ORD 446U ORDINANCE NO. 446U
AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES AMENDING
SECTIONS OF THE RANCHO PALOS VERDES MUNICIPAL CODE
RELATING TO THE ISSUANCE OF BUSINESS LICENSES AND ADOPTING
FINDINGS OF URGENCY.
WHEREAS, the City of Rancho Palos Verdes issues business licenses for
businesses doing business within its boundaries; and
WHEREAS, in 1996, the California voters adopted Proposition 215, the
Compassionate Use Act ("Prop 215"), decriminalizing the use of marijuana for medical
purposes, which was augmented by the State Legislature in 2004 and codified at Section
11362.5 et seq. of the California Health and Safety Code; and
WHEREAS, widespread implementation of Prop 215 was delayed due to several
ensuing court cases challenging its validity; and
WHEREAS, the California Supreme Court has stated that Prop 215 makes the
possession of marijuana for medical purposes non-criminal (People v. Mower, 28 Ca1.4th 457,
472 (2002)); however, the federal courts have not recognized such a medical necessity
exception under federal law (United States v. Oakland Cannabis Buyer's Cooperative, 121 S.
Ct. 1711 (2001)); and
WHEREAS, the United States Supreme Court has ruled that the federal
Commerce Clause powers gave Congress the authority to enact the Controlled Substances Act,
which bans, among other things, the cultivation, use and transfer of marijuana for
noncommercial purposes even though that cultivation, use and transfer occurs completely within
the State of California, so that the federal ban covers marijuana cultivated, used or transferred
pursuant to Prop 215; however, the Court did not expressly invalidate Prop 215 (Raich v.
Ashcroft, 125 S. Ct. 2195 (2005)); and
WHEREAS, a subsequent Ninth Circuit holding puts cities on notice that a city
cannot invoke federal immunity for a marijuana dispensary operator by designating that operator
as an "official" city dispensary operator (United States v. Rosenthal, 454 F.3d 943 (2006)), from
which it can be inferred that city officials could potentially incur co-conspirator liability if they
authorize activities that violate federal law; and
WHEREAS, the City has not yet established any express criteria permanently
banning or regulating the issuance of business licenses for medical marijuana dispensaries,
stores, or co-ops; and
WHEREAS, at least two neighboring cities recently discovered that a medical
marijuana dispensary was established within each of their jurisdictions; and
WHEREAS, with the expansion of medical marijuana dispensaries in other cities,
it is foreseeable that a medical marijuana dispensary may seek to establish its business within
the boundaries of the City; and
WHEREAS, cities have experienced adverse secondary impacts to the public
peace, health, safety and welfare around medical marijuana dispensaries, such as an increase
in thefts and robberies in support of illegal drug commerce; and
WHEREAS, the City Council is concerned that the establishment of medical
marijuana dispensaries, stores, or co-ops within the City, in violation of federal law, has the
potential to cause adverse impacts to surrounding neighborhoods and the public peace, health,
safety, and welfare of the City's residents and the general public, and further, that public officials
and employees are put at risk for being co-conspirators if required to issue business licenses to
businesses whose activities violate federal law; it is therefore urgent that the City adopt this
ordinance to require that all applicants affirm that they will not conduct activities that are illegal
under the Rancho Palos Verdes Municipal Code, the laws of the State of California, or the laws
of the United States of America while clarifying that business licenses do not authorize the
conduct of unlawful businesses or activities and, and
WHEREAS, this ordinance is presented as an urgency ordinance because the
above-referenced facts increase the possibility that a medical marijuana dispensary may be
established in the City before the City has enacted appropriate regulations, and is, therefore,
necessary for preserving the public peace, health, and safety;
NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES DOES ORDAIN AS FOLLOWS:
Section 1. Section 5.04.050 of Chapter 5.04 of Title 5 of the Rancho Palos
Verdes Municipal Code is hereby revoked and replaced as follows:
"5.04.050 License and tax payment required.
A. There are imposed upon the businesses, trades, professions, callings and
occupations specified in this chapter license taxes in the amounts prescribed in this chapter
effective upon the effective date of this chapter. It is unlawful for any person to transact and
carry on any business, trade, profession, calling or occupation in the city without first having
procured a license from the city so to do and paying the tax prescribed in this chapter or without
complying with any and all applicable provisions of this chapter.
B. This section shall not be construed to require any person to obtain a license prior to
doing business within the city if such requirement conflicts with applicable statutes of the United
States or of the state. Persons not so required to obtain a license prior to doing business within
the city nevertheless shall be liable for payment of the tax imposed by this chapter.
