6/16/22, 9:07 AM Chapter 5.138 TOBACCO RETAILERS
https://library.qcode.us/lib/sacramento_ca/pub/city_code/item/title_5-chapter_5_138?view=all 1/12 Sacramento, California City Code
Title 5 BUSINESS LICENSES AND REGULATIONS
Chapter 5.138 TOBACCO RETAILERS
5.138.010 Legislative findings.
5.138.020 Purpose.
5.138.030 Definitions.
5.138.040 Requirement for tobacco retailer license.
5.138.050 Application procedure.
5.138.060 Issuance and renewal of license.
5.138.070 Display of license.
5.138.080 License fee.
5.138.090 License nontransferable.
5.138.100 License violation.
5.138.110 Suspension or revocation of license.
5.138.120 Denial, suspension and revocation—Appeals.
5.138.130 Hearings—Generally.
5.138.140 Conduct of hearing.
5.138.150 Form and contents of decision—Finality of decision.
5.138.160 Enforcement.
5.138.170 Severability.
5.138.010 Legislative findings.
ATTACHMENT A
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https://library.qcode.us/lib/sacramento_ca/pub/city_code/item/title_5-chapter_5_138?view=all 2/12 A. State law prohibits the sale or furnishing of cigarettes, tobacco products and smoking paraphernalia to persons under 21 years of age except active duty military personnel who are 18 years of age or older (California Penal Code § 308).
B. State law requires that tobacco retailers check the identification of tobacco purchasers who reasonably appear to be under 21 years of age (California Business & Professions Code § 22956) and provides procedures for using persons under 21 years of age to conduct onsite compliance checks of tobacco retailers (California Business & Professions Code § 22952).
C. State law requires that tobacco retailers post a conspicuous notice at each point of sale stating that selling tobacco products to anyone under 21 years of age is illegal (California Business & Professions Code § 22952, California Penal Code § 308).
D. State law prohibits the sale or display of cigarettes through a self-service display and prohibits public access to cigarettes without the assistance of a clerk (California Business & Professions Code § 22962).
E. State law prohibits the sale of “bidis” (a type of hand-rolled filterless cigarette) except at those businesses that prohibit the presence of minors (California Penal Code § 308.1).
F. State law prohibits the manufacture, distribution, or sale of cigarettes in packages of less than 20 and prohibits the manufacture, distribution, or sale of “roll-your-own” tobacco in packages containing less than six-tenths of an ounce of tobacco (California Penal Code § 308.3).
G. State law prohibits public school students from smoking or using tobacco products while on campus, while attending school-sponsored activities, or while under the supervision or control of school district employees (California Education Code § 48901(a)).
H. Sacramento City Code section 5.140.040 prohibits the sale or distribution of tobacco products from vending machines.
I. From 2013 to 2015, an estimated 15% of ninth and eleventh grade students in California reported using electronic smoking devices.
J. Over 9% of
high school students in California reported buying their own electronic cigarette from a store.
K. In 2016, an estimated 82% of tobacco retailers in California sold flavored non-cigarette tobacco products, over 90% of tobacco retailers sold menthol cigarettes, and 80% tobacco retailers near schools sold flavored non-cigarette tobacco products.
L. Mentholated and flavored products have been shown to be “starter” products for youth who begin using tobacco and these products help establish tobacco habits that can lead to long-term addiction.
M. Between 2004 and 2014, use of non-menthol cigarettes decreased among all populations, but overall use of menthol cigarettes increased among young adults (18 to 25 years of age) and adults (over 26 years of age).
ATTACHMENT A
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https://library.qcode.us/lib/sacramento_ca/pub/city_code/item/title_5-chapter_5_138?view=all 3/12 N. Unlike cigarette use that has steadily declined among youth, the prevalence of the use of non- cigarette tobacco products has remained statistically unchanged and, in some cases, increased among youth.
O. Flavored tobacco has significant public health implications for youth and people of color as a result of targeted industry marketing strategies and product manipulation.
P. The density and proximity of tobacco retailers influence smoking behaviors, including the number of cigarettes smoked per day.
