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HomeMy WebLinkAbout2020-05 - Measure xORDINANCE NO. 2020-05 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA PROVIDING FOR A REDUCTION OF THE BUSINESS TAX SET FORTH IN ARTICLE 5 (ADMINISTRATION, APPLICATION AND PROCEDURES) OF CHAPTER I (BUSINESS TAX) AS AUTHORIZED BY MEASURE X, THE COSTA MESA MEDICAL MARIJUANA MEASURE, AS AMENDED, THAT IS LEVIED UPON THE LAWFUL DISTRIBUTION, MANUFACTURING, TESTING, AND/OR RESEARCH AND DEVELOPMENT OF MARIJUANA WHEREAS, the City of Costa Mesa, pursuant to its police power, may adopt regulations to protect the health, safety and welfare of the public, Cal. Const. art. XI, § 7, Cal. Govt. Code § 37100, and thereby is authorized to declare what use and condition constitutes a public nuisance; and WHEREAS, on November 8, 2016 the electorate of the City of Costa Mesa voted on Measure X, and approved the Costa Mesa Medical Marijuana Measure. Measure X sets forth the specific area in the City within which medical marijuana distributors, manufacturers, processors, research and development laboratories, testing laboratories and transporters can be located; provides for City regulation of these medical marijuana businesses in a manner consistent with the statewide regulations to be adopted by the California Department of Consumer Affairs and other state agencies, including the departments of Food and Agriculture and Public Health; reaffirms the existing ban on dispensaries and cultivation within the City; and imposes a gross receipts tax on all medical marijuana distributors, manufacturers, processors, testing laboratories, transporters, and research and development laboratories, as well as any other marijuana or cannabis business at a rate of 6% of gross receipts; and WHEREAS, Measure X provides that any future changes or amendments to Ordinance 16-15, including any future changes or amendments to any Municipal Code section affected by the Measure or a reduction in the tax imposed by this Measure, may occur in the manner set forth in the Government Code and the City's Municipal Code, and shall not require a vote of the people, except that any future change or amendment to Ordinance 15-16 related to dispensaries and/or cultivation or the specific area within the City where medical marijuana businesses may be located shall require a vote of the people; and WHEREAS, on April 3, 2018, the City Council adopted Ordinance 18-04 which amended certain provisions of Measure X in order to allow for the manufacturing, processing, researching, testing and wholesale distribution of recreational marijuana; and WHEREAS, the City Council of the City of Costa Mesa desires to support the lawful marijuana businesses which have located in the City, to facilitate their ability to maintain their businesses in the City, provide employment opportunities in the City, and to protect Ordinance No. 2020-05 Page 1 of 4 the City's revenue from these businesses through reducing City taxes on these businesses; and WHEREAS, the City of Costa Mesa, pursuant to the provisions of the California Environmental Quality Act ("CEQA") (California Public Resources Code Sections 21000 et seq.) and State CEQA guidelines (Sections 15000 et seq.) has determined that the Ordinance is exempt pursuant to Section 15061(b)(3) of Title 14 the California Code of Regulations; and WHEREAS, the City Council finds that the provisions of this Ordinance are consistent with the City of Costa Mesa's General Plan; and WHEREAS, all legal prerequisites prior to the adoption of this ordinance have occurred. THE COSTA MESA CITY COUNCIL DOES HEREBY ORDAIN AS FOLLOWS: Section 1: The six (6) percent tax set forth in Title 9, Chapter I, Section 9-29.5 of the Costa Mesa Municipal Code, is hereby reduced as follows: Every person who is lawfully engaged in, managing, conducting, or carrying on a business as a marijuana distributor, manufacturer, and/or research and development laboratory, as set forth in Section 9- 486(a), shall pay an annual business tax of one (1) percent based on the gross receipts of that business. Every person who is lawfully engaged in, managing, conducting, or carrying on a business as a marijuana testing laboratory, as set forth in Section 9-486(a), shall pay no annual business tax. Section 2: Environmental Compliance. This Ordinance has been reviewed for compliance with the California Environmental Quality Act (CEQA), the CEQA guidelines, and the City's environmental procedures, and has been found to be exempt pursuant to Section 15061 (b)(3) (General Rule) of the CEQA Guidelines, in that the City Council hereby finds that it can be seen with certainty that there is no possibility that the passage of this Ordinance will have a significant effect on the environment. Section 3: Inconsistencies. Any provision of the Costa Mesa Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to affect the provisions of this Ordinance. Section 4: Severability. If any chapter, article, section, subsection, subdivision, sentence, clause, phrase, word, or portion of this Ordinance, or the application thereof to any person, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of this Ordinance or its application to other persons. The City Council hereby declares that it would have adopted this Ordinance and each chapter, article, section, subsection, subdivision, sentence, clause, phrase, word, or portion thereof, irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, phrases, or portions of the application thereof to any person, be declared invalid or unconstitutional. Ordinance No. 2020-05 Page 2 of 4 No portion of this Ordinance shall supersede any local, state, or federal law, regulation, or codes dealing with life safety factors. Section 5: Effective Date. This Ordinance shall take effect and be in full force thirty (30) days from and after the passage thereof. Section 6: Uncodified Ordinance. This Ordinance shall not be codified in the Costa Mesa Municipal Code unless and until the City Council so ordains. Section 7: The City Clerk shall certify the adoption of this Ordinance and shall cause the same to be posted or published in the manner as required by law. PASSED AND ADOPTED on this 17th day of March, 2020. John ep ens, Mayor Pro Tern n Brenda Green, Oity Clerk APPROVED AS TO FORM: lk�Z4 Kimberly Hall Barlow, City Attorney Ordinance No. 2020-05 Page 3 of 4 STATE OF CALIFORNIA ) COUNTY OF ORANGE 1 ss CITY OF COSTA MESA I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing Ordinance No. 2020-05 was duly introduced for first reading at a regular meeting of the City Council held on the 3rd day of March, 2020, and that thereafter, said Ordinance was duly passed and adopted at a regular meeting of the City Council of the City of Costa Mesa held on the 17th day of March, 2020, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: CHAVEZ, MANSOOR, MARK, REYNOLDS NOES: COUNCIL MEMBERS: GENTS, STEPHENS ABSENT: COUNCIL MEMBERS: NONE ABSTAIN: COUNCIL MEMBERS: FOLEY IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 18th day of March, 2020. Qy In c(ff 3WAA, Brenda Green, y Clerk Ordinance No. 2020-05 Page 4 of 4