY OF MIAMI BEACH, ENTITLED "TAXATION," BY AMENDING ARTICLE V, ENTITLED "LOCAL BUSINESS TAX," BY AMENDING SECTION 102-373 THEREOF, ENTITLED "INVESTIGATION TO DETERMINE COMPLIANCE WITH ARTICLE," BY REINFORCING THE AUTHORITY OF CITY DEPARTMENTAL PERSONNEL TO ENTER PUBLIC AREAS OF BUSINESS ESTABLISHMENTS IN ORDER TO INVESTIGATE OR DETERMINE COMPLIANCE WITH THE CITY CODE, AND BY AMENDING SECTION 102-377 THEREOF, ENTITLED "PENALTIES, ENFORCEMENT; COLLECTION OF DELINQUENT FEES AND TAXES,AND CRIMINAL PENALTIES" BY ENHANCING THE PENALTIES FOR BUSINESSES THAT REPEATEDLY OPERATE WITHOUT PROCURING THE REQUIRED LOCAL BUSINESS TAX RECEIPT;AND PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION,AND AN EFFECTIVE DATE. BACKGROUND/HISTORY This item was referred to the Public Safety and Neighborhoods Quality of Life Committee (PSNQLC)at the April 21, 2021 City Commission meeting and is sponsored by Commissioner Fernandez. The purpose of the referral was to discuss the business tax receipt (BTR) criteria and propose modifications to vetting BTR renewals for businesses that routinely pose public safety and/or code enforcement concerns. As a result of the referral, the Administration established a cross-departmental BTR working group that included staff from the City Attorney's Office, Code Compliance Department, Police Department, Fire Department, Building Department, Planning Department and Finance Department. The group met regularly to address the issues and come up with recommended solutions to address the concerns. The cross-departmental BTR team proposed two changes to the City Code to (1) specifically allow police, fire, code, and building department personnel to enter all public areas and spaces of commercial business establishments that are open to the public and (2) to progressively increase the fines for BTR code violations to deter negative behavior. Page 395 of 1109 This item has been heard at the PSNQLC on September 20, 2021, March 29, 2022, September 21, 2022, and November 30, 2022. At the November 30, 2022 PSNQLC meeting, the committee further refined the recommended fine schedule. At the last meeting on November 30, 2022, the Committee directed the Administration to bring the recommend changes to the City Code to the full Commission for a first reading. This item was passed on first reading at the February 1, 2023 Commission meeting. ANALYSIS Proposed Changes to the City Code The first proposed change to the City Code is to add specific language in Section 102-373 to allow the City's regulatory departments access to public areas of businesses with a BTR. Currently, Police and Fire have no issues entering businesses, but on occasion, it can be problematic for Code and Building to gain access. The proposed change to the City Code now specifically mentions that Police, Fire, Code and Building department personnel are authorized to enter all public areas and spaces of commercial business establishments that are open to the public. The second proposed change is to increase the fines in Section 102-377 as currently the fine for operating without a BTR is$1,000 for first offense and $500 thereafter and does not appear to be a sufficient deterrent. The proposed changes are in the attached draft ordinance and highlighted below. • First offense within a 13-month period: punishable by a$1,000 civil fine, and the business shall be prohibited from operating until the required tax receipt is obtained. -Second offense within a 13-month period: punishable by a $3,500 civil fine, and the business shall be prohibited from operating for a period of 10 days from the date of the second violation or until the required tax receipt is obtained, whichever is later. •Third offense within a 13-month period: punishable by a $5,000 civil fine, and the business shall be prohibited from applying for a tax receipt for a period of 13-months from the date of the third violation. •Any offense committed during a period in which the City establishes High Impact Measures, may result in the City Manager, or her designee, prohibiting the applicant from applying for a tax receipt for a period of 13-months from the date of the violation. -Businesses issued a notice of violation and prohibited from operating, pursuant to subsections (a)(1) (a)(4)herein, may request a prompt post-closure hearing, to be held before a special magistrate, by remitting a notice of appeal and request for hearing within 10 days of the issuance of the notice of violation. SUPPORTING SURVEY DATA NA FINANCIAL INFORMATION Page 396 of 1109 NA CONCLUSION The PSNQLC recommended changes to the City Code to (1) specifically allow police, fire, code, and building department personnel to enter all public areas and spaces of commercial business establishments that are open to the public and (2) to progressively increase the fines for BTR code violations to deter negative behavior. Is this a"Residents Right Does this item utilize G.O. to Know" item, pursuant to Bond Funds? City Code Section 2-14? No No Legislative Tracking Finance Sponsor Commissioner Alex Fernandez ATTACHMENTS: Description o Ordinance Page 397 of 1109