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HomeMy WebLinkAbout2020-09-22 - AGENDA REPORTS - CONSIDERATION OF AN URGENCY ORD OF SCV EXTENDING A (2)O Agenda Item: 8 P CITY OF SANTA CLARITA AGENDA REPORT PUBLIC HEARINGS CITY MANAGER APPROVAL:1 DATE: September 22, 2020 SUBJECT: CONSIDERATION OF AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, EXTENDING A MORATORIUM ON THE ESTABLISHMENT OF NEW TOBACCO RETAILERS WHO SELL FLAVORED TOBACCO PRODUCTS FOR AN ADDITIONAL 12 MONTHS OR UNTIL SB 793 TAKES EFFECT, WHICHEVER IS SOONER DEPARTMENT: City Manager's Office PRESENTER: Joseph Montes RECOMMENDED ACTION City Council: 1. Conduct a public hearing. 2. Consider adoption of an urgency ordinance entitled, "AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, EXTENDING A MORATORIUM ON THE ESTABLISHMENT OF NEW TOBACCO RETAILERS WHO SELL FLAVORED TOBACCO PRODUCTS FOR AN ADDITIONAL 12 MONTHS OR UNTIL SB 793 TAKES EFFECT, WHICHEVER IS SOONER." BACKGROUND On August 28, 2020, Governor Newsom signed SB 793, which prohibits the sale of flavored tobacco products. SB 793 includes certain exceptions for specific hookah, cigar, and loose-leaf tobacco products. (A copy of SB 793 is attached.) SB 793 goes into effect on January 1, 2021. On October 8, 2019, the City Council adopted an urgency ordinance that imposed a moratorium on the establishment of new tobacco retailers that sell flavored tobacco. That ordinance was extended through October 7, 2020. Per the terms of Government Code Section 65858, that ordinance can be extended for an additional 12 months, after the conduct of a public hearing. Page 1 Packet Pg. 36 O As an urgency ordinance, this ordinance will require adoption by a 4/5 vote of the City Council and will extend the current moratorium by an additional 12 months, or until SB 793 goes into effect, whichever is sooner. SB 793 is expected to go into effect on January 1, 2021, unless legally challenged and enjoined. Adoption of this ordinance extending the moratorium is necessary to address the issues raised in connection with the original adoption of the moratorium and to ensure that those protections remain in effect until superseded by State law. The report required by Government Code Section 65858(d) was made available at the City Clerk's office starting September 11, 2020, and is attached for the Council's reference. ALTERNATIVE ACTION Other action as determined by the City Council. FISCAL IMPACT No fiscal impact. ATTACHMENTS Public Hearing Notice Ordinance SB 793 10-Day Report Page 2 Packet Pg. 37 8.a NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that the City Council of the City of Santa Clarita will conduct a public hearing on Tuesday, September 22, 2020, at 6.00 p.m., in the Council Chambers, located at 23920 Valencia Blvd., Santa Clarita, California, to consider the following: ADOPTION OF AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, EXTENDING A MORATORIUM ON THE ESTABLISHMENT OF NEW TOBACCO RETAILERS WHO SELL FLAVORED TOBACCO PRODUCTS FOR AN ADDITIONAL 12 MONTHS, OR UNTIL SB 793 TAKES EFFECT, WHICHEVER IS SOONER On October 8, 2019, the City of Santa Clarita City Council considered and adopted by 4/5 vote an interim urgency ordinance imposing a moratorium on the establishment of new tobacco retailers who sell flavored tobacco products ("Moratorium"). That Moratorium was extended by the City Council through and including October 8, 2020. At the public hearing, the City Council will consider information provided by City staff as well as any information provided by the public and determine whether to extend the Moratorium for a period of 12 additional months, under Government Code section 65858(a), or until SB 793 takes effect, whichever is sooner. SB 793 prohibits the retail sale of flavored tobacco products and is scheduled to go into effect January 1, 2021. The proposed ordinance is exempt from the California Environmental Quality Act under State CEQA Guidelines sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment), 15060(c)(3) (the activity is not a project as defined in Section 15378), and 15061(b)(3), because the proposed ordinance will have no potential for resulting in any significant physical change to the environment, either directly or indirectly. For further information regarding this ordinance, you may contact Michael Villegas, Interim Community Preservation Manager, at (661) 255-4960. Copies of the agenda report including the proposed ordinance will be available for review prior to the public hearing on the City's website at www.santa-clarita.com and at the City Clerk's Office at Santa Clarita City Hall located at 23920 Valencia Blvd., Suite 120, Santa Clarita, California. Any person interested in these matters is invited to attend, according to the instructions for participation that will be included in the posted City Council meeting agenda, and present testimony either for or against the above item. If you challenge the proposed action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice or in written correspondence delivered to the City Council at or prior to the public hearing. Mary Cusick, MMC City Clerk Publish Date: September 11, 2020 Packet Pg. 38 8.b ORDINANCE NO. 20- AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, EXTENDING A MORATORIUM ON THE ESTABLISHMENT OF NEW TOBACCO RETAILERS WHO SELL FLAVORED TOBACCO PRODUCTS FOR AN ADDITIONAL 12 MONTHS OR UNTIL SB 793 TAKES EFFECT, WHICHEVER IS SOONER THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1. Findings. A. On August 28, 2020, Governor Newsom signed SB 793, which prohibits the sale of flavored tobacco products. SB 793 goes into effect on January 1, 2021. B. On October 8, 2019, the City Council adopted an urgency ordinance that imposed a moratorium on the establishment of new tobacco retailers that sell flavored tobacco. That ordinance was extended through October 7, 2020. Per the terms of Government Code Section 65858, that ordinance can be extended for an additional 12 months, after the conduct of a public hearing. C. As an urgency ordinance, this ordinance will require adoption by a 4/5 vote of the City W Council and will extend the current moratorium by an additional 12 months, or until SB 793 0 goes into effect, whichever is sooner. SB 793 is expected to go into effect on January 1, 2021, unless legally challenged and enjoined. c� D. As required by Government Code section 65858, a report as to Staffs activities in furtherance of this ordinance was made available at the City Clerk's office beginning September 11, 2020. 0 E. Adoption of this ordinance extending the moratorium is necessary to address the issues raised E in connection with the original adoption of the moratorium and to ensure that those protections remain in effect until superseded by State law. F. Notice of a public hearing to consider this ordinance was published as required by law, and such public hearing was conducted by the City Council. SECTION 2. Environmental Findings. The City Council exercises its independent judgment and finds that this ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, sections: 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment); 15060(c)(3) (the activity is not a project as defined in Section 15378); and 15061(b)(3), because the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the Page 1 of 4 Packet Pg. 39 8.b environment. The proposed ordinance maintains the status quo and prevents changes in the environment pending the completion of the contemplated municipal code review. Because there is no possibility that this ordinance may have a significant adverse effect on the environment, the adoption of this ordinance is exempt from CEQA. SECTION 3. Extension of the Moratorium. In accordance with Government Code section 65858(a), and pursuant to the findings stated herein, the City Council hereby: (1) finds that there exists a current and immediate threat to the public health, safety, and welfare requiring this interim Urgency Ordinance; (2) finds that this ordinance is necessary for the immediate preservation of the public peace, health, and safety as set forth herein; and (3) declares and imposes a temporary moratorium for the immediate preservation of the public health, safety, and welfare as set forth below: A. For a period of 12 months from the expiration of the moratorium imposed by Ordinance No. 19-7, (extending to and through October 7, 2021) no retail sale of flavored tobacco products may be commenced within the City limits by any tobacco retailer not currently selling same on October 8, 2019, and City staff is directed not to issue any permits or entitlements that would facilitate commencement of such uses. Should SB 793 go into effect prior to October 7, 2021, this moratorium shall expire on such effective date. B. For purposes of this ordinance, in addition to the relevant definitions in Santa Clarita Municipal Code Chapter 9.50 (Tobacco Control), the following definitions apply: "Tobacco retailer" means any person who sells, offers for sale or distribution, exchanges, or offers to exchange for any form of consideration, tobacco, tobacco products, or tobacco paraphernalia without regard to the quantity sold, distributed, exchanged, or offered for exchange. "Flavored tobacco product" means any tobacco product which imparts a characterizing flavor. "Tobacco product" means the following: 1. Any product containing, made, or derived from tobacco or nicotine, whether natural or synthetic, that is intended for human consumption, whether smoked, heated, chewed, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, including, but not limited to cigarettes, cigars, little cigars (including, but not limited to small cigars and cigarillos), chewing tobacco, pipe tobacco, and snuff, or 2. Any electronic smoking device that delivers nicotine or other substances, whether natural or synthetic, to the person inhaling from the device, including, but not limited to, an electronic cigarette, electronic cigar, electronic pipe, electronic hookah, or vaping device. 3. Notwithstanding any provision of subsections (1) and (2) to the contrary, "tobacco product" includes any component, part, or accessory intended or Page 2 of 4 Packet Pg. 40 8.b reasonably expected to be used with a tobacco product, whether or not sold separately. 4. "Tobacco product" does not include drugs, devices, or combination products authorized for sale by the United States Food and Drug Administration, as those terms are defined in the Federal Food, Drug and Cosmetic Act. "Characterizing flavor" means a taste or aroma, other than the taste or aroma of tobacco, imparted either prior to or during consumption of a tobacco product or any byproduct produced by the tobacco product, including, but not limited to, tastes or aromas relating to menthol, mint, wintergreen, fruit, chocolate, vanilla, honey, candy, cocoa, dessert, alcoholic beverage, herb, or spice. Characterizing flavor includes flavor in any form, mixed with or otherwise added to any tobacco product or nicotine delivery device, including electronic smoking devices. "Tobacco Paraphernalia" means cigarette papers or wrappers, pipes, holders of smoking materials of all types, cigarette rolling machines, characterizing flavors in any form, mixed with or otherwise added to any tobacco product or nicotine delivery device, including electronic smoking devices, and any other item designed or used for the smoking or ingestion of tobacco products. C. A violation of this ordinance is a public nuisance per se, enforceable through any civil, criminal, or equitable remedy, including, but not limited to, civil actions, injunctions, administrative citations, or criminal penalties. SECTION 4. Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision will not affect the validity of the remaining portions of this a� ordinance. The City Council declares that it would have passed this ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional_ 0 SECTION 5. Effective Date and Duration. This ordinance is an urgency ordinance E enacted under Government Code section 65858(a). This urgency ordinance will take effect upon adoption by a four -fifths (4/5) vote of the City Council and extends the moratorium originally < imposed on October 8, 2019, by Ordinance No. 19-7 to and through October 7, 2021, or until SB 793 takes effect, whichever is sooner. SECTION 6. Publication. The City Clerk is directed to certify this ordinance and cause it to be published in the manner required by law. Page 3 of 4 Packet Pg. 41 8.b PASSED, APPROVED, AND ADOPTED this 22nd day of September, 2020. MAYOR ATTEST: CITY CLERK STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Ordinance No. 20- was introduced and adopted as an urgency measure pursuant to the terms of California Government Code Section 65858 and 36937(b) at a regular meeting of the City Council on the 22nd day of September 2020, by the following vote, to wit: a� AYES: COUNCIL,MEMBERS: NOES: COUNCIL,MEMBERS: 0 ABSENT: COUNCIL,MEMBERS: c� AND I FURTHER CERTIFY that the foregoing is the original of Ordinance No. 20 and was published in The Signal newspaper in accordance with State Law (G.C. 40806). CITY CLERK Page 4 of 4 Packet Pg. 42 dl AUTHENTICATED ELECTRONIC LEGAL MATERIAL 8.c Senate Bill No. 793 CHAPTER 34 An act to add Article 5 (commencing with Section 104559.5) to Chapter 1 of Part 3 of Division 103 of the Health and Safety Code, relating to tobacco products. [Approved by Governor August 28, 2020. Filed with Secretary of State August 28, 2020.] LEGISLATIVE COUNSEL'S DIGEST SB 793, Hill. Flavored tobacco products. Existing law, the Stop Tobacco Access to Kids Enforcement (STAKE) Act, prohibits a person from selling or otherwise furnishing tobacco products, as defined, to a person under 21 years of age. Existing law also prohibits the use of tobacco products in county offices of education, on charter school or school district property, or near a playground or youth sports event, as specified. This bill would prohibit a tobacco retailer, or any of the tobacco retailer's agents or employees, from selling, offering for sale, or possessing with the intent to sell or offer for sale, a flavored tobacco product or a tobacco product flavor enhancer, as those terms are defined, except as specified. The bill would make a violation of this prohibition an infraction punishable by a fine of $250 for each violation. The bill would state the intent of the Legislature that these provisions do not preempt or prohibit the adoption and implementation of local ordinances that impose greater restrictions on the access to tobacco products than the restrictions imposed by the bill, as specified. The bill would state that its provisions are severable. By creating a new crime, the bill would impose a state -mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. The people of the State of California do enact as follows: SECTION 1. Article 5 (commencing with Section 104559.5) is added to Chapter 1 of Part 3 of Division 103 of the Health and Safety Code, to read: 93 Packet Pg. 43 Ch. 34 8.c Article 5. Tobacco Sale Prohibition 104559.5. (a) For purposes of this section, the following definitions apply: (1) "Characterizing flavor" means a distinguishable taste or aroma, or both, other than the taste or aroma of tobacco, imparted by a tobacco product or any byproduct produced by the tobacco product. Characterizing flavors include, but are not limited to, tastes or aromas relating to any fruit, chocolate, vanilla, honey, candy, cocoa, dessert, alcoholic beverage, menthol, mint, wintergreen, herb, or spice. A tobacco product shall not be determined to have a characterizing flavor solely because of the use of additives or flavorings or the provision of ingredient information. Rather, it is the presence of a distinguishable taste or aroma, or both, as described in the first sentence of this definition, that constitutes a characterizing flavor. (2) "Constituent" means any ingredient, substance, chemical, or compound, other than tobacco, water, or reconstituted tobacco sheet, that is added by the manufacturer to a tobacco product during the processing, manufacture, or packing of the tobacco product. (3) "Flavored shisha tobacco product" means any shisha tobacco product that contains a constituent that imparts a characterizing flavor. (4) "Flavored tobacco product" means any tobacco product that contains a constituent that imparts a characterizing flavor. (5) "Hookah" means a type of waterpipe, used to smoke shisha or other tobacco products, with a long flexible tube for drawing aerosol through water. Components of a hookah may include heads, stems, bowls, and hoses. (6) "Hookah tobacco retailer" means a tobacco retailer that is engaged in the retail sale of shisha tobacco products, hookah, and hookah smoking accessories. (7) "Labeling" means written, printed, pictorial, or graphic matter upon a tobacco product or any of its packaging. (8) "Loose leaf tobacco' consists of cut or shredded pipe tobacco, usually sold in pouches, excluding any tobacco product which, because of its appearance, type, packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, consumers as tobacco for malting cigarettes, including roll -your -own cigarettes. (9) "Packaging" means a pack, box, carton, or container of any kind, or, if no other container, any wrapping, including cellophane, in which a tobacco product is sold or offered for sale to a consumer. (10) "Premium cigar" means any cigar that is handmade, is not mass produced by use of mechanization, has a wrapper that is made entirely from whole tobacco leaf, and has a wholesale price of no less than twelve dollars ($12). A premium cigar does not have a filter, tip, or nontobacco mouthpiece and is capped by hand. (11) "Retail location" means both of the following: (A) A building from which tobacco products are sold at retail. (B) A vending machine. 93 Packet Pg. 44 Ch. 34 8.c (12) "Sale" or "sold" means a sale as that term is defined in Section 30006 of the Revenue and Taxation Code. (13) "Shisha tobacco product" means a tobacco product smoked or intended to be smoked in a hookah. "Shisha tobacco product" includes, and may be referred to as, hookah tobacco, waterpipe tobacco, maassel, narghile, and argileh. "Shisha tobacco product" does not include any electronic devices, such as an electronic hookah, electronic cigarette, or electronic tobacco product. (14) "Tobacco product" means a tobacco product as defined in paragraph (8) of subdivision (a) of Section 104495, as that provision may be amended from time to time. (15) "Tobacco product flavor enhancer" means a product designed, manufactured, produced, marketed, or sold to produce a characterizing flavor when added to a tobacco product. (16) "Tobacco retailer" means a person who engages in this state in the sale of tobacco products directly to the public from a retail location. "Tobacco retailer" includes a person who operates vending machines from which tobacco products are sold in this state. (b) (1) A tobacco retailer, or any of the tobacco retailer's agents or employees, shall not sell, offer for sale, or possess with the intent to sell or offer for sale, a flavored tobacco product or a tobacco product flavor enhancer. (2) There is a rebuttable presumption that a tobacco product is a flavored tobacco product if a manufacturer or any of the manufacturer's