Chapter 2. Business
Licenses
Subchapter:
I: General
Provisions
II: Licensing
III: Fees
IV: Miscellaneous
Provisions
§201.
Short title.
§202.
Purpose.
§203.
Definitions.
§204.
Administration.
§205.
Duties of Treasurer.
This chapter shall be known and may be cited as the "Yap State Business License Act".
Source: YSL 1-213 §1, modified.
Cross-reference: The statutory provisions of the Yap State Business License Board are found in chapter 1 of this title.
The purpose of this chapter is to provide for the licensing of businesses in the State of Yap in order that all the necessary and reasonable control and regulation thereof may be practiced by the Government of the State of Yap for the protection of the health, welfare, safety, and morals of the people of the State of Yap.
Source: YSL 1-213 §2, modified.
As used in this chapter, unless the context clearly requires a different meaning:
(a) "Board" means the Yap State Business License Board;
(b) "Business" means any activity or conduct (whether proprietary, partnership, corporate, or whatever form) engaged in with the object of gain, economic benefit or advantage, either direct or indirect, and having gross sales of $500.00 or more in any year;
(c) "Director" means the Director of Administrative Services;
(d) "Endorsement" means written evidence obtained by an applicant from the proper department, agency or office of the State or National Government that the applicant has fulfilled the necessary qualifications and requirements prior to the obtaining of the license. It shall also, when the context so requires, mean the evidence of endorsement appearing on the face of the license;
(e) "General Fund" means the General Fund of the State of Yap;
(f) "Government" means the Government of the State of Yap;
(g) "Money lender" means any person, not a bank or a licensed financial institution, who advances money in return for an absolute promise to repay with interest;
(h) "Peddler" means any person who acts as an itinerant trader, that is, who sells small wares which he carries with him in traveling about from place to place;
(i) "Person" means and includes any individual, firm, copartnership, joint venture, association, corporation, estate, trust, or other combination or group acting as a unit;
(j) "Rental agencies" means and includes any business that rents out boats, equipment or any other items, goods, wares or services for a limited length of time for a fixed amount of money;
(k) "Retail" means to sell directly to consumers usually in small quantities or broken lots or parcels;
(l) "Solicitor" means any person who goes from house to house or from place to place selling or taking orders or offering to sell or take orders for goods, wares, or merchandise or any article for future delivery or for services to be performed in the future, or for the making, manufacturing, or repairing of any article or thing whatsoever for future delivery, provided this definition applies only to solicitors who demand, accept, or receive payment or deposit of money in advance of final delivery;
(m) "State" means the State of Yap;
(n) "Treasurer" means the Treasurer of the State of Yap;
(o) "Wholesale" means to sell to retailers or to sell in large quantities to any person intending to resell.
Source: YSL 1-213 §3, definitions put into alphabetical order and section modified.
Administration of this chapter may be delegated by the Board to the Director or his designee necessary for effective and efficient enforcement of this chapter.
Source: YSL 1-213 §4, modified.
It shall be the duty of the Treasurer to perform the following functions as well as other functions assigned by the Board or the Director:
(a) To insure compliance with all requirements, including payment of the fee by any applicant for a license, and to issue the proper license to the applicant;
(b) To keep a complete set of records of all licenses issued;
(c) To keep and maintain a sufficient supply of application forms and any rules and regulations of the Board relating to the issuance of business licenses; and
(d) Within seven days of the receipt of an application for the issuance or renewal of a license under this chapter shall present such application to the Board together with a record of the fees paid and a statement of whether the applicant owes overdue license fees or sales taxes of any nature.
Source: YSL 1-213 §5, modified.
Cross-reference: For other statutory provisions on the Treasury and the Treasurer, see chapter 5 of Title 13 (Taxation and Finance) of this Code.
§221. License applications.
§222.
Licensing procedure; residents.
§223. Licenses for nonresidents.
§224.
Term of license.
§225.
Payment of all debts prerequisite to issuance of license.
§226.
Fees; date when due and payable.
§227.
Renewal.
§228.
License not transferable.
§229.
Cancelled on transferring, etc., business; penalty.
§230.
Exposed to view; penalty.
§231.
Limits of license.
§232.
Two or more businesses operated by one person.
§233.
Classification of business.
§234.
Combination of businesses.
§235.
Exemptions.
§236.
Effective date of license.
§237.
Revocation or suspension of licenses.