Q. Adults who smoke have a harder time quitting when density of tobacco retailers is high.
R. Policies to reduce tobacco retailer density have been shown to be effective and may reduce or eliminate inequities in the location and distribution of tobacco retailers.
S. Neither federal nor California state laws restrict the sale of menthol cigarettes or flavored non- cigarette tobacco products, electronic smoking devices, or the solutions used in these devices.
T. The city has a substantial interest in promoting compliance with federal, state, and local laws intended to regulate tobacco sales and use; in discouraging the illegal purchase of tobacco products by persons under 21 years of age; in promoting compliance with laws prohibiting sales of cigarettes and tobacco products to persons under 21 years of age; and in protecting youth and underserved populations from the harms of tobacco use.
U. California courts in
Cohen v. Board of Supervisors (1985) 40 Cal.3d 277, Bravo Vending v. City of Rancho Mirage (1993) 16 Cal.App.4th 383, and Prime Gas v. City of Sacramento (2010) 184 Cal.App.4th 697, have affirmed the power of local jurisdictions to regulate business activity in order to discourage violations of law.
V. State law authorizes local tobacco retailer licensing laws to provide for the suspension or revocation of the local tobacco retailer license for any violation of a state tobacco control law (California Business & Professions Code § 22971.3).
W. A requirement for a tobacco retailer license will not unduly burden legitimate business activities of retailers who sell or distribute cigarettes or other tobacco products to adults. It will, however, allow the city to regulate the operation of lawful businesses to discourage violations of federal, state, and local tobacco-related laws. (Ord. 2019-0012 § 1; Ord. 2004-013 § 1)
5.138.020 Purpose.
The purpose of this chapter is to encourage responsible tobacco retailing and to discourage violations of tobacco-related laws, especially those that prohibit or discourage the sale or distribution of tobacco products to minors, but not to expand or reduce the degree to which the acts regulated by federal or state law are criminally proscribed or to alter the penalty provided for violations. (Ord. 2004-013 § 1)
5.138.030 Definitions.
ATTACHMENT A
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https://library.qcode.us/lib/sacramento_ca/pub/city_code/item/title_5-chapter_5_138?view=all 4/12 As used in this chapter, the following words and phrases shall have the meaning given them in this section, unless the context clearly requires otherwise:
“Arm’s length transaction” means a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the transaction. A sale between relatives, related companies or partners, or a sale for the primary purpose of avoiding the effect of the violations of this chapter that occurred at the location, is presumed not to be an “arm’s length transaction.” “Characterizing flavor” means a taste or aroma, other than the taste or aroma of tobacco, imparted either prior to or during consumption of a tobacco product or any byproduct produced by the tobacco product, including, but not limited to, tastes or aromas relating to menthol, mint, wintergreen, fruit, chocolate, vanilla, honey, candy, cocoa, dessert, alcohol beverage, herb, or spice. “City manager” means the city manager of the city or his or her designee. “Flavored tobacco product” means any tobacco product that imparts a characterizing flavor. “Itinerant tobacco retailing” means engaging in tobacco retailing at other than a fixed location. “License” means a tobacco retailer license issued by the city pursuant to this chapter. “Licensee” means any proprietor holding a license issued by the city pursuant to this chapter. “Proprietor” means a person with an ownership or managerial interest in a business. An ownership interest shall be deemed to exist when a person has a 10% or greater interest in the stock, assets, or income of a business other than the sole interest of security for debt. A managerial interest shall be deemed to exist when a person has, or can have, sole or shared control over the day-to-day operations of a business.
“Tobacco product” means:
1. A product containing, made, or derived from tobacco or nicotine that is intended for human consumption, whether smoked, heated, chewed, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, including, but not limited to, cigarettes, cigars, little cigars, chewing tobacco, pipe tobacco, or snuff;
2. An electronic device that delivers nicotine or other vaporized liquids to the person inhaling from the device, including, but not limited to, an electronic cigarette, cigar, pipe, or hookah; and
3. Any component, part, or accessory of a tobacco product, whether or not sold separately.
4. “Tobacco product” does not include a product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product or for other therapeutic purposes where the product is marketed and sold solely for such an approved purpose. “Tobacco paraphernalia” means any item designed or marketed for the consumption, use, or preparation of a tobacco product.
