title
PUBLIC HEARING REGARDING AN EXTENSION OF URGENCY ORDINANCE NO. 2025-03-04-1504 WHICH ADOPTED FINDINGS AND ESTABLISHED A TEMPORARY MORATORIUM ON THE ESTABLISHMENT OF NEW, AND RELOCATION OR PHYSICAL EXPANSION OF EXISTING, TOBACCO RETAIL BUSINESSES, ALSO KNOWN AS SMOKE SHOPS
recommended action
RECOMMENDATION
It is recommended that the City Council:
1. Adopt an urgency ordinance, pursuant to California Government Code Section 65858, to extend Urgency Ordinance No. 2025-03-04-1504, which established a temporary moratorium on the establishment of new, and relocation or physical expansion of existing, tobacco retail businesses, also known as smoke shops, for a period of one year, based on current findings and continued threat to public health, safety, and welfare;
2. Find that there is a current and immediate threat to the public health, safety, or welfare, and that the approval of licenses for additional tobacco retailers, or for the expansion/relocation of existing retailers, would be inconsistent with and frustrate the City’s ongoing efforts to study and potentially revise its regulatory framework;
3. Direct staff to continue preparing and finalize permanent regulatory amendments regarding the zoning, licensing, and land-use impacts of tobacco retail businesses within the City;
4. Approve and issue the attached City Council Report pursuant to Government Code section 65858(d); and
5. Authorize the City Manager, or designee, to take all appropriate and necessary actions to carry out the purpose and intent of the ordinance.
body
Summary
This report recommends the City Council adopt an urgency ordinance to extend the temporary moratorium previously established by Urgency Ordinance No. 2025-03-04-1504, which restricts the establishment of new, and relocation or physical expansion of existing, tobacco retail businesses, also known as smoke shops, within the City of Stockton.
The initial extension to Urgency Ordinance No. 2025-03-04-1504 is set to expire on March 2, 2026, and the City finds that a current and immediate threat to public health, safety, and welfare persists. This extension, authorized pursuant to Government Code Section 65858, will allow the City additional time to complete its analysis and finalize comprehensive updates to land use, zoning, and public safety regulations related to tobacco retailers.
The proliferation of tobacco and vape retailers, particularly near sensitive receptors such as schools and youth-serving facilities, raises serious concerns regarding youth access, neighborhood compatibility, and regulatory inconsistencies. Absent this extension, new applications or modifications to existing businesses may undermine the City's ability to effectively regulate this industry.
Concurrently with this request, Staff is presenting proposed amendments to the City’s Tobacco Retailer Ordinance (SMC 5.104) for City Council’s consideration. In the event that City Council does not adopt the proposed amendments, but instead directs staff to continue their evaluation and make additional amendments, Staff will continue evaluating potential land use controls and City mechanisms to address community concerns and promote consistency with the City’s public health goals as directed by City Council. In that event, however, Staff is requesting City Council to adopt an urgency ordinance extending the current moratorium for a second, and final, time to prevent a proliferation of tobacco retail license applications following the expiration of the current moratorium on March 2, 2026 and prior to the adoption of the additional revisions to the Tobacco Retailer Ordinance directed by City Council.
Due to the upcoming expiration of the moratorium, staff has also agendized this item to ensure continuity of the moratorium in the event the proposed amendments to the current Tobacco Retailer Ordinance are not adopted. In the event the proposed ordinance amendments are adopted, staff will withdraw this moratorium extension item from the agenda, as the adoption of both measures would be unnecessary.
DISCUSSION
Background
On March 4, 2025, the City Council adopted Urgency Ordinance No. 2025-03-04-1504, establishing a temporary 45-day moratorium on the establishment of new, and relocation or physical expansion of existing, tobacco retail businesses, commonly known as smoke shops, within the City of Stockton. The urgency ordinance was adopted pursuant to Government Code Section 65858 in response to the increasing concentration and proliferation of tobacco and vape retailers in specific neighborhoods, particularly in proximity to schools, parks, and youth-serving facilities.
Urgency Ordinance No. 2025-03-04-1504 was set to expire on April 18, 2025. On April 15, 2025, the Stockton City Council adopted Ordinance No. 2025-04-15-1601, extending Urgency Ordinance No. 2025-03-04-1504 for 10 months and 15 days pursuant to Government Code Section 65858(a). Ordinance No. 2025-04-15-1601 is set to expire on March 2, 2026.
The initial moratorium and extension were enacted to provide the City sufficient time to assess the potential adverse impacts of these businesses on public health, safety, youth exposure, land use compatibility, and neighborhood character. Since adoption, staff has initiated a review of relevant zoning and licensing regulations and reviewed related data; however, additional time is required to finalize the analysis and prepare potential amendments to the Stockton Municipal Code and Zoning Ordinance.
The City continues to receive inquiries and applications related to new and modified tobacco retail operations. Without an additional extension of the moratorium, in the interim, there is a risk that new establishments may be approved in locations that conflict with City Council’s stated public health and land use objectives, thereby frustrating the purpose of the City's ongoing review process.
Present Situation
The extension to Urgency Ordinance No. 2025-03-04-1504 is set to expire on March 2, 2026. Staff recommends the City Council adopt a one-year extension, the maximum allowed under Government Code Section 65858(a), to allow for completion of necessary research, community engagement, interdepartmental coordination, and finalization of permanent regulatory changes. While a full year may not be required to complete this work, there are no further extensions permitted by the Government Code. Therefore, staff is requesting an extension for the maximum amount of time permitted by law. This allows staff to work through any suggested changes with City Council and community stakeholders without concern for the moratorium coming to an end while work is still being conducted.
The continued rise in smoke shop applications, particularly those offering flavored tobacco and vaping products that disproportionately appeal to youth, has prompted heightened concern from community members, neighborhood groups, and public health advocates. Recent data and anecdotal reports from school administrators and neighborhood leaders suggest a correlation between the presence of tobacco retailers and increased youth access to such products.
Many existing retailers are clustered in low-income and underserved communities, raising environmental justice and equity concerns about disproportionate health impacts. While progress has been made during the enforcement of the current Tobacco Retailer Ordinance, including the successful revocation of four (4) existing tobacco retail licenses, the denial of ten (10) additional applications for new tobacco retail licenses, and the criminal prosecution of fifteen (15) individuals found guilty of selling flavored tobacco products, additional regulation is still necessary to adequately address the danger to public health, safety, and welfare presented by the proliferation of tobacco retailers, particularly those who continue to sell flavored tobacco products. Although progress has been made to date, additional adjustments are necessary to fully address these ongoing impacts.
Without this extension, the City could be forced to consider or approve additional tobacco retailer applications under the current Code, thereby undermining the City Council’s intent to manage the expansion of these businesses while developing thoughtful, balanced, and community-informed regulations.
Pursuant to Government Code Section 65858, it is requested that the City Council find:
1. There is a current and immediate threat to the public health, safety, or welfare due to the proliferation of tobacco retail businesses, particularly in areas with high youth populations and vulnerable communities.
2. The continued establishment, relocation, or expansion of these businesses would be inconsistent with and conflict with the City’s efforts to adopt and implement reasonable regulations intended to protect the public from negative health outcomes, land use incompatibility, and neighborhood degradation.
3. The current zoning regulations do not adequately address the density, proximity to sensitive uses, or operational impacts of tobacco retailers, leaving the City ill-equipped to evaluate new proposals in a manner consistent with its public health goals.
4. City staff is actively studying the impacts of tobacco retail businesses and finalizing proposed amendments to the Stockton Municipal Code to address community concerns, promote equity, and strengthen enforcement. Additional time is necessary to complete this work.
5. The moratorium is temporary in nature and limited in scope, targeting only the establishment, relocation, or physical expansion of tobacco retail businesses. It does not affect existing businesses operating in compliance with current law.
Therefore, the Council finds it necessary and appropriate to extend the moratorium for a period of one year to preserve the status quo while staff completes its regulatory review and Council considers permanent policy changes.
Additionally, California Government Code Section 65858(d) requires the City Council to issue a written report ten (10) days before the earliest of either: the interim ordinance’s expiration; or prior to the adoption of an extension. The report shall describe the measures the City is taking to alleviate the condition(s) that led to the interim ordinance’s adoption. The approval and issuance of the attached City Council Report (Attachment A) will satisfy City Council’s requirements pursuant to California Government Code Section 65858(d).
FINANCIAL SUMMARY
No new revenue is anticipated due to the absence of new tobacco retail business openings during the moratorium period.
Attachment A - City Council Report Pursuant to Government Code Section 65858(d)