04.07.2025
PLANNING COMMISSION [DRAFT] MINUTES
ITEM NO. 2
DEVELOPMENT APPLICATION NO. (DEV2024-00068)
Location: Citywide.
Request: A City-initiated amendment to Title 18 (Zoning) of the Anaheim Municipal 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 on retail sales of tobacco.
Environmental Determination The Planning
Commission will consider whether the proposed action is exempt from the requirements to prepare additional
environmental documentation per California
Environmental Quality Act (CEQA) Guidelines, Sections
15060(c)(2), 15060(c)(3), 15378, and 15061(b)(3).
Recommended City
Council approval of
DEV2024-00068.
MOTION: (Castro/Perez)
VOTE: 7-0
Chairperson Walker and
Commissioners
Abdulrahman, Castro,
Kelly, Lieberman, Perez,
and Tran-Martin voted
yes.
Project Planner:
Heather Allen
[email protected]
Item 2 Audio
Heather Allen, Planning and Building Department Director, provided a summary of the staff report dated April 7, 2025. She stated that she was joined by Assistant City Attorney Leonie Mulvihill, Deputy City Attorney Sunny Huynh, and from the Anaheim Police Department, Sergeant Chris Cooper, and Civilian Investigator, Veronica Emami. Director Allen noted that the item before the Commission was a collaborative effort to develop the requirements and procedures for a tobacco retail permit and regulations governing the retail sale of tobacco products in the City.
Director Allen also noted that the item had previously been presented to the Commission in November 2024. At that time, the Commission recommended approval; however, based on the Commissioner’s comments and feedback, several revisions to the ordinance had been made, and it was deemed important to bring the updated version back to the Commission for further consideration and recommendation.
She also provided a brief background review of the item, stating that the ordinance established an annual regulatory permit specifically for businesses involved in the sale of tobacco and nicotine-related products, which includes vape shops and similar retailers. It also sets new regulatory requirements, including distance separation standards. Under those requirements, new tobacco retailers must be located at least 500 feet from other tobacco retailers and 1,000 feet from sensitive uses such as schools and similar facilities.
04.07.2025
PLANNING COMMISSION [DRAFT] MINUTES
Existing businesses will be required to comply with these regulations by January 1, 2026, or at the time of their next annual business license renewal, whichever occurs later.
Sergeant Cooper stated that several important updates had been made to the ordinance since the previous draft. First, the requirement related to smoking lounges was removed, as those businesses were already regulated under existing permits, making the provision unnecessary. Second, the ordinance would now exclude businesses where tobacco sales are incidental — meaning they occupy less than 15% of the store’s floor area or visible inventory; that change would ensure that businesses such as convenience stores would not be unnecessarily burdened by the ordinance.
Additionally, the operating hours restriction was revised. In the earlier draft, tobacco sales were prohibited between midnight and 6 a.m., but the updated version takes it a step further by requiring businesses that primarily sell tobacco products to close fully during those hours. This adjustment was made to avoid enforcement complications and address potential issues with businesses staying open while tobacco sales are restricted.
Sergeant Cooper concluded by saying that the effort aimed to improve quality of life along the City’s major corridors by requiring all 78 smoke shops to obtain a tobacco retail permit.
He noted that while many shops operate responsibly, some contribute to quality of life issues, with 1,254 police calls for service at or around smoke shops in 2024 alone, an average of 52 calls per day. The ordinance is designed to give the City stronger tools to address problem businesses while supporting those that comply with regulations.
Director Allen concluded the presentation stating that staff recommended the Planning Commission recommend City Council approval, thus allowing the ability to create the Tobacco Retail Permit and amend the Zoning Code.
Commissioner Kelly asked staff if she heard correctly that the Police Department received an average of 52 calls per day related to the smoke shops.
Sergeant Cooper confirmed that was correct.
Commissioner Perez asked staff what the City’s process would be if a smoke shop failed to update their permitting.
Assistant City Attorney Mulvihill responded that retailers must obtain a permit to sell tobacco; operating without one results in penalties. If a business doesn’t renew its permit and is located within 1,000 feet of a sensitive area or 500 feet of another retailer, it would lose its grandfathered status and may not be allowed to reopen in those prohibited areas.
Commissioner Perez asked staff what the City’s process would be if a smoke shop that engaged in illegal activity were to close and attempt to reopen under a different name, would the proposed permit help prevent that type of situation.
04.07.2025
PLANNING COMMISSION [DRAFT] MINUTES
Assistant City Attorney Mulvihill stated that the ordinance specifically aims to prevent individuals or businesses with a history of repeat offenses from avoiding accountability by simply closing a shop and reopening under a new business name (defined in the ordinance as an “arm's length” transaction) and continuing to operate through shell companies or different business fronts. The ordinance also strengthens enforcement by introducing higher penalties for violations. It would give the City the authority to deny permits to businesses or operators who have a pattern of non-compliance, potentially stopping them from reopening altogether if violations continued.
Commissioner Abdulrahman asked staff how they would qualify the ‘making up less than 15% of the floor area or visible inventory’ calculation.
Director Allen responded that the requirements are based on either the floor area or the inventory dedicated to tobacco products. This helps account for stacked merchandise and allows Police to visually assess whether the tobacco products take up more than 15% of the space when they enter the shop.
Chairperson Walker asked staff what further measures or tools, aside from the provision of allowing inspections at any time, would there be to address a retailer who engages in illegal activity while appearing compliant, and how would the ordinance help stop that situation.
Sergeant Cooper responded that the ordinance helps by clearly setting expectations for businesses, putting them on notice about what is required. He acknowledged that while it won’t stop determined criminals, it addresses many cases where businesses might unknowingly violate rules. He stated that by establishing clear standards upfront, the ordinance can prevent problematic behavior before it starts, while serious criminal activity will still need to be handled separately.
Chairperson Walker opened the public hearing and asked if any members of the public wished to comment. There were no speakers.
Chairperson Walker closed the public hearing.
Commissioner Lieberman took a moment to thank staff for revising the ordinance, stating that it appeared more streamlined and effectively achieved its goals.
Commissioner Castro made a motion to approve the recommendation.
Commissioner Perez seconded the motion.
Motion carried by a vote of 7-0.