That the City Council APPROVE AND ADOPT URGENCY ORDINANCE NO. CC 2025-__ ENTITLED:  AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA HABRA, CALIFORNIA, ESTABLISHING A TEMPORARY MORATORIUM ON SMOKE SHOPS.

At the August 4, 2025, City Council meeting, following a staff report on Smoke Shops, public comments, and Council deliberation, the City Council directed staff to initiate amendments to the La Habra Municipal Code related to Smoke Shops and to prepare an Urgency Ordinance to establish a temporary moratorium on Smoke Shops in the City of La Habra. The August 4, 2025, staff report (without attachments) is provided as Attachment 2. The report, with attachments and a video of the City Council meeting, is available on the City's website at www.lahabraca.gov. 

The attached draft Urgency Ordinance would establish a 45-day temporary moratorium on new Smoke Shops, which are defined in the ordinance as:

"any retailer who: (1) devotes at least 20% of the floor or display area of the business to tobacco products and/or related paraphernalia; (2) derives at least 60% of gross sales from tobacco products and/or related paraphernalia; or (3) includes a tobacco product and/or related paraphernalia in at least 50% of all retail sales transactions."
 

Pursuant to Government Code Section 65858, and in order to protect public safety, health, and welfare, the City Council may adopt an Urgency Ordinance prohibiting any uses that may be in conflict with a contemplated zoning proposal that the legislative body, planning commission or the planning department is considering or studying or intends to study within a reasonable time. Approval of an Urgency Ordinance requires a minimum of a four-fifths vote of the legislative body for adoption and is effective immediately for 45 days from its date of adoption. After notice, pursuant to Section 65090, and a public hearing, the legislative body may, at a future date, extend the Urgency Ordinance for 10 months and 15 days, and subsequently extend the Urgency Ordinance for one year. These additional extensions will also require a minimum of a four-fifths vote for adoption. No more than two extensions may be adopted by the legislative body.

As noted above, the City Council has directed staff to initiate amendments to the La Habra Municipal Code related to Smoke Shops and an Urgency Ordinance to prevent the establishment of any new Smoke Shops while the amendments are being drafted for Council review and action. This direction is supported by the evidence of a significant increase in the number of Smoke Shops that have been established in the City of La Habra, as well as the significant number of other businesses in the City that are currently licensed by the State to sell tobacco, and the City Council's concern about this increase and the harmful effect of tobacco on the residents. Currently, the City's Zoning Code permits Smoke Shops in the same manner as any other General Retail use. The City has no regulations, specific to retailers whose principal or core business involves selling tobacco products and related paraphernalia, that would protect minors, such as distance requirements from schools, parks, and other youth-oriented areas. In order to provide staff with the time to study options for the regulation of Smoke Shops, staff is recommending approval of the subject urgency ordinance.

Costs associated with City-initiated amendments to the La Habra Municipal Code that pertain to the Community and Economic Development Department are generally assumed as part of the Department's annual budget.

Applicable General Plan Goals:

Applicable City Council Goals and Objectives: