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BACKGROUND The City recently received applications for a zoning certificate for a massage establishment and Police Department massage establishment permit at 1056 Division Street, which is located within the DSP area. The property currently has an Office District zoning designation, where massage establishments with three or fewer technicians are permitted uses. Accordingly, the City Police Department and Planning Division issued massage establishment and zoning certificate approvals, respectively. However, due to the business operator failing to fulfill all of the requirements of the massage establishment permit, the permit was subject to revocation. Although a hearing was scheduled to revoke the massage establishment permit, the hearing was cancelled when the business operator voluntarily relinquished the permit. Although this particular massage business will not be established, the proposal nonetheless caused significant concern on behalf of surrounding neighbors, and raised a number of questions regarding the appropriateness of massage uses in residential areas and more generally in downtown Pleasanton. Staff is proposing an urgency ordinance that would prohibit the establishment of new massage establishments and prohibit the expansion of existing massage establishments within the DSP area, in order to allow further evaluation and possible adoption of additional regulations for massage establishments. A draft urgency ordinance (Attachment 1) and map (Exhibit A) showing the existing boundaries of the DSP area are enclosed with this report. DISCUSSION State Law California State Senate Bill 731 (Massage Therapy Act), passed in 2008, established uniform statewide regulations pertaining to massage therapy and massage establishments. More specifically, the Massage Therapy Act created the California Massage Therapy Council (CAMTC) to provide voluntary statewide certification to members of the massage profession. The Massage Therapy Act preempted most local land use, zoning and operational regulations relating to massage therapists and practitioners certified by the CAMTC and massage establishments that exclusively employed certified massage therapists and practitioners. Subsequently, the State Legislature adopted Assembly Bill No. 619 and Senate Bill No. 1238, both in 2012, which amended various provisions of the Massage Therapy Act to further limit local government authority to regulate massage. More recently, in 2014, Assembly Bill No. 1147 amended the Massage Therapy Act to expand local authority to adopt zoning regulations, business licensing, and reasonable health and safety requirements for massage establishments and practitioners. Specifically, AB 1147 allows cities to exercise broad authority to regulate massage facilities as a land use, including through a conditional use permit. The provisions of AB 1147 remained in effect only until January 1, 2017. However, Assembly Bill No. 2194 adopted in 2016 clarified and extended the requirements established by AB 1147 until January 1, 2021. Page 2 of 5