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Minutes

Committee Hearing, December 5, 2005

Philadelphia City Council Committee HearingsDec 5, 2005

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Mr. Zaslow

Well, delinquency is not defined in the law. And we are suggesting that people should have a year before you -- on the state level we were looking for two years. And they are considering a two-year period, months, of delinquency before they 18 are going to onerously forbid you from getting 19 a license to fix your overflowing sewage in 20 your house, if that's what you need. 21 We just think that leaving 22 "delinquency" undefined, "delinquent" is an 23 hour. If it is due on that day, and it is not 24 paid -- I don't know how good their systems are -- but certainly their computer may show 133 BILLS NO. 051025 and 051027 - 12/5/05 the very day that it is due. And whatever system they are working out may show the tax wasn't paid. Whether a notice goes out or doesn't, it was unpaid. COUNCILMAN DiCICCO: But there was notice prior to that deadline date. There is notice given prior to. I get a bill from PGW. It says your billing date is, the payment must be received by December 15. The late fee is December 25.

Mr. Zaslow

So if they don't pay on the 26th, it is delinquent. COUNCILMAN DiCICCO: And I get the notice generally two weeks before the money is due. I don't think that's the way it works with business licenses. I think it is even more time, you get more lead time than 10, 15 days. And am I correct in that?

Mr. Zaslow

It may be more than a day.

Mr. Haigler

I believe you are correct, Councilman. And I also believe that persons do 134 BILLS NO. 051025 and 051027 - 12/5/05 have the ability to enter into an agreement with the law department to pay whatever taxes they have owed to the city. As far as this bill is concerned, again, the department is in the process of completing its implementation of its computer system. And we have worked with the revenue department, talked this through with them. And we are prepared to integrate our processes with their processes to effectuate the enforcement of this bill.

Mr. Zaslow

Maybe I am missing something, because the bill has to do with a lot more than taxes. It is charges, fees, rents, claims, penalties, fines. This can be coming from different 19 sources across the City of Philadelphia. You 20 have some fine in Municipal Court, a housing code violation -- which maybe you know about it, maybe you don't, because that's the way things work over here, that you can have a fine against your house that you were never notified about -- the next day you go in for a 135 BILLS NO. 051025 and 051027 - 12/5/05 permit of some kind and you hear for the first time you are not going to get that permit. And it doesn't seem fair that instantaneously you are tying in denying a license for something which is not license related, per se, without giving an opportunity, which we are suggesting of a year, to correct such a problem. You don't work with the City of Philadelphia in two weeks to get an agreement. It doesn't happen that way. You want to get an agreement to pay your taxes, assuming you have the money. And, again, I am stressing here that there are people who are not owners of lots of real estate, but small people who say, "I can't make an agreement with the city right now. There is nothing I can do. I lost my parents. I inherited this house. I can't pay the tax. I can't pay the fine." Under those circumstances, it just seems overbearing and unfair to deny a license to fix a front walkway or to add a front porch or something else they may be in the process 136 BILLS NO. 051025 and 051027 - 12/5/05 of doing. COUNCILMAN DiCICCO: But I think there are mechanisms in place -- and I am not that educated in this field -- but there are mechanisms in place today and going forward that will give that individual or entity an opportunity to make his or her case at the appropriate department, whether it's at the -- in court, because there is an action on a code violation that will then trigger some action on the part of L & I. I mean, if you had pending action that you have not been delinquent on, not just paying the tax, the law provides for relief until such time all arguments have been exhausted.

Mr. Haigler

There is an appeals process for all licenses to the Board of Licenses & Inspections Review. If the person so feel that they are not satisfied at the Board of Licenses & Inspections Review, they can appeal that process to Common Pleas Court. So there is an appeal process of the 137 BILLS NO. 051025 and 051027 - 12/5/05 Common Pleas Court for most administrative action that is taken against an individual.