All license applications must be submitted on such forms as prescribed by the Board and should contain the following information:
(a) Name of business;
(b) Type of business to be conducted;
(c) Type of business organization;
(d) Names, ages, residences, and citizenship of principals involved in the business;
(e) Location of business;
(f) Endorsement of any licensing or examining authority having jurisdiction over the trade, business, or occupation;
(g) Affidavits of good moral character of principals involved in the business; and
(h) Any other information required by the Board.
Source: YSL 1-213 §6.
Upon receipt of a fully completed application the Treasurer shall submit the application to the Board for review and approval. Upon approval by the Board the license application will be forwarded to the Treasurer for final disposition. Upon receipt of a fee by the applicant the Treasurer will issue the appropriate business license.
Source: YSL 1-213 §7.
Cross-reference: For other statutory provisions on the Treasury and the Treasurer, see chapter 5 of Title 13 (Taxation and Finance) of this Code.
(a) When an application for a business license is received by the Treasurer from a person who is not either Yapese or a resident of Yap or in the case of a corporation when the majority of stock is not owned by either of such persons, the application shall be referred to the Board.
(b) The Board shall hold a hearing on any application received under subsection (a) of this section on due notice to the applicant in order to consider the application in the context of the following standards, among others:
(1) Traffic safety;
(2) Availability of water and sewage facilities;
(3) Effect on land resources and economic opportunities for resident Yapese;
(4) Effect on Yapese customs, culture, and traditions; and
(5) Conformity to the general economic plan.
(c) After due consideration of any testimony and records introduced at the hearing, in the light of the standards set forth in subsection (b) of this section, the Board may deny the application or return it to the Treasurer with a favorable recommendation. The Treasurer shall then issue the proper license in accordance with the recommendation of the Board.
(d) Notwithstanding the provisions of this section, any applicant who is not a citizen of the Federated States of Micronesia shall obtain a permit under the Foreign Investment Act and submit proof thereof to the Board before the Board may consider the applicant's application.
Source: YSL 1-213 §8, modified.
Unless otherwise provided, all licenses and endorsements applicable thereto shall be issued on a fiscal year basis regardless of when issued and shall expire on September 30 of each year for which issued or renewed.
Source: YSL 1-213 §9.
No license shall be issued unless the applicant has paid all debts and taxes, he may owe the Government. The debts or taxes must be clearly related to the operation of the business. This limitation shall not be used for the purpose of collecting fees or debts owed to the Government for reasons other than operation of the business for which the license is to be issued.
Source: YSL 1-213 §10.
Cross-reference: The statutory provisions on Taxation and Finance are found in Title 13 of this Code.
All fees required under this chapter, except as otherwise specifically provided, shall be due and payable in advance on or before September 30, in each year, or on commencing any trade or business for which the license is required. In the former case the license fee shall be reckoned for one year; and in the latter case it shall be reckoned proportionally from the first day of the month in which the trade or business is begun to October 1 following.
Source: YSL 1-213 §11.
(a) A licensee may renew his license at the expiration thereof by payment of license fee and by filing with the renewal application an affidavit, subject to the penalties of perjury, that he has continued to comply with all of the prerequisites and qualifications provided by law and rules and regulations which were certified by the proper department or departments of the Yap State Government in the application for his original license.
(b) A licensee who fails to renew his license on or before the 30th day of September of each year shall be assessed a penalty of $2.00 per day for which he is delinquent, which penalty shall become part of the renewal fee. Any licensee who fails to renew his license on or before the 30th day of October shall be required to discontinue his business until he renews the license or be subject to an injunction issued by the State Court of Yap and to prosecution under section 281 of this chapter. Failure to renew while continuing the operation of a business shall constitute a refusal of and failure to obtain a license under the provisions of this chapter.
Source: YSL 1-213 §12, modified.
Cross-reference: Section 281 of this chapter is on penalties. The statutory provisions on the State Court of Yap are found in Title 4 (Judiciary) of this Code.
Every license issued under this chapter shall be deemed to be personal and shall be issued to the person or persons making the application therefor, and may not in any circumstances be transferred to any other person.
Source: YSL 1-213 §13, modified.
If any licensee closes out, transfers, or assigns the business for which a license is held, during the term for which the same was issued, he shall within ten days from the date of such closing out, transfer, or assignment, notify the Board through the Treasurer, of such fact in writing and return the license to the Treasurer for cancellation, under a penalty for failure to do so of $100.00.
Source: YSL 1-213 §14, modified.
All persons holding a license for any class or kind of business shall keep the license exposed to view, in some prominent place, convenient for inspection, on the premises for which the same is granted. Any person failing to comply with the requirements of this section shall be fined not less than $10.00, nor more than $50.00.
Source: YSL 1-213 §15, modified.
Except as otherwise provided in this chapter, a license granted under this chapter authorizes the carrying on of the business licensed only at the place indicated in the license. A license granted to carry on a business from place to place shall be limited to the general area in which the business is to be conducted.
Source: YSL 1-213 §16, modified.
Where one person operates or conducts businesses in two or more locations in the State the person shall be required to obtain a license for each location.
Source: YSL 1-213 §17, modified.
If any question of the classification of any business, conduct or activity arises pertaining to the type of class of license required under this chapter, the classification shall be made by the Board upon review of all the facts presented to it and the classification shall be final.
Source: YSL 1-213 §18, modified.
Any person who operates any business which consists of a combination of two or more of the classes provided in this chapter shall be required to take out a separate license for each classification.
Source: YSL 1-213 §19, modified.
The provisions of this chapter and the license requirements hereunder shall not apply to the following activities:
(a) Any business or trade engaged in or conducted by the Yap State Government, the Government of the Federated States of Micronesia or the Government of the United States or under the direct supervision of the Government of the State of Yap or the Government of the Federated States of Micronesia;
(b) The selling or marketing by a Yapese agricultural producer of his own farm produce in its natural state, including the selling of betelnuts, fresh fish or other local produce in their natural state, and a Yapese selling his own locally made handicrafts.
Source: YSL 1-213 §20, as amended by YSL 3-13 §1, modified.
The license required by the provisions of this chapter and all other provisions applicable thereto shall not be retroactive and any person who upon the date of approval of this chapter is operating any business or trade under a valid Government of Yap State license may continue to do so until expiration thereof. Upon expiration of any license valid on the effective date of this chapter the person holding the license shall be required to obtain a new license under the provisions of this chapter.
Source: YSL 1-213 §21, modified.
Any license issued under this chapter shall be subject to revocation or suspension by the Board at anytime after due notice and hearing in accordance with the provisions of the State Administrative Procedure Act, Yap State Law No. 1-90, for any one or more of the following acts or conditions on the part of the holder or holders of such license:
(a) Procuring a license through fraud, misrepresentation, or deceit or knowingly permitting an unlicensed person to perform activities requiring a license;
(b) Wilfully betraying a professional secret;
(c) False, fraudulent, or deceptive advertising;
(d) Professional misconduct or gross carelessness or manifest incapacity in the practice of the type of profession the licensee is engaged in;
(e) Conduct or practice contrary to recognized standard or ethics of the type of profession the licensee is engaged in;
(f) Revocation or suspension of any license or permit which is a prerequisite for the issuance of a license under this chapter;
(g) Wilful misleading or false statements in, or material omission from, any application;
(h) Violation of the terms of the license;
(i) Failure to comply with this chapter or rules and regulations prescribed by the Board or the Director pursuant to the recommendations of the Board;
(j) Being habituated to the excessive use of drugs or alcohol, or being or having been addicted to, dependent on, or a habitual user of a narcotic, barbiturate, amphetamine, hallucinogen, or other drug having similar effects.
The revocation or suspension shall be in addition to any other penalties. Any license which has been revoked or suspended under this section may be restored by the Board as provided by rules and regulations of the Board.
Source: YSL 1-213 §22, modified.
Cross-reference: The statutory provisions of the State Administrative Procedure Act are found in chapter 1 of Title 10 (Administrative Law) of this Code.
§261.
Disposition of fees collected.
§262.
Specific businesses.
§263.
Establishment of fees.
All fees collected pursuant to the provisions of this chapter shall be deposited into the General Fund of the State of Yap.
Source: YSL 1-213 §24, modified.
Cross-reference: The statutory provision on the General Fund of the State of Yap is found in section 1211 of Title 13 (Taxation and Finance) of this Code.
(a) Solicitors. This subsection applies only to persons and their employees, representatives or authorized agents, and solicitors engaging in the business of selling products, goods, wares, and merchandise in the State at retail for consumption or use by the purchaser and not for resale.
(1) Application and bond. Any person desiring to engage in business as a solicitor shall make application therefor to the Treasurer on such forms as prescribed by the Board pursuant to section 221 of this chapter. The application shall be accompanied by a bond in the penal sum of $1,000.00 to be held by the Treasurer conditional upon the making of final delivery of goods ordered or completion of the services to be performed in accordance with the terms of such order, or failing therein, that the advance payment in the order be refunded. Any person aggrieved by the action of any such solicitor shall have a right of action on the bond for the recovery of money or damage, or both. The bond shall remain in full force and effect for a period of ninety days after the expiration of any license.
(2) Fee. The fee for a license to carry on business as a solicitor shall be $10.00 for a quarterly license and $25.00 for an annual license.
(3) Orders. All orders taken by licensed solicitors shall be in writing in duplicate stating the terms thereof and the amount paid in advance and one copy shall be delivered to the purchaser at the time of the taking of the order.
(4) Solicitation by telephone. Solicitation of orders by telephone to individuals at their homes which offer the opportunity to receive prizes, gifts, premiums, stamps, coupons, tickets, or other redeemable devices as an inducement for sales or for appointments for sales or for appointments for sales to be made is prohibited; provided that a solicitor may telephone prospective customers for an appointment and solicit orders during the appointment.
(5) Penalty. Any person who transacts or conducts business as a solicitor before he has complied with section 262, subsection (a) or who violates any provision of subsection (a) of this section shall, upon conviction, be fined not less than $100.00, but not more than $500.00 or imprisoned not more than three months, or both.
(b) Peddlers. Except as otherwise provided, the fee for license to peddle merchandise shall be as follows:
(1) Fee for a monthly license or for a period less than one month shall be $5.00;
(2) Fee for an annual license shall be $25.00.
No license shall be required of persons peddling fish, fresh fruits, leis, flowers, locally made handicrafts, or fresh local vegetables.
(c) Public shows.
(1) Conditions. The Treasurer may issue a license upon the approval of the Board, for any term not exceeding one year, for any theater, circus, public lecture, moving picture show, or any exhibition, not of an immoral character, to which an admission fee is charged, or during which a fee is collected, upon such conditions as he or they may deem reasonable.
(2) Fee. The fee (A) or a license to give any such performances or exhibitions not including moving picture shows, in any one permanent structure at a fixed location shall be $25.00 per year or any lesser period, and (B) for a license to give moving picture shows under canvas or in a temporary structure shall be $25.00 per year or any lesser period and in addition thereto $1.00 for each performance or exhibition.
(3) Fee for carnival, etc. The fee for each performance under the license provided in paragraph (c)(1) of this subsection shall be $15.00 per day for carnivals, circuses, amusement parks, and itinerant show may be charged a yearly license of $100.00 each in lieu of the daily fee herein prescribed, provided that no license or fee shall be required or charged for state or municipal fairs, and that no fees shall be charged if the Treasurer is satisfied that the entire proceeds of the performance or exhibition are to be donated to any school, religious, or charitable institution, and not for profit.
(4) Penalties. Any person who sets up, promotes, exhibits, or takes part in any theater, circus, public show, lecture, or exhibition, without a license authorizing the same first having been obtained in accordance with paragraphs (c)(1) through (3) of this subsection or who, having obtained a license, violates any of the conditions thereof, or who misrepresents to the Treasurer the character of the performance or exhibition to be given, with a view of obtaining a remission of the license fee, or for any other purpose, or who, having obtained a license, gives any obscene, indecent, or immoral performance or exhibition, or any performance or exhibition other than the one or ones authorized in such license, shall be fined not less than $10.00 nor more than $100.00, or imprisoned not more than six months, and if he has a license, his license shall be cancelled.
(5) Amusement rides; safety measures; penalty. No mechanically or electrically operated device considered as a major ride and used as an amusement ride shall be permitted to be used or operated at a carnival, circus, fair, or amusement park unless: a safety belt or other safety device of similar purpose is installed and used so as to minimize or prevent injury to persons riding on the device and other persons on the premises; an attendant is present at all times during the operation of the device; and that the device has been inspected by the Department of Public Utilities and Contracts and having been declared to be safe. Any person who violates this provision shall, upon conviction, be fined not less than $100.00, but not more than $500.00 or imprisoned not more than one year, or both.
Source: YSL 1-213 §25, modified.
Cross-reference: Section 221 of this chapter is on license applications. The statutory provision on the Department of Public Utilities and Contracts has been changed to the Department of Public Works and Transportation and is found in section 124 of Title 3 (Executive) of this Code.
The following license fees are established:
(a) Acupuncture practitioner -------------------------------- $ 25.00;
(b) Alcoholic beverages
establishment (Bar) ------------------------------------------ $ 75.00;
(c) Auctioneer, per auction sale ----------------------------- $ 6.00;
(d) Ball or marble machine or
video games, per machine ---------------------------------- $ 5.00;
(e) Beauty or Barber shop ----------------------------------- $ 10.00;
(f) Billiards and pool halls, per table ---------------------- $ 25.00;
(g) Boardinghouse --------------------------------------------- $ 10.00;
(h) Dentistry ------------------------------------------------------ $ 25.00;
(i) Dredging ------------------------------------------------------ $ 75.00;
(j) Electricians and plumbers ------------------------------- $ 25.00;
(k) Filming or movie making -------------------------------- $ 75.00;
(l) Garage and/or repair shop ------------------------------ $ 25.00;
(m) General contractor and construction ---------------- $ 100.00;
(n) Handicraft shops ------------------------------------------ $ 10.00;
(o) Health or physical fitness
organization --------------------------------------------------- $ 25.00;
(p) Hotel --------------------------------------------------------- $ 75.00;
(q) Laundry ----------------------------------------------------- $ 10.00;
(r) Legal practitioners
(Attorneys-at-Law) ------------------------------------------ $ 25.00;
(s) Lodging or tenement house; per
building -------------------------------------------------------- $ 25.00;
(t) Manufacturing including, but
not limited to, lumber,
furniture, oil and soap ------------------------------------ $ 25.00;
(u) Medicine and surgery --------------------------------- $ 25.00;
(v) Mining of natural resources -------------------------- $100.00;
(w) Money lender ------------------------------------------- $ 10.00;
(x) Movie theater, per theater
(Permanent structure) ---------------------------------- $ 50.00;
(y) Sale of motor vehicle
including motorcycle ------------------------------------ $ 25.00;
(z) Motor vehicle and driver for hire
(including but not limited to, taxis,
buses, motor water carriers) ------------------------- $ 25.00;
(aa) Motor vehicle leasing or
rental, per vehicle --------------------------------------- $ 10.00;
(bb) Pharmacy -------------------------------------------- $ 25.00;
(cc) Photography ----------------------------------------- $ 25.00;
(dd) Private investigators and guards ------------- $ 25.00;
(ee) Professional engineers and
architects ------------------------------------------------- $ 25.00;
(ff) Public accountancy (certified
public accountants) ------------------------------------ $ 25.00;
(gg) Rental agencies ----------------------------------- $ 25.00;
(hh) Restaurant ------------------------------------------- $ 25.00;
(ii) Retail business, per location -------------------- $ 25.00;
(jj) Service station --------------------------------------- $ 25.00;
(kk) Television system --------------------------------- $ 75.00;
(ll) Temporary retail booths, stalls,
stands, or tents, per operation
of five days or less -------------------------------------- $ 5.00;
(mm) Travel agencies --------------------------------- $ 25.00;
(nn) Video films or movie rental -------------------- $ 25.00;
(oo) Wholesale business ---------------------------- $ 25.00;
(pp) All other businesses,
professions or activities ---------------------------- $ 25.00.
Source: YSL 1-213 §26, subsections put into alphabetical order and section modified.
§281.
Penalties.
§282.
Severability.
(a) No person shall engage in business in the State of Yap without a license issued under this chapter unless specifically exempted under section 235 of this chapter.
(b) Any person who is required by this chapter to obtain a license or licenses and endorsements applicable thereto and refuses or fails to obtain the license or licenses and endorsements shall be guilty of a misdemeanor and subject to a fine of not less than $100.00 but not more than $500.00 or imprisonment of not more than six months, or both.
Source: YSL 1-213 §23, modified.
Cross-reference: Section 235 of this chapter is on exemptions. The statutory provision on violation of business license provisions is found in section 804 of Title 11 (Crimes and Punishment) of this Code.
If any provision of this chapter or the application thereof to any person or circumstances is held invalid, the invalidity does not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable.
Source: YSL 1-213 §28, modified.