C. No business license issued by the city pursuant to this chapter shall be construed as
authorizing any conduct or continuance of any illegal or unlawful business or practice, or the
furnishing, sale, or providing of any service, good, or product that is illegal or prohibited under
the laws of the United States, the laws of the State of California, the federal and state
constitutions, this Code, or any other applicable law, ordinance, rule or regulation. Any such
business license shall be void."
Section 2. Section 5.04.110 of Chapter 5.04 of Title 5 of the Rancho Palos
Verdes Municipal Code is hereby revoked and replaced as follows:
Ordinance No. 446U
Page 2 of 5
"5.04.110 Application—First License
A. Upon a person making application for the first license to be issued hereunder for the
applicant's business for a newly established business, such person shall furnish to the collector
a sworn statement, upon a form provided by the collector, setting forth the following information:
1. The exact nature or kind of business for which a license is requested;
2. The place where such business is to be carried on, and if the same is not to be
carried on at any permanent place of business, the places of residences of the owners of same;
3. In the event that application is made for the issuance of a license to a person
doing business under a fictitious name, the application shall set forth the names and places of
residences of those owning said business;
4. In the event that the application is made for the issuance of a license to a
corporation or a partnership, the application shall set forth the names and places of residence of
the officers or partners thereof;
5. In all cases where the amount of license tax to be paid is measured by gross
receipts or by the number of dwelling units, of square feet of commercial or industrial buildings
constructed as provided in this chapter, or by the number of vehicles used or other computation,
count or similar criteria, the application shall set forth such information as may be therein
required and as may be necessary to determine the amount of the license tax to be paid by the
applicant;
6. An affirmation by the applicant that the business will not be an illegal or
unlawful business or practice, and that it will not furnish or provide any service, good, or product
that is illegal or prohibited under the laws of the United States, the laws of the State of
California, the federal and state constitutions, this Code, or any other applicable law, ordinance,
rule or regulation;
7. Any further information that the collector may require to enable the collector to
issue the type of license applied for;
8. If the amount of the license tax to be paid by the applicant is measured by
gross receipts or by the number of dwelling units or square feet of commercial or industrial
buildings constructed as provided in this chapter, or by the number of vehicles used or other
computation, count or similar criteria, the applicant shall estimate the gross receipts or number
of bedrooms and dwelling units or number of square feet of commercial or industrial buildings
constructed, or the number of vehicles to be used or other criteria, respectively, for the period to
be covered by the license to be issued. Such estimate, if accepted by the collector as
reasonable, shall be used in determining the amount of license tax to be paid by the applicant;
provided, however, the amount of the license tax so determined shall be tentative only, and
such person shall, within thirty days after the expiration of the period for which such license was
issued, furnish the collector with a sworn statement, upon a form furnished by the collector,
showing the actual gross receipts or number of dwelling units or square feet of commercial or
industrial buildings constructed, or number of vehicles or other criteria, respectively, during the
period of such license, and the license tax for such period shall be finally ascertained and paid
on the basis of such actual gross receipts, number of bedrooms and dwelling units or square
Ordinance No. 446U
Page 3 of 5
feet or number of vehicles or other criteria, as the case may be, after deducting from the
payment found to be due, the amount paid at the time such first license was issued.
B. The collector shall not issue to any such person another license for the same,
or any other business, until such person shall have furnished to the collector the sworn
statement and paid the license tax as required in this section."
Section 3. Section 5.04.120 of Chapter 5.04 of Title 5 of the Rancho Palos
Verdes Municipal Code is hereby revoked and replaced as follows:
"License—Renewal
In all cases, the applicant for the renewal of a license shall submit to the collector for his
or her guidance in ascertaining the amount of the license tax to be paid by the applicant, a
sworn statement, upon a form to be provided by the collector, setting forth such information
concerning the applicant's business during the preceding year (or such other period as may be
applicable if the license tax period is less than one year) as may be required by the collector to
enable the collector to ascertain the amount of the license tax to be paid by said applicant
pursuant to the provisions of this chapter. Such form shall also include a signed affirmation by
the applicant that the business will not be an illegal or unlawful business or practice, and that it
will not furnish or provide any service, good, or product that is illegal or prohibited under the
laws of the United States, the laws of the State of California, the federal and state constitutions,
this Code, or any other applicable law, ordinance, rule or regulation."
Section 4. Findings. The City of Rancho Palos Verdes issues business
licenses for businesses doing business within its boundaries. The City currently has not
established any express provision forbidding a business to open its operations in the City or
continue to operate in the City if the business conducted violates City, state or federal law.
