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CC - Item 3B - Proposed 45-Day Interim Moratorium on Massage EstablismentsROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: JEFF ALLRED, CITY MANAGER DATE: DECEMBER 9, 2014 SUBJECT: PROPOSED 45 -DAY INTERIM MORATORIUM ON MASSAGE ESTABLISHMENTS SUMMARY The proposed urgency ordinance would impose a 45 -day interim moratorium from the effective date of January 1, 2015 on the issuance of any permits, licenses, tax certificates, approvals, or entitlements for new massage establishments or the relocation of massage establishments as such terms are defined in Rosemead Municipal Code ( "RMC ") Chapter 5.24. Staff Recommendation It is recommended that the City Council adopt the proposed urgency ordinance (Ordinance No. 945) with an effective date of January 1, 2015, which is subject to a four -fifths (4 /5ths) City Council approval requirement. DISCUSSION In 2008 the State passed California Senate Bill 731 (SB 731) and enacted Business and Professions Code section 4600 et seq., the Massage Therapy Title Act (the "Act "), which established a statewide standard for massage certifications and limited the ability of cities to regulate the existence of massage establishments in their jurisdictions. SB 731 shifted professional licensing from local governments to an entity known as the California Massage Therapy Council ( "CAMTC"). Certificates issued by the CAMTC to qualified applicants entitle the holder to practice massage therapy anywhere in the State, without the necessity of complying with certain local rules. In addition, SB 731 required local jurisdictions to treat massage establishments similar, from a zoning perspective, than other personal services, such as medical, dental, and law offices. As a result of SB 731, in 2011, the City amended Chapter 5.24 of the RMC to update the City's massage regulation to comply with the new more restrictive state law and to ensure that massage establishments and massage practitioners were appropriately regulated to best ensure the public safety, health, and welfare. ITEM NUMBER: City Council Report December 9, 2014 Pace 2 of 7 SIB 731 will sunset on January 1, 2015 and be replaced by AB 1147 ( "Massage Therapy Act of 2014 "), which appears to revest local governments with some renewed regulatory authority. Due to the aforementioned legislation and in order to ensure that the City's business license and zoning provisions are adequate, and that massage establishments will be regulated in a manner that protects the public and satisfies the policies, goals and objectives of the General Plan, a thorough analysis of AB 1147 is necessary to determine whether the City's current laws regarding massage establishments need to be amended to be consistent with the new law while still providing comprehensive regulations for the establishment, use, and operation of businesses offering massage services in the City. Therefore, it is recommended that the City Council approve an urgency ordinance, pursuant to the provisions of Section 65858 of the Government Code of the State of California, adopting a temporary moratorium on the establishment, expansion, and relocation of new and existing massage establishments within the City. Because the existing state law (SB 731) will be replaced with a regulatory scheme (AB 1147) on January 1, 2015 and because this is the City Council's last meeting of this calendar year, it is proposed that the urgency ordinance be approved enacting the moratorium with an effective date of January 1, 2015. Under State law, an initial moratorium may be adopted by a four -fifths (4 /5ths) vote of the City Council, for a period of only 45 days. During that initial 45 -day period and after notice and a hearing under Government Code Section 65090, staff may return to the City Council with a request to extend the interim ordinance for up to 10 months and 15 days additional time. The urgency ordinance could thereafter be extended one more time for 12 months for a total of 2 years. City staff and the City Attorney's office do not intend to take the entire moratorium time permitted before returning with proposed changes. It is the staff and City Attorney's hope to have revisions presented to the City Council for consideration in late spring. LEGAL REVIEW This staff report and Ordinance No. 945 has been reviewed and approved by the City Attorney. