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Home My WebLink AboutCC Resolution 26-13412 - Public Hearing to Consider Adoption of a Resolution revoking Business License and Tobacco Retailer Permit for Haze Downtown Smoke ShopRESOLUTION NO. 26-13412 BEING A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL REVOKING THE BUSINESS LICENSE AND THE TOBACCO RETAILER PERMIT FOR HAZE DOWNTOWN SMOKE SHOP AT 469 EAST CAMPBELL, CAMPBELL WHEREAS, Haze Downtown Smoke Shop, located at 469 East Campbell., operates under a Business License and a Tobacco Retailer Permit issued on July 16, 2024 (BL#033097) to operate as a Tobacco Store and to sell tobacco and tobacco related paraphernalia, 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, WHEREAS, pursuant to Section 5.58.110 (Penalties and enforcement.) of the Campbell Municipal Code, a Tobacco Retailer Permit may be revoked based on violations of any local, state, or federal law applicable to tobacco products, tobacco paraphernalia, or tobacco retailing, WHEREAS, During an inspection of the business on March 5, 2025, Campbell Police officers identified a large amount of flavored tobacco products available for sale and also discovered a hidden room with additional flavored tobacco products, which were seized. In total, police officers seized 4,904 tobacco flavored items. WHEREAS, the sale, offer for sale, or possession with intent to sell prohibited flavored tobacco products is a violation of State law; WHEREAS, the actions of the business documented on March 5, 20251 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; WHEREAS, Under Section 5.58.110 of the 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 as described below, WHEREAS, the actions of the business documented on March 5, 20251 by Campbell police officers also constitute grounds for revocation for the Tobacco Retailer Permit per Section 5.58.110 (Penalties and enforcement.) of the Campbell Municipal Code, 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, City Council Resolution No. 26-13412 Page 2 of 4 Revocation of Business License and Tobacco Retailer Permit for Haze Downtown Smoke ShoD 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, WHEREAS, Haze Downtown Smoke Shop submitted an appeal request on June 15, 2026 within the 15 days of the revocation notice, 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, WHEREAS, the Campbell City Council finds that revocation of the Business License and Tobacco Retailer Permit for Haze Downtown Smoke Shop 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 153781 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; 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; 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. 26-13412 Page 3 of 4 Revocation of Business License and Tobacco Retailer Permit for Haze Downtown Smoke Shop 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 (CIVIC 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 (CIVIC Sec. 5.58.110 — Penalties and enforcement): (a) 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. (b) The violations of CIVIC Chapter 5.58 (Tobacco Retailer Permit) are subject to a civil action brought by the City Attorney and are punishable by a civil fine of not less than two hundred fifty dollars and not more than one thousand dollars per violation. (c) The violations of CIVIC Chapter 5.58 (Tobacco Retailer Permit) may, in the discretion of the City Attorney, be prosecuted as infractions or misdemeanors pursuant to Section 5.60.010 of the Campbell Municipal Code. (d) The permittee, or the permitteeIs agents or employees, caused, permitted, aided, abetted, or concealed a violation of CIVIC Chapter 5.58 (Tobacco Retailer Permit), which also constitutes a violation of CIVIC Chapter 5.58 (Tobacco Retailer Permit). (e) The violations of CIVIC Chapter 5.58 (Tobacco Retailer Permit) constitute public nuisances pursuant to CIVIC Section 6.10.020(a)(6)(Q). (f) In addition to other remedies provided by CIVIC Chapter 5.58 (Tobacco Retailer Permit) or by other law, the violations of CIVIC Chapter 5.58 (Tobacco Retailer Permit) may be remedied by a civil action brought by the City Attorney, including administrative or judicial nuisance abatement proceedings, civil or criminal code enforcement proceedings, and suits for injunctive relief. City Council Resolution No. 26-13412 Page 4 of 4 Revocation of Business License and Tobacco Retailer Permit for Haze Downtown Smoke Shop 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 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 5.58.110 (Penalties and enforcement.) of the Campbell Municipal Code; and hereby revokes the Business License and Tobacco Retailer Permit for Haze Downtown Smoke Shop, located at 469 East Campbell, Campbell. PASSED AND ADOPTED this 7th day of July, 2026, by the following roll call vote: AYES: Councilmembers: Lopez, Bybee, Furtado NOES: Councilmembers: Hines, Scozzola ABSTAINED: Councilmembers: None ABSENT: Councilmembers: None APPROVED: Danie urtado, Mayor ATTEST-J,4za / , 16�" _ Andrea Sanders, City Clerk City of Campbell 70 North First Street Campbell, CA 95008 Subject: Request to Preserve Tobacco Retail License Pending CDTFA Appeal To Whom It May Concern, I am writing regarding the seizure of flavored tobacco products that took place on March 5, 2025, at 469 E. Campbell Avenue, Campbell, CA 95008, and to respectfully request that the City of W Campbell refrain. from revoking or suspending our tobacco retail I icense as a result of this matter. The products in question were attributed to ME Inc., the retai I license holder at that address. However, we would like to clarify that the products were owned by Road House Wholesale Inc., a wholesale company that had already ceased operations following the implementation of the flavored tobacco ban. At the time of the seizure, the products were secured inside locked storage areas at the location and were not displayed, marketed, or offered for sale. The inventory was being temporarily stored while Road House Wholesale Inc. coordinated its lawful disposal in compliance with the applicable regulations. Unfortunately, the products were mistakenly associated with MENT Inc,'s retail operation. No retail sales of these products were taking place, and the inventory was never intended to be sold or offered for sale from the premises after the ban became effective. We are currently in the process of appealing this matter with the California Department of and Fee Administration (CDTFA) and have submitted a petition explaining the circumstances surrounding the seizure and the ownership of the products. We respectfully ask the City to consider the following facts: e This was a first-time violation. -P The products were not being sold, displayed, or offered for sale. * The products belonged to a closed wholesale business and were incorrectly attributed to the retail license holder. * The inventory was being stored pending disposal and was not intended for commercial use. * An appeal has been filed with the CDTFA, and the matter remains under review. Given these circumstances, we respectfully request that the City of Campbell allow our tobacco retail license to remain in good standing and refrain from any suspension or revocation while the CDTFA appeal is pending. We believe the facts demonstrate that there was no intent to violate the law and that the products at issue were not part of MENT Inc.'s retail operations. Thank you for your time and consideration. We appreciate the opportunity to present these facts and respectfully request favorable consideration of our request. Should you require any additional information or supporting documentation, please do not hesitate to contact us. Sincerely, Thaer Sunnaa