CMO Licensing & Permitting 3 — Questions and Answers
Question 1: A building permit application is incomplete when submitted. Under most municipal codes, the permit clock (review period) typically begins:
- On the date the incomplete application is first received
- Only after the applicant submits all required documents and the application is deemed complete (Correct answer)
- After a mandatory 10-day waiting period
- When the applicant pays the permit fee
Correct answer: Only after the applicant submits all required documents and the application is deemed complete
Most codes start the review clock only upon a complete application to prevent time pressure from forcing approval of deficient submissions.
Question 2: A contractor performs work before a required permit is issued. A municipality's typical enforcement response includes:
- Retroactively approving the work without inspection
- Issuing a stop-work order and requiring a permit and after-the-fact inspection (Correct answer)
- Requiring the contractor to demolish and rebuild
- Referring the matter to the state licensing board only
Correct answer: Issuing a stop-work order and requiring a permit and after-the-fact inspection
A stop-work order halts further unpermitted work, and an after-the-fact permit with inspection determines whether the completed work meets code.
Question 3: Under Dillon's Rule, a municipality may only regulate through licensing if:
- A majority of residents support the regulation
- The power is expressly granted, necessarily implied, or indispensable to a stated purpose (Correct answer)
- The state has not acted in the same area
- The regulation generates sufficient revenue to be self-funding
Correct answer: The power is expressly granted, necessarily implied, or indispensable to a stated purpose
Dillon's Rule strictly construes municipal power; licensing authority must be expressly granted by statute, clearly implied, or essential to an enumerated function.
Question 4: A municipality charges a $5,000 annual fee for a food vendor's license. A court would likely invalidate this fee if it:
- Exceeds the actual cost of administering the licensing program (Correct answer)
- Is higher than fees charged by neighboring cities
- Applies equally to all food vendors regardless of size
- Is renewed annually rather than issued permanently
Correct answer: Exceeds the actual cost of administering the licensing program
Regulatory license fees must be reasonably related to the cost of regulation; fees that generate substantial revenue beyond administrative costs resemble taxes and require broader authority.
Question 5: A special use permit (SUP) differs from a variance because an SUP:
- Authorizes a use that would otherwise be prohibited in any zone
- Allows a use that the zoning ordinance contemplates as appropriate under specified conditions (Correct answer)
- Grants relief from setback and dimensional requirements
- Is issued by the state rather than the municipality
Correct answer: Allows a use that the zoning ordinance contemplates as appropriate under specified conditions
An SUP allows a use the ordinance anticipates may be appropriate if conditions are met, whereas a variance provides relief from dimensional or use standards.
Question 6: Which federal statute requires municipalities to make reasonable accommodations in their licensing and land-use decisions for religious institutions?
- The Religious Land Use and Institutionalized Persons Act (RLUIPA) (Correct answer)
- The Fair Housing Act
- The Civil Rights Act of 1964
- The Religious Freedom Restoration Act (federal RFRA)
Correct answer: The Religious Land Use and Institutionalized Persons Act (RLUIPA)
RLUIPA prohibits land-use regulations that impose a substantial burden on religious exercise without a compelling governmental interest pursued through the least restrictive means.
Question 7: A permit holder transfers ownership of a licensed business to a new owner. The new owner should:
- Continue operating under the seller's license until it expires
- Apply for a new or transferred license as required by the municipal code before operating (Correct answer)
- Obtain approval only if the business type changes
- Notify the city within 90 days after commencing operations
Correct answer: Apply for a new or transferred license as required by the municipal code before operating
Most licensing ordinances require new owners to obtain a new or transferred license prior to operating because licenses are generally non-transferable without municipal approval.
CMO Licensing & Permitting 3
A building permit application is incomplete when submitted.
Under most municipal codes, the permit clock (review period) typically begins: