ORD 445 ORDINANCE NO. 445
AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES
REPEALING ORDINANCE NO. 446U, AMENDING ORDINANCE
NO. 445, AND AMENDING SECTIONS OF THE RANCHO
PALOS VERDES MUNICIPAL CODE RELATING TO THE
ISSUANCE OF BUSINESS PERMITS.
WHEREAS, the City of Rancho Palos Verdes issues business licenses and
business permits for certain 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 noncriminal (People v. Mower(2002) 28 Ca1.4th
457, 472), however, the federal courts have not recognized such a medical necessity exception
under federal law (United States v. Oakland Cannabis Buyer's Cooperative (2001) 121 S. Ct.
1711); 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(2005) 125 S. Ct. 2195); 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 (2006) 454 F.3d 943), 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 regulation banning
medical marijuana dispensaries, stores, or co-ops so long as their operation violates federal,
state, or local laws; and
WHEREAS, at least two neighboring cities had medical marijuana dispensaries
established within their jurisdiction; 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 development and to risk 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
permits to businesses whose activities violate federal law;
NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES DOES ORDAIN AS FOLLOWS:
Section 1. Urgency Ordinance No. 446U is hereby repealed.
Section 2. 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."
Section 3. 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:
"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;
Ordinance No. 445
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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. Any further information which the collector may require to enable him to issue
the type of license applied for;
7. 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, he 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
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 him the sworn statement and
paid the license tax as required in this section."
Section 4. 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
Ordinance No. 445
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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 him to ascertain the amount of the license tax to be paid by said applicant pursuant to
the provisions of this chapter."
Section 5. Section 5.10.010 of Chapter 5.10 of Title 5 of the Rancho Palos
Verdes Municipal Code is hereby amended by adding alphabetically between "Entertainer" and
"Massage establishment" the following definition:
—Marijuana dispensary, store, or co-op" shall be broadly and liberally interpreted
to mean and include any person who sells marijuana, trades marijuana, exchanges marijuana,
barters for marijuana in any way, or makes marijuana available to the public, whether for
medicinal or any other purpose, or who, in connection with the foregoing, delivers, locates,
stores, places, processes, or cultivates marijuana."
Section 6. Section 5.10.010 of Chapter 5.10 of Title 5 of the Rancho Palos
Verdes Municipal Code is hereby amended replacing the definition of "Permittee" with the
following definition:
""Permittee" means any person holding a business permit pursuant to this
chapter."
Section 7. Section 5.10.020 of Chapter 5.10 of Title 5 of the Rancho Palos
Verdes Municipal Code is hereby revoked and replaced as follows:
"Section 5.10.020 Permit required for certain businesses.
A. No person shall commence, conduct or purport to commence or conduct the following
business activities within the boundaries of the city of Rancho Palos Verdes without possessing
a valid business permit issued pursuant to this chapter:
1. Massage establishment*;
2. Massage technician*;
3. Peddler;
4. Marijuana dispensary, store, or co-op**.
B. No person may advertise or announce a business activity located in the city of
Rancho Palos Verdes for which a business permit is required by this Code until he or she has
obtained a business permit, when required by this Code. For the purposes of this chapter,
"advertising" or "announcement" includes, but is not limited to, disseminating pamphlets or
handbills, publishing newspaper announcements, and broadcasting advertisements on radio,
television, the Internet, or by any other communication device.
C. When any person is engaged in more than one business activity for which a business
permit is required in a single location, that person shall be deemed to be conducting each
business activity separate and apart from each other business activity even if the separate
business activities constitute a single business.
Ordinance No. 445
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D. No business permit issued by the city pursuant to this chapter shall be construed as
authorizing any conduct of or continuance of any illegal or unlawful business or practice, or the
furnishing, sale, or provisioning 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 permit shall be void.
E. The director shall keep all applications and related records for business permits under
this chapter.
* The applicant is required to be fingerprinted by the Los Angeles County
Sheriff's Department.
** Currently this type of use is unlawful and no business permit shall be issued so
long as it remains unlawful."
Section 8. Section 5.10.030B of Chapter 5.10 of Title 5 of the Rancho Palos
Verdes Municipal Code is hereby revoked and replaced as follows:
"B. Contents of Application Form and Renewal Application Form. Applications for
business permits and renewal application for business permits shall contain the following
information:
1. Identification of the applicant, including the name of the business and the
name of all owners of the business. Where the applicant is a corporation, association,
partnership, limited partnership or other legal entity, "applicant" shall mean each partner, officer,
director, and each shareholder owning or controlling more than ten percent of such entity.
"Applicant" shall also mean each partner, officer, director, and any shareholder owning or
controlling more than ten percent of any corporation, association, partnership, limited
partnership or other legal entity that is an officer, director, shareholder, general partner or
managing partner of any such entity that comprises the applicant. Rules and regulations
governing the procedure for fingerprinting and photo identification, where such fingerprinting
and photo identification is required by an application for a particular business permit, shall be
established by the Los Angeles County Sheriff's department, license detail. A business permit
may be issued to a corporation or to a person operating under a fictitious name who has
complied with all of the applicable provisions of the Business and Professions Code of this
state. In all other cases, a business permit must be obtained in the true name of the individual,
or individuals, so applying;
2. A complete description of the business activity proposed to be operated, and
the location of such proposed business activity, including the address, telephone number and
zone;
3. The name(s), address(es) and telephone number(s) of the property owner(s);
4. The previous use of the property or business, the length of time the building
was vacant, and whether there are existing signs on the building;
5. Any changes in signage proposed by the applicant;
6. The number of parking spaces and handicap spaces;
Ordinance No. 445
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7. The presence and type of landscaping;
8. The presence of trash enclosures;
9. The number of employees;
10. The date the business is expected to open;
11. The proposed hours of operation;
12. 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; and
13. Any additional information required for the permitting of a particular business
when such additional information is specifically required pursuant to other provisions of Title 5."
Section 9. Section 5.10.040A.4. of Chapter 5.10 of Title 5 of the Rancho
Palos Verdes Municipal Code is hereby revoked and replaced as follows:
"4. The business is an illegal or unlawful business or practice 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; or involves the furnishing, sale,
or provisioning 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; or the business, or any part, conduct,
or aspect of the business, is prohibited in the particular location or zone by any law, statute,
rule, or regulation."
Section 10. Section 5.10.040B.4. of Chapter 5.10 of Title 5 of the Rancho
Palos Verdes Municipal Code is hereby revoked and replaced as follows:
"4. The business is an illegal or unlawful business or practice 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; or involves the furnishing, sale,
or provisioning 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; or the business, or any part, conduct,
or aspect of the business, is prohibited in the particular location or zone by any law, statute,
rule, or regulation;"
Section 11. 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,
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,
Ordinance No. 445
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subsections, subdivisions, paragraphs, sentences, clauses, phrases or words be declared
unconstitutional, or invalid, or ineffective.
Section 12. 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 13. This Ordinance shall go into effect and be in full force and effect at
12:01 a.m. on the thirty-first (31st) day after its passage.
PASSED, APPROVED and ADOPTED this 7th day of November 2006.
411111111IP��.�a Lip
4.-
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. 445 passed first reading on October 17, 2006, was duly and regularly adopted by
the City Council of said City at a regular meeting thereof held on November 7, 2006, and that
the same was passed and adopted by the following roll call vote:
AYES: Clark, Long, Stern, and Mayor Wolowicz
NOES: None
ABSENT: Gardiner
ABSTAIN: None
CI Clerk
Ordinance No. 445
Page7of7
ji!
RANCHO
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 November 9, 2006, she caused to be posted the following document
entitled:
ORDINANCE NO. 445 — AN ORDINANCE OF THE CITY OF RANCHO PALOS
VERDES REPEALING ORDINANCE NO. 446U, AMENDING ORDINANCE NO.
445, AND AMENDING SECTIONS OF THE RANCHO PALOS VERDES
MUNICIPAL CODE RELATING TO THE ISSUANCE OF BUSINESS PERMITS, 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.
tty Clerk
W:\City Council Ordinances\affidavits\Ordinance 445-Repealing 446U&Amending Sections Relating to Business Licenses.doc