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Cupertino adopts 60‑day business‑license amnesty and contracts administration to HDL to boost compliance and revenue
Summary
City Council approved a phased 60‑day business‑license amnesty and direction to transition business license administration to HDL, endorsing outreach and an ongoing discovery amnesty; staff estimate ~800 noncompliant licenses and $580,000 in potential annual revenue.
Cupertino — The City Council unanimously approved a phased 60‑day business‑license amnesty and directed staff to proceed with transitioning business license administration to HDL, a vendor providing discovery and compliance services.
Acting Administrative Services Director Jonathan Orozco told council HDL estimates roughly 800 out‑of‑compliance business licenses in Cupertino and that bringing them into compliance could generate about $580,000 in annual revenue. Staff proposed a 60‑day amnesty (100% penalty/interest forgiveness in the first 30 days; 50% forgiveness in the second 30 days) with an option to provide ongoing amnesty upon discovery of newly identified unlicensed businesses.
Council discussed contract costs and program design. Orozco said the current administrative fee is $16 per license and that HDL would receive 40% of initial collections for discovered accounts (with ongoing revenue for the city thereafter). HDL consultant Ian Davis described multi‑channel discovery outreach (post, email, phone) and contingency arrangements for collections.
Council and members of the public pressed for protections for nonprofits and micro businesses. Staff clarified that businesses with under $1,000 gross receipts are exempt from licensing, that small businesses (between $1,000 and $5,000 in gross receipts) pay a reduced fee, and that the general business fee is $185. Staff provided hypothetical penalty math showing penalties can reach up to 100% per delinquent year plus 1% monthly interest, a rationale for limiting recovery to the most recent three years under the proposed amnesty.
Public commenters urged generous outreach and cautioned against punishing small or volunteer organizations. The council approved the amnesty program with a friendly amendment to include ongoing amnesty upon discovery and authorized the city manager temporary authority to review and determine forgiveness of penalties and interest until the municipal code is updated. Staff will expand FAQs and outreach and return with municipal code updates later in the year.