Mr. Zaslow

The law does not provide a supersedeas when you file an appeal. The law doesn't say, if you are delinquent but on appeal, that is going to be stopped, you can get your license issued. The law says, you are delinquent, no license. So, yes, you can file an appeal. Until you resolve the delinquency, you don't get your license. So if the law were to be amended -- that's a good way to solve this problem -- to say that a supersedeas, as we call it in the law, that the law of the ordinance you have enacted is not going to take effect, provided there is an appeal which is ongoing, that would be a solution to some of my concerns.

Mr. Haigler

I am not an attorney, but I do believe that there are general provisions in the administrative code under Title 4 that addresses appeals to the Administrative Board. There is a section under Title 4 for 138 BILLS NO. 051025 and 051027 - 12/5/05 that portion of the licenses that are being suspended under it. And then there is a general provision under Title for business 5 licenses that are being -- I guess, the 6 general provision under Title 1 of the 7 Philadelphia Code that covers everything for 8 the appeals process. 9 COUNCILMAN DiCICCO: I know from personal experience, a number of cases that come through my office, of businesses who have received various notices either of suspension or license renewal. And I know one case, which was a very big case, involving a wage tax dispute, where Revenue believed that the wage tax from the principal owners was X, and the owners said, well, I don't even live in the city anymore, and I should be only paying a certain amount. That debate, that dispute went on for almost two years. The company remained in business. They are still doing business. It was finally resolved to everyone's satisfaction. I mean, what we are talking about 139 BILLS NO. 051025 and 051027 - 12/5/05 here, I think, goes to the heart of this, is people who are in business, who for one reason or another -- and, by the way, I am considered very business friendly. Some people still call me a Republican because of my business positions in this town.

Councilman Rizzo

Nothing wrong with that. COUNCILMAN DiCICCO: We don't think it is fair to businesspeople who abide by the laws, who do their best effort to pay their taxes and keep their licenses up to date and not become delinquent, to allow folks -- and there are some people in the city who have made it a habit of not paying their taxes, not paying their licensing fees, use the shell game, open up another entity, kind of come in the back door. And they are always in business, but they are not paying their fair share. So I think that that's really what we're looking at. Individual cases could be dealt on, I believe, on an individual basis. Most, all these businesses are in someone's 140 BILLS NO. 051025 and 051027 - 12/5/05 councilmanic district. If they have a problem, they could go to the district Council person and we will step up to the plate. We know those businesses. We know those businesses probably as well as anyone else. And there is always ways in which we can ask for certain consideration, at least during that process of appeal or reconsideration or setting up some sort of a payment plan.

Mr. Zaslow

Councilman, my concern is that the very people you are talking about, the savvy ones, who, number one, they don't care about a license to begin with, they want to build or do, they do whatever they please, they are not going to care about this law. If the law-abiding people, who just don't have the money sometimes to pay their bill, or to reach an agreement that the city is satisfied with -- you go to the city, well, we want 15 percent. The person says, "I don't have 2 person," not even 15 percent. So that person will never be able to get a license, 141 BILLS NO. 051025 and 051027 - 12/5/05 and we just think that that is too much. That people who are going to be able to go behind the scenes and form another corporation, they are not going to be concerned about this bill. It is the small people who are going to be injured by this, is our concern. And it can be remedied. The problem, with some language changes, perhaps, Councilman, could be remedied. COUNCILMAN DiCICCO: Thank you.

Councilman Mariano

Well, that's a good argument either way. Frank is the sponsor, and I think we are going to go on. Anybody else on these two bills? That will take us out of the Public Hearing. (Public Hearing adjourned.) - - - 142 COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC MEETING of the COMMITTEE ON LICENSES & INSPECTION - - - Monday, December 5, 2005 - - - Public Meeting conducted by the Committee on Licenses & Inspections, held in Room 400, City Hall, Philadelphia, Pennsylvania, on the above date, to consider action on the following: BILLS 040604, 050749, 050955, 051025, 051027 - - - PRESENT: RICHARD T. MARIANO, Chair JOAN KRAJEWSKI, Vide-Chair FRANK RIZZO FRANK DiCICCO MARIAN TASCO JAMES KENNEY - - - 143 PUBLIC MEETING

Councilman Mariano

We are going to go into the public meeting. Read me some bills here, the things you want to amend or may not want to amend. Councilwoman Tasco.

Councilwoman Tasco

I have an amendment.

Councilman Mariano

Councilwoman Tasco, that would be on bill?

Councilwoman Tasco

This would be on Bill 040604. And the amendment says that, "the Department of Licenses & Inspections is authorized to deny or revoke a business privilege license for failure to comply with the requirements of this subsection. The Department of Licenses & Inspections shall revoke, upon receipt of a complaint, notice, order, or opinion from a federal or state agency or federal or State Court the business privilege license from a person engaging in or continuing to engage in a business without obtaining and maintaining any license required by federal or state law, if such license is 144 PUBLIC MEETING required to engage in such business under the laws of the United States of America, of the Commonwealth of Pennsylvania." And that's the amendment, and it goes further.

Councilman Mariano

Thank you, Councilwoman. There has been an amendment. The motion has been made to amend this bill. All those in favor. COUNCILMAN DiCICCO: I make a motion to accept the amendment just read into the record. (Duly seconded.)

Councilman Mariano

The motion has been made and seconded. All those in favor of the amendment say, aye. Any opposed? Nobody opposed, so the amendment passes. Let's work on this bill as amended. Bill No. 040604, as amended, be reported out of this committee with a favorable 145 PUBLIC MEETING recommendation. And, Councilwoman, do you want the Rules of Council to be suspended to permit first reading at the next Council session?

Councilwoman Tasco

Yes. (Duly seconded.)

Councilman Mariano

All those in favor? Opposed? Seeing none, Bill No. 040604 is voted out as amended and the Rules of Council suspended. Thank you, Councilwoman Tasco. The next one. COUNCILMAN DiCICCO: Mr. Chairman, I have an amendment to offer Bill No. 050749. All members at this committee have received a copy. And the stenographer will receive a copy, as well. I would ask for approval on this amendment.

Councilman Mariano

We have an amendment on 050749 Councilman DiCicco has given to everyone. Do I hear for a motion for this amendment? 146 PUBLIC MEETING (Duly seconded.)

Councilman Mariano

It has been made and seconded. All those in favor of this motion say, aye. Opposed? None. So the amendment passes. Now we want to do Bill No. 050749 as amended and ask for a suspension of Rules so it can be read at the next Council session. COUNCILMAN DiCICCO: Mr. Chairman, I move that Bill No. 050749, as amended, be reported out of this committee with a favorable recommendation, and a further recommendation that the Rules of Council be suspended. (Duly seconded.)

Councilman Mariano

Thank you, Councilman. All those in favor of that? Opposed? Nobody is opposed. So that's 050749, as amended, is voted out with a 147 PUBLIC MEETING suspension of Rules. 050955, we are holding that one. 051025, any amendments on that? I make a motion that 051025 be reported out of committee with a favorable recommendation and that the Rules of Council be suspended. (Duly seconded.)

Councilman Mariano

I hear a second from Councilman DiCicco. It has been moved and seconded. All those in favor? All opposed? None. So 051025 is passed out of this committee with a favorable recommendation and the Rules of Council are suspended. 050127.

Councilwoman Krajewski

Mr. Chairman, I move that Bill No. 050127 be reported out of this committee with a favorable recommendation and that the Rules of Council be suspended. (Duly seconded.)

Councilman Mariano

Motion has been 148 PUBLIC MEETING made and seconded. All those in favor say, aye. Opposed? It passes. 051027 is voted out of committee with a favorable recommendation and Rules of Council suspended. Any other business in this public meeting? Seeing none. This public meeting is adjourned. Thank you. 12:35 p.m. (Public Meeting adjourned at 12:35 p.m.) - - - 149 C E R T I F I C A T I O N I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of Monday, December 5, 2005, were reported fully and accurately by me, and that this is a correct transcript of same. RE: COMMITTEE ON LICENSES & INSPECTIONS _________________________ DEBRA A. WHITEHEAD