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HomeMy WebLinkAboutCC Resolution 26-13411 - Public Hearing to Consider Adoption of a Resolution revoking Business License and Tobacco Retailer Permit for California CigarRESOLUTION NO. 26-13411 BEING A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL REVOKING THE BUSINESS LICENSE AND THE TOBACCO RETAILER PERMIT FOR CALIFORNIA CIGAR AND MORE #3 LOCATED AT 2145 SOUTH WINCHESTER BLVD, CAMPBELL WHEREAS, California Cigar and More #3, located at 2145 South Winchester Blvd., operates under a Business License and a Tobacco Retailer Permit issued on June 3, 2025, (BL#037159) to operate as a Tobacco Store and to sell tobacco and tobacco related paraphernalia; and WHEREAS, pursuant to Section 5.01.140 (Revocation generally) of the Campbell Municipal Code ("CMC"), any business license is subject to revocation based on complaints received, including a written report of the chief of police or any officer disclosing the asserted violations of law or ordinance; and WHEREAS, pursuant to Section 5.58.110 (Penalties and enforcement.) of the Campbell Municipal Code, any business with a tobacco retailer permit shall be subject to penalties and enforcement if they violate any local, state, or federal laws applicable to tobacco products, tobacco paraphernalia, or tobacco retailing; and WHEREAS, on January 20, 2026, during an inspection, plainclothes Campbell Police officers were offered products containing psilocybin and flavored tobacco for sale. Subsequently, the officers identified a hidden room in the business and a large volume of products containing psilocybin ("magic mushrooms"), flavored tobacco, and products containing THC (cannabis). Two employees of the business were arrested as a result, and WHEREAS, psilocybin is metabolized to psilocin, which acts on serotonin receptors to produce hallucinogenic effects, is illegal at the federal level and classified as a Schedule I substance under the Controlled Substances Act; and WHEREAS, the sale, offer for sale, or possession with intent to sell prohibited flavored tobacco products is a violation of State law. California Health and Safety Code section 104559.5 prohibits the retail sale of most flavored tobacco products and tobacco product flavor enhancers; and WHEREAS, the actions of the business documented on January 20, 2026, by Campbell police officers constitute grounds for revocation of the business license under Section 5.01.145 (Grounds for revocation.) of the Campbell Municipal Code; and WHEREAS, the actions of the business documented on January 20, 2026, by Campbell police officers also constitute grounds for revocation for the Tobacco Retailer Permit per Section 5.58.120 (Penalties and enforcement.) of the Campbell Municipal Code; and WHEREAS, on June 3, 2026, the Community Development Director issued a Notice of Intent to Revoke the Tobacco Retailer Permit to the business in question on June 3, 2026, in accordance with Campbell Municipal Code Chapter 5.58; and City Council Resolution No. 26-13411 Page 2 of 4 Revocation of Business License and Tobacco Retailer Permit for California Cigar and More #3 WHEREAS, per Section 5.58.150 of the Municipal Code, the business can request an appeal hearing before the City Council concerning the decision to revoke the Tobacco Retailer Permit, if the request is submitted within 15 days of the revocation notice; and WHEREAS, California Cigar and More submitted an appeal request on June 16, 2026 within the 15 days of the revocation notice, and WHEREAS, Per Section 5.58.150(d) of the Campbell Municipal Code, the City Council shall conduct a de novo hearing to approve or deny the appeal of the administrative decision to revoke the Tobacco Retailer Permit, allowing the permittee an opportunity to present any relevant evidence; and WHEREAS, the Campbell City Council finds that revocation of the Business License and Tobacco Retailer Permit for California Cigar and More #3 is not a "project" subject to the California Environmental Quality Act because the action is an administrative enforcement action that will not result in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment, and because the action revokes City -issued authorization for the business to continue operating under the subject Business License and Tobacco Retailer Permit based on documented violations, and does not approve any construction, change in land use, physical development, or other activity that may cause a physical environmental effect, and therefore is not subject to CEQA pursuant to Public Resources Code section 21065 and CEQA Guidelines section 15378; and WHEREAS, in the alternative, even if the revocation action were considered a project under CEQA, the Campbell City Council finds that the action is exempt from CEQA under the common sense exemption in CEQA Guidelines section 15061(b)(3), because it can be seen with certainty that revocation of a business license and tobacco retailer permit for an existing business will not have a significant effect on the environment, as the action is regulatory and enforcement -related, does not authorize physical changes to the property, and does not commit the City to any future physical development or use of the site; and WHEREAS, Campbell Municipal Code Section 5.01.155 (Notice of hearing on revocation), which relates to business license revocations, and Section 5.58.150 (Hearing.), which relates to tobacco retailer permit revocations) require that the City