Opinion No. (2003)

BILL LOCKYER Attorney General DANIEL G. STONE Deputy Attorney General THE HONORABLE JAMES F. PENMAN, SAN BERNARDINO CITY PROSECUTING ATTORNEY, has requested an opinion on the following question: May a city, by ordinance, shift the burden of an annual business license fee from individual swap meet vendors to the operator of the swap meet without the prior approval of city voters? CONCLUSION A city may, by ordinance, shift the burden of an annual business license fee from individual swap meet vendors to the operator of the swap meet without the prior approval of city voters if the fee is imposed as a regulatory measure. ANALYSIS We are informed that a city currently imposes an annual business license fee on each outdoor swap meet vendor in an amount sufficient to cover the city's costs in processing the license application and inspecting the vendor's premises. 1 The question presented for resolution is whether the city may shift the burden of this business license fee from the vendors to the operator of the swap meet without first obtaining approval from the city's electorate. We conclude that prior voter approval would not be required if the fee were imposed as a regulatory…