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Published on Friday, March 29, 2013

Amended version of city business license system bill moves

Yesterday, the House Local Government Committee passed SB 5656, which requires cities with business licenses to join the state’s business licensing service (BLS) or a city-developed licensing portal. To address some city concerns, several amendments were added before it came out of committee:

  • Delays the date that all cities with business licenses must join one of the systems to July 1, 2019.
  • Authorizes the Department of Revenue or cities to delay or phase-in the issuance and renewal of business licenses if funding or resources are insufficient to meet the deadlines or other provisions. Previously, the bill only gave this authority to the Department of Revenue.
  • Requires the Department of Revenue to issue a report to the Legislature by July 1, 2017, indicating what actions it has taken to comply with the bill and what the costs of those actions were; what actions the Department intends to take, and how much they will cost, by the July 1, 2019, implementation date; what actions the Department has taken to comply with the diverse and differing needs of different sizes of cities; and whether the Department believes it can meet the deadlines established.

In addition, the bill now includes a sunset date of July 1, 2018. This sunset requires the Legislature to take a proactive measure to reaffirm the requirements of this bill before cities would be required to join a licensing system in 2019.

AWC continues to believe this bill is an unnecessary mandate, but these provisions are an improvement over previous versions. In order to be enacted, the bill still must pass the full House, and the Senate must concur with the amended version of the bill. We’ll keep you posted. 

Categories: Budget & finance