ATTACHMENT A
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https://library.qcode.us/lib/sacramento_ca/pub/city_code/item/title_5-chapter_5_138?view=all 5/12 “Tobacco retailer” means any person who sells, offers for sale, exchanges, or offers to exchange for any form of consideration, tobacco, tobacco products, or tobacco paraphernalia without regard to the quantity sold, offered for sale, exchanged, or offered for exchange. “Tobacco retailing” means selling, offering for sale, exchanging, or offering to exchange for any form of consideration, tobacco, tobacco products, or tobacco paraphernalia without regard to the quantity sold, offered for sale, exchanged, or offered for exchange. (Ord. 2019-0012 § 2; Ord. 2004-013 § 1)
5.138.040 Requirement for tobacco retailer license.
A. It shall be unlawful for any person to act as a tobacco retailer without a valid license for each location at which tobacco retailing is to occur. No license will be issued to authorize tobacco retailing at other than a fixed location. No license will be issued for itinerant tobacco retailing or tobacco retailing from vehicles.
B. No license shall issue, and no existing license shall be renewed, to authorize tobacco retailing within 1,000 feet of a tobacco retailer already licensed pursuant to this chapter as measured by a straight line from the nearest point of the property line of the parcel on which the applicant’s business is located to the nearest point of the property line of the parcel on which an existing licensee’s business is located.
This section does not apply to:
1. A person who submitted a planning application to the Community Development Department before January 1, 2020,provided the application does not include a legislative change request pursuant to section 17.808.230, unless a corresponding conditional use permit was subsequently denied or the planning application was withdrawn.
2. A licensee that devotes no more than 5% of total shelf space to tobacco product and at least 10% of shelf space to all of the following: fresh or healthy food; fresh fruits and vegetables; juice and dairy products; meat, fish or poultry; and fresh baked goods, breads, and cereals.
C. Nothing in this chapter shall be construed to grant any person obtaining a license any status or right other than the right to act as a tobacco retailer at the location in the city identified on the face of the license, subject to compliance with all other applicable laws, regulations, and ordinances. Nothing in this chapter shall be construed to render inapplicable, supersede, or apply in lieu of any other provision of applicable law, including, without limitation, any condition or limitation on indoor smoking made applicable to business establishments by California Labor Code section 6404.5. (Ord. 2020-0038 § 1; Ord. 2019-0012 § 3; Ord. 2004-013 § 1)
5.138.050 Application procedure.
All applications for a license shall be submitted to the city manager in the name of each proprietor proposing to conduct tobacco retailing and shall be signed by each proprietor or an authorized agent thereof. A proprietor proposing to conduct tobacco retailing at more than one location shall submit a separate application for each location. Every application shall be submitted on a form supplied by the city manager and shall contain the following information:
ATTACHMENT A
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https://library.qcode.us/lib/sacramento_ca/pub/city_code/item/title_5-chapter_5_138?view=all 6/12 A. The name, address, and telephone number of each proprietor; B. The business name, address, and telephone number of the fixed location for which a license is sought;
C. Whether or not any proprietor has previously been issued a license pursuant to this chapter that is, or was at any time, suspended or revoked and, if so, the dates of the suspension period or the date of revocation; and
D. Such other information as the city manager deems necessary for the administration or enforcement of this chapter. (Ord. 2004-013 § 1)
5.138.060 Issuance and renewal of license.
A. Upon the receipt of an application for a license and the applicable license fee, the city manager shall issue a license unless:
1. The application is incomplete or inaccurate;
2. The application seeks authorization for tobacco retailing at an address that appears on a license that is suspended, has been revoked, or is subject to suspension or revocation proceedings for violation of any of the provisions of this chapter; provided, however, this subparagraph shall not constitute a basis for denial of a license if either or both of the following apply:
a. The applicant provides the city with documentation demonstrating that the applicant has acquired or is acquiring the premises or business in an arm’s length transaction, b. It has been more than five years since the most recent license for that location was revoked;
3. The application seeks authorization for tobacco retailing that is unlawful pursuant to this code, or that is unlawful pursuant to any other local, state, or federal law; or
4. The city manager has information that the applicant or his or her agents or employees has violated any local, state or federal tobacco control law at the location for which the license or renewal of the license is sought within the preceding 30-day period.
B. A license is valid for one year and must be renewed not later than 30 days prior to the expiration of the license, but no earlier than 60 days prior to the expiration of the license. Unless revoked on an earlier date, all licenses expire one year after the date of issuance. A license may be renewed for additional one-year periods by submitting an application to the city manager and paying the applicable license fee; provided, however, a license that has been revoked or is subject to revocation proceedings shall not be renewed. The application and license fee shall be submitted at least 30 days, but not more than 60 days, prior to the expiration of the current valid license. The applicant shall follow all of the procedures and provide all of the information required by section 5.138.050. The city manager shall process the application according to the provisions of this section.
ATTACHMENT A
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https://library.qcode.us/lib/sacramento_ca/pub/city_code/item/title_5-chapter_5_138?view=all 7/12 C. Notwithstanding section 5.138.040.B, a tobacco retailer operating lawfully on January 1, 2020 that would otherwise be eligible for a tobacco retailer license for the location for which a license is sought may receive or renew a license for that location so long as all of the following conditions are met:
1. The license is timely obtained and is renewed without lapse or permanent revocation (as opposed to temporary suspension);
2. The tobacco retailer is not closed for business or has not ceased tobacco retailing for more than 60 consecutive days. However, a tobacco retailer may be closed for business or may cease tobacco retailing for up to one year if the closure or cessation is due to new construction or renovation;
3. The tobacco retailer does not substantially change the business premises or business operation for the purpose of increasing the sale or display of tobacco products; and
4. The tobacco retailer retains the right to operate under all other applicable laws.
D. When the city manager does not approve a license or renewal of a license, the city manager shall notify the applicant of the specific grounds for the denial in writing. The notice of denial shall be served personally or by mail not later than five calendar days after the date of the denial. If by mail, the notice shall be placed in a sealed envelope, with postage paid, addressed to the applicant at the address as it appears on the application. The giving of notice shall be deemed complete at the time of deposit of the notice in the United States mail without extension of time for any reason. In lieu of mailing, the notice may be served personally by delivering to the person to be served and service shall be deemed complete at the time of such delivery. Personal service to a corporation may be made by delivery of the notice to any person designated in the California Code of Civil Procedure to be served for the corporation with summons and complaint in a civil action. (Ord. 2020-0038 § 2; Ord. 2019-0012 § 4; Ord. 2004-013 § 1)
5.138.070 Display of license.
Each license shall be prominently displayed in a publicly visible location at the licensed premises. (Ord. 2004-013 § 1)
5.138.080 License fee.
The fee for issuance or renewal of a license shall be established by resolution of the city council and shall be in addition to the city’s business operation tax and any other license or permit fee imposed by this code upon the applicant. The license fee shall be paid to the city at the time the license application is submitted. (Ord. 2004-013 § 1)
5.138.090 License nontransferable.
A license is nontransferable. If a licensee changes business location, that licensee must obtain a new license prior to acting as a tobacco retailer at the new location. If a business licensed to conduct tobacco retailing is sold, the new owner must obtain a license for that location before acting as a tobacco retailer. (Ord. 2004-013 § 1)
ATTACHMENT A
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https://library.qcode.us/lib/sacramento_ca/pub/city_code/item/title_5-chapter_5_138?view=all 8/12
5.138.100 License violation.
A. It is a violation of a license for a licensee or his or her agents or employees to sell or offer for sale any flavored tobacco product. There is a rebuttable presumption that a tobacco product is a flavored tobacco product if a manufacturer or its agents or employees has made a public statement or claim that the tobacco product has or produces a characterizing flavor, including, but not limited to, text, color, or images on the product’s labeling or packaging that are used to expressly or impliedly communicate that a tobacco product has a characterizing flavor.
B. It is a violation of a license for a licensee or his or her agents or employees to violate any local, state, or federal tobacco-related law. (Ord. 2019-0012 § 5; Ord. 2004-013 § 1)
5.138.110 Suspension or revocation of license.
A. In addition to any other remedy authorized by law, a license shall be suspended or revoked as provided in this section, if the city manager finds that the licensee or his or her agents or employees has or have violated any of the provisions of this chapter; provided, however, violations by a licensee at one location may not be accumulated against other locations of that same licensee, nor may violations accumulated against a prior licensee at a licensed location be accumulated against a new licensee at the same licensed location.
