City Attorney proposes moving business-license hearings to administrative law judge process

City staff presented proposed amendments to Orem's business-license revocation, suspension and hearing procedures, saying the goal is clearer due process and standardized administrative practice across license types.

Staff told the council the current code names the finance director and the city manager in ways that no longer match operational responsibility and leaves the process vague. "We want to provide a clear definition so there's expectations for, if I engage in this type of conduct, I am likely to face some sort of administrative action," the staff presenter said.

Key elements in the staff proposal are: moving appeals to an administrative law judge (ALJ) hearing process rather than having the city manager conduct hearings; clarifying grounds for revocation or suspension (including fraud or misrepresentation on applications, failure to pay taxes as reported by the Utah State Tax Commission, refusal to allow required inspections, and knowingly allowing illegal activity on the premises); and standardizing notice service and appeal-filing procedures. Staff said the ALJ approach provides a neutral adjudicator and clearer evidentiary procedures while maintaining an informal hearing structure for non-lawyer respondents.

Councilmembers asked practical questions about ALJ availability and timing; staff said the ALJ currently meets about once a month and additional dates or a second hearing officer could be added if caseloads grew. Staff also clarified that a suspension would keep a business from operating while a final decision is pending.

Staff said they would return an ordinance amendment for council consideration at a future meeting. No ordinance was adopted at this session.