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Submitted by: A, � Michelle G. Ramirez Community Development Director Attachment A — Proposed Ordinance No. 945 City Council Report December 9, 2014 Pace 3 of 7 ATTACHMENT "A" ORDINANCE NO. 945 AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, ADOPTING A CITYWIDE 45- MORATORIUM ON THE ISSUANCE OF ANY NEW PERMIT, LICENSE, APPROVAL, OR ENTITLEMENT PERTAINING TO NEW MASSAGE ESTABLISHMENTS OR THE RELOCATION OF MASSAGE ESTABLISHMENTS. THE CITY COUNCIL OF THE CITY OF ROSEMEAD ORDAINS AS FOLLOWS: SECTION 1. Findings. A. The City of Rosemead ( "City ") has adopted a General Plan, including strategies to invigorate the City's Prosperous Community as well as its Well- Planned and Designed Community; and B. Protection of public health, safety and welfare is fully articulated in the General Plan; and C. State law requires that the City's zoning ordinance, found at Chapter 17 of the Rosemead Municipal Code ( "RMC "), conform with the General Plan's goals and policies; and D. In 2008, Senate Bill 731 ( "SB 731 ") was adopted by the Legislature and signed into law by the Governor; it became effective on January 1, 2009 and is to sunset on January 1, 2015. SB 731, which enacted Section 4600 et seq. of the Business and Professions Code, preempted many local controls relating to massage therapy. Significantly, the law shifted local regulation of massage therapists and practitioners to a newly created entity known as the California Massage Therapy Council ( "CAMTC," formerly the Massage Therapy Organization). Certificates issued by the CAMTC to qualified applicants entitle the holder to practice massage therapy anywhere in the State, without the necessity of complying with certain local rules; and E. In 2011, Assembly Bill 619 ( "AB 619 ") and in 2012, Senate Bill 1238 ( "SB 1238 ") amended various provisions of Business and Professions Code Section 4600 et seq., further limiting the City's ability to regulate massage establishments; and F. The state laws had the unintended consequence of resulting in a proliferation of massage establishments throughout California, many of which were or are believed to be fronts for prostitution and /or sex or human trafficking; and City Council Report December 9, 2014 Page 4 of 7 G. In September 2014, the Governor signed Assembly Bill 1147, which returns to local governments the authority to more strictly regulate massage establishments. The new law, which becomes effective on January 1, 2015, authorizes cities and counties to enforce their zoning requirements on massage establishments, even if the same requirements do not apply to other professional service providers; and H. The City Council finds that current state law, with its significant limits on local land use control of massage, has resulted in an alarming increase in the number of massage establishments in the City, and I. The City Council finds that in 2008, the City had 1 massage establishment and currently has 13 such establishments; and J. The City Council finds that 7 of these businesses, or 54% of all massage establishments, lie along Valley Boulevard, one of the City's primary commercial corridors, and K. The City Council finds that city staff regularly receives complaints of suspect illicit activity occurring at massage establishments. Massage establishments therefore require a higher level of scrutiny and enforcement than other businesses in order to ensure compliance with local and state laws, and L. The City Council finds that a number of local massage establishments are advertised or reviewed online in the adult entertainment section of backpage.com, rubmaps.com and mpreviews.com, strongly suggesting illicit activity; and M. The City Council finds that since 2012, the City has initiated action, whether criminally or through the administrative citation process, against massage establishment owners or operators; and N. Though state law requires cities to treat massage the same as other professional services, such as medical, dental, and law offices, massage businesses do not conduct themselves like other professional service businesses, despite certification by the CAMTC of their employees; and O. The City Council finds that the oversaturation of massage establishments, a number of which have been found in violation of the law, changes the character of a neighborhood, causes blights and impacts quality of life and the local economy by compromising public trust; and P. The City Council further finds that with the passage of AB 1147, certain provisions of the current massage ordinance, found at in Chapter 5.24 of the RMC, may conflict with the new state law. As a result of the January 1, 2015 effective date of AB 1147, it is urgent that the City undertake a review of its current massage City Council Repoli December 9, 2014 regulations in order to determine how such regulations may need to be revised in order to be consistent with state law while still providing comprehensive regulations for the establishment, use and operation of businesses offering massage services in the City, so that the public health, safety and welfare remain protected; and Ordinance 897 was adopted on May 11, 2010, imposing a moratorium on massage establishments in order to allow staff to study the