Zone Change 25-0005 (ZCA 25-0005) was reviewed pursuant to the guidelines of the California Environmental Quality Act (CEQA) and determined to be exempt pursuant to Sections 15378(b)(5) and 15061(b)(3) of the CEQA Guidelines. The Zone Change is not a project pursuant to Section 15378(b)(5) of the CEQA Guidelines because it is an administrative activity of the City that will not result in direct or indirect physical changes in the environment. Even if the Zone Change were considered a project under CEQA, it would be exempt pursuant to Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines because the proposed amendments to the La Habra Municipal Code have no possibility of having a significant effect on the environment.

That the Planning Commission approve and adopt:

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LA HABRA, CALIFORNIA, RECOMMENDING THAT THE CITY COUNCIL ADOPT AN ORDINANCE APPROVING ZONE CHANGE 25-0005 (ZCA 25-0005) AMENDING SECTION 18.04.030 (TERMS DEFINED) OF CHAPTER 18.04 (DEFINITIONS) AND SECTION 18.06.040 (LAND USES) OF CHAPTER 18.06 (ZONES ESTABLISHED – ZONING MAP BOUNDARIES AND LAND USES) OF TITLE 18 (ZONING) OF THE LA HABRA MUNICIPAL CODE TO DEFINE SMOKE SHOPS AND TO REFLECT THAT NEW SMOKE SHOPS ARE PROHIBITED IN ALL ZONES AND MAKING A DETERMINATION THAT THE ORDINANCE IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO SECTIONS 15378(b)(5) AND 15061(b)(3) OF THE CEQA GUIDELINES

According to the World Health Organization, the tobacco epidemic is one of the biggest public health threats the world has ever faced, responsible for over seven (7) million deaths annually as well as disability and long-term suffering from tobacco-related diseases.
 

On April 7, 2025, during City Council comments, Councilmember Gomez made a motion, seconded by Mayor Pro Tem Medrano, for staff to place on a future City Council agenda a report discussing the feasibility of placing a moratorium on new "Smoke Shops" in the City of La Habra. Public comments regarding this matter were subsequently received at the April 21, 2025, and July 21, 2025 City Council meetings; and on May 12, 2025, during the Planning Commission public hearing for the Zone Change related to Conditional Use Permits and Minor Conditional Use Permits. As used in this report, "Smoke Shop" generally refers to a commercial location where the principal or core business is selling tobacco products, tobacco paraphernalia, or both, as evidenced by any one or more of the following:

A moratorium is a stringent temporary land use control based on documented health, safety, and general welfare concerns made pursuant to the police power. Pursuant to California Government Code Section 65858 ("Section 65858"), a city may adopt a temporary moratorium prohibiting any uses that may be in conflict with a contemplated general plan, specific plan, or zoning proposal that the city plans to study within a reasonable time. To adopt a moratorium, a city must follow the prescribed statutory process and must make written statutory findings. Pursuant to Section 65858, a moratorium requires a four-fifths vote of the City Council for approval, is effective immediately, and has an initial duration of 45 days. If adopted without following the notice and adoption procedures for other ordinances, the City Council may, after notice and a public hearing and by a four-fifths vote, extend the ordinance for up to 10 months and 15 days, and subsequently for up to one additional year. No more than two extensions may be adopted, for a total duration of up to two years.
 

At the August 4, 2025 City Council meeting, following a staff report on Smoke Shops, public comments, and Council deliberations, the City Council directed staff to initiate amendments to the La Habra Municipal Code (LHMC) to prohibit new Smoke Shops and to prepare an Urgency Ordinance to establish a temporary moratorium on Smoke Shops while the amendments are being prepared. The City Council subsequently adopted an Urgency Ordinance placing a moratorium on all new Smoke Shops pursuant to Section 65858 on August 18, 2025.  The moratorium will expire on October 2, 2025, unless extended pursuant to Section 65858. Staff anticipates requesting the City Council to extend the Urgency Ordinance following a public hearing at their September 15, 2025 meeting.
 

As noted above, the City Council has directed staff to initiate amendments to the LHMC related to Smoke Shops. This direction was supported by the evidence of a significant increase in the number of Smoke Shops that have been established in the City of La Habra (six retailers established over a 10-year period, from 2008 to 2018; 14 retailers established over a five-year period from 2020-2025), as well as the significant number of businesses (68) in the City that are currently licensed by the State of California to sell tobacco, and the City Council's concern about this increase and the harmful effects of tobacco on City residents. This evidence is documented in the August 4, 2025 City Council staff report; and in the video of the August 4, 2025 City Council meeting, which is available on the City's website at www.lahabraca.gov. The August 4 and August 18 City Council staff reports are provided as Attachments 2 and 3, respectively.
 

In order to prohibit new Smoke Shops from operating in La Habra, staff have prepared the attached proposed Draft Ordinance, which provides a definition of a Smoke Shop, adds this type of use to Table 18.06.040.A - Land Use Matrix of Title 18 of the La Habra Municipal Code and identifies that the use is prohibited in all zones.

The term "Smoke Shop" is not currently defined or addressed in the La Habra Municipal Code. The definition used in the Urgency Ordinance is consistent with the definition outlined above, which is generally consistent with how this type of use is defined by other cities: "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." Staff recommend using and have included the same definition in the proposed Draft Ordinance.

Prior to the adoption of the Urgency Ordinance, staff treated Smoke Shops as General Retail uses for permitting purposes, meaning they were not subject to specific zoning requirements for their location or operation beyond those for General Retail. Pursuant to LHMC Table 18.06.040.A (Land Use Matrix), General Retail uses are permitted within commercial zones, require a conditional use permit (CUP) in industrial zones, and are not permitted in the City's office and residential zones. Consistent with the Urgency Ordinance and pursuant to the direction provided by the City Council, the proposed Draft Ordinance prohibits any new Smoke Shops from being established in any zone in the City of La Habra.

If the proposed Draft Ordinance were to be adopted by City Council, any property that has obtained a California Cigarette and Tobacco Products Retailer’s License from the California Department of Tax and Fee Administration (CDTFA) and a business license from the City of La Habra, as of the effective date of the ordinance, would become a property with a legal non-conforming use and subject to the regulations of LHMC Section 18.08.070 (Nonconforming buildings and uses). These regulations are provided in Attachment 4 to this staff report. The most applicable of the regulations are summarized as follows:

During their deliberations on August 4, 2025, the City Council indicated that they didn't want to impact existing Smoke Shops that had legally opened; their intent was to make sure that no new Smoke Shops could open in La Habra. The proposed Draft Ordinance is consistent with this intent.

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.

Not applicable.

Applicable General Plan Policies:

Applicable City Council Goals and Objectives: