2022-12-13 CC Agenda Packet SPCAGENDA
EL SEGUNDO CITY COUNCIL
SPECIAL MEETING
TUESDAY, DECEMBER 13, 2022
6:00 PM OPEN SESSION
CITY COUNCIL CHAMBER
350 MAIN STREET, EL SEGUNDO, CA 90245
Drew Boyles, Mayor
Chris Pimentel, Mayor Pro Tern
Carol Pirsztuk, Council Member
Scot Nicol, Council Member
Lance Giroux, Council Member
Tracy Weaver, City Clerk
Matthew Robinson, City Treasurer
Executive Team
Darrell George, City Manager
Barbara Voss, Deputy City Manager
Jaime Bermudez, Police Chief
Michael Allen, Community Development Dir.
Jose Calderon, IT Director
Aly Mancini, Recreation, Parks & Library Dir.
Mark Hensley, City Attorney
Joe Lillio, Chief Financial Officer
Deena Lee, Fire Chief
Rebecca Redyk, HR Director
Elias Sassoon, Public Works Dir.
MISSION STATEMENT:
"Provide a great place to live, work, and visit."
VISION STATEMENT:
"Be a global innovation leader where big ideas take off
while maintaining our unique small-town character."
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The City Council, with certain statutory exceptions, can only take action upon properly
posted and listed agenda items. Any writings or documents given to a majority of City
Council regarding any matter on this agenda that the City received after issuing the
agenda packet are available for public inspection in the City Clerk's Office during normal
business hours. Such documents may also be posted on the City's website at
www.elsegundo.org and additional copies will be available at the City Council meeting.
Unless otherwise noted in the agenda, the public can only comment on City -related
business that is within the jurisdiction of the City Council and/or items listed on the
agenda during the Public Communications portions of the Meeting. Additionally,
members of the public can comment on any Public Hearing item on the agenda during
the Public Hearing portion of such item. The time limit for comments is five (5) minutes
per person.
Those wishing to address the City Council are requested to complete and submit to the
City Clerk a "Speaker Card" located at the Council Chamber entrance. You are not
required to provide personal information in order to speak, except to the extent
necessary for the City Clerk to call upon you, properly record your name in meeting
minutes and to provide contact information for later staff follow-up, if appropriate.
In compliance with the Americans with Disabilities Act, if you need special
assistance to participate in this meeting, please contact the City Clerk's Office at
310-524-2305. Notification 48 hours prior to the meeting will enable the City to
make reasonable arrangements to ensure accessibility to this meeting.
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6:00 PM — CONVENE OPEN SESSION — CALL TO ORDER I ROLL CALL
PLEDGE OF ALLEGIANCE
PUBLIC COMMUNICATIONS — (RELATED TO CITY BUSINESS ONLY — 5 MINUTE
LIMIT PER PERSON, 30 MINUTE LIMIT TOTAL) Individuals who have received value
of $50 or more to communicate to the City Council on behalf of another, and employees
speaking on behalf of their employer, must so identify themselves prior to addressing
the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of
$250. While all comments are welcome, the Brown Act does not allow Council to take
action on any item not on the agenda. The Council will respond to comments after
Public Communications is closed.
A. PROCEDURAL MOTIONS
Read All Ordinances and Resolutions on the Agenda by Title Only
Recommendation -
Approval
B. REPORTS - CITY CLERK
1. Adopt a Resolution Declaring the Results of the Consolidated General
Municipal Election held November 8, 2022
Recommendation -
1. Adopt a Resolution declaring the results of the Consolidated General
Municipal Election held on November 8, 2022.
2. Comments from outgoing Council Member Nicol.
3. Alternatively, discuss and take other action related to this item.
2. Administer Oath of Office to Council Members Elect
Recommendation -
1. The City Clerk presents the Certificate of Election and administers the
oath of office to City Council Members Elect.
2. Comments from newly seated Council Members, Christopher Pimentel
and Ryan W. Baldino.
3. Alternatively, discuss and take other action related to this item.
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Page 3 of 56
3. Election of Mayor and Mayor Pro Tern by Seated Council Members
Recommendation -
1. City Clerk receives nominations for Mayor from Council Members.
Nominations do not require a second from another Council Member. The
nominations will be voted on in the order they are made. If a nomination
is approved by a majority of the Council, the person nominated becomes
the Mayor and the process is concluded.
2. The newly appointed Mayor receives nominations for Mayor Pro Tern
from Council Members. Nominations do not require a second from
another Council Member. The nominations will be voted on in the order
they are made. If a nomination is approved by a majority of the Council,
the person nominated becomes the Mayor Pro Tern and the process is
concluded.
3. Alternatively, discuss and take other action related to this item.
ADJOURNMENT
POSTED:
DATE: December 9, 2022
TIME: 12:00 PM
BY: Tracy Weaver, City Clerk
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„, M City Council Agenda Statement
E L S E G U N D O Meeting Date: December 13, 2022
Agenda Heading: Reports - City Clerk
Item Number: B.1
TITLE:
Adopt a Resolution Declaring the Results of the Consolidated General Municipal
Election held November 8, 2022
RECOMMENDATION:
1. Adopt a Resolution declaring the results of the Consolidated General Municipal
Election held on November 8, 2022.
2. Comments from outgoing Council Member Nicol.
3. Alternatively, discuss and take other action related to this item.
FISCAL IMPACT:
None
BACKGROUND:
The regularly scheduled Consolidated Municipal Election for City Council was held on
November 8, 2022 for two (2) Council Member seats and three (3) Measures: BT, Y,
and W. The County of Los Angeles Registrar-Recorder/County Clerk ("County”)
canvassed the returns of the election and has certified the results as required by
Elections Code § 10262.
DISCUSSION:
Pursuant to California Elections Code § 10263, the City Council is required to adopt a
resolution declaring the results of the City's General Municipal Election. The proposed
resolution must recite the number of total ballots cast in the City and the number of
votes cast for each candidate and measure, as canvassed and certified by the Registrar
of Voters. The canvass declares Christopher Pimentel and Ryan W. Baldino elected to
the office of the El Segundo City Council for terms ending in November of 2026 by a
Page 5 of 56
Election Results of November 8, 2022
December 13, 2022
Page 2 of 2
majority vote. In addition, the proposed resolution deems Ordinance No. 1643
(Measure BT) and Ordinance No. 1644 (Measure Y) passed and adopted.
The proposed Resolution includes the whole number of ballots cast in the City, the
names of the candidates, the number of votes given in each precinct to each person,
and the total number of votes given to each person.
CITY STRATEGIC PLAN COMPLIANCE:
Goal 1: Enhance Customer Service, Diversity, Equity, Inclusion and Communication
Objective 1 B: El Segundo's engagement with the community ensures excellence.
PREPARED BY:
Tracy Weaver, City Clerk
REVIEWED BY:
Tracy Weaver, City Clerk
APPROVED BY:
Tracy Weaver, City Clerk
ATTACHED SUPPORTING DOCUMENTS:
1. Resolution Certifying 2022 Election
2. Exhibit A - Tally
3. Exhibit B - County Certificate
4. Ordinance 1643
5. Ordinance 1644
Page 6 of 56
RESOLUTION NO. XXX
A RESOLUTION DECLARING THE RESULTS OF THE GENERAL MUNICIPAL
ELECTION HELD NOVEMBER 8, 2022.
The City Council of the City of El Segundo does resolve as follows:
SECTION 1: The City Council finds as follows:
A. The City of El Segundo ("City") conducted a duly noticed General
Municipal Election do on Tuesday, November 8, 2022, in consolidation
with the Statewide General Election that the Registrar-Recorder/County
Clerk of the County of Los Angeles ("County") held on the same, as
required by law, day (for purposes of this Resolution, the City's election
will referred to by the capitalized term "Election").
B. The City conducted its Election for the consideration of: election of two
City Council Members, each for full, four-year terms; and approval of three
ballot measures: Measure BT, Measure Y, and Measure W, which
respectively presented the following questions to voters:
Measure BT:
Shall an Ordinance Amending Business Taxes, including: $150.00 for
specified businesses; for others, $150.00 up to five employees, $138
per additional employee, and $0.26 to $0.30 per square foot above
2,000 square feet; for apartments and hotels or motels, $150 up to three
units or rooms plus $150 for each additional; sunsetting current tax
credits; generating approximately $3,000,000 annually for public safety,
maintaining parks and streets, and other general purposes, until
repealed, be adopted?
Measure Y:
Shall an ordinance (a "yes" vote taxing cannabis does "not" make
cannabis businesses legal in El Segundo; it creates a tax in case a
cannabis business ever becomes legal) funding general municipal
expenses such as police, fire, streets, and parks, by establishing taxes
upon cannabis businesses not to exceed $20 per square foot for
cultivation and 10% of gross receipts for other cannabis businesses,
until ended by voters, generating approximately $600,000 to $1,500,000
annually, be adopted?
-1-
Page 7 of 56
Measure W:
Shall an ordinance be adopted to repeal the City's current prohibition on
commercial cannabis activities to authorize commercial cannabis
retailers east of Pacific Coast Highway in the Multimedia Overlay District
by right, of no less than 1,750 square feet, with sensitive receptor
buffers and away from major arterial frontages, subject to a City
permitting process; and authorize the City Council to subsequently
regulate non -retail cannabis businesses?
C. Voting precincts were properly established, election officers were
appointed, votes were cast, votes were received and canvassed, and the
returns made and declared in the time and manner required by the
Elections Code for holding elections in general law cities.
D. Pursuant to Elections Code § 15300 et seq., the County canvassed the
Election returns and certified the results to the City Council. These results
are attached as Exhibit 'A" and incorporated by reference.
E. Pursuant to Elections Code § 10263, upon completing of the canvass
and before installing new officers, the City Council must adopt a
Resolution reciting the fact of the Election and other matters identified
in Elections Code § 10264 and declare the election of persons for
whom the highest number of votes were cast for each office.
SECTION 2: The City Council declares and determines as follows:
A. A total of 7,613 ballots were cast in the City election, 1,650 by precinct
and 5,963 by mail.
B. The names of the persons voted for City Council at the Election were:
Ryan W. Baldino; Christopher Pimentel; Michelle Keldorf; John Pickhaver;
and Robin Patch.
C. The number of votes given at each precinct and in the City and the
number of votes given to each person named above for City Council and
Measures BT, Y, and W are listed in detail in Exhibit "A."
D. Ryan W. Baldino and Christopher Pimentel received the most votes
among the City Council candidates (3,055 and 3,122, respectively) and
were elected as Members of the City Council for full terms of four years.
E. The City's voters passed and approved Measure BT by a majority with the
following count: 3,495 in favor (51.23%) and 3,327 (48.77%) in opposition.
-2-
Page 8 of 56
The text of Ordinance No. 1643 (on file with the City Clerk) is duly passed
and adopted.
F. The City's voters passed and approved Measure Y by a majority with the
following count: 5,163 in favor (72.8%) and 1,929 (27.2%) in opposition.
The text of Ordinance No. 1644 (on file with the City Clerk) is duly passed
and adopted.
G. The City's voters did not pass or approve Measure W, which failed by the
following count: 3,058 in favor (43.16%) and 4,027 (56.84%) in opposition.
SECTION 3: The City Clerk is directed to enter in the City's records a statement of the
result of the election showing all information required under Elections Code § 10264,
and such statement may include this Resolution.
SECTION 4: Pursuant to Elections Code Section 10265, the City Clerk will immediately
make and deliver to each of the persons so elected a Certificate of Election signed by
the City Clerk and authenticated; the City Clerk will also administer to each person
elected the Oath of Office prescribed in the Constitution of the State of California and
will have them subscribe to it and file it in the office of the City Clerk. Each and all of the
persons so elected will then be inducted into the respective office to which they have
been elected.
SECTION 5: The City Clerk will certify to the passage and adoption of this Resolution
and enter it into the book of original resolutions.
SECTION 6: This Resolution will become effective immediately upon adoption.
-3-
Page 9 of 56
PASSED, APPROVED AND ADOPTED RESOLUTION NO. XXX this 13t" day of
December 2022.
ATTEST:
Tracy Weaver, City Clerk
APPROVED AS TO FORM
Mark D. Hensley, City Attorney
-4-
Drew Boyles, Mayor
Page 10 of 56
EXHIBIT "A"
COUNTY OFFICIAL CANVAS CERTIFICATE
AND OFFICIAL STATEMENT OF VOTES CAST
-5-
Page 11 of 56
EXHIBIT A
COUNTY OF LOS ANGELES - GENERAL ELECTION
FINAL OFFICIAL
STATEMENT OF VOTES CAST
BY PRECINCT
LOCATION
EL SEGUNDO - 2250001 A
VOTE BY MAIL
SERIAL 0299
TOTAL
EL SEGUNDO .2250003A
VOTE BY MAIL
SERIAL 0300
TOTAL
EL SEGUNDO - 2250004A
VOTE BY MAIL
SERIAL 0301
TOTAL
EL SEGUNDO .2250006A
VOTE BY MAIL
SERIAL 0302
TOTAL
EL SEGUNDO .2250011A
VOTE BY MAIL
SERIAL 0303
TOTAL
EL SEGUNDO - 2250017B'
VOTE BY MAIL
SERIAL 6505
TOTAL
BALLOT GROUP 246 - 9990246AA
VOTE BY MAIL
SERIAL 8246
TOTAL
BALLOT GROUP 247 - 9990247AA
VOTE BY MAIL
SERIAL 8247
TOTAL
EL SEGUNDO CITY GEN MUNI
COUNCILMEMBER
�Q.
O Q-
a
REGIST- I BALLOTS
RATION CAST q'4' I Q� I
303
133
61
1022
411
268
2115
1325
544
329
302
120
53
1153
487
258
2330
1455
607
311
368
129
85
1369
476
425
2942
1737
605
510
324
143
59
1086
449
259
2122
1410
592
318
352
142
55
1332
564
294
2588
1684
706
349
1
0
0
1
1
0
10
2
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
?,4V 4r k
128
33
85
432
103
372
560
136
457
122
44
93
500
78
466
622
122
559
118
81
114
470
137
501
588
218
615
149
46
97
481
112
409
630
158 1
506
161
52
115
561
106
596
722
156
711
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
11/08/22
48.1 - PAGE - 1044 of 17855
Page 12 of 56
COUNTY OF LOS ANGELES - GENERAL ELECTION 11/08/22 48.2 -PAGE - 1045 of 17855
EL SEGUNDO CITY GEN MUNI
COUNCILMEMBER
FINAL OFFICIAL
STATEMENT OF VOTES CAST
BY PRECINCT
REGIST-_T BALLOTS
y�p ������
LOCATION RATION CAST
Q0Q _9 V
PRECINCTTOTAL
1650
667
313
678
256
504
VBM TOTAL
5963
2388
1504
2444
536
2344
GRAND TOTAL
12107
7613
3055
1817
3122
792
2848
Page 13 of 56
COUNTY OF LOS ANGELES • GENERAL ELECTION 11/08122 305.1 -PAGE - 3218 of 17855
EL SEGUNDO CITY GEN MUNI
MEASUREBT
FINAL OFFICIAL
STATEMENT OF VOTES CAST
BY PRECINCT
Al ?�
LOCATION
REGIST-
BALLOTS
RATION
CAST
EL SEGUNDO .2250001 A
303
124
150
VOTE BY MAIL SERIAL 0299
1022
526
408
TOTAL
2115
1325
650
558
EL SEGUNDO - 2250003A
302
115
160
VOTE BY MAIL SERIAL 0300
1153
573
454
TOTAL
2330
1455
688
614
EL SEGUNDO .2250004A
368
115
204
VOTE BY MAIL SERIAL 0301
1369
580
616
TOTAL
2942
1737
695
820
EL SEGUNDO .2250006A
324
107
192
VOTE BY MAIL SERIAL 0302
1086
537
442
TOTAL
2122
1410
644
634
EL SEGUNDO .2250011A
352
132
190
VOTE BY MAIL SERIAL 0303
1332
686
510
TOTAL
2588
1684
818
700
EL SEGUNDO .2250017B'
1
0
0
VOTE BY MAIL SERIAL 6505
1
0
1
TOTAL
10
2
0
1
BALLOT GROUP 246 - 9990246AA
0
0
0
VOTE BY MAIL SERIAL 8246
0
0
0
TOTAL
0
0
01
0
BALLOT GROUP 247 - 9990247AA
0
0
0
VOTE BY MAIL SERIAL 6247
0
0
0
TOTAL
0
0
0
0
Page 14 of 56
COUNTY OF LOS ANGELES - GENERAL ELECTION 11/08/22 305.2 -PAGE - 3219 of 17855
EL SEGUNDO CITY GEN MUNI
MEASURE BT
FINAL OFFICIAL
STATEMENT OF VOTES CAST
BY PRECINCT
REGIST• BALLOTS 5
LOCATION RATION CAST
PRECINCT TOTAL
1650
593
B96
VBM TOTAL
5963
2902
2431
GRAND TOTAL
12107
7613
3495
3327
Page 15 of 56
COUNTY OF LOS ANGELES - GENERAL ELECTION 11108/22 306.1 -PAGE - 3220 of 17855
EL SEGUNDO CITY GEN MUNI
MEASURE
FINAL OFFICIAL
STATEMENT OF VOTES CAST
BY PRECINCT
A,
LOCATION
REGIST-
BALLOTS
RATION
CAST
1" 100
EL SEGUNDO - 2250001 A
303
VOTE BY MAIL SERIAL 0299
1022
727 241
TOTAL
2115
1325
907 341
EL SEGUNDO - 2250003A
302
185
97
VOTE BY MAIL SERIAL 0300
1153
849
226
TOTAL
2330
1455
1034
323
EL SEGUNDO .2250004A
368
189
145
VOTE BY MAIL SERIAL 0301
1369
919
343
TOTAL
2942
1737
1108
488
EL SEGUNDO - 2250006A
324
187
116
VOTE BY MAIL SERIAL0302
1086
766
250
TOTAL
2122
1410
953
368
EL SEGUNDO - 2250011A
352
207
1"
VOTE BY MAIL SERIAL 0303
1332
952
290
TOTAL
2588
1684
1159
409
EL SEGUNDO - 225001713'
1
1
0
VOTE BY MAIL SERIAL 6505
1
1
0
TOTAL
10
2
2
0
BALLOT GROUP 246 - 9990246AA
0
0
D
VOTE 8Y MAIL SERIAL 8246
0
0
0
TOTAL
0
0
0
0
BALLOT GROUP 247 - 9990247AA
0
0
0
VOTE BY MAIL SERIAL 8247
0
0
0
TOTAL
0
0
0
0
Page 16 of 56
COUNTY OF LOS ANGELES -
GENERAL ELECTION
EL SEGUNDO CITY GEN MUNI
MEASURE
FINAL OFFICIAL
STATEMENT OF VOTES CAST
BY PRECINCT
LOCATION
REGIST-
BALLOTS
RATION
CAST
PRECINCT TOTAL
1650
949
579
VBM TOTAL
5963
4214
1350
GRAND TOTAL
12107
7613
5163
1929
11/08/22 306.2 -PAGE - 3221 of 17855
Page 17 of 56
COUNTY OF LOS ANGELES - GENERAL ELECTION 11/08/22 307.1 -PAGE - 3222 of 17855
EL SEGUNDO CITY GEN MUNI
MEASURE W
FINAL OFFICIAL
STATEMENT OF VOTES CAST
BY PRECINCT
LOCATION
REGIST•
BALLOTS
RATION
CAST
EL SEGUNDO - 2250001 A
303
103
175
VOTE BY MAIL SERIAL 0299
1022
470
491
TOTAL
2115
1325
573
669
EL SEGUNDO .2250003A
302
86
196
VOTE BY MAIL SERIAL 0300
1153
435
629
TOTAL
2330
1455
521
825
EL SEGUNDO - 2250004A
368
128
207
VOTE BY MAIL SERIAL 0301
1369
626
637
TOTAL
2942
1737
754
844
EL SEGUNDO - 2250006A
324
102
204
VOTE BY MAIL SERIAL 0302
1086
454
562
TOTAL
2122
1410
556
766
EL SEGUNDO - 2250011A
352
112
220
VOTE BY MAIL SERIAL 0303
1332
540
703
TOTAL
2588
1684
652
923
EL SEGUNDO - 2250017B'
1
1
0
VOTE BY MAIL SERIAL 6505
1
1
0
TOTAL
10
Z
2
0
BALLOT GROUP 246 - 9990246AA
0
0
0
VOTE BY MAIL SERIAL 8246
0
0
0
TOTAL
0
0
0
0
BALLOT GROUP 247 - 9990247AA
0
0
0
VOTE BY MAIL SERIAL 8247
0
0
0
TOTAL
0
0
0
0
Page 18 of 56
COUNTY OF LOS ANGELES - GENERAL ELECTION 11/08/22 307.2 -PAGE - 3223 of 17855�
FINAL OFFICIAL
STATEMENT OF VOTES CAST
BY PRECINCT
LOCATION
PRECINCT TOTAL
VBM TOTAL
GRAND TOTAL
EL SEGUNDO CITY GEN MUNI
MEASURE W
REGIST- BALLOTS
c,
RATION CAST
1650
532
1005
5963
2526
3022
12107
7613
3058
4027
Page 19 of 56
EXHIBIT B
I, DEAN C LOGAN, Registrar-Recorder/County Clerk of the County of
Los Angeles, of the State of California, DO HEREBY CERTIFY that pursuant to the
provisions of Section 15300 et seq. of the California Elections Code, I did canvass the
returns of the votes cast for each elective office and/or measures) for
Md��-
�M-1
Ii-
Mgg
at the General Election, held on the 8th day of November, 2022.
I FURTHER CERTIFY that the Statement of Votes Cast, to which this certificate
is attached, shows the total number of ballots cast in said jurisdiction, and that the
whole number of votes cast for each candidate and/or measures) in said jurisdiction
in each of the respective precincts therein, and the totals of the respective columns
and the totals as shown for each candidate and/or measures) are full, true and correct.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal this
5th day of December, 2022.
.�GORDE/LCO
y C,
to <A
Ir %
+ �+
P
OSANGE�ES G
"ttA-C - L,4
DEAN C. LOG
�r
Registrar-Recorder/County Clerk
County of Los Angeles
C
Page 20 of 56
ORDINANCE NO. 1643
AN ORDINANCE OF THE CITY OF EL SEGUNDO AMENDING
VARIOUS SECTIONS OF TITLES 3 AND 4 OF THE MUNICIPAL
CODE TO MODIFY BUSINESS LICENSE TAX CREDITS AND
CERTAIN BUSINESS LICENSE TAX RATES AND TAXING
METHODOLOGIES
THE PEOPLE OF THE CITY OF EL SEGUNDO DO ORDAIN AS FOLLOWS:
Section 1. Section 3-2-4 of the El Segundo Municipal Code ("ESMC") is repealed in its entirety
and amended to read as follows:
"3-2-4: BUSINESS LICENSE TAX CREDIT:
A. Tax Credit: A business subject to the tax imposed by this chapter is entitled to a tax
credit against the tax imposed by section 4-2-4 of this chapter whenever it generates
sales and/or use tax in the year immediately preceding the year in which the tax is
due. The credit is applied to the business registration tax due for the following year.
B. Percentage of Tax: The tax credit referred to in subsection A of this section, will
equal up to forty percent of the sales or use tax generated by the business and
received by the city during the twelve-month period ending on June 30 preceding the
date the tax is due.
C. Amount of Tax Credit: Under no circumstances can the amount of the tax credit for
any year be calculated to be greater than the total amount of tax due for any year
under this chapter.
D. A business may only be granted business license tax credits under this section for
the first three consecutive years after the initial year of issuance of the business
license or such longer term as determined pursuant to subsection 3-2-3(C) of this
chapter.
E. In no event may a tax credit granted to any business pursuant to this section exceed
a cumulative total of $25,000.00. Any business that has received a business license
tax credit totaling more than $25,000.00 as of December 1, 2023, shall not be
entitled to any additional business license tax credit under this section."
Section 2. Section 4-1-7 of the ESMC is amended to read as follows:
"4-1-7: NONPROFIT AND CHARITABLE ORGANIZATIONS:
Nonprofit and charitable organizations not otherwise exempt from the payment of
a business license fee pursuant to section 4-1-8 shall pay a business license fee
of $150 per year. The business license fee shall be subject to annual increases
in accordance with section 4-2-1. The licensing authority may require any
information or evidence necessary to establish nonprofit status."
ORDINANCE NO. 1643
PAGE 1 of 12
Page 21 of 56
Section 3. Section 4-1-8 of the ESMC is amended to read as follows:
"4-1-8: CONSTITUTIONAL AND STATUTORY EXEMPTIONS:
This Title shall not be construed to require the payment of a license fee by any
person engaging in business when such person or business is exempt by virtue
of the constitutions or applicable statutes of the United States or of the state of
California."
Section 4. Section 4-2-3 of the ESMC is repealed in its entirety and amended to read as
follows:
"4-2-3: TAX CREDIT:
See Section 3-2-4."
Section 5. Section 4-2-1 of the ESMC is amended to read as follows:
"4-2-1: FEES PAID TO CITY:
A. The amount of license fee to be paid to the city by persons commencing or
conducting any business subject to this chapter are set forth in this chapter.
B. Beginning on January 1, 2025, license fees imposed in this title will be
increased annually each January 1 on a percentage basis using the percentage
increase in the consumer price index ("CPI") for all urban consumers as
calculated by the United States department of labor, bureau of labor statistics, for
the Los Angeles -Long Beach -Anaheim area, all items, calculated as follows:
1. The five most recent annual CPI percentages are added together and
then divided by five to derive the five-year average CPI percentage ("ACPI"); and
2. The ACPI is multiplied by the amount of existing license fees. The
product of that multiplication is added to the amount of the license fees imposed
by the city for the previous calendar year.
3. For purposes of this section, an "annual CPI percentage" is the
percentage change in CPI based upon comparing a twelve-month period ending
on March 31 with the subsequent twelve-month period ending on March 31. For
example, and without limitation, on January 1, 2025, the ACPI will be calculated
using the five years of CPI percentages that include the following time periods:
March 31, 2019 to March 31, 2020; March 31, 2020 to March 31, 2021; and
calculated in the same manner for the subsequent years with the final and fifth
year CPI percentage measured from March 31, 2023 to March 31, 2024.
C. Notwithstanding any other provisions of this code, license fees imposed in
this chapter will be increased by a minimum of one cent ($0.01) every two (2)
calendar years."
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Section 6. Section 4-2-4(A)(1) of the ESMC is amended to read as follows:
1. Employees: A basic tax of one hundred fifty ($150.00) per year, which shall
cover the first five (5) employees and one hundred thirty-eight dollars ($138.00)
per year for each employee in excess of five (5) employees; and"
Section 7. Section 4-2-4(A)(2) of the ESMC is amended to read as follows:
"2. Floor Area: In addition, each such person shall pay a tax per square foot of
floor area occupied for a business purpose in excess of two thousand (2,000)
square feet in accordance with the following chart.
TOTAL FLOOR AREA
RATE PER SQUARE FOOT
2,001 to 5,000
$0.26
5,001 to 50,000
$0.27
50,001 to 100,000
$0.28
100,001 to 250,000
$0.29
250,001 and above
$0.30
A tax of fourteen cents ($0.14) per square foot shall be imposed on vacant space
available for rent or lease for business purposes, said fee to be payable by the
person with the right to possession of the property; and"
Section 8. Section 4-2-7 of the ESMC is amended to read as follows:
"4-2-7: ADVERTISING:
A. Billboards Or Signboards: Every person engaged in the business of
contracting, maintaining, using, or leasing billboards or signboards, or posting,
sticking, tacking, or affixing or painting bills or signs, or both upon the same, shall
pay a business license tax of one hundred fifty dollars ($150.00) per annum for
each such billboard or signboard.
B. Lights: Every person advertising by means of portable searchlights, or arc
lights, or light producing apparatus or equipment, shall pay a business license tax
of thirty-seven dollars and fifty cents ($37.50) per quarter. The license shall be
subject to compliance with all requirements of the traffic ordinances and
regulations of the City.
C. Vehicle Signs: Every person advertising by means of portable signs
mounted on vehicles, when not in connection with any business licensed under
subsection D of this Section, shall pay a business license tax of one hundred fifty
dollars ($150.00) per year. The license shall be subject to compliance with all
requirements of the traffic ordinances and regulations of the City.
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D. Sound Trucks: Every person advertising by means of sound trucks,
portable loudspeakers, or sound -producing apparatus or equipment, shall pay a
business license tax of one hundred fifty dollars ($150.00) per year. The license
shall be subject to compliance with all requirements of the traffic ordinances and
regulations of the City."
Section 9. Section 4-2-8 of the ESMC is amended to read as follows:
"4-2-8: AGENTS, SOLICITORS AND SALESMEN:
Agents, solicitors, and salesmen selling or soliciting, or taking orders for the sale
or furnishing of any paintings, pictures, portraits, photographs, orders for
advertising or for any goods, wares, merchandise, or service at retail not
otherwise provided for herein, when not in connection with any fixed place of
business within the City licensed under this Title, shall pay a business license tax
of forty five dollars ($45.00) per day, or one hundred fifty dollars ($150.00) per
year for each agent, salesman, or solicitor. All such sales, solicitations and/or
order taking are prohibited between the hours of six o'clock (6:00) P.M. and eight
o'clock (8:00) A.M."
Section 10. Section 4-2-9(A)(2) of the ESMC is amended to read as follows:
"2. Tax Amount: Every person operating an amusement center shall pay a
business license tax of one hundred fifty dollars ($150.00) per year."
Section 11. Section 4-2-9(B) of the ESMC is amended to read as follows:
"B. Amusements Generally: Every person operating a business where an
admission, fare, or fee is charged or made, or a collection or contribution is
received (and which are not otherwise provided for in this Chapter) for entrance
to amusements, such as exhibitions, shows, games, carnivals, rides, tent
performances, merry-go-rounds, carousels, shoot -the -chutes, shooting galleries,
Ferris wheels, pig slides, ball games, dart games, roller coasters, grunt derbies,
whip rides, scooter rides, sideshows, illusions and other amusements, or
concessions similar in character to those, or any of those hereinabove named,
shall pay a business license tax of twenty-five dollars ($25.00) per day, or one
hundred fifty dollars ($150.00) per month, and shall obtain a special permit from
the City Council to do so prior to engaging in such activities. The City Council
may condition such permit in any manner not prohibited by law."
Section 12. Section 4-2-10(B) of the ESMC is amended to read as follows:
"B. Tax Amount: Every person owning an apartment house or apartment house
complex shall pay a business license tax of one hundred fifty dollars ($150.00)
per year for up to the first three (3) dwelling units and one hundred fifty dollars
($150.00) per year for each additional dwelling unit; provided, however, that the
dwelling units used in computing the obligation to pay the business license tax
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shall be the dwelling units rented or leased, and the dwelling units held for rent or
lease shall not include a dwelling unit occupied by the owner."
Section 13. Section 4-2-11 of the ESMC is amended to read as follows:
"4-2-11: AUTOMOBILE AND TRUCK WRECKING OR DISMANTLING:
Every person engaging in the business of automobile, truck wrecking or
dismantling, and/or operating an automobile, truck wrecking or dismantling yard,
and/or outdoor yard of similar character, shall pay a business license tax of one
hundred fifty dollars ($150.00) per year, and shall obtain a special permit from
the City Council to do so prior to engaging in such activities. The City Council
may condition such permit in any manner not prohibited by law."
Section 14. Section 4-2-12 of the ESMC if amended to read as follows:
"4-2-12: BANKRUPT STOCK AND FIRE SALES:
Every person conducting bankrupt stock sales, fire sales, damaged goods sales,
and sales of similar character (not at auction), shall pay a business license tax of
thirteen dollars and fifty cents ($13.50) per month, forty-five dollars ($45.00) per
quarter, or one hundred fifty dollars ($150.00) per year, and shall obtain a special
permit from the City Council to do so prior to engaging in such activities. The City
Council may condition such permit in any manner not prohibited by law."
Section 15. Section 4-2-13 of the ESMC is amended to read as follows:
"4-2-13: BARBERSHOPS:
Every person operating a barbershop shall pay a business license tax of one
hundred fifty dollars ($150.00) per year."
Section 16. Section 4-2-14 of the ESMC is amended to read as follows:
"4-2-14: BEAUTY PARLORS:
Every person operating a beauty parlor and similar businesses shall pay a
business license tax of one hundred fifty dollars ($150.00) per year."
Section 17. Section 4-2-15 of the ESMC is amended to read as follows:
"4-2-15: BILLIARD AND POOLROOMS:
Every person operating a billiard room and/or poolroom shall pay a business
license tax of one hundred fifty dollars ($150.00) per year, which shall include the
right to sell cigars, tobacco, soft drinks, chewing gum, and confections, subject to
ORDINANCE NO. 1643
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first obtaining a special permit as provided by Sections 4-7-1 and 4-7-2 of this
Title."
Section 18. Section 4-2-16 of the ESMC is amended to read as follows:
"4-2-16: BOWLING ALLEYS:
Every person operating a bowling academy, bowling alley, bowling center, or
similar business shall pay a business license tax of one hundred fifty dollars
($150.00) basic, plus four dollars ($4.00) per lane per year. A license granted
under this Section shall include the right to sell bowling equipment,
paraphernalia, and bowling apparel, but shall not include the right to conduct a
cafe, restaurant, lunch counter, or refreshment, or confectionery stand or
concession, or any other type of business, except as specifically authorized
above."
Section 19. Section 4-2-17(A) of the ESMC is amended to read as follows:
"A. A basic fee of one hundred fifty dollars ($150.00) per year which shall cover
the first five (5) employees."
Section 20. Section 4-2-17(B) of the ESMC is amended to read as follows:
"B. One hundred thirty-eight dollars ($138.00) per year for each employee in
excess of five (5) employees."
Section 21. Section 4-2-18 of the ESMC is amended to read as follows:
"4-2-18: CHRISTMAS TREE SALES:
Every person engaged in the business of Christmas tree sales shall pay a
business license tax of one hundred fifty dollars ($150.00) per year."
Section 22. Section 4-2-19 of the ESMC is amended to read as follows:
"4-2-19: CIRCUSES, WILD WEST SHOWS OR SIDESHOWS:
Every person operating a circus or wild west show, not including any sideshows,
shall pay a business license tax for the first day of two hundred dollars ($200.00),
and one hundred three dollars ($103.00) per day thereafter. A sideshow shall pay
a business license tax of one hundred fifty dollars ($150.00) per sideshow for the
first day, and fifty dollars ($50.00) per sideshow per day for each day thereafter.
Every such person shall obtain a special permit from the City Council to operate
such circus, wild west show, or sideshow, prior to engaging in such activities.
The City Council may condition such permit in any manner not prohibited by law."
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Section 23. Section 4-2-22(C) of the ESMC is amended to read as follows:
"C. Lathing And Plastering: Lathing and plastering contractors shall pay a
business license tax of one hundred fifty dollars ($150.00) per year."
Section 24. Section 4-2-23 of the ESMC is amended to read as follows:
"4-2-23: DANCES AND DANCE SCHOOLS:
A. Public Dances: Every person conducting public dances, where an
admission fee or per dance fee is charged, shall pay a business license tax of
one hundred fifty dollars ($150.00) per year, and shall obtain a special permit
from the City Council to do so prior to engaging in such activities. The City
Council may condition such permit in any manner not prohibited by law.
B. Other Dances: Every person engaged in a business where any cafe,
restaurant, or any similar establishment affords its patrons the privilege or
opportunity to dance, without charge for the dancing, shall pay a business license
tax of one hundred fifty dollars ($150.00) per year, and shall obtain a special
permit from the City Council to do so prior to engaging in such activities. The City
Council may condition such permit in any manner not prohibited by law.
C. Dancing School or Academy (Talent School): Every person conducting a
dancing school or dancing academy, or talent school or talent academy, shall
pay a business license tax of one hundred fifty dollars ($150.00) per year."
Section 25. Section 4-2-24 of the ESMC is amended to read as follows:
"4-2-24: DELIVERY VEHICLES:
Every person engaged in a business not having a fixed place of business within
the City which, in connection with said business, delivers any goods or services
within the City shall pay a business license tax of one hundred fifty dollars
($150.00) per year per vehicle."
Section 26. Section 4-2-25 of the ESMC is amended to read as follows:
"4-2-25: DRIVE-IN THEATERS:
Every person operating a drive-in theater shall pay a business license tax of one
hundred fifty dollars ($150.00) per year, but the license shall not include the right
to conduct a cafe, restaurant, lunch counter, refreshment or confectionery, or like
stand or concession, or any other type of business."
Section 27. Section 4-2-26 of the ESMC is amended to read as follows:
"4-2-26: FOOD CATERERS (VEHICLE):
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Every person conducting sales of food from a vehicle shall pay a business
license tax of one hundred fifty dollars ($150.00) per year per vehicle."
Section 28. Section 4-2-27 of the ESMC is amended to read as follows:
"4-2-27: HOME OCCUPATIONS:
Every person engaged in a `home occupation', as defined by the Zoning
Ordinance of the City in Section 15-1-6 of this Code, shall pay a business license
tax of one hundred fifty dollars ($150.00) per year."
Section 29. Section 4-2-28 of the ESMC is amended to read as follows:
"4-2-28: HOTELS, MOTELS, AUTO COURTS AND LODGING HOUSES:
Every person engaged in the business of operating a hotel, motel, auto court, or
lodging house shall pay a business license tax of one hundred fifty dollars
($150.00) per year for up to the first three (3) rooms and one hundred fifty dollars
($150.00) per year for each additional room."
Section 30. Section 4-2-29 of the ESMC is amended to read as follows:
"4-2-29: JUNK COLLECTORS:
Every person engaged in the business of junk collection shall pay a business
license tax of one hundred fifty dollars ($150.00) per year for each vehicle used.
`Person engaged in the business of junk collection' as used herein, means a
person engaged in the business of going from house to house, or from place to
place, gathering, collecting, buying, selling, or otherwise dealing in old rags,
sacks, bottles, cans, paper, or other articles commonly known as `junk'; provided,
however, that any person licensed under the provisions of this Section shall not
solicit for `free will offerings' of such materials as are above enumerated, or
referred to under the guise or representation that the same are being collected by
or for any charitable, or other organization entitled to obtain a free permit, as
provided for under other provisions of this Title. Provided, however, that the
provisions of this Title relating to junk collectors shall not apply to official
collectors of the City, or collectors specially authorized by the City Council to
make the collections as a public service."
Section 31. Section 4-2-30 of the ESMC is amended to read as follows:
"4-2-30: LAWN SERVICE AND WINDOW CLEANING:
Every person providing lawn service, gardening service, window cleaning
service, and similar services, shall pay a business license tax of one hundred fifty
dollars ($150.00) per year."
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Section 32. Section 4-2-31 of the ESMC is amended to read as follows:
"4-2-31: LOANS:
Every person engaged in the business of lending, financing, or money lending
shall pay a business license tax of one hundred fifty dollars ($150.00) per year."
Section 33. Section 4-2-32(A) of the ESMC is amended to read as follows:
"A. A basic fee of one hundred fifty dollars ($150.00) per year which shall cover
the first five (5) employees;"
Section 34. Section 4-2-32(B) of the ESMC is amended to read as follows:
"B. One hundred thirty-eight dollars ($138.00) per year for each employee in
excess of five (5) employees;"
Section 35. Section 4-2-33 of the ESMC is amended to read as follows:
"4-2-33: MOTION PICTURES OR TELEVISION (COMMERCIAL USE):
Every person engaged in the motion picture or television production business not
operating from a fixed place of business in the City, using either public or private
property, shall pay a business license tax of one hundred fifty dollars ($150.00)
per day. Every person subject to this Section shall also obtain a permit pursuant
to Chapter 11 of this Title."
Section 36. Section 4-2-35(A) of the ESMC is amended to read as follows:
"A. Generally: Every person peddling services, not otherwise mentioned in this
Chapter, shall pay a business license tax of one hundred fifty dollars ($150.00)
per year, and shall obtain a special permit from the City to do so prior to
engaging in such activities."
Section 37. Section 4-2-35(B) of the ESMC is amended to read as follows:
"B. Food: Every person peddling foods, foodstuffs, and food products, other
than from catering food trucks, shall pay a business license tax of one hundred
fifty dollars ($150.00) per year where the person is on foot or where the same is
sold from a vehicle, and shall obtain a special permit from the City to do so
pursuant to Chapter 4-15 of this Code prior to engaging in such activities."
Section 38. Section 4-2-36 of the ESMC is amended to read as follows:
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"4-2-36: REST, CONVALESCENT, GUEST AND FAMILY CARE HOMES;
CHILDCARE NURSERIES:
A. Fee Imposed; State and Local Approval: Every person operating rest,
convalescent, guest homes, and childcare service shall pay a business license
tax of one hundred fifty dollars ($150.00) per year. Every person operating a
family care home shall pay a business license tax of one hundred fifty dollars
($150.00) per year. No such license shall be issued without the written approval
of:
1. The State Department of Social Services;
2. The County Health Officer;
3. The Chief of the Fire Department;
4. The Community, Economic and Development Services Director.
B. Inspection: All such establishments shall be subject to inspection by the
City at any time."
Section 39. Section 4-2-37 of the ESMC is amended to read as follows:
"4-2-37: RUBBISH OR GARBAGE COLLECTION:
Every person engaged in the operation of rubbish or garbage collection shall pay
a business license tax of one hundred fifty dollars ($150.00) per year for each
vehicle used in the City."
Section 40. Section 4-2-38 of the ESMC is amended to read as follows:
"4-2-38: SCHOOLS (PRIVATE):
Every person operating a private school shall pay a business license tax of one
hundred fifty dollars ($150.00) per year."
Section 41. Section 4-2-39 of the ESMC is amended to read as follows:
"4-2-39: STREET STANDS:
Every person operating street stands for the selling of any goods, wares, or
merchandise on any portion of the public streets within the City shall pay a
business license tax of one hundred fifty dollars ($150.00) per month; provided,
that no license shall be issued for the stand until a permit has been obtained from
the City Council, and that the application for the permit shall be accompanied by
the written consent of the owner or occupant of the premises abutting
immediately upon that portion of the street which the applicant desires to use;
and further provided, that the City Council shall have the right to grant,
conditionally grant, or deny the permit under this Section in its discretion."
ORDINANCE NO. 1643
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Section 42. Section 4-2-40 of the ESMC is amended to read as follows:
"4-2-40: TAXICAB OR AUTOMOBILE FOR HIRE:
Every person engaged in the business of providing taxicabs or automobiles for
hire shall obtain a special permit from the City Council prior to engaging in such
activities, and the City Council may condition such permit in any manner not
prohibited by law. Permittee shall pay an annual business license tax of: a) one
hundred fifty dollars ($150.00) per year for each vehicle operated within the City
limits; or b) a flat business license tax for the entire fleet of taxicabs or
automobiles for hire of three hundred dollars ($300.00) per year; whichever is
greater."
Section 43. Section 4-2-41 of the ESMC is amended to read as follows:
"4-2-41: THEATERS AND SHOWS:
Every person engaged in the business of operating a theater, motion picture
show, playhouse, events, and all other shows or exhibitions (except those
conducted in the open or under canvas) not otherwise provided for in this
Chapter, shall pay a business license tax of one hundred fifty dollars ($150.00)
per year. Any such license, however, shall not include the right to conduct a cafe,
restaurant, or lunch counter."
Section 44. Section 4-2-43 of the ESMC is amended to read as follows:
"4-2-43: WAREHOUSES:
Every person engaged in the business of operating a warehouse or storage
facility shall pay a license fee of one hundred fifty dollars ($150.00) per year plus
seventeen cents ($0.17) per square foot of space used for such purpose for each
business location within the city."
Section 45. The City Council may, by resolution, suspend or reduce any tax imposed or
modified by this Ordinance.
Section 46. Environmental Review. This ordinance is exempt from the California
Environmental Quality Act, Public Resources Code Sections 21000 et seq. ("CEQA") and 14
Cal. Code Regs. Sections 15000 et seq. ("CEQA Guidelines"). The calling and noticing of an
election for the submission of a ballot measure to voters is not a project within the meaning of
CEQA Guidelines 15378. The tax submitted to the voters is a general tax that can be used for
any governmental purpose; it is not a commitment to any particular action or actions.
As such, under CEQA Guidelines Section 15378 (b)(4), the tax is not a project within the
meaning of CEQA because it creates a government funding mechanism that does not involve
any commitment to any specific project that may result in a potentially significant physical
impact on the environment. If revenue generated by the tax were used for a purpose that would
have such an effect, the City of El Segundo would undertake the required CEQA review for that
particular project. Therefore, CEQA analysis is not required.
ORDINANCE NO. 1643
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Section 47. Severability. If any provision, section, paragraph, sentence, phrase, or word of the
Ordinance is rendered or declared invalid, illegal, or unconstitutional by any final action in a
court of competent jurisdiction or by reason or any preemptive legislation, such
unconstitutionality illegality or invalidity shall only affect such provision, section, paragraph,
sentence, phrase, or word and shall not affect or impair any remaining provisions, sections,
paragraphs, sentences, phrases, or words, or the application of the Ordinance to any other
person or circumstance, and to that end, the provisions hereof are severable. It is hereby
declared to be the intention of the People of the City that that the Ordinance would have been
adopted had such unconstitutional illegal or invalid provision, section, paragraph, sentence,
phrase, or word not been included herein.
Section 48. Effective Date. This Ordinance shall become effective on December 1, 2023.
This Ordinance was approved and adopted by the People of the City of El Segundo at the City's
November 8, 2022, statewide election.
This Ordinance was approved by Declaration of the vote by the City Council of El Segundo on
December 13, 2022.
Drew Boyles, Mayor
ATTEST:
Tracy Weaver, City Clerk
Approved as to form:
Mark D. Hensley, City Attorney
ORDINANCE NO. 1643
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ORDINANCE NO. 1644
AN ORDINANCE OF THE CITY OF EL SEGUNDO,
CALIFORNIA ADDING CHAPTER 17 (CANNABIS
BUSINESS TAX) TO TITLE 4 OF THE EL SEGUNDO
MUNICIPAL CODE ESTABLISHING A TAX ON CANNABIS
AND HEMP BUSINESS ACTIVITIES WITHIN THE CITY
h9:I=19*0194401a9:I*akwas] 0411111&1*ell]Z11Z4l101161N17_11kiKvFv9161WSITITRI
SECTION 1. CODE AMENDMENT. Chapter 17 is added to Title 4 of the El Segundo
City Municipal Code to read as follows:
Cs]:I_1294:an
4-17-1 Title.
4-17-2 Authority and purpose.
4-17-3 Intent.
4-17-4 Definitions.
4-17-5 Tax imposed.
4-17-6 Registration, reporting, and remittance of tax.
4-17-7 Payments and communications —timely remittance.
4-17-8 Payment — when taxes deemed delinquent.
4-17-9 Notice not required by City.
4-17-10 Penalties and interest.
4-17-11 Refunds and credits.
4-17-12 Refunds and procedures.
4-17-13 Personal cultivation not taxed.
4-17-14 Administration of the tax.
4-17-15 Appeal procedure.
4-17-16 Enforcement —action to collect.
4-17-17 Apportionment.
4-17-18 Constitutionality and legality.
4-17-19 Audit and examination of premises and records.
4-17-20 Other licenses, permits, taxes or charges.
4-17-21 Payment of tax does not authorize unlawful business.
4-17-22 Deficiency determinations.
4-17-23 Failure to report — nonpayment, fraud.
4-17-24 Tax assessment —notice requirements.
4-17-25 Tax assessment — hearing, application, and determination.
4-17-26 Relief from taxes -disaster relief.
4-17-27 Conviction for violation — taxes not waived.
4-17-28 Violation deemed misdemeanor.
4-17-29 Severability.
4-17-30 Remedies cumulative.
4-17-31 Amendment or modification.
4-17-1 Title.
ORDINANCE NO. 1644
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This ordinance shall be known as the Cannabis Business Tax Ordinance. This
ordinance shall be applicable in the City of El Segundo, California which shall be
referred to herein as "City."
4-17-2 Authority and Purpose.
The purpose of this Ordinance is to adopt a tax, for revenue purposes, pursuant to
Sections 37101, and 37100.5 of the Revenue and Taxation Code, upon cannabis and
hemp businesses that engage in business in the City. The Cannabis Business Tax is
levied based upon business gross receipts except for commercial cannabis cultivation or
commercial industrial hemp cultivation which shall be taxed on square footage. It is not a
sales and use tax, a tax upon income, or a tax upon real property and shall not be
calculated or assessed as such. The Cannabis Business Tax shall not be separately
identified or otherwise specifically assessed or charged to any member, customer,
patient, or caretaker. The Cannabis Business Tax is a general tax enacted solely for
general, governmental purposes of the City and not for specific purposes. All of the
proceeds from the tax imposed by this chapter shall be placed in the City's general fund
and be available for any lawful City purpose.
4-17-3 Intent.
The intent of this Ordinance is to levy a tax on all cannabis or industrial hemp
businesses that operate in the City, regardless of whether such business would have
been legal at the time this chapter was adopted. Nothing in this chapter shall be
interpreted to authorize or permit any business activity that would not otherwise be legal
or permissible under laws applicable to the activity at the time the activity is undertaken.
4-17-4 Definitions.
The following words and phrases shall have the meanings set forth below when
used in this chapter:
A. An "arm's length transaction" is a sale entered into in good faith and for
valuable consideration at a sales price 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.
B. "Business" shall include all activities engaged in or caused to be engaged
in within the City, including any commercial or industrial enterprise, trade,
profession, occupation, vocation, calling, or livelihood, whether or not carried on
for gain or profit, but shall not include the services rendered by an employee to his
or her employer.
C. "Calendar year" means January 1 through December 31, of the same year.
D. "Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis
indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin,
ORDINANCE NO. 1644
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Page 34 of 56
whether crude or purified, extracted from any part of the plant; and every compound,
manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin.
"Cannabis" also means the separated resin, whether crude or purified, obtained from
cannabis. "Cannabis" shall not include "industrial hemp," unless otherwise specified.
E. "Cannabis product" means raw cannabis that has undergone a process
whereby the raw agricultural product has been transformed into a concentrate, an edible
product, or a topical product. "Cannabis product" also means cannabis products as
defined by Section 11018.1 of the California Health and Safety Code and is not limited to
medicinal cannabis products.
F. "Canopy" means all areas occupied by any portion of a cannabis or
industrial hemp plant whether contiguous or noncontiguous on any one site. When plants
occupy multiple horizontal planes (as when plants are placed on shelving above other
plants) each plane shall be counted as a separate canopy area.
G. "Cannabis business" means any business activity involving cannabis or
industrial hemp, including but not limited to cultivating, transporting, distributing,
manufacturing, compounding, converting, processing, preparing, storing, packaging,
delivering, testing, dispensing, retailing, and wholesaling of cannabis, cannabis products,
industrial hemp, industrial hemp products or of ancillary products and accessories,
whether or not carried on for gain or profit.
H. "Cannabis business tax" means the tax due pursuant to this chapter for
engaging in a cannabis business in the City.
I. "Commercial cannabis cultivation" means cultivation of cannabis or
industrial hemp undertaken in the course of conducting a cannabis business.
J. "Commercial cannabis permit" means a permit, license, certificate, or other
approval issued by the City to a person to authorize that person to operate a cannabis
business or engage in business as a cannabis business within the City.
K. "Cultivation" means any activity involving the planting, growing, harvesting,
drying, curing, grading, or trimming of cannabis or industrial hemp and includes, but is not
limited to, the operation of a nursery.
L. "Employee" means each and every person engaged in the operation or
conduct of any business, whether as owner, member of the owner's family, partner,
associate, agent, manager, or solicitor, and each and every other person employed or
working in such business for a wage, salary, commission, barter or any other form of
compensation.
M. "Engaged in business as a cannabis business" means the commencing,
conducting, operating, managing, or carrying on of a cannabis business, whether done
as owner, or by means of an officer, agent, manager, employee, or otherwise, whether
operating from a fixed location in the City or coming into the City from an outside location
to engage in such activities. A person shall be deemed engaged in business within the
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City if:
1. Such person or person's employee maintains a fixed place of
business within the City for the benefit or partial benefit of such person;
2. Such person or person's employee owns or leases real property
within the City for business purposes;
3. Such person or person's employee regularly maintains a stock of
tangible personal property in the City for sale in the ordinary course of business;
4. Such person or person's employee regularly conducts solicitation of
business within the City; or
5. Such person or person's employee performs work or renders
services in the City.
The foregoing specified activities shall not be a limitation on the meaning of
"engaged in business."
N. "Evidence of doing business" means evidence such as, without limitation,
use of signs, circulars, cards, or any other advertising media, including the use of internet
or telephone solicitation, or representation to a government agency or to the public that
such person is engaged in a cannabis business in the City.
O. "Fiscal year" means July 1, through June 30, which is the period used by
the City for financial reporting and budgeting.
P. "Gross Receipts," except as otherwise specifically provided, means,
whether designated as a sales price, royalty, rent, membership fee, ATM service fee,
delivery fee, slotting fee, any other fee, vaping room service charge, commission,
dividend, or other designation, the total amount (including all receipts, cash, credits,
services and property of any kind or nature) received or payable for sales of goods, wares
or merchandise, or for the performance of any act or service of any nature for which a
charge is made or credit allowed (whether such service, act or employment is done as
part of or in connection with the sale of goods, wares, merchandise or not), without any
deduction therefrom on account of the cost of the property sold, the cost of materials
used, labor or service costs, interest paid or payable, losses or any other expense
whatsoever. In the event the business is involved in a "non -arms" length transaction the
gross receipts will be subject to the fair market value using a methodology approved by
the Tax Administrator. However, the following shall be excluded from Gross Receipts:
1. Cash discounts were allowed and taken on sales;
2. Any tax required by law to be included in or added to the purchase
price and collected from the consumer or purchaser;
3. Such part of the sale price of any property returned by purchasers to
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the seller as refunded by the seller by way of cash or credit allowances or return
of refundable deposits previously included in gross receipts;
4. Receipts derived from the occasional sale of used, obsolete or
surplus trade fixtures, machinery or other equipment used by the taxpayer in the
regular course of the taxpayer's business;
5. Cash value of sales, trades or transactions between departments or
units of the same business located in the City of El Segundo and if authorized by
the Tax Administrator in writing in accordance with Section 4-17-14 (B);
6. Whenever there are included within the gross receipts amounts
which reflect sales for which credit is extended and such amount proved
uncollectible in a subsequent year, those amounts may be excluded from the gross
receipts in the year they prove to be uncollectible; provided, however, if the whole
or portion of such amounts excluded as uncollectible are subsequently collected,
they shall be included in the amount of gross receipts for the period when they are
recovered;
7. Receipts of refundable deposits, except that such deposits when
forfeited and taken into income of the business shall not be excluded;
8. Amounts collected for others where the business is acting as an
agent or trustee and to the extent that such amounts are paid to those for whom
collected. These agents or trustees must provide the Tax Administrator with the
names and the addresses of the others, and the amounts paid to them. This
exclusion shall not apply to any fees, percentages, or other payments retained by
the agent or trustees;
9. Retail sales of non -cannabis products, such as t-shirts, sweaters,
hats, stickers, key chains, bags, books, posters, rolling papers, cannabis
accessories such as pipes, pipe screens, vape pen batteries (without cannabis or
industrial hemp) or other personal tangible property which the Tax Administrator
has excluded in writing by issuing an administrative ruling per Section 4-17-14 shall
not be subject to the cannabis business tax under this chapter.
10. Payments made by the tax -reporting cannabis business (Seller) to a
cannabis business (Buyer) for the difference in the original acquisition price and
subsequent renegotiated or finalized selling price of products or services sold to a
specific end customer. This type of transaction is referred to as a "Billback". The
tax -reporting cannabis business must provide supporting documentation to
substantiate the transaction in order to be eligible for an exemption.
11. Any business which sells industrial hemp and/or hemp products or
offers services or activities related to industrial hemp or hemp products and /or
which is not required to obtain a cannabis or industrial hemp permit or license from
the City or the State for the purpose of cultivating, growing, drying, curing,
manufacturing, processing, packaging, transporting, distributing, testing or selling
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of industrial hemp either wholesale or retail shall be exempt from the cannabis tax
provided that such business does not generate more than 50% of their total gross
receipts in the reporting period from the business from industrial hemp activities.
However, the exemption may be amended by the City Council by resolution or
ordinance pursuant to Section 4-17-5 (B) to increase or decrease the percentage
of the business's hemp and/or hemp products gross receipts reporting from zero
to one hundred percent. To the extent the gross receipts from the hemp activities
do not meet the relevant percentage to be included, this exclusion shall reduce the
gross receipts to zero for the sole purpose of calculating the cannabis tax.
Q. "Industrial hemp" means a crop that is limited to types of the plant Cannabis
sativa L. having no more than three -tenths of 1 percent tetrahydrocannabinol (THC)
contained in the dried flowering tops, whether growing or not; the seeds of the plant; the
resin extracted from any part of the plant; and every compound, manufacture, salt,
derivative, mixture, or preparation of the plant, its seeds or resin produced therefrom.
However, should the federal or state legislative body increase or decrease the percentage
of tetrahydrocannabinol (THC) then this new limit shall be applicable to the tax unless
modified by resolution or ordinance of the City Council pursuant to Section 4-17-31.
R. "Industrial hemp products" means any raw hemp that has undergone a
process whereby the raw agricultural product has been transformed into a concentrate,
an edible product, or a topical product. "Hemp product" also means hemp products as
defined by Section 11018.5 of the California Health and Safety Code.
S. "Lighting" means a source of light that is primarily used for promoting the
biological process of plant growth. Lighting does not include sources of light that primarily
exist for the safety or convenience of staff or visitors to the facility, such as emergency
lighting, walkway lighting, or light admitted via small skylights, windows, or ventilation
openings.
T. "Medicinal cannabis" or "medicinal cannabis product" means cannabis or a
cannabis product, intended to be sold or sold for use pursuant to the Compassionate Use
Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety
Code, for a medicinal cannabis patient in California who possesses a physician's
recommendation, or a cannabis card issued pursuant to Health and Safety Code Section
11362.71.
U. "Nursery" means a facility or part of a facility that is used only for producing
clones, immature plants, seeds, and other agricultural products used specifically for the
planting, propagation, and cultivation of cannabis or industrial hemp.
V. A "non-arm's length transaction" is a transaction that does not meet the
definition of an "arm's length transaction." In other words, the transaction is not a sale
entered into in good faith and that reflects fair market value in the open market. One
example of a non-arm's length transaction would be when a cultivator sells cannabis
goods to a cannabis distributor at a sales price that is lower than what the same cultivator
would to other cannabis distributors, or which does not reflect the fair market value in the
open market.
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W. "Person" means an individual, firm, partnership, joint venture, association,
corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or
any other group or combination acting as a unit, whether organized as a nonprofit or for -
profit entity, and includes the plural as well as the singular number.
X. "Processing" means a cultivation site that conducts only trimming, drying,
curing, grading, packaging, or labeling of cannabis, industrial hemp and nonmanufactured
cannabis products.
Y. "Retailer" means a person as defined in Section 4-17-4 (W) who sells
cannabis, cannabis products, hemp and/or hemp products at their place of business or
by delivery to an end user or customer for use or consumption rather than to another
person or business for resale.
Z. "Sale" "Sell" and "to sell" means and includes any sale, exchange, or barter
either as a retailer or wholesaler by a person as defined by Section 4-17-4 (W) . It shall
also mean any transaction whereby, for any consideration, title to cannabis, cannabis
products, industrial hemp and/or industrial hemp products are transferred from one
person to another and includes the delivery of cannabis, cannabis products, industrial
hemp and/or industrial hemp products pursuant to an order placed for the purchase of
the same, but does not include the return of cannabis, cannabis products, industrial hemp
and/or industrial hemp products to the licensee from whom the cannabis, cannabis
product, industrial hemp and/or industrial hemp product was purchased.
AA. "State" means the State of California.
AB. "State license," "license," or "registration" means a state license issued
pursuant to California Business & Professions Code Section 26050, and all other
applicable state laws, required for operating a cannabis business.
AC. "Tax Administrator" means the City Manager of the City of El Segundo or
his/her designee(s).
AD. "Testing Laboratory" means a cannabis business that (i) offers or performs
tests of cannabis, cannabis products, industrial hemp and/or industrial hemp products (ii)
offers no service other than such tests, (iii) sells no products, excepting only testing
supplies and materials, (iv) is accredited by an accrediting body that is independent from
all other persons involved in the cannabis industry in the state and (v) is registered with
the Department of Cannabis Control or other state agency.
4-17-5 Tax Imposed.
A. Beginning January 1, 2023, there is imposed upon each person who is
engaged in business as a cannabis business a cannabis business tax. Such
tax is payable regardless of whether the person has been issued a
commercial cannabis business license, permit, or certificate to operate
lawfully in the City or is operating unlawfully. The City's acceptance of a
cannabis business tax payment from a cannabis business operating illegally
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shall not constitute the City's approval or consent to such illegal operations.
B. The City Council may, by resolution or ordinance, increase or decrease the
rate of the cannabis business tax, including the initial rate of cannabis
business tax. The City Council may, by resolution or ordinance, increase or
decrease the rate of the medicinal cannabis business tax, including the
initial rate of the medicinal cannabis business tax, independent of other
cannabis business tax activities. In addition, the City Council may, by
resolution or ordinance, increase or decrease the rate of the cannabis
business tax on hemp or hemp products, including the initial rate of the tax
on hemp or hemp products independent of other cannabis activities.
Notwithstanding the foregoing, in no event shall the City Council repeal this
tax or set any adjusted rate that exceeds the maximum rates calculated
pursuant to this chapter.
C. The maximum rate of the cannabis business tax shall be calculated as
follows:
1. For every person engaged in commercial cannabis cultivation, including
cultivation of industrial hemp, in the City:
a. Through January 1, 2026, the annual maximum rate shall be:
Twenty dollars ($20.00) per square foot of canopy space in a
facility that uses exclusively artificial lighting.
ii. Fourteen dollars ($14.00) per square foot of canopy space in
a facility that uses a combination of natural and supplemental
lighting as defined in Section 4-17-4 (S) of this chapter.
iii. Eight dollars ($8.00) per square foot of canopy space in a
facility that uses no artificial lighting.
iv. Four dollars ($4.00) per square foot of canopy space for any
nursery.
b. On January 1, 2026 and on each January 1, thereafter, the maximum
annual tax rates specified in Subsection 4-17-5 (C) (1) (a), shall
increase by the percentage increase in the Consumer Price Index
("CPI") for consumers in the Los Angeles -Riverside -Orange County
area as published by the United States Government Bureau of Labor
Statistics. However, no CPI adjustment resulting in a decrease of any
tax imposed by this subsection shall be made.
2. For every person engaged in the operation of a testing laboratory for
cannabis, cannabis products, industrial hemp and/or industrial hemp
products the person shall be subject to the maximum tax rate not to
exceed two percent (2%) of gross receipts.
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3. For every person engaged in retail sales of cannabis, cannabis
products, industrial hemp, and/or industrial hemp products, including as
a retailer (dispensary) or non -storefront retailer (retail delivery business),
or microbusiness, the person shall be subject to the maximum tax rate
not to exceed ten percent (10%) of gross receipts.
4. For every person engaged in distribution of cannabis, cannabis
products, industrial hemp and/or industrial hemp products, the person
shall be subject to the maximum tax rate not to exceed ten percent
(10%) of gross receipts.
5. For every person engaged in manufacturing or processing of
cannabis, cannabis products, industrial hemp and/or industrial hemp
products, or any other type of cannabis business not described in
Section 4-17-5 (C) (1), (2), (3), or (4) the person shall be subject to the
maximum tax rate not to exceed ten percent (10%) of gross receipts.
D. Persons subject to the cannabis business tax shall register with the City and
if applicable pay the registration fee adopted by resolution or ordinance by
the City Council.
4-17-6 Registration, reporting and remittance of tax.
A. Registration of Cannabis Business. All cannabis businesses shall be
required to annually register as follows:
1. All persons engaging in business as a cannabis business, whether an
existing, newly established or acquired business shall register with the
Tax Administrator within thirty (30) calendar days of commencing
operation and shall annually renew such registration within 30 calendar
days of the business registration anniversary date of each year
thereafter. In registering, such persons shall furnish to the Tax
Administrator a sworn statement, upon a form prescribed by the Tax
Administrator, setting forth the following information:
i. The name of the business
ii. The names and addresses of each owner
iii. The exact nature or kind of business;
iv. The place where such business is to be carried on; and
v. Any additional information which the Tax Administrator may
require.
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B. An annual registration fee in accordance with the current and approved City
fee schedule shall be presented with the sworn statement submitted under
this chapter. This fee shall not be considered a tax as described in Section
4-1-4 and may be adjusted annually by resolution or ordinance of the City
Council.
C. The cannabis business tax imposed by this chapter shall be paid, in arrears,
on a monthly basis. Each person owing a cannabis business tax shall on or
before the last day of the month following the close of each month file with
the Tax Administrator a statement ("tax statement") of the tax owed for that
calendar month and the basis for calculating that tax. The Tax Administrator
may require that the tax statement be submitted on a form prescribed by
the Tax Administrator. The tax for each calendar month shall be due and
payable on the same date that the tax statement is due.
D. Upon cessation of a cannabis business, tax statements and payments shall
be immediately due for all calendar months up through the calendar month
during which cessation occurred.
E. In the event that there is a change in ownership of any cannabis business:
a. The new owner is required to submit an updated registration form to the
Tax Administrator;
b. The new owner is subject to an audit by the Tax Administrator; and
c. Unless otherwise provided by law, it is the joint and several liability of
both the seller and buyer to remit any taxes, interest, penalties, and fees
due up until the date of sale; otherwise, enforcement action may be
taken pursuant to Section 4-17-16 of this chapter against both the seller
and/or buyer in an amount to be determined by the Tax Administrator.
F. The Tax Administrator may, at his or her discretion, establish alternative
reporting and payment periods for any taxpayer as the Tax Administrator
deems necessary to ensure effective collection of the cannabis business
tax. The Tax Administrator may also require that a deposit, to be applied
against the taxes for a calendar month, be made by a taxpayer at the
beginning of that calendar month. In no event shall the deposit required by
the Tax Administrator exceed the tax amount he or she projects will be owed
by the taxpayer for the calendar month. The Tax Administrator may require
that a taxpayer make payments via a cashier's check, money order, wire
transfer, or similar instrument.
4-17-7 Payments and communications — timely remittance.
Whenever any payment, statement, report, request, or other communication is
due, it must be received by the Tax Administrator on or before the due date. A postmark
will not be accepted as timely remittance. If the due date would fall on a Saturday, Sunday
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or a holiday observed by the City, the due date shall be the next regular business day on
which the City is open to the public.
4-17-8 Payment - when taxes deemed delinquent.
Unless otherwise specifically provided under other provisions of this chapter, the
taxes required to be paid pursuant to this chapter shall be deemed delinquent if not
received by the Tax Administrator on or before the due date as specified in Sections 4-
17-6 and 4-17-7.
4-17-9 Notice not required by the City.
The City may as a courtesy send a tax notice to the cannabis business which owes
the City a cannabis business tax. However, the Tax Administrator is not required to send
a delinquency or other notice or bill to any person subject to the provisions of this chapter.
Failure to send such notice or bill shall not affect the validity of any tax or penalty due
under the provisions of this chapter.
4-17-10 Penalties and interest.
A. Any person who fails or refuses to pay any cannabis business tax required
to be paid pursuant to this chapter on or before the due date shall pay penalties and
interest as follows:
1. A penalty equal to ten percent (10%) of the amount of the tax, in
addition to the amount of the tax, plus interest on the unpaid tax calculated from
the due date of the tax at the rate of one percent (1 %) per month.
2. If the tax remains unpaid for a period exceeding one calendar month
beyond the due date, an additional penalty equal to twenty-five percent (25%) of
the amount of the tax, plus interest at the rate of one percent (1 %) per month on
the unpaid tax and on the unpaid penalties.
3. Interest shall be applied at the rate of one percent (1 %) per month
on the first day of the month for the full month and will continue to accrue monthly
on the tax and penalty until the balance is paid in full.
B. Whenever a check or electronic payment is submitted in payment of a
cannabis business tax and the payment is subsequently returned unpaid by the bank for
any reason, the taxpayer will be liable for the tax amount due plus any fees, penalties,
and interest as provided for in this chapter, and any other amount allowed under state
law.
C. The Tax Administrator may waive the penalties imposed upon any person
under this Section 4-17-10 if:
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1. The person requests a waiver of penalties by submitting a written
request for waiver to the Tax Administrator no later than June 30 of the second
fiscal year following the fiscal year in which the tax became delinquent; and
2. The person provides evidence satisfactory to the Tax Administrator
that the failure to pay timely was due to circumstances beyond the control of the
person and occurred notwithstanding the exercise of ordinary care and in the
absence of willful neglect; and the person paid the delinquent taxes, penalties,
accrued interest, and fees owed prior to applying to the Tax Administrator for a
waiver.
D. The waiver provisions specified in Section 4-17-10 (C) shall not apply to
interest accrued on the delinquent taxes and a waiver shall be granted only once during
any twenty-four month period. The Tax Administrator's decision on a request for a waiver
of penalties is final and conclusive and not subject to appeal under Section 4-17-15.
4-17-11 Refunds and credits.
A. No refund shall be made of any tax collected pursuant to this chapter,
except as provided in Section 4-17-12.
B. No refund of any tax collected pursuant to this chapter shall be made
because of the discontinuation, dissolution, or other termination of a business.
4-17-12 Refunds and procedures.
A. Whenever the amount of any cannabis business tax, penalty or interest has
been overpaid, paid more than once, or has been erroneously collected or received by
the City under this chapter, it may be refunded to the claimant who paid the tax provided
that a written claim for refund signed under the penalty of perjury is filed with the Tax
Administrator within one (1) year of the date the tax was originally due or paid, whichever
came first. A person may only file a claim for refund if the person paid the tax. No person
shall be entitled to a refund unless the person can support the claim by written records
sufficient to show entitlement thereto. The Tax Administrator's decision on a claim for
refund is final and conclusive and not subject to appeal under Section 4-17-15.
B. The Tax Administrator, his or her designee which may include a third party,
or any other City officer charged with the administration of this chapter shall have the right
to examine and audit all the books and business records of the claimant in order to
determine the eligibility of the claimant to the claimed refund. No claim for refund shall be
allowed if the claimant refuses to allow such examination of claimant's books and
business records after requested by the Tax Administrator to do so. The Tax
Administrator may collect a fee adopted by resolution by the City Council to pay for the
cost of examination and audit should the books and records be provided in a form
insufficient to allow the Tax Administrator to make a determination on the claim for refund.
C. In the event that the cannabis business tax was erroneously paid in an
amount in excess of the tax due, and the error is attributable to the City, the City shall
refund the amount of tax erroneously paid; provided that (i) a claim for refund has been
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timely filed with the Tax Administrator; and (ii) the refund cannot exceed, under any
circumstance, the amount of tax overpaid during the twelve months preceding the last
month for which the claim states the tax was overpaid.
4-17-13 Personal Cultivation Not Taxed.
The provisions of this chapter shall not apply to personal cannabis cultivation or
personal use of cannabis, to the extent those activities are authorized in the "Medicinal
and Adult Use Cannabis Regulation and Safety Act," as may be amended. This chapter
shall not apply to personal use of cannabis that is specifically exempted from state
licensing requirements, that meets the definition of personal use or equivalent terminology
under state law, and provided that the individual receives no compensation whatsoever
related to that personal cultivation or use.
4-17-14 Administration of the tax.
A. It shall be the duty of the Tax Administrator to collect the taxes, interest,
penalties, fees, and perform the duties required by this chapter.
B. For purposes of administration and enforcement of this chapter generally,
the Tax Administrator may from time to time promulgate such administrative
interpretations, rules, and procedures consistent with the purpose, intent, and express
terms of this chapter as he or she deems necessary to implement or clarify such
provisions or aid in enforcement.
C. The Tax Administrator may take such administrative actions as needed to
administer the cannabis business tax, including but not limited to:
Provide to all cannabis business taxpayers forms for the reporting of the
tax;
2. Provide information to any taxpayer concerning the provisions of this
chapter;
3. Receive and record all taxes remitted to the City as provided in this chapter;
4. Maintain records of taxpayer reports and taxes collected pursuant to this
chapter;
5. Assess penalties and interest to taxpayers pursuant to this chapter;
6. Determine amounts owed under and enforce collection pursuant to this
chapter.
4-17-15 Appeal procedure.
A taxpayer aggrieved by a decision of the Tax Administrator with respect to the
amount of tax, interest, penalties, and fees, if any, due under this chapter may appeal
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only if a hearing was requested and attended pursuant to Section 4-17-25. An appeal
may be made by filing a notice of appeal with the City Clerk within thirty (30) calendar
days of the serving or mailing of the Tax Administrator's decision of the amount due. Upon
receipt of a timely notice of appeal, the City Clerk, or his or her designee, shall fix a time
and place for hearing such appeal with a hearing officer or other appointed body by the
City Council. The City Clerk, or his or her designee, shall give at least ten (10) calendar
days' notice of the appeal hearing in writing to such taxpayer at the last known place of
address. The hearing officer shall render a written decision that shall be served on the
taxpayer at the last known place of address. The decision of the hearing officer shall be
final and conclusive. Any amount found to be due by the hearing officer shall be
immediately due and payable upon the service of the decision. If no notice of appeal is
filed within the time prescribed in this Section, the Tax Administrator's decision with
respect to the amount of tax, interest, penalties, and fees due is final and conclusive.
4-17-16 Enforcement - action to collect.
A. Any taxes, interest, penalties, and/or fees required to be paid under the
provisions of this chapter shall be deemed a debt owed to the City. Any person owing
money to the City under the provisions of this chapter shall be liable in an action brought
in the name of the City for the recovery of such debt. The provisions of this chapter shall
not be deemed a limitation upon the right of the City to bring any other action including
criminal, civil and equitable actions, based upon the failure to pay the tax, interest,
penalties, and/or fees imposed by this chapter or the failure to comply with any of the
provisions of this chapter.
4-17-17 Apportionment.
If a person subject to the tax is operating both within the City and outside the City, it is
the intent of the City to apply the cannabis business tax so that the measure of the tax
fairly reflects the proportion of the taxed activity actually carried on in the City. To the
extent federal or state law requires that any tax due from any taxpayer be apportioned,
the taxpayer may indicate said apportionment on his or her tax return. The Tax
Administrator may promulgate administrative procedures for apportionment as he or she
finds useful or necessary.
4-17-18 Constitutionality and legality. This tax is intended to be applied in
a manner consistent with the United States and California Constitutions and state law.
None of the tax provided for by this chapter shall be applied in a manner that causes an
undue burden upon interstate commerce, a violation of the equal protection or due
process clauses of the Constitutions of the United States or the State of California or a
violation of any other provision of the California Constitution or state law. If a person
believes that the tax, as applied to him or her, is impermissible under applicable law, he
or she may request that the Tax Administrator release him or her from the obligation to
pay the impermissible portion of the tax.
4-17-19 Audit and examination of premises and records.
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A. For the purpose of ascertaining the amount of cannabis business tax owed
or verifying any representations made by any taxpayer to the City in support of his or her
tax calculation, the Tax Administrator or his/her designees which may include a third party
shall have the power to inspect any location where commercial cannabis activity occurs
and to audit and examine all books and records (including, but not limited to bookkeeping
records, access to space utilized for cannabis related activities. METRC data, and/or
point -of -sale data, state and/or federal income tax returns, excise tax returns, and other
records relating to the gross receipts of the business) of persons engaged in cannabis
businesses. In conducting such investigation, the Tax Administrator, or his/her designees
which may include a third party shall have the power to inspect space utilized for cannabis
related activities, any equipment or software, such as computers, software systems,
platforms, and databases (including METRC), and/or point of sale systems, to include
any keys or access codes for access to and use of the equipment and/or software, that
may contain such records.
B. It shall be the duty of every person liable for the collection and payment to
the City of any tax imposed by this chapter to keep and preserve, for a period of at least
three (3) years, all records as may be necessary to determine the amount of such tax as
he or she may have been liable for the collection of and payment to the City, which records
the Tax Administrator or his/her designee which may include a third party shall have the
right to inspect at all reasonable times.
4-17-20 Other licenses, permits, taxes, fees, or charges.
A. Nothing contained in this chapter shall be deemed to repeal, amend, be in
lieu of, replace or in any way affect any requirements for any commercial cannabis permit,
City license, permit, or other certificate required by, under or by virtue of any provision of
any other Chapter of this code or any other ordinance or resolution of the City, nor be
deemed to repeal, amend, be in lieu of, replace or in any way affect any tax, fee or other
charge imposed, assessed or required under any other Chapter of this code or any other
ordinance or resolution of the City. Any references made or contained in any other
Chapter of this code to any licenses, permits, certificates, taxes, fees, or charges, or to
any schedule of license, permit, certificate, or fees, shall be deemed to refer to the
licenses, permits or certificates, and their respective taxes, fees or charges, or schedule
of fees, provided for in other Chapters of this code.
B. A commercial cannabis permit issued under the El Segundo Municipal Code
may be revoked, suspended or not renewed in the event that the business holding that
permit has failed to (i) make a deposit required by the Tax Administrator pursuant to Section
4-17-6 or (ii) timely pay all taxes, interest and penalties owed by that business under this
chapter.
4-17-21 Payment of tax does not authorize unlawful business.
A. The payment of a cannabis business tax required by this chapter, and its
acceptance by the City, shall not entitle any person to carry on any cannabis business
unless the person has complied with all of the requirements of this code and all other
applicable state laws.
ORDINANCE NO. 1644
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B. No tax paid under the provisions of this chapter shall be construed as
authorizing the conduct or continuance of any illegal or unlawful business, or any
business in violation of any local or state law.
4-17-22 Deficiency determinations.
If the Tax Administrator is not satisfied that any statement filed as required under
the provisions of this chapter is correct, or that the amount of tax is correctly computed,
he or she may compute and determine the amount to be paid and make a deficiency
determination upon the basis of the facts contained in the statement or upon the basis of
any information in his or her possession or that may come into his or her possession
within three (3) years of the date the tax was originally due and payable. One or more
deficiency determinations of the amount of tax due for a period or periods may be made.
When a person discontinues engaging in a cannabis business, a deficiency determination
may be made at any time within three (3) years thereafter as to any liability arising from
engaging in such cannabis business whether or not a deficiency determination is issued
prior to the date the tax would otherwise be due. Whenever a deficiency determination is
made, a notice shall be given to the person concerned in the same manner as notices of
assessment are given under Sections 4-17-24 and 4-17-25.
4-17-23 Failure to report —nonpayment, fraud.
A. Under any of the following circumstances, the Tax Administrator may make
and give notice of an assessment of the amount of tax owed by a person under this
chapter at any time:
If the person has not filed a complete statement required under the
provisions of this chapter;
2. If the person has not paid the tax due under the provisions of this
chapter;
3. If the person has not, after demand by the Tax Administrator, filed a
corrected statement, or furnished to the Tax Administrator adequate substantiation
of the information contained in a statement already filed, or paid any additional
amount of tax due under the provisions of this chapter; or
4. If the Tax Administrator determines that the nonpayment of any
cannabis business tax due under this chapter is due to fraud, a penalty of twenty-
five percent (25%) of the amount of the tax shall be added thereto in addition to
penalties and interest otherwise payable under this chapter and any other
penalties allowed by law.
B. The notice of assessment shall separately set forth the amount of any tax
known by the Tax Administrator to be due or estimated by the Tax Administrator, after
consideration of all information within the Tax Administrator's knowledge concerning the
business and activities of the person assessed, to be due under each applicable provision
of this chapter and shall include the amount of any penalties or interest accrued on each
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amount to the date of the notice of assessment. The notice shall state that the person has
thirty (30) calendar days from the date of the notice to make a written request for an
informal hearing before the Tax Administrator. The notice shall also state that if the
person fails to timely request an informal hearing within the time allowed, the amount
determined by the Tax Administrator is final and conclusive and is immediately due and
payable.
4-17-24 Tax assessment - notice requirements.
The notice of assessment shall be served upon the person either by personal
delivery, by overnight delivery by a nationally -recognized courier service, or by a deposit
of the notice in the United States mail, postage prepaid thereon, addressed to the person
at the address of the location of the business or to such other address as he or she shall
register with the Tax Administrator for the purpose of receiving notices provided under
this chapter; or, should the person have no address registered with the Tax Administrator
for such purpose, then to such person's last known address. For the purpose of Section
4-17-24, a service by overnight delivery shall be deemed to have occurred one (1)
calendar day following deposit with a courier and service by mail shall be deemed to have
occurred three (3) days following deposit in the United States mail.
4-17-25 Tax assessment - hearing, application, and determination.
Within thirty (30) calendar days after the date of service of the notice of assessment
the person may apply in writing to the Tax Administrator for an informal hearing on the
assessment. If application for an informal hearing is not made within the time herein
prescribed, the tax assessed by the Tax Administrator shall become final and conclusive.
Within thirty (30) calendar days of the receipt of any such application for an informal
hearing, the Tax Administrator shall cause the matter to be set for an informal hearing
before him or her, or his/her designee, no later than thirty (30) calendar days after the
receipt of the application, unless a later date is agreed to by the Tax Administrator and
the person requesting the informal hearing. Notice of such informal hearing shall be given
by the Tax Administrator to the person requesting such informal hearing no later than five
(5) calendar days prior to such informal hearing. A hearing under this section shall be
informal and need not follow any formal rules of evidence. At such hearing said applicant
may appear and offer evidence why the assessment as made by the Tax Administrator
should not be confirmed and fixed as the tax due. After such hearing the Tax Administrator
shall determine and reassess (if necessary) the proper amount of tax, interest, penalties,
and fees to be charged and shall give written notice of the decision to the person in the
manner prescribed in Section 4-17-24 for giving notice of assessment. No appeal of a
notice of assessment may be made under Section 4-17-15 unless an informal hearing is
timely requested and the person attends the hearing. If the person fails to appear at the
informal hearing, the amount due determined by the Tax Administrator in the notice of
assessment is final and conclusive.
4-17-26 Relief from taxes — disaster relief.
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A. If a person is unable to comply with any tax requirement imposed under this
chapter due to a disaster impacting its cannabis business, the person may notify the Tax
Administrator of its inability to comply and request relief from the tax requirement. For
purposes of this chapter, "disaster" means fire, flood, storm, tidal wave, earthquake, or
similar public calamity resulting in physical damage to real property, whether or not
resulting from natural causes.
B. The person shall provide any information required by the Tax Administrator
including, without limitation, why relief is requested, the time period for which the relief is
requested, and the reason relief is needed for the specific amount of time. The person
agrees to grant the Tax Administrator or his/her designee access to the location where
the cannabis business has been impacted due to a disaster.
C. The Tax Administrator, in his/her sole discretion, may provide relief from the
cannabis business tax requirement for businesses whose operations have been impacted
by a disaster if such tax relief does not exceed ten thousand ($10,000) dollars. Such
temporary relief may be granted for a reasonable amount of time, in the Tax
Administrator's sole discretion, and the amount and duration of relief should be based
upon how long it would reasonably take for the cannabis business to recover from the
disaster. The Tax Administrator may require that the cannabis business follow certain
conditions to receive temporary relief from the cannabis business tax requirement. The
Tax Administrator's decision on a request for relief and the conditions that may be
imposed for relief under this section are final and conclusive and not subject to appeal
under Section 4-17-15.
4-17-27 Conviction for violation - taxes not waived.
The conviction and punishment of any person for failure to pay the required tax
shall not excuse or exempt such person from any civil action for the tax debt unpaid at
the time of such conviction. No civil action shall prevent a criminal prosecution for any
violation of the provisions of this chapter or of any state law requiring the payment of all
taxes.
4-17-28 Violation deemed misdemeanor.
Any person violating any of the provisions of this chapter shall be guilty of a
misdemeanor.
4-17-29 Severability.
If any provision of this chapter, or its application to any person or circumstance, is
determined by a court of competent jurisdiction to be unlawful, unenforceable, or
otherwise void, that determination shall have no effect on any other provision of this
chapter or the application of this chapter to any other person or circumstance and, to that
end, the provisions hereof are severable.
4-17-30 Remedies cumulative.
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All remedies and penalties prescribed by this chapter, or which are available under
any other provision of this code and any other provision of law or equity are cumulative.
The use of one or more remedies by the City shall not bar the use of any other remedy
for the purpose of enforcing the provisions of this chapter.
4-17-31 Amendment or modification.
Except as set forth in Section 4-17-31, this chapter may be amended or modified
but not repealed by the City Council without a vote of the people. However, as required
by Article XIII C of the California Constitution, voter approval is required for any
amendment that would expand, extend, or increase the rate of any tax levied pursuant to
this chapter beyond the maximums set forth in this chapter. The people of the City of El
Segundo affirm that the following actions shall not constitute an increase of the rate of a
tax:
A. The restoration or adjustment of the rate of the tax to a rate that is no higher
than that allowed by this chapter, in those circumstances where, among others, the City
Council has previously acted to reduce the rate of the tax or is incrementally implementing
an increase authorized by this chapter;
B. An action that interprets or clarifies (i) the methodology of applying or
calculating the tax or (ii) any definition applicable to the tax, so long as the interpretation
or clarification (even if contrary to some prior interpretation or clarification) is not
inconsistent with the provisions of this chapter; or
C. The collection of the tax imposed by this chapter even if the City had, for
some period of time, failed to collect the tax.
SECTION 2. SEVERABILITY. If any section, subsection, sentence, clause, or
phrase of this ordinance is for any reason held to be invalid, such decision shall not affect
the validity of the remaining portions of this ordinance. The people of the City of El
Segundo hereby declare that they would have passed this ordinance and each section,
subsection, sentence, clause, and phrase thereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses, or phrases be declared invalid.
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SECTION 3. ENVIRONMENTAL COMPLIANCE. The City Council hereby finds
and determines that this resolution or ordinance is exempt from the California
Environmental Quality Act, Public Resources Code Sections 21000 et seq. ("CEQA") and
14 Cal. Code Re. Sections 15000 et seq. ("CEQA Guidelines"). The calling and noticing
of an election for the submission of a ballot measure to voters is not a project within the
meaning of CEQA Guidelines 15378. The tax submitted to the voters is a general tax that
can be used for any governmental purpose; it is not a commitment to any particular action
or actions.
As such, under CEQA Guidelines Section 15378 (b)(4), the tax is not a project
within the meaning of CEQA because it creates a government funding mechanism that
does not involve any commitment to any specific project that may result in a potentially
significant physical impact on the environment. If revenue generated by the tax were used
for a purpose that would have such an effect, the City of El Segundo would undertake the
required CEQA review for that particular project. Therefore, pursuant to CEQA Guideline
Section 15060 CEQA analysis is not required.
SECTION 4. EFFECTIVE DATE. Pursuant to the California Constitution, Article
XIIIC(2)(b) and California Elections Code § 9217, if a majority of the voters voting in the
election on this measure vote in favor of the adoption of this measure, this ordinance shall
be deemed valid and binding and shall be considered adopted upon the date that the vote
is declared by the City Council and shall go into effect ten (10) days after that date.
This Ordinance was approved and adopted by the People of the City of El Segundo at
the City's November 8, 2022 statewide election.
This Ordinance was approved by Declaration of the vote by the City Council of El
Segundo on December 13, 2022.
Drew Boyles, Mayor
ATTEST:
Tracy Weaver, City Clerk
Approved as to form:
Mark D. Hensley, City Attorney
ORDINANCE NO. 1644
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,,, M City Council Agenda Statement
E L S E G U N D O Meeting Date: December 13, 2022
Agenda Heading: Reports - City Clerk
Item Number: B.2
TITLE:
Administer Oath of Office to Council Members Elect
RECOMMENDATION:
1. The City Clerk presents the Certificate of Election and administers the oath of
office to City Council Members Elect.
2. Comments from newly seated Council Members, Christopher Pimentel and Ryan
W. Baldino.
3. Alternatively, discuss and take other action related to this item.
FISCAL IMPACT:
None
BACKGROUND:
Election Code § 10265 requires the City Clerk, serving as the elections official, to
immediately sign and deliver to each newly elected officer a Certificate of Election. The
elections official is also required to administer to each person elected the Oath of Office
prescribed in the California Constitution.
The following candidates were elected to the two (2) City Council Member seats:
1. Christopher Pimentel
2. Ryan W. Baldino
DISCUSSION:
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Administer Oath of Office
December 13, 2022
Page 2 of 2
CITY STRATEGIC PLAN COMPLIANCE:
Goal 1: Enhance Customer Service, Diversity, Equity, Inclusion and Communication
Objective 1 B: El Segundo's engagement with the community ensures excellence.
PREPARED BY:
Tracy Weaver, City Clerk
REVIEWED BY:
Tracy Weaver, City Clerk
APPROVED BY:
Tracy Weaver, City Clerk
ATTACHED SUPPORTING DOCUMENTS:
None
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,,, M City Council Agenda Statement
E L S E G U N D O Meeting Date: December 13, 2022
Agenda Heading: Reports - City Clerk
Item Number: 13.3
TITLE:
Election of Mayor and Mayor Pro Tern by Seated Council Members
RECOMMENDATION:
City Clerk receives nominations for Mayor from Council Members. Nominations
do not require a second from another Council Member. The nominations will be
voted on in the order they are made. If a nomination is approved by a majority of
the Council, the person nominated becomes the Mayor and the process is
concluded.
2. The newly appointed Mayor receives nominations for Mayor Pro Tern from
Council Members. Nominations do not require a second from another Council
Member. The nominations will be voted on in the order they are made. If a
nomination is approved by a majority of the Council, the person nominated
becomes the Mayor Pro Tern and the process is concluded.
3. Alternatively, discuss and take other action related to this item.
FISCAL IMPACT:
None
BACKGROUND:
Government Code § 36801 and El Segundo Municipal Code § 1-4-2 require the City
Council to choose one of its members as Mayor and one of its members as Mayor Pro
Tempore at the meeting at which the declaration of the election results for a General
Municipal Election is made, following the declaration of the election results and the
installation of elected officialS.
DISCUSSION:
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Election of Mayor and Mayor Pro Tern
December 13, 2022
Page 2 of 2
The City Clerk must record nominations for Mayor and Mayor Pro Tern and will confirm
acceptance of each nomination for Mayor and put each nominee's name to a vote in the
order of the nominations received. Once the Mayor is approved, the Mayor will open the
nominations for Mayor Pro Tern and put each nominee's name to a vote in the order of
the nominations received.
CITY STRATEGIC PLAN COMPLIANCE:
Goal 1: Enhance Customer Service, Diversity, Equity, Inclusion and Communication
Objective 1 B: El Segundo's engagement with the community ensures excellence.
PREPARED BY:
Tracy Weaver, City Clerk
REVIEWED BY:
Tracy Weaver, City Clerk
APPROVED BY:
Tracy Weaver, City Clerk
None
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