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9. While California Labor Code section 6404.5 generally bans indoor smoking at restaurants and bars, it exempts smoking inside retail or wholesale tobacco shops and private smokers' lounges. It is unclear how substantial the sale of tobacco for offsite consumption must be to qualify for this exemption. While the City is currently studying this issue, the Public Health Institute's Technical Assistance Legal Center, funded by the California Department of Health Services, recommends that this exception should only be available to a business that derives seventy-five percent (75%) or more of gross sales receipts from the sale of tobacco products and tobacco paraphernalia. H. If hookah parlors are permitted in the City and left unregulated, they will pose a serious threat to the public interest, health, safety and welfare for the following reasons: 1. Hookah parlors established in other cities have been associated with increases in noise, loitering, public drinking, possession of illegal weapons, underage drinking, and arson. 2. Unregulated hookah parlors could exacerbate the inherently dangerous behavior of tobacco use around non-tobacco users; diminish the protection of children from exposure to smoking and tobacco while they increase the potential for minors to associate smoking and tobacco with a healthy lifestyle; and weaken the protection of the public from smoking and tobacco-related pollution. 3. Hookah parlors if allowed in the City under the current state of the City's regulations will have adverse secondary effects on surrounding properties, including but not limited to lowering property values and introducing incompatible land uses to existing neighborhoods. I. In order to prevent frustration of said studies and the implementation thereof, the public interest, health, safety and welfare require the immediate enactment of this ordinance. The absence of this ordinance would create a serious threat to the orderly and effective implementation of any code amendments, general plan amendments or specific plan amendments which may be adopted by the city as a result of the studies in that the establishment or construction of hookah parlors may be in conflict with or frustrate the contemplated updates and revisions to the Code, general plans or specific plans. Moreover, permitting hookah parlors to be established or constructed during said studies and implementation would create impacts on the public health, safety and welfare that the city council, in adopting this ordinance, has found to be unacceptable. Ordinance No. NS-2709 Page 3 of 5