mail notices to the business licensee and the subject property owner at least five and ten days (respectively) prior to the scheduled Council hearing to consider revocation of the Business License and Tobacco Retailer Permit; and WHEREAS, consistent with the requirements of Campbell Municipal Code Section 5.01.155 (Notice of hearing on revocation.), and 5.58.150 (Hearing.) the City Clerk has mailed notices to the subject business licensee and property owner ten days prior to the July 7, 2026, Council meeting in accordance with these requirements; and City Council Resolution No. 26-13411 Page 3 of 4 Revocation of Business License and Tobacco Retailer Permit for California Cigar and More #3 WHEREAS, the Campbell City Council has accepted public testimony as part of the noticed public hearing and has reviewed the entire administrative record including evidence presented by the business owner regarding the revocation of the Tobacco Retailer Permit prior to making a decision regarding this revocation. Based upon the foregoing findings of fact and in consideration of the entire administrative record, the City Council further finds and concludes that: Business License Revocation Findings (CMC Sec. 5.01.145 — Grounds for revocation.): (1) The continuance of the operations of the licensee under the license is contrary to the public health, safety, peace, welfare, and morals; (2) The licensee has violated penal provisions of this title or other applicable law; (3) The applicant misrepresented a material fact in obtaining a license under this title; (4) The conduct of the business constitutes a public nuisance, or is otherwise illegal, improper or disorderly. Tobacco Retailer Permit Revocation Findings (CMC Sec. 5.58.120 — Suspension or Revocation of Permit): (a) The offering of flavored tobacco products for sale is a violation of State law, which would be a basis to deny the tobacco retail permit pursuant to Campbell Municipal Code section 5.58.040(d) California Health and Safety Code section 104559.5 prohibits the retail sale of most flavored tobacco products and tobacco product flavor enhancers, (b) The permittee did not disclose its intention to offer flavored tobacco products in its application, rendering its application false and inaccurate in violation of Campbell Municipal Code section 5.58.040(a); (c) The revocation of a tobacco retailer permit as a penalty is cumulative and may be levied in addition to any other remedies available at law or in equity. (d) The permittee, or the permittee's agents or employees, caused, permitted, aided, abetted, or concealed a violation of CMC Chapter 5.58 (Tobacco Retailer Permit), which also constitutes a violation of CMC Chapter 5.58 (Tobacco Retailer Permit). (e) The violations of CMC Chapter 5.58 (Tobacco Retailer Permit) constitute public nuisances pursuant to CMC Section 6.10.020(a)(6)(Q). NOW, THEREFORE, BE IT RESOLVED, the City Council finds that the action is not a project subject to the California Environmental Quality Act pursuant to Public Resources City Council Resolution No. 26-13411 Page 4 of 4 Revocation of Business License and Tobacco Retailer Permit for California Cigar and More #3 Code section 21065 and CEQA Guidelines section 15378, and, in the alternative, is exempt from CEQA pursuant to CEQA Guidelines section 15061(b)(3); affirms that the grounds for revocation have been met under Sections 5.01.140 (Revocation generally.) and 5.58.120 (Suspension or Revocation of Permit) of the Campbell Municipal Code; and hereby revokes the Business License and Tobacco Retailer Permit for California Cigar and More #3, located at 2145 South Winchester Boulevard, Campbell and denies the appeal. PASSED AND ADOPTED this 7th day of July, 2026, by the following roll call vote: AYES: Councilmembers: Lopez, Hines, Bybee, Furtado NOES: Councilmembers: None ABSTAINED: Councilmembers: Scozzola ABSENT: Councilmembers: None A PROVED: Daniel E. F4urfttao, M yor AT—, TE : Andrea Sander , City Clerk Date- June 16,2O2G To: City ofCampbell Attn: Tobacco Retailer Permit Appeals RE: Appeal ofNotice of Intent to Revoke Tobacco Retailer Permit Permit No. BL#O3715O Business Address: 2145 Winchester Boulevard #130, Campbell, CA 95008 Dear Hearing Officer, | respectfully submit this appeal of the Notice of Intent to Revoke Tobacco Retailer Permit BL# 037150. ! disagree with the City'sdetermination and request aformal administrative hearing before any revocation becomes effective. CITY CLERMS OF The Notice alleges that products containing psilocybin and flavored tobacco were offered for sale during an inspection on January 20\ 2026. | request that the City provide the complete administrative record, including all inspection reports, photographs, witness statements, police reports, laboratory analyses, and any other evidence upon which the proposed revocation is based. ifurther request the opportunity toreview and respond toall evidence before any final decision ismade. Since receiving notice of the City's concerns, the business has taken steps to ensure compliance with all applicable laws and regulations. The business does not knowingly sell unlawful products and iscommitted tooperating infull compliance with state and local requirements. I respectfully request that the City stay the proposed revocation pending the outcome ofthis appeal and hearing process. Please confirm receipt ofthis appeal and advise n*eofthe date, time, and procedures for the hearing. Thank you for your consideration.