Small businesses are often affected by municipal regulations, such as Sunday closing laws and restrictions on business hours. Local governments are authorized to enact these regulations to protect the public health, safety, morality or general welfare. Local governments may also regulate the use of public streets that are right next to business property. Finally, they may issue permits, licenses and certificates if they are granted that authority by the state constitution, charter or laws.
Powers of Local Government
A local government regulates the conduct of individuals and businesses by adopting ordinances and municipal regulations. In adopting these regulations, the local government must stay within its delegated authority. The regulations cannot violate either the federal or the state constitutions. If there is a state or federal law addressing an area of law, these laws will control and will preempt or override a local government's regulatory powers.
Municipal regulations are also passed as an exercise of a local government's police powers, which is a government's ability to act to protect the interests of the public. Local governments are constitutionally required to exercise their police powers in a manner that is reasonable and reasonably related to the public health, safety, morality or general welfare.
Businesses can be regulated in the following ways:
- Sunday closings. Businesses can be required not to conduct business on Sundays. The objective of this regulation is the protection of the public health and welfare by setting aside one day of the week for rest and relaxation.
- Business hours. Businesses may be required to stop operations at a certain time of day. Courts do not agree on the reasonableness of such regulations, but some of the regulations have been upheld on the basis that they protect public health or safety.
- Used car dealers and auto repairmen. Some local governments impose local controls on used car dealers. Licensing taxes may be imposed as a means of raising revenue. Automobile repair and service stations may be subject to regulation due to the dangerous nature of gasoline.
- Realtors and rental agencies. Realtors may be regulated if they deal with property in the community, unless state law controls the field of licensing and regulating them. Rental agencies can be regulated as to the manner in which they provide information to customers and advertise, and they can be prohibited from asking for prepayment for services.
- Peddlers and hawkers. Local governments can prohibit vendors, peddlers and hawkers from selling their wares if the regulation is reasonable and reasonably tends to protect the public health, morality, safety or general welfare.
- Solicitors, canvassers and inter-state competition. Some local government restrictions on solicitors, drummers and canvassers have been upheld as to particular places and times. Such people have been successfully prohibited from conducting business on public streets as well as on another person's private property.
- Laundries and laundromats. These businesses have been found to be nuisances in certain circumstances, and their location can be restricted. They may be subject to licensing requirements.
- Pawnbrokers and dealers in secondhand goods. Regulations of pawnbrokers, such as requirements to fingerprint and photograph customers, have been upheld in order to prevent trafficking in stolen goods. Licenses may be required.
Use of Sidewalks and Streets
Businesses have no inherent right to use streets right next to their property for permanent business structures or for temporary storage. Local governments may lawfully prohibit such use. Local governments may also restrict parking on streets outside of businesses if it is necessary for the public health, safety or general welfare.
Local governments may permit business owners to temporarily use streets, sidewalks and parking for the storage or display of goods unless it causes serious inconvenience to pedestrians. They may also permit business owners to use the streets and sidewalks temporarily for the deposit of goods for shipment and the deposit of building materials.
Permits, Licenses and Certificates
Permits, licenses and certificates are valid only if the government that issued them has the power to require them. Local governments must look to constitutional provisions, charters or laws for the authority to require these documents. For example, a municipality has the authority to license a private police force if the state constitution gives municipalities authority over police matters. A city can issue building permits if the state constitution authorizes cities to do so.
If the authority to issue permits, licenses or certificates comes from state laws, that authority is limited to what is specified in the law. The authority must be exercised in accordance with the state and federal constitutions.
If you have any questions about municipal regulations as they apply to your business, contact a small business lawyer in your area.
Questions for Your Attorney
- Can I successfully challenge a local regulation that requires me to close my business at 6:00 p.m.?
- How do I get a solicitor to stop selling magazine subscriptions in front of my store?
- Do I need a permit to temporarily store office furniture on the sidewalk outside my business?