Smoke Shop Permit Freeze Extended as City Tackles Illegal Sales

The City Council voted unanimously Tuesday to extend a moratorium on issuing new tobacco retail establishment permits for an additional 10 months and 15 days, allowing the city time to study and develop comprehensive regulations addressing public health and safety concerns.

The extension follows an initial 45-day moratorium established in September after police investigations revealed widespread illegal activity at tobacco retailers, particularly smoke shops, throughout the city.

Deputy Police Chief Charles Payne presented data showing that from January through August, the city's vice team conducted 18 criminal investigations at 13 smoke shops, seizing nearly 5,000 units of cannabis products, almost 80,000 units of illegal tobacco products, over 500 nitrous oxide gas cylinders, and 182 units of psilocybin mushroom products.

"Twelve of the 13 businesses remain open and operating as we speak," Payne said. "Three of the businesses have tobacco retail establishment permits which have since been revoked, but they're operating anyways."

The moratorium applies only to new permit applications and does not affect existing businesses operating legally or those already in the permit application process when the initial moratorium took effect.

A three-year analysis of calls for service at tobacco retailers revealed repeated incidents at multiple locations. Eleven permitted tobacco retailers had more than 100 calls for service during an eight-month period, with two locations generating over 250 calls each.

"The call types included loitering, public disorder, weapons violations, violent crimes, overdoses and mental health incidents," Payne said.

Current fines for operating without a permit range from $100 to $500, but Payne noted businesses are not deterred by these penalties.

In August, police served search warrants on seven smoke shop locations related to one chain, seizing illegal contraband including cannabis products, psilocybin mushrooms, nitrous oxide canisters, and illegal narcotics. All locations reopened within 24 hours of the investigation.

"Follow-up investigations found that those businesses were still engaging in selling illegal products," Payne said. "The businesses continue to remain open."

The extension requires findings about illegal actions at tobacco retailers, public nuisance impacts, and the need to study land use and public safety implications.

The city also wants to study implications of new state legislation under Health and Safety Code Section 104559.5, which will take effect in January and place additional restrictions on what nicotine and tobacco products can be sold.

City staff will engage with the City Council Land Use Committee and community stakeholders to consider policy priorities regarding tobacco retail establishment permit regulations and enforcement processes.

Several community members spoke in support of the extension during public comment. Paloma Montes from Blue Zones Project Riverside noted that areas with higher densities of tobacco retailers experience increased tobacco use rates among youth and adults.

"The research done in our discovery phase showed that at the time, there were 233 licensed tobacco retail establishments for a population of 320,000 people," Montes said.

Megan Brusso, executive director of Inland Empire Kids Outdoors, highlighted concerns about smoke shops near schools. She noted that one parent observed their child passing five smoke shops during a short walk home from Martin Luther King High School to the Orange Crest neighborhood.

"One parent noted that in their child's short walk home from King to the neighborhood there in Orange Crest, they passed no less than five of these smoke shops with lots and lots of advertisement in child-oriented ways," Brusso said.

Councilmember Clarissa Cervantes asked about potential legal challenges from businesses that might have signed leases but not yet applied for permits. Deputy Chief Payne clarified that the moratorium only affects the ability to sell tobacco products, not other business operations.

"If they opened a lease because they were going to open up mom and pop corner store, something like that, a neighborhood grocery market, which we would love to have more of in the city, the answer is absolutely, yes, you can do that," Payne said. "You're just going to have to cool it for a minute and wait until we get this wired up before you can start selling cigarettes."

Councilmember Sean Mill, who chairs the Land Use Committee, expressed strong support for the extension, citing firsthand observations of drug paraphernalia sales at tobacco stores and noting that such businesses often target low-income and minority communities.

"Play by the rules or don't play at all. It's that simple," Councilmember Jim Perry said, supporting the measure.

The moratorium allows existing businesses operating within regulations to continue operations, renew permits, and transfer ownership to new operators who comply with city rules.