ORD 449U ORDINANCE NO. 449U
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, AND ADOPTING FINDINGS OF URGENCY.
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, it is therefore
urgent that the City adopt this ordinance to bring medical marijuana dispensaries within the
ambit of the City's business permit ordinance while strengthening the provisions of that
ordinance which prohibit the issuance of business permits to businesses that 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
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 regulation, and is,
therefore, necessary for preserving the public peace, health, or safety;
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."
Ordinance No. 449U
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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;
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
Ordinance No. 449U
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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 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*;
Ordinance No. 449U
Page 4 of 8
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.
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
Ordinance No. 449U
Page 5of8
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;
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
Ordinance No. 449U
Page 6 of 8
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 5.10.0408.4. 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. Findings. The City of Rancho Palos Verdes issues business
licenses and business permits for businesses doing business within its boundaries. 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. 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 and business permits to businesses
whose activities violate federal law. Thus, it is urgent that the City adopt this ordinance
requiring that all marijuana dispensaries, stores, and co-ops obtain a business permit before
operating within the City's jurisdictional boundaries, while clarifying the provisions that
prohibit the issuance of a business permit to those businesses that 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 reinforcing 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 or welfare requiring this regulation of marijuana dispensaries,
stores, and co-ops; further hereby finds that this ordinance is necessary for the immediate
preservation of the public peace, health or 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 12. 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
Ordinance No. 449U
Page 7 of 8
(1) or more provisions, sections, subsections, subdivisions, paragraphs, sentences,
clauses, phrases or words be declared unconstitutional, or invalid, or ineffective.
Section 13. 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 14. This Ordinance shall go into effect and be in full force and
effect immediately upon adoption.
PASSED, APPROVED AND ADOPTED this 17th day of October 2006, by the following
vote:
Offir/h___AM/ -
l
Mayor
Attest:
41Gtek, /
r
City 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. 449U was duly and regularly adopted by the City Council of said City at a
regular meeting thereof held on October 17, 2006, and that the same was passed and
adopted by the following roll call vote:
AYES: Clark, Gardiner, Stern, and Mayor Pro Tem Long
NOES: None
ABSENT: Mayor Wolowicz
ABSTAIN: None
City Clerk
Ordinance No. 449U
Page 8 of 8
All!
RANcH0 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 18, 2006, she caused to be posted the following document entitled:
ORDINANCE NO. 449U —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,
AND ADOPTING FINDINGS OF URGENCY.
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.
city Clerk
W:\City Council Ordinances\affidavits\Ordinance 449U-Amending Sections Relating to Business Licenses&Repealing Ord No 446U.doc