200 S. Anaheim Blvd.
Suite #162
Anaheim, CA 92805
Tel: (714) 765-5139
Fax: (714) 765-5280
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
PLANNING AND BUILDING DEPARTMENT
DATE: JULY 14, 2026
FROM: PLANNING AND BUILDING DEPARTMENT
SUBJECT: UPDATE ON TOBACCO RETAIL PERMIT, NITROUS OXIDE,
AND KRATOM REGULATIONS
ATTACHMENT (Y/N): YES ITEM # 16 GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
Receive an update on Code Enforcement operations and interdepartmental efforts addressing the implementation of tobacco retail permit, nitrous oxide and kratom regulations [informational item only].
DISCUSSION:
BACKGROUND
At the May 13, 2025 City Council Meeting, Council Member Balius requested an annual update on the implementation and impacts of the Tobacco Retail Permit program.
Additionally, Council Member Rubalcava requested (December 16, 2025, and January 13, 2026) a similar update on the City’s efforts related to Nitrous Oxide and Kratom enforcement following ordinance implementation. This report provides an overview of the City’s newly established regulatory framework and implementation efforts.
Tobacco
On May 29, 2025, the City Council adopted Ordinance No. 6611, establishing Anaheim's Tobacco Retail Permit program by adding Section 18.16.090 to the Anaheim Municipal Code. The intent of the ordinance is to regulate the retail sale of tobacco products, focusing on improving public health and safety by reducing illegal activities associated with tobacco retailers, such as the sale of controlled substances, drug paraphernalia, gambling, and illegal weapons. The ordinance created a regulatory permit requirement for tobacco retailers and established operational standards, permit suspension and revocation procedures, and land-use restrictions.
Nitrous Oxide
On January 13, 2026, the Anaheim City Council adopted Ordinance No. 6618, adding Chapter 6.103 (Nitrous Oxide) to the Anaheim Municipal Code. The intent of the ordinance is to regulate the sale of nitrous oxide to prevent illegal and recreational use in order to protect public health and safety. The ordinance established regulations with respect to the sale of nitrous oxide for recreational misuse and identified criminal and civil penalties for violations.
Update on Tobacco Retail Permit, Nitrous Oxide, and Kratom Regulations July 14, 2026
Kratom
On January 13, 2026, the Anaheim City Council adopted Ordinance No. 6619, adding Chapter 6.105 (Kratom) to the Anaheim Municipal Code. The intent of the ordinance is to regulate kratom in order to protect public health and safety. The ordinance established regulations prohibiting the sale, distribution, or possession of specified kratom and 7-hydroxymitragynine (“7-OH”) products, prohibiting synthetic enhancements, and restricting packaging and marketing practices that target minors; and identified criminal and civil penalties for violations.
EDUCATION AND OUTREACH
Tobacco
Following the adoption of the Tobacco Retail Permit program, Business Licensing and Code Enforcement staff conducted outreach to existing business potentially operating as tobacco retailers within the City. Notification letters were distributed advising operators of the new permit requirements, applicable compliance deadlines, operational standards, inspection authority, and potential enforcement consequences for noncompliance. The outreach effort emphasized voluntary compliance and provided contact information for businesses seeking assistance with the permitting process.
Nitrous Oxide and Kratom
Following the adoption of Ordinances Nos. 6618 and 6619, the City developed an informational flyer (Attachment 1) outlining the new regulations governing nitrous oxide and kratom products. The flyers summarized prohibited activities and enforcement provisions. Flyers also included contact information for Code Enforcement to assist businesses with compliance questions as well as the link to Anaheim Anytime to report an issue. Over 200 flyers were distributed during field inspections and direct outreach to smoke shops, convenience stores, mini-marts, gas stations, and other potentially affected retailers.
ENFORCEMENT ACTIVITIES
Tobacco
Since the adoption of the Tobacco Retail Permit program, Business Licensing staff have coordinated the issuance of Regulatory Permits for qualifying tobacco retail businesses. Additionally, Code Enforcement staff, in collaboration with the Anaheim Police Department and California Department of Tax and Fee Administration, have conducted inspections and compliance reviews of smoke shops operating within Anaheim. Enforcement efforts focused on verifying compliance with Section
18.16.090 of the Anaheim Municipal Code are ongoing.
Nitrous Oxide and Kratom
Following the adoption of Ordinance Nos. 6618 and 6619, Code Enforcement staff initiated proactive inspections of convenience stores, mini-marts, gas stations, and other retailers potentially engaged in the sale or distribution of nitrous oxide and/or kratom products. During these inspections, staff identified two liquor stores possessing limited quantities of kratom products. Following education regarding the ordinance requirements, both businesses voluntarily surrendered the products for disposal.
Illegal nitrous oxide and kratom products are also identified and confiscated as part of enforcement efforts associated with smoke shops.
Update on Tobacco Retail Permit, Nitrous Oxide, and Kratom Regulations July 14, 2026
Code Enforcement staff will continue conducting periodic inspections and compliance reviews as part of proactive enforcement efforts and respond to any requests from the public regarding potential violations to ensure ongoing adherence to Anaheim's nitrous oxide and kratom regulations.
CONCLUSION
Within the first 12 months of enacting Anaheim's comprehensive regulatory framework for tobacco retailers, nitrous oxide, and kratom products, the City has established a coordinated program for compliance.
These efforts have improved accountability within the regulated business community while advancing the City Council's goals of protecting public health, promoting responsible business practices, reducing unlawful activity, and preserving safe neighborhoods throughout Anaheim.
IMPACT ON BUDGET:
The costs to implement these regulations are included in the Planning and Building Department’s FY 206/27 General Fund budget.
Respectfully submitted, Concurred by,
Heather Allen Manny Cid
Planning & Building Director Chief of Police
Attachment:
1. Kratom and Nitrous Oxide Flyer