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ARTICLE I. GENERAL LICENSE REQUIREMENTS (4-4-005 et seq.)
As used in this Title 4, unless the context clearly indicates otherwise:
"Applicant" means any person applying for a license. The term "applicant" includes all controlling persons.
"Board of health" means the board of health of the City of Chicago.
"Building code" or "building provisions of this Code" shall have the meaning ascribed to the term in Section 1-4-090.
"Chicago Zoning Ordinance" means the City of Chicago Zoning Ordinance set forth in Title 17 of this Code.
"City" means the City of Chicago.
"Commissioner" means the Commissioner of the Department of Business Affairs and Consumer Protection or his or her designee.
"Commissioner of Public Health" means the Commissioner of the Department of Public Health of the City of Chicago or his or her designee.
"Controlling person(s)" means any person who (1) is an officer, director, manager, managing member, partner, general partner or limited partner of an entity; or (2) owns, directly or indirectly through one or more intermediate ownership entities, 25 percent or more of the interest or voting shares in an entity seeking or holding a license; or (3) is among the top three persons holding the highest percentage of ownership interest in an entity; or (4) controls or directs in any manner the actions of a legal entity.
"Department" means the Department of Business Affairs and Consumer Protection.
"Department of Health" or "Department of Public Health" means the Department of Public Health of the City of Chicago.
"Fire Commissioner" means the Commissioner of the Fire Department of the City of Chicago or his or her designee.
"Licensee" means any person licensed or required to be licensed by the City, including all controlling persons.
"Mayor" means the Mayor of the City of Chicago or the Mayor’s designee.
"Minor cannabis offense" means a violation of Section 4 or 5 of the Cannabis Control Act, 720 ILCS 550/1, et seq., concerning not more than 30 grams of any substance containing cannabis, provided the violation does not include a penalty enhancement under Section 7 of the Cannabis Control Act and is not associated with an arrest, conviction or other disposition for a violent crime as defined in subsection (c) of Section 3 of the Rights of Crime Victims and Witnesses Act, 725 ILCS 120/1, et seq.
"Person" has the meaning ascribed to the term in Section 1-4-090.
(Added Coun. J. 5-9-12, p. 27485, § 14; Amend Coun. J. 5-18-16, p. 24131, § 3; Amend Coun. J. 11-26-19, p. 11547, § 2; Amend Coun. J. 2-24-21, p. 27657, Art. III, § 1)
It shall be unlawful for any person to operate any business for which a City of Chicago license is required without first having obtained the required license(s) for such business. Each location at which a business operates must be separately licensed. Except as otherwise provided in Title 4, any person violating this section shall be fined not less than $250.00 nor more than $500.00 for each offense. Each day that a violation continues shall constitute a separate and distinct offense.
(Added Coun. J. 5-9-12, p. 27485, § 14; Amend Coun. J. 11-21-17, p. 61755, Art. V, § 3)
(a) The Commissioner is authorized to order a business closed, in whole or in part:
(1) for engaging in unlicensed business activity, until all the required licenses are obtained, or
(2) for failing to pay any required license fee or to renew a license. The Commissioner shall issue a 10-day notice of violation before any closure under this subsection (a)(2) may take place.
For the purposes of this Chapter, a business that has been issued a cease and desist order for a particular business activity shall be considered closed as to that business activity.
(b) If the Commissioner orders a business closed, whether in its entirety or as to one or more business activities, the Commissioner shall post a notice or sign on the licensed premises indicating that the business is closed in its entirety or as to specific business activities and is prohibited from engaging in them. No person shall remove any such notice or sign unless and until the business reopens, whether in its entirety or as to the closed business activities, in compliance with the Code.
(c) Any person who continues to operate a business which has been closed, in whole or in part, by the Commissioner pursuant to this section shall be subject to a fine of not less than $500.00 nor more than $1,000.00 for each offense. Each day that a violation continues shall constitute a separate and distinct offense. In addition to any other penalty provided by law, such violation may also be punishable as a misdemeanor by incarceration in the county jail for a term not to exceed six months under the procedures set forth in Section 1-2-1.1 of the Illinois Municipal Code and under the provisions of the Illinois Code of Criminal Procedure.
(Added Coun. J. 5-9-12, p. 27485, § 14; Amend Coun. J. 11-21-17, p. 61755, Art. V, § 4)
(Added Coun. J. 5-9-12, p. 27485, § 14)
(a) All businesses must be licensed to operate in the City of Chicago and shall obtain a limited business license from the department unless:
(1) the business is required to obtain a regulated business license under Chapter 4-6 of this Code; or
(2) the business is required to obtain one or more specific licenses under a specific chapter of Title 4 of this Code; or
(3) the City of Chicago is preempted from licensing the business by federal or state law; or
(4) a permit has been issued for the business pursuant to Section 4-4-022.