agents or employees, in the course of their agency or employment, has made a statement or claim directed to consumers or to the public that the tobacco product has or produces a characterizing flavor, including, but not limited to, text, color, images, or all, on the product's labeling or packaging that are used to explicitly or implicitly communicate that the tobacco product has a characterizing flavor. (c) Subdivision (b) does not apply to the sale of flavored shisha tobacco products by a hookah tobacco retailer if all of the following conditions are met: (1) The hookah tobacco retailer has avalid license to sell tobacco products issued pursuant to Chapter 2 (commencing with Section 22971.7) of Division 8.6 of the Business and Professions Code. (2) The hookah tobacco retailer does not permit any person under 21 years of age to be present or enter the premises at any time. (3) The hookah tobacco retailer shall operate in accordance with all relevant state and local laws relating to the sale of tobacco products. (4) If consumption of tobacco products is allowed on the premises of the hookah tobacco retailer, the hookah tobacco retailer shall operate in accordance with all state and local laws relating to the consumption of tobacco products on the premises of a tobacco retailer, including, but not limited to, Section 6404.5 of the Labor Code. 93 Packet Pg. 45 Ch. 34 8.c (d) Subdivision (b) does not apply to sales of premium cigars sold in cigar lounges where products are purchased and consumed only on the premises. (e) Subdivision (b) does not apply to loose leaf tobacco or premium cigars. (f) A tobacco retailer, or agent or employee of a tobacco retailer, who violates this section is guilty of an infraction and shall be punished by a fine of two hundred fifty dollars ($250) for each violation of this section. (g) This section does not preempt or otherwise prohibit the adoption of a local standard that imposes greater restrictions on the access to tobacco products than the restrictions imposed by this section. To the extent that there is an inconsistency between this section and a local standard that imposes greater restrictions on the access to tobacco products, the greater restriction on the access to tobacco products in the local standard shall prevail. SEC. 2. The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution. X 93 Packet Pg. 46 8.d 10-DAY REPORT ON THE CITY OF SANTA CLARITA'S MORATORIUM ON ESTABLISHMENT OF NEW TOBACCO RETAILERS SELLING FLAVORED TOBACCO BACKGROUND On October 8, 2019, pursuant to Government Code section 65858, the City Council of the City of Santa Clarita enacted Ordinance No. 19-7 as an urgency measure imposing a 45-day moratorium on the establishment of new tobacco retailers selling flavored tobacco products. The ordinance was adopted in response to the County of Los Angeles adopting an ordinance on October 1, 2019, that prohibited the retail sales of flavored tobacco products in County unincorporated areas, based upon health concerns impacting youth utilizing such products. That moratorium was extended to and through October 7, 2020. The moratorium was intended to prevent a proliferation of businesses that may wish to relocate to the City from the County as a result of the County's regulation. Government Code section 65858 allows an initial 45-day moratorium to be extended for up to 10 months and 15 days after a noticed public hearing is held. If so extended, Government Code section 65858 allows for an additional extension of up to 12 months, after a further public hearing. UPDATE ON THE MEASURES TAKEN TO ALLEVIATE THE CONDITIONS THAT LED TO THE ADOPTION OF THE URGENCY ORDINANCE City staff originally made outreach to the LA County Sheriff's concerning the prevalence of vaping by youth in Santa Clarita. City staff was also making outreach to other communities concerning their legislative efforts. However, City staff s efforts concerning local legislative action were put on hold in light of efforts undertaken at both the Federal and State levels to regulate flavored tobacco. Thus, since last November, City staff has focused primarily on monitoring Federal and State legislative efforts to regulate flavored tobacco. On August 23, 2020, Governor Newsom signed SB 793, which prohibits the retail sale of flavored tobacco products. SB 793 makes exceptions for certain hookah, cigar, and leaf tobacco products. SB 793 goes into effect on January 1, 2021. SB 793 would supersede the City's moratorium ordinance. Thus, once SB 793 goes into effect, the proposed moratorium would expire. Even though SB 793 is set to take effect on January 1, 2021, the proposed extension is for the maximum 12 months allowed by Government Code section 65858, or until SB 793 takes effect, whichever is sooner, in case SB 793 is legally challenged and enjoined. Packet Pg. 47