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of the Code is not intended, nor shall it be interpreted, as constituting a new action of decision of the City Council, but rather such provisions are repeated for tracking purposes only in conformance with the Charter. Section 2. The proposed ordinance has been reviewed with respect to applicability of the California Environmental Quality Act ("CEQA") and the State CEQA Guidelines (California Code of Regulations, Title 14, Section 15000 et seq.). The project is exempt from CEQA as it can be seen with certainty that there is no impact on the environment [Section 15061(b) (3)] and a Notice of Exemption will be filed upon adoption of this ordinance. Section 3. Section 41-196 (Establishments Selling Alcoholic Beverages) of Chapter 41 of the SAMC is hereby amended to read as follows: Sec. 41-196. — Establishments Selling Alcoholic Beverages. (a) Conditional use permit required. Except as provided in subsection (b), no establishment may sell alcoholic beverages for either on -site or off -site consumption unless a conditional use permit has been approved for such establishment pursuant to Article V of this Chapter. Prior to the public hearing for the approval of said conditional use permit, the establishment must be in compliance with all provisions of Chapter 41. (b) Land use certificates for incidental alcohol sales. A land use certificate may be issued pursuant to the requirements of Section 41-675 for an establishment which serves alcoholic beverages for either on -site or off - site consumption only if the establishment falls within one (1) of the following categories: (1) Club or lodge establishments where admittance is limited to members and guests invited by members and where the sale of alcoholic beverages is clearly incidental to other activities conducted on the premises. (2) Florists shops offering the sale of a bottle of an alcoholic beverage together with a floral arrangement. (c) Alcohol storage and display area for off -sale establishments. No off -sale establishment under ten thousand (10,000) square feet shall have a combined alcohol storage and display area that exceeds five (5) per cent of the gross floor area of the store area. (d) Separation requirement for off -sale establishments under ten thousand (10,000) square feet. No off -sale establishment may be granted a conditional use permit for the sale of alcoholic beverages if any of the following conditions apply: (1) The proposed establishment is within one thousand (1,000) linear feet of an existing off -sale alcohol license as measured from the #34604v1 11 A-1 5