Because of the lack of such provision, medical marijuana dispensaries, stores, or co-ops could
be established in the City at any time unless this ordinance is immediately adopted. The
establishment of medical marijuana dispensaries, stores, or co-ops within the City, in violation of
federal law, has the potential to cause adverse impacts to surrounding development and to risk
the public peace, health, safety, and welfare of the City's residents and the general public.
Further, public officials and employees are put at risk for being co-conspirators if required to
issue business licenses to businesses whose activities violate federal law. Thus, it is urgent
that the City adopt this ordinance requiring that all applicants affirm that their business will not
conduct activities that are illegal under the Rancho Palos Verdes Municipal Code, the laws of
the State of California, or the laws of the United States of America, and clarifying that business
licenses do not authorize the conduct of unlawful businesses or activities. Based on the
foregoing, the City Council hereby finds that there exists a current and immediate threat to the
public health, safety and welfare requiring this change in the business license provisions; further
hereby finds that this ordinance is necessary for the immediate preservation of the public peace,
health and safety; hereby declares the facts constituting the urgency; and passes this ordinance
by at least a four-fifths vote of the City Council. Accordingly, this measure is adopted
immediately upon introduction pursuant to Government Code Section 36934 and shall take
effect immediately pursuant to Government Code Section 36937(b).
Section 5. The City Council declares that, should any provision, section,
subsection, subdivision, paragraph, sentence, clause, phrase or word of this ordinance be
rendered or declared unconstitutional, or invalid, or ineffective by any final action in a court of
competent jurisdiction, or by reason of any preemptive legislation, the remaining provisions,
Ordinance No. 446U
Page 4 of 5
sections, subsections, subdivisions, paragraphs, sentences, clauses, phrases and words of this
ordinance shall remain in full force and effect. The City Council hereby declares that it would
have passed each provision, section, subsection, subdivision, paragraph, sentence, clause,
phrase or word thereof, irrespective of the fact that any one (1) or more provisions, sections,
subsections, subdivisions, paragraphs, sentences, clauses, phrases or words be declared
unconstitutional, or invalid, or ineffective.
Section 6. The City Clerk shall cause this Ordinance to be posted in three (3)
public places in the City within fifteen (15) days after its passage, in accordance with the
provisions of Section 36933 of the Government Code. The City Clerk shall further certify to the
adoption and posting of this Ordinance, and shall cause this Ordinance and its certification,
together with proof of posting, to be entered in the Book of Ordinances of the Council of this
City.
Section 7. This Ordinance shall go into effect and be in full force and effect
immediately upon adoption.
PASSED, APPROVED and ADOPTED this 3rd day of October 2006.
oIIIPL.t o ' #
Mayor
Attest:
Ci, Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )ss
CITY OF RANCHO PALOS VERDES )
I, Carolynn Petru, City Clerk of the City of Rancho Palos Verdes, do hereby certify that
the whole number of members of the City Council of said City is five; that the foregoing
Ordinance No. 446U was duly and regularly adopted by the City Council of said City at a regular
meeting thereof held on October 3, 2006, and that the same was passed and adopted by the
following roll call vote:
AYES: Clark, Gardiner, Long, Stern, and Mayor Wolowicz
NOES: None
ABSENT: None
ABSTAIN: None
C Clerk
Ordinance No. 446U
Page 5 of 5
All
RANCHO PALOS VERDES
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS AFFIDAVIT OF POSTING
CITY OF RANCHO PALOS VERDES )
The undersigned, being first duly sworn, deposes and says:
That at all times herein mentioned, she was and now is the appointed City Clerk
of the City of Rancho Palos Verdes;
That on October 5, 2006, she caused to be posted the following document entitled:
ORDINANCE NO. 446U —AN ORDINANCE OF THE CITY OF RANCHO PALOS
VERDES AMENDING SECTIONS OF THE RANCHO PALOS VERDES
MUNICIPAL CODE RELATING TO THE ISSUANCE OF BUSINESS LICENSES
AND ADOPTING FINDINGS OF URGENCY, a copy of which is attached hereto, in
the following locations:
City Hall Ladera Linda Community Center
30940 Hawthorne Blvd. 32201 Forrestal Drive
Rancho Palos Verdes Rancho Palos Verdes
Hesse Park
29301 Hawthorne Blvd.
Rancho Palos Verdes
I certify under penalty of perjury that the foregoing is a true and correct affidavit of
posting.
Z4Ity Clerk
W:\City Council Ordinances\affidavits\Ordinance 446U-Amending Section Relating to Business Licenses.doc