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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 adopt an urgency ordinance, pursuant to California Government Code Section 65858, to:
1. 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 up to 10 months and 15 days, based on current findings and continued threat to public health, safety, and welfare;
2. Find that the approval of licenses for additional tobacco retailers, or expansion/relocation of existing retailers, would be inconsistent with the City’s ongoing efforts to study and potentially revise its regulatory framework; and
3. Direct staff to continue preparing permanent regulatory amendments regarding the licensing, land-use impacts, and enforcement of tobacco retail businesses within the City.
4. Authorize the City Manager, or designee, to take all appropriate and necessary actions to carry out the purpose and intent of the ordinance.
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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 45-day moratorium is set to expire on April 18, 2025, 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 consider comprehensive updates to licensing, land use, 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.
Staff will continue evaluating potential land-use controls and policy mechanisms to address community concerns and promote consistency with the City's public health goals.
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.
The initial moratorium was enacted to provide the City with 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 licensing, land use, and enforcement regulations; however, additional time is required to complete a thorough analysis and prepare potential amendments to the Stockton Municipal Code.
The City continues to receive inquiries and applications related to new and modified tobacco retail operations. Without an extension of the moratorium, there is a risk that new establishments may be approved in locations that conflict with the City Council’s stated public health and land use objectives.
Present Situation
The urgency ordinance adopted on March 4, 2025, is set to expire on April 18, 2025. Staff recommends the City Council adopt a 10-month and 15-day extension, the maximum allowed under Government Code Section 65858(a), to allow for the completion of necessary research, community engagement, interdepartmental coordination, and preparation of permanent regulatory changes.
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. Additionally, issues such as inadequate separation between smoke shops and sensitive uses (e.g., schools, daycare centers), inadequate operational standards, and limited enforcement tools have made it clear that a more robust policy framework is needed.
Without this extension, the City could be forced to consider or approve additional applications under the current code, thereby undermining its ability to develop thoughtful, balanced, and community-informed regulations.
Findings and Justification for the Moratorium Extension
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 licensing 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 are actively studying the impacts of tobacco retail businesses and preparing proposed amendments to the Stockton Municipal Code to address community concerns 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.
Public notice was published in the Stockton Record on Friday, April 4, 2025.
Therefore, staff recommends that the City Council adopt these findings and extend the moratorium for a period of 10 months and 15 days to preserve the status quo while staff completes its regulatory review and the Council considers permanent policy changes.
FINANCIAL SUMMARY
Adoption of the recommended action is not expected to have a negative fiscal impact at this time.