City Council Approves Emergency Moratorium on New Smoke Shop Permits

The City Council unanimously approved an emergency ordinance establishing a 45-day moratorium on issuing new tobacco retail establishment permits, specifically targeting smoke shops that city officials say contribute to criminal activity and public safety concerns.

Deputy Chief Charlie Payne presented the urgency ordinance, which addresses what police describe as an immediate threat to public health and safety from smoke shops operating throughout the city. The moratorium affects only new permits and does not impact renewals of existing permits or businesses already in the application process.

"There are 226 known locations selling tobacco in the City of Riverside," Payne said. Of those, 159 have active permits with 31 classified as smoke shops, while 42 establishments operate with expired permits and 20 sell tobacco products without any permit.

The police department's vice unit, responsible for regulating tobacco retail permits, has conducted 18 criminal investigations at 13 smoke shops since January. During these investigations, officers seized 4,870 units of cannabis products, 76,298 units of illegal tobacco products, 535 nitrous oxide gas tanks and 182 units of psilocybin mushroom products.

"Twelve of those 13 businesses remain open and operating," Payne said. "Three of those businesses have current tobacco retail establishment permits and the others are unpermitted."

The most significant case occurred in March 2024 when the vice unit, working with the California Department of Tax and Fee Administration and other agencies, served search warrants on seven smoke shop locations. Officers seized illegal tobacco products, untaxed tobacco products, cannabis products, psilocybin mushrooms, narcotics, 11 firearms and illegal weapons.

"The owners were charged with conspiracy, money laundering, tax evasion and operating a place to sell narcotics," Payne explained. "Unfortunately, all of those locations were reopened within 24 hours and continue in operation."

Follow-up investigations in August found the same locations continuing to sell illegal products including flavored tobacco, cannabis products, nitrous oxide tanks and psilocybin mushroom products. The businesses remain open despite ongoing abatement efforts.

Councilmember Sean Mill expressed strong support for the moratorium, describing his personal observations of smoke shops along Magnolia Avenue. "I went into a smoke shop on Magnolia Avenue," Mill said. "I walked up to the counter and I said, oh, what are these pipes for? And without hesitation, the girl behind the counter said, oh, those are for methamphetamine."

Mill noted that when he asked about pipes for marijuana or tobacco, the employee responded, "Oh, no, that's strictly for methamphetamine. Do you need me to show you where to get the marijuana and the tobacco pipes?"

The current penalty structure provides little deterrent for violations. First-time offenders face a $100 fine, second offenses carry a $200 fine, and subsequent violations result in $500 fines.

"Most businesses aren't really deterred by $100 or $200 fine," Payne said. "It's a cost of doing business."

A three-year analysis of calls for service revealed significant public safety impacts. During January through August 2025, 11 permitted tobacco retailers generated more than 100 calls for service, with two locations generating over 250 calls. Call types included loitering, public intoxication, indecent exposure, crimes of violence, robbery, mental health issues and narcotics violations.

The vice unit, consisting of one sergeant and 6-7 detectives, also regulates massage parlors, firearms dealers, pawn shops, secondhand dealers, fortune tellers, entertainment services, adult entertainment establishments, cannabis sales, alcoholic beverage sales, illegal gambling, prostitution and human trafficking.

Councilmember Clarissa Cervantes acknowledged concerns about enforcement targeting marginalized communities while supporting the measure. "We have seen a precedent in history where specifically communities, marginalized communities, black and brown communities are the ones that are predominantly impacted when we've seen crackdowns on any type of drug use," she said.

However, Cervantes noted the concentration of smoke shops in vulnerable neighborhoods and expressed particular concern about youth access to vaping products and nitrous oxide.

Paloma Montes from Blue Zones Project Riverside spoke in support of the moratorium. "Areas with a higher density of tobacco retailers experience increased rates of tobacco use among youth and adults as well as higher rates of tobacco use initiation among young people," she said.

The Blue Zones Project identified limiting vape and retail locations near youth-oriented places as a priority, noting that research shows restricting tobacco retailers near schools and playgrounds can improve health outcomes.

Councilmember Philip Falcone expressed surprise at public comments opposing the moratorium. "I never thought that I would hear that in today's day and age that we're advocating for more tobacco, more smoke shops, more use of drugs on our streets," he said.

The moratorium can be extended for up to 10 months and 15 days after a public hearing, followed by a potential one-year extension. Extensions require a four-fifths vote of the council.

During the moratorium period, city staff will engage with community stakeholders to consider policy priorities for tobacco retail establishment regulations and potential revisions to the municipal code. The city also plans to study implications of new state legislation under Health and Safety Code 104559.5, which takes effect in January and will change the regulatory framework for tobacco sales in California.

The ordinance specifically exempts permit renewals and applications for ownership changes of existing lawfully operating tobacco retailers to avoid impacting current businesses or their property values.