Attachment A
Ordinance No. 2025-31: Urgency
Ordinance for Moratorium
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ORDINANCE NO. 2025-
AN URGENCY ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF NEWPORT BEACH, CALIFORNIA,
ESTABLISHING A TEMPORARY MORATORIUM ON THE
ESTABLISHMENT AND OPERATION OF NEW
TOBACCO RETAILER BUSINESSES AND THE
RELOCATION OR PHYSICAL EXPANSION OF
EXISTING TOBACCO RETAILER BUSINESSES, ALSO
KNOWN AS SMOKE SHOPS
WHEREAS, Section 200 of the City Charter, of the City of Newport Beach ("City"}, vests the City Council with the authority to make and enforce all laws, rules and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the City Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges or procedures granted or prescribed by any law of the State of California;
WHEREAS, pursuant to Government Code Section 65858, the City Council may adopt an interim urgency ordinance prohibiting any use that may be in conflict with a contemplated general plan, specific plan, or zoning proposal that the legislative body, planning commission or the planning department is considering or studying or intends to study within a reasonable time, if the members of the City Council by a vote of four-fifths (4/5) majority find that there is a current and immediate threat to the public safety, health, and welfare of the community;
WHEREAS, City Charter Section 412 provides for the adoption of an urgency ordinance as an emergency measure to preserve the public peace, health or safety by an affirmative vote of at least five City Council members; WHEREAS, City Charter Section 416( d) allows an urgency ordinance to take effect immediately;
WHEREAS, tobacco retailer businesses, also known as smoke shops, have been a source of unlawful activities in the City, which, if not curtailed, present an immediate threat to the public health, safety, and welfare;
WHEREAS, the Newport Beach Police Department ("NBPD") served warrants at local tobacco retailer businesses and found evidence of ongoing illegal drug sales to adults and minors;
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WHEREAS, on May 15,2024, NBPD detectivesarresteda store clerkat Plugged N Smoke & Sneakers, located at 3555 East Coast High\A/ayin Corona Del Mar, following a lengthyinvestigationthatuncovered ongoing sales of illegalmarijuana, controlled substances, and prohibitedtobacco productsto both minors and adults; WHEREAS, on June 10, 2025, NBPD detectives served a search warrant at Tobacco and Accessories, located at 3617 East Coast Highway in Corona Del Mar, seizingover454 pounds ofillegalcannabis,psilocybin(magic mushrooms), nitrousoxide, and prohibitedtobacco products;
WHEREAS, these two cases are partof a troublingtrend thatendangers the well beingoftheCity’sresidents,especiallyminors,highlightingthe urgent need forswiftand decisive action,as demonstrated by aggressive enforcement and stricterregulations recentlyadopted by neighboringcitieslikeAnaheim, Orange, La Habra, and Redondo Beach; and
WHEREAS, the purpose ofthisurgency ordinance isto prohibitthe establishment and operationof a new tobacco retailerbusinesses as well as the relocation or physical expansion of existingtobacco retailerbusinesses for45 days, to give the City the opportunityto exploreeffectiveregulatoryoptionsthat ensure the immediate protection ofthe publichealth, safety,and welfare.
NOW, THEREFORE, the City Council of the City of Newport Beach ordains as follows:
Section 1: The CityCouncil hereby incorporatesthe recitals set forth above into thisurgencyordinanceand finds,determinesand declaresthat thisurgency ordinance adopted pursuanttoGovernment Code Section65858 and City Charter Section 412 ,is necessary because:
Tobacco retailerbusinesses pose an immediate threatto the public health, safety,and welfare.
A.
The establishment and operation of new tobacco retailerbusinesses as well as the relocationor physical expansion of existingtobacco retailers under current City regulations,would furtherjeopardize the public health, safety, and welfare.
B.
C. The adoption of thisurgency ordinance isessentialto provide the City the time needed to study and evaluate various regulatory options to more 23-8
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effectivelymanage tobacco retailerbusinessesand ensure the immediate protectionofthe publichealth, safety,and welfare.
Inthe interestof safeguardingthe health,safety,and welfare of theSection 2:
residentsof and visitors tothe City of Newport Beach, the purpose and intentof this urgencyordinanceisto impose a temporarymoratoriumon the establishment and operationof new tobacco retailerbusinessesas wellas the relocation or physical expansionofexistingtobaccoretailersincluding,but not limitedto,the issuance of any new permits,licenses,or otherentitlementsfortobaccoretailerbusinesses, commonly known as smoke shops,withinthejurisdictionalboundariesof the Cityof Newport Beach.
Pursuant to Government Code Section 65858 and Charter Section 412, the City Council is authorized to adopt this urgency ordinance without followingthe standard proceduresrequiredforordinanceadoption,toprotectpublichealth,safety,and welfare.
This ordinance is being adopted to protect the publichealth, safety and welfare by prohibitinguses thatconflictwith a contemplatedgeneral plan,specificplan,or zoning proposalthatthe CityCouncil,PlanningCommission, or Community Development Departmentiscurrentlyconsidering,studying,or intendsto study withina reasonable timeframe.
For purposes ofthisurgency ordinance,the followingdefinitionsSection 3:
shall apply:
“Person” means and includes any individual,partnership, cooperative association,privatecorporation,personal representative,receiver, trustee, assignee, or other legalentity.
A.
“Premium cigar”means any cigarthatishandmade, or hand rolled, is not mass produced by use of mechanization,has a wrapper, which is made entirelyfrom whole tobacco leaf,and has a wholesaleprice of no less than twelve dollars ($12). A premium cigar does not have a filter,tip, or nontobacco mouthpiece and iscapped by hand.
B.
“Tobacco paraphernalia”means any item designed or marketed for the consumption, use,or preparationof a tobacco product.
C.
“Tobacco product”means: (1) any product containing,made, or derived from tobacco or nicotine that is intended for human consumption, whether smoked, heated, chewed, absorbed, dissolved,inhaled,snorted, sniffed, aerosolized,vaporized,or ingestedby any other means, including, but not D.
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limitedto,cigarettes,cigars,littlecigars,chewing tobacco, pipe tobacco, bidis,kreteks, snuff, e-liquids,or vape juice; and (2) any device or component, part,or accessory thatdelivers nicotinealone or combined with other substances to the person using the device,including,but not limited, to an electroniccigarette(or “e-cigarette”),electroniccigar (or “e-cigar'”), electronicpipe (or“e-pipe”),vape pen, electronichookah (or “e-hookah”), cigars, orpipes,whether ornot thedeviceorcomponent is sold separately. “Tobacco product”does not includeany productthathas been approved by the United States Food and Drug Administration for use as a tobacco cessationproductwhere such productismarketed and sold solely for such an approved purpose nor does itincludeloose-leaftobacco and premium cigars.
“Tobacco retailerbusiness” means any person who sells,offers for sale, distributes, furnishes, or otherwise exchanges, with or without compensation, a tobacco product,tobacco paraphernalia,or tobacco- relateditem,to a consumer or end user, whether conducted in a physical storefront,through mobile or temporary setups, or via online or delivery- based platforms operatingwithinthe City ofNewport Beach.
E.
Section 4: Moratorium Imposed.
In accordance with the authoritygranted to the City of Newport Beach under ArticleXI, Sections 5 and 7 of the CaliforniaConstitution,City Charter Sections 412 and 416(d) and CaliforniaGovernment Code Section 65858, from and afterthe effectivedate of this urgency ordinance, and for a period of 45 days; (1) no new tobacco retailerbusinesses shall be established or operate in the City of Newport Beach; (2) no existingtobacco retailer business shallrelocateor expand itsbusiness inthe City of Newport Beach; and (3)no entitlementforuse, including,but notlimited to,the issuance of a business license,buildingpermit,conditionaluse permit, minor use permit or other land use approval,shallbe approved or issued by the City of Newport Beach forthe establishment or operation of a new tobacco retailer business and/or forthe relocationor physical expansion of an existingtobacco retailer business. Additionally,the establishment and operation of a new tobacco retailerbusiness or the relocation, or physical expansion of an existing tobacco retailerbusiness is hereby expressly prohibited in all areas and zoning districtsofthe City ofNewport Beach.
A.
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B. This urgency ordinance shallnot prohibitthe renewal of a business license foran existingtobacco retailerbusiness,provided that the renewal seeks to maintain the business without physical expansion at itscurrent location, and the tobacco retailerbusiness is operating in a manner, and housed within a building,which complieswithallCity,State,Federal,or otherwise applicable, codes, rules,regulations,or laws.
C. The provisionsofthisurgency ordinanceshallbe enforceable pursuant to the generalenforcement provisionsinTitle1 of the Newport Beach Municipal Code. Nothing hereinshalllimitthe authorityofthe Cityto revoke or suspend any existinglicense,permit,and/orentitlementas authorized under existing law.
Section 5: A code amendment to Title20 (Planning and Zoning) and Title21 (LocalCoastalProgram ImplementationPlan)ofthe Newport Beach MunicipalCode is initiatedby ResolutionNo. 2025- . The Community DevelopmentDepartment and PlanningCommission are hereby directedtoanalyzethe desirability/appropriatenessof smoke shops withintheCityofNewport Beach including,but not limitedto,the potential directand indirectimpact of tobacco retailbusinesses,and ifsuch facilitiesbe thought appropriate,the extentof any zoningand regulatorycontrols necessary to protectthe publichealth, safety,and welfare.
Except as expresslymodifiedin thisurgency ordinance,all otherSection 6:
sections,subsections,terms, clauses and phrases set forth in the Newport Beach MunicipalCode shallremainunchanged and shallbe in full force and effect.
Section 7: This urgency ordinance isadopted pursuant to Government Code Section 65858 and City Charter Sections 412 and 416(d) and shall take effect immediatelyupon itspassage by a vote of at leastsix (6) City Councilmembers. This urgencyordinanceshallby operationoflawbe ofno furtherforce and effect45 days from September 23, 2025; provided,however,thatafterpropernotice and a public hearing, the CityCouncilmay by a four-fifths(4/5)vote extend this urgency ordinance for an additionalperiodof time of up to 10 months, 15 days, and subsequently extend the urgency ordinanceforone year. Ten days priorto the expiration of this urgency ordinance,a writtenreportdescribingthe measures taken to alleviate the condition that ledto the adoptionof thisordinanceshallbe issuedby the Cityof Newport Beach and shallbe availableonlineand at the CityClerk’sOffice.
Section 8: Ifany section,subsection,sentence, clause, or phrase of this urgencyordinanceis,forany reason,heldtobe invalidor unconstitutional such decision shallnot affectthe validity orconstitutionalityof the remaining portionsof thisurgency 23-11
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ordinance.The CityCouncil hereby declaresthat itwould have passed this urgency ordinance, and each section,subsection,clause or phrase hereof, irrespectiveof the fact that any one or more sections,subsections,sentences, clauses or phrases may be declared invalid or unconstitutional.
The CityCouncilfindsthatthisurgency ordinance is not subject toSection 9:
the CaliforniaEnvironmental QualityAct (“CEQA”) pursuant to Sections 15060(c)(2) (the activitywillnotresultina directorreasonablyforeseeable indirectphysicalchange inthe environment)and 15060(c)(3)(theactivityisnot a projectas defined in Section 15378) of the CEQA Guidelines;CaliforniaCode of Regulations,Title14, Division 6, Chapter 3, because ithas no potentialforresultinginphysicalchange to the environment, directlyor indirectly.Inaddition,the ordinanceconsistsof minor alterations in land use limitations and does not resultinany changes inlanduse or density.Itisthereforenot subjectto the CEQA reviewpursuanttoTitle14,Divisions,Chapters,Sections 15305 and 15061(b)(3) of the CaliforniaCode of Regulations.
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Section 10: The Mayor shallsign and the CityClerk shallattestto the passage ofthisurgency ordinance,which shallbe effectiveas of September 23, 2025. The City Clerk shallcause thisurgency ordinance, or a summary thereof,to be published pursuant to allapplicablelaws includingCharterSection414.
This ordinance was introduced and adopted as an urgency measure at a regular meeting of the CityCouncilof the Cityof Newport Beach, held on the 23rd day of September, 2025, by the followingvote,towit;
AYES:
NAYS:
ABSENT;
Joe Stapleton,Mayor
ATTEST:
MollyPerry,InterimCityClerk
APPROVED AS TO FORM:
CITY ATTORNEY’S OFFICE
Aaron C. Flarp,CityAttorney
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