preemptive effect of SB 731 and appropriately update the local ordinance. Section 65858(f) of the California Government Code allows for additional moratoria relating to the same matter provided that the new moratorium relates to an event, occurrence, or set of circumstances different from the event, occurrence, or set of circumstances that led to the adoption of the prior moratorium. A different event, occurrence, or set of circumstances is present here. Since 2012, the explosive growth in the number of establishments has resulted in a significant strain on City resources, and the new state law, AB 1147, giving the city tools to more effectively deal with negative associated impacts needs to be studied and explored. SECTION 2. Moratorium on Massage Establishments. The City Council orders as follows: A. The findings and determinations in Section 1 are true and correct. B. Based on the foregoing, the City Council finds and declares there is a current and immediate threat to the public health, safety or welfare and upon that basis has determined that an urgency ordinance pursuant to Government Code Section 65858 is warranted and shall take effect immediately upon adoption by a four -fifths (4 /5ths) vote of the City Council. C. For a period of 45 days from the date of January 1, 2015, no permits, licenses, approvals, or entitlements may be issued for new massage establishments or the relocation of massage establishments as such terms are defined in RMC Chapter 5.24. In addition, no existing massage establishment may be expanded, whether by means of additional space, construction of new facility, or by reconfiguration. D. For purposes of this ordinance, "massage business or establishment" shall have the same meaning as in Chapter 5.24 of the RMC. E. City staff is directed to study appropriate modifications to the City's massage and zoning ordinances to reduce and /or mitigate negative secondary effects created by the number, location and illicit uses of massage establishments. Pending the completion of such studies and the adoption of an ordinance to establish appropriate operational and zoning regulations, it is necessary for the immediate preservation of the public health, safety and welfare that this ordinance takes effect immediately. In the absence of City Council Report December 9, 2014 Page 6 of 7 immediate effectiveness, massage establishment uses in the City may be in conflict with regulations or requirements established with respect thereto. F. For the pendency of this moratorium, all sections of Chapter 5.24 of the RMC, which relate to the operating requirements for massage establishments and massage professionals, shall remain in full force and effect with respect to existing massage businesses. G. This ordinance shall not preclude the continued operation of any lawfully existing massage establishment uses which are not seeking to expand, convert, relocate or otherwise change their use, or the opening or commencement of any massage establishment uses as a new business for which all discretionary and nondiscretionary approvals have been made prior to the effective date of this ordinance. SECTION 3. Legal. Operational and Planning Study. The Community Development Department and the City Attorney's Office are directed to study and analyze issues related to the establishment, permitting, and operation of massage establishments within the City, and the potential impacts of such facilities on public health, safety and welfare of the community, the desirability of such facilities in various zones, and the extent of regulatory controls, if any, to impose on such facilities. SECTION 4. Environmental Review. The City Council finds that this ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly; rather it prevents changes in the environment pending the completion of the contemplated municipal code review. SECTION 5. Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision will not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 6. Effective Date and Duration. This ordinance is an urgency ordinance enacted under California Government Code section 65858(a). This urgency ordinance is effective January 1, 2015 (with the sunset of SIB 731 and effective date of AB 1147) and will extend for a period of 45 days from this date at which time it will automatically expire unless extended by the City Council in accordance with California Government Code section 65858. City Council Report December 9, 2014 Pace 7 of 7 SECTION 7. Publication. The City Clerk is directed to cause this ordinance to be published in the manner required by law. PASSED, APPROVED, AND ADOPTED this day of , 2014. Bill Alarcon, Mayor City of Rosemead, California ATTEST: Gloria, Molleda, City Clerk City of Rosemead, California APPROVED AS TO FORM Rachel H. Richman, City Attorney Burke, Williams & Sorensen, LLP