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ITEM NO. 2
PLANNING COMMISSION REPORT
City of Anaheim
PLANNING AND BUILDING DEPARTMENT
DATE: APRIL 7, 2025
SUBJECT: DEVELOPMENT APPLICATION NO. DEV2024-00068
LOCATION: Citywide
APPLICANT/PROPERTY OWNER: City of Anaheim
REQUEST: This is a City-initiated request to amend Title 18 (Zoning) of the Anaheim Municipal Code (“Code”) adding Section 18.16.090 (Tobacco Retail Permit) to establish a new regulatory permit for tobacco retailers , including requirements and procedures for tobacco retail permits and regulations for the retail sale of tobacco.
RECOMMENDATION: Staff recommends that the Planning Commission, by motion, determine that the proposed actions are not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2), 15060(c)(3), 15378 and 15061(b)(3) of the CEQA Guidelines; and recommend the City Council approval of Development Application 2024-00068.
PRIOR PLANNING COMMISSION ACTION : The Planning Commission previously considered and recommended approval of a draft ordinance on November 18, 2024. Based on comments from the Planning Commission, prior to advancing the ordinance to the City Council, staff incorporated revisions to the proposed regulations and is returning to the Planning Commission with the revised ordinance for its consideration and recommendation to the City Council. The following changes have been made:
• Removed imposing an additional Regulatory Permit on Smoking Lounges, already regulated through a Regulatory Permit and/or Conditional Use Permit; • Removed imposing the Regulatory Permit on businesses with ancillary retail sales of tobacco products and/or tobacco paraphernalia (less than 15% of the total floor area or visible inventory);
• Amended the regulation prohibiting the sale of tobacco products and tobacco paraphernalia between the hours of 12:00 a.m. and 6:00 a.m. to require tobacco retailers to not operate within these hours , wherein their primary business activities previously could not be conducted.
BACKGROUND: The Cigarette and Tobacco Products Licensing Act allows the City of Anaheim (“City”) to adopt and implement local tobacco permitting laws, including provisions for the suspension and revocation of a local tobacco retail permit for any violation of State tobacco control laws.
Development Application No. DEV2024-00068
April 7, 2025
In promoting the health, safety and general welfare of its residents, the City has a substantial interest in encouraging compliance with federal, State, and local laws regulating tobacco sales and use; discouraging the purchase of and use of tobacco products by anyone under the age of 21; increasing compliance with laws prohibiting the sale of tobacco products to anyone under the age of 21; and protecting children from being lured into nicotine and tobacco use through the illegal sale of products, including vaping products.
The City also has a substantial interest in regulating tobacco retailers not only to control the sale of tobacco products and paraphernalia but also to address the illegal activities frequently associated with certain tobacco retail establishments operating within the C ity, including the sale of controlled substances, drug paraphernalia, and illegal weapons, as well as unlawful gambling, all of which contribute to increased crime and negatively impact neighboring businesses and the community at large.
Currently, tobacco retail locations are classified as “retail” and there are no operating requirements or review procedures associated with the us e. The proposed Zoning Code amendments seek to create operational and permitting requirements to address and curb illegal activities while in furtherance of the City Council Strategic Plan , improve, enhance, beautify , and maintain major street corridors while also reducing crime, preventing public nuisances, and promoting the safety and well-being of all residents.
Based on a review of business license data, 78 businesses are operating City -wide as tobacco retailers, located predominantly on the corridors of Euclid Street, Brookhurst Street, Magnolia Avenue, Lincoln Avenue, Ball Road, Anaheim Boulevard, State College Boulevard, Orangethorpe Avenue, and Imperial Highway (Figure 1).
FIGURE 1
Development Application No. DEV2024-00068
April 7, 2025
PROPOSAL: A Regulatory Permit is a process whereby use -specific provisions and review is established pertaining to public health, safety, peace , and general welfare. For example, massage establishments, smoking lounges, and entertainment are other uses requiring Regulatory Permits.
Staff proposes adding Section 18.16.090 (Tobacco Retail Permit) to Chapter 18.16 (Regulatory Permit) to establish a new annual regulatory permit for tobacco retailers , including requirements and procedures for tobacco retail permit s and regulations for the retail sale of tobacco , and providing that failure to obtain the permit constitutes a public nuisance.
Section 18.16.090 includes definitions, operating regulations and conditions; specifies the permit application and renewal processes in addition to that for suspension, revocation, and penalty – including civil fines.
Operating regulations and conditions include a separation requirement of 1,000 feet from sensitive uses (such as schools, community or recreation centers, and parks), and 500 feet from other tobacco retailers for tobacco retailers not operating lawfully on the day before the effective date of the ordinance. These distance requirements reduce youth exposure to tobacco products and prevent the clustering of tobacco retailers in vulnerable neighborhoods , in addition to preventing an overconcentration of retailers, which could otherwise exacerbate these negative activities.
Operating regulations and conditions also preclude operation by a tobacco retailer between the hours of 12:00 a.m. and 6:00 a.m. to reduce the likelihood of illegal activities, such as the sale of controlled substances, illegal weapons, and drug paraphernalia, as well as unlawful gambling, which are more prevalent after midnight and that contribute to public safety concerns. A hardship provision is included for a deferral of compliance with the permitted hours requirement for existing tobacco retailers, subject to specified criteria.
Existing tobacco retail locations will be required to apply for and receive approval of the new Tobacco Retail Permit by January 1, 2026, or their next annual business license renewal deadline, whichever is later.
Attachment 1 to this staff report shows the proposed Section 18.16.090 (Tobacco Retail Permit).
ENVIRONMENTAL IMPACT ANALYSIS: Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines provide that the project is not subject to CEQA if it would not result in a direct or reasonably foreseeable indirect physical change in the environment and is not a “project,” as that term is defined in Section 15378 of the State CEQA Guidelines . Additionally, Section 15060(b)(3) provides the general rule that CEQA only applies to projects that have the potential for causing a significant effect on the environment. The amendments would establish operational and permitting requirements that would better regulate retail tobacco sales, and no physical change to the environment would occur as a result of these amendments. Thus, the proposed amendments would not have a significant effect on the environment; therefore, the activity is not subject to CEQA.
CONCLUSION: Staff recommends the Planning Commission recommend approval to the City Council approv al of Development Application 2024 -00068 in order to reduce crime, prevent public nuisances, and promote the safety and well-being of all residents.
Development Application No. DEV2024-00068
April 7, 2025
Prepared by,
Heather Allen, AICP
Planning and Building Director
Attachments:
1. Draft Ordinance