1. Upon a finding by the city manager of a first license violation within any five-year period, the license shall be suspended for 30 days.
2. Upon a finding by the city manager of a second license violation within any five-year period, the license shall be suspended for 90 days.
3. Upon a finding by the city manager of a third license violation within any five-year period, the license shall be revoked.
B. Notwithstanding section 5.138.110A, a license shall be revoked if the city manager finds that either one or both of the following conditions exist:
1. One or more of the bases for denial of a license under section 5.138.060A existed at the time application was made or at any time before the license issued.
2. The information contained in the license application, including supplemental information, if any, is found to be false in any material respect.
C. In the event the city manager suspends or revokes a license, written notice of the suspension or revocation shall be served upon the licensee within five days of the suspension or revocation in the manner prescribed in section 5.138.060D. The notice shall contain:
1. A brief statement of the specific grounds for such suspension or revocation;
ATTACHMENT A
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https://library.qcode.us/lib/sacramento_ca/pub/city_code/item/title_5-chapter_5_138?view=all 9/12
2. A statement that the licensee may appeal the suspension or revocation by submitting an appeal, in writing, in accordance with the provisions of section 5.138.120, to the city manager, within 10 calendar days of the date of service of the notice; and
3. A statement that the failure to appeal the notice of suspension or revocation will constitute a waiver of all right to an administrative appeal hearing, and the suspension or revocation will be final.
D. A licensee for whom a license suspension is in effect, or whose license has been revoked, must cease all tobacco retailing and remove all tobacco products and tobacco paraphernalia from public view at the address that appears on the suspended or revoked license. (Ord. 2019-0012 § 6; Ord. 2010-021 § 5; Ord. 2004-013 § 1)
5.138.120 Denial, suspension and revocation—Appeals.
A. Any applicant or licensee aggrieved by the decision of the city manager in denying, suspending, or revoking a license, may appeal the decision by submitting a written appeal to the city manager within 10 calendar days from the date of service of the notice of denial, suspension, or revocation. The appeal must be accompanied by an appeal fee set by resolution of the city council. The written appeal shall contain:
1. A brief statement in ordinary and concise language of the specific action protested, together with any material facts claimed to support the contentions of the appellant;
2. A brief statement in ordinary and concise language of the relief sought, and the reasons why it is claimed the protested action should be reversed or otherwise set aside;
3. The signatures of all parties named as appellants and their official mailing addresses; and
4. The verification (by declaration under penalty of perjury) of at least one appellant as to the truth of the matters stated in the appeal.
B. The appeal hearing shall be conducted by a hearing examiner appointed pursuant to section
8.04.070.
C.
Upon receipt of any appeal filed pursuant to this section, the city manager shall transmit the appeal to the secretary of the hearing examiner who shall calendar it for hearing as follows:
1. If the appeal is received by the city manager not later than 15 days prior to the next regular appeal hearing, it shall be calendared for hearing at said meeting.
2. If the appeal is received by the city manager on a date less than 15 days prior to the next appeal hearing, it shall be calendared for the next subsequent appeal hearing.
D. Written notice of the time and place of the hearing shall be given at least 10 calendar days prior to the date of the hearing to each appellant by the secretary of the hearing examiner either by causing a copy of such notice to be delivered to the appellant personally or by mailing a copy thereof, postage prepaid, addressed to the appellant at the address shown on the appeal.
ATTACHMENT A
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https://library.qcode.us/lib/sacramento_ca/pub/city_code/item/title_5-chapter_5_138?view=all 10/12 E. Failure of any person to file a timely appeal in accordance with the provisions of this section shall constitute an irrevocable waiver of the right to an administrative hearing and a final adjudication of the notice and order, or any portion of the notice and order.
F. Only those matters or issues specifically raised by the appellant in the appeal notice shall be considered in the hearing of the appeal.