(b) The license fee for a limited business license shall be as set forth in Section 4-5-010 and shall accompany the license application.
(c) Any person who obtains a limited business license shall limit the activities carried on in such business to those activities identified in the license application. If the licensee adds any activity not identified in, or outside the bounds of, or not incidental to the description of the business activities provided at the time of licensing, the licensee shall so inform the department prior to commencing the additional activity. If a specific license is required for the additional business activity, the licensee shall obtain such specific license prior to commencing the additional activity.
(d) A limited business license shall not be required for any business activity that has been disclosed in the license application and that is incidental to the primary business activity for which a license has been obtained. Provided, however, that if a specific license is required for such incidental business activity, the licensee shall obtain such specific license prior to commencing the incidental activity.
(e) Notwithstanding the foregoing requirements, the licensing provisions of this chapter shall not apply to the sale or exchange of used merchandise conducted or controlled by charitable organizations.
(Added Coun. J. 5-9-12, p. 27485, § 14)
(a) In reviewing a license application, the commissioner shall determine whether a proposed business activity is an emerging business type or a non-traditional business activity that falls outside the parameters of any existing regulated business license under Chapter 4-6 or other specific license type under Title 4, and whether the proposed business activity presents potential risks to the public health, safety and welfare such that, for the protection of the public, the activity must be subject to more intense regulation than would be associated with a limited business license.
(b) If the commissioner so determines, the commissioner may disapprove the license application. The applicant may seek a hearing on the disapproval pursuant to the procedures of Section 4-4-060.
(c) In the alternative, the commissioner is authorized to grant an emerging business permit to the applicant to engage in the proposed business activity on an experimental basis.
(d) The emerging business permit shall be non- renewable and valid for a maximum of two years. The emerging business permit shall be a personal privilege and not property. The emerging business permit shall not be transferrable to another location, person or business entity. If the officers or owners of the business change, the emerging business permit shall immediately terminate unless the change has been approved in advance by the commissioner.
(e) The commissioner may attach conditions to the emerging business permit as are reasonably required to protect the public health, safety and welfare from risks including, but not limited to: adverse impact on public health, public safety, increased demand on city services, increased environmental impacts, or increased traffic or congestion in the public way. The commissioner may attach any such conditions when the emerging business permit is issued, or the commissioner may attach, remove or modify conditions at any time during the term of the permit, upon reasonable notice to the permit holder.
(f) The commissioner may make a determination at any time during the term of the emerging business permit that the permitted business activity as conducted presents an unreasonable risk to the public health, safety and welfare which cannot be mitigated, and may rescind the emerging business permit, with or without prior notice. If an emerging business permit is rescinded, the permit holder shall be given the opportunity to appear before the commissioner to contest the permit rescission before the rescission is effective or no later than ten days after the rescission is effective.
(g) At the end of the term of the emerging business permit, the permit holder's permission to engage in the permitted business activity shall terminate unless (1) the City Council has established a new license category or amended an existing license category under which the permitted business activity may be licensed; and (2) the permit holder has applied for and obtained the necessary license.
(h) When issuing an emerging business permit, and when attaching, removing or modifying conditions on an existing emerging business permit, the commissioner shall make a report to the license review advisory group and to the chairman of the city council committee on license and consumer protection or its successor committee describing the permitted business activity and the conditions imposed upon that activity.
(i) After three-fourths of the emerging business permit term has elapsed, the permit holder may submit a report to the commissioner and to the chairman of the city council committee on license and consumer protection or its successor committee requesting that a license category be created or amended to license the permitted business activity. The report shall describe the permitted business activity, the history of its operation under the emerging business permit, any disciplinary, legal or law enforcement problems that arose out of the permitted business activity, any positive or negative impacts of the permitted business activity on the public health, safety and welfare, and the public benefit derived from the permitted business activity. The city council may, in its discretion, elect to establish a new license category or amend an existing license category on the same or different terms as the emerging business permit.
(j) Each application for an emerging business permit shall be considered independently. The issuance of an emerging business permit to an applicant, or the conditions imposed on a permit by the commissioner, shall not be precedent for the issuance of, or imposition of permit conditions upon, a similar emerging business permit to any other applicant or permit holder.
(k) Operation of a business under an emerging business permit shall constitute acceptance of the terms and conditions of this ordinance, any applicable rules and regulations, and any special conditions of the permit.
(l) The commissioner may issue rules and regulations to effectuate the purposes of this section.
(Added Coun. J. 5-9-12, p. 27485, § 14)
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