G. Any suspension or revocation of a license shall be stayed during the pendency of an appeal which is properly and timely filed pursuant to this section. (Ord. 2019-0012 § 7; Ord. 2004-013 § 1)
5.138.130 Hearings—Generally.
A. At the time set for hearing, the hearing examiner shall proceed to hear the testimony of the city manager, the appellant, and other competent persons, including members of the public, respecting those matters or issues specifically listed by the appellant in the notice of appeal.
B. The proceedings at the hearing shall be electronically recorded. Either party may provide a certified shorthand reporter to maintain a record of the proceedings at the party’s own expense.
C. The hearing examiner may, upon request of the appellant or upon request of the city manager, grant continuances from time to time for good cause shown, or upon his or her own motion.
D. In any proceedings under this chapter, the hearing examiner has the power to administer oaths and affirmations and to certify to official acts. (Ord. 2004-013 § 1)
5.138.140 Conduct of hearing.
A. Hearings need not be conducted according to the technical rules relating to evidence and witnesses. California Government Code section 11513, subdivisions (a), (b) and (c), shall apply to hearings under this chapter.
B. Oral evidence shall be taken only upon oath or affirmation.
C. Irrelevant and unduly repetitious evidence shall be excluded.
D.
Each party shall have these rights, among others:
1. To call and examine witnesses on any matter relevant to the issues of the hearing;
2. To introduce documentary and physical evidence;
3. To cross-examine opposing witnesses on any matter relevant to the issues of the hearing;
4. To impeach any witness regardless of which party first called the witness to testify;
5. To rebut the evidence presented against the party; and
6. To represent himself, herself, or itself or to be represented by anyone of his, her, or its choice who is lawfully permitted to do so.
ATTACHMENT A
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https://library.qcode.us/lib/sacramento_ca/pub/city_code/item/title_5-chapter_5_138?view=all 11/12 E. In reaching a decision, official notice may be taken, either before or after submission of the case for decision, of any fact that may be judicially noticed by the courts of this state or that may appear in any of the official records of the city or any of its departments. (Ord. 2019-0012 § 8; Ord. 2004-013 § 1)
5.138.150 Form and contents of decision—Finality of decision.
A. If it is shown, by a preponderance of the evidence, that one or more bases exist to deny, suspend, or revoke the license, the hearing examiner shall affirm the city manager’s decision to deny, suspend, or revoke the license. The decision of the hearing examiner shall be in writing and shall contain findings of fact and a determination of the issues presented.
B. The decision shall inform the appellant that the decision is a final decision and that the time for judicial review is governed by California Code of Civil Procedure section 1094.6. Copies of the decision shall be delivered to the parties personally or sent by certified mail to the address shown on the appeal.
The decision shall be final when signed by the hearing examiner and served as provided in this section. (Ord. 2019-0012 § 9; Ord. 2004-013 § 1)
5.138.160 Enforcement.
A. In addition to any other remedy, any person violating any provision of this chapter shall be guilty of a misdemeanor for each day such violation continues.
B. Any violation of this chapter may be remedied by a civil action brought by the city attorney. The city may recover reasonable attorneys’ fees and costs of suit in any civil action brought by the city attorney to remedy any violation of this chapter.
C. Any person violating the provisions of this chapter shall also be liable for civil penalties of not less $250 or more than $25,000 for each day the violation continues.
D. Violations of this chapter are hereby declared to be public nuisances subject to abatement by the city.
E. In addition to criminal sanctions, civil penalties as provided in this section, and other remedies set forth in this chapter, administrative penalties may be imposed pursuant to chapter 1.28 against any person violating any provision of this chapter. Imposition, enforcement, collection and administrative review of administrative penalties imposed shall be conducted pursuant to chapter 1.28. (Ord. 2019- 0012 § 10; Ord. 2004-013 § 1)
5.138.170 Severability.
ATTACHMENT A
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https://library.qcode.us/lib/sacramento_ca/pub/city_code/item/title_5-chapter_5_138?view=all 12/12 If any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this chapter or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, that decision shall not affect the validity or effectiveness of the remaining portions of this chapter or any part thereof. The city council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof irrespective of the fact that any one or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, or invalid, or ineffective. (Ord. 2004-013 § 1) Contact:
City Clerk: 916-808-7200
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ATTACHMENT A