Garden Grove City Council
February 10, 2026

AGENDA

Garden Grove City Council

Tuesday, February 10, 2026
6:30 PM

Community Meeting Center
11300 Stanford Avenue
Garden Grove, California 92840
Stephanie Klopfenstein
Mayor
George S. Brietigam
Mayor Pro Tem – District 1
Phillip Nguyen
Council Member – District 2
Cindy Tran
Council Member – District 3
Joe DoVinh
Council Member – District 4
Yesenia Muñeton
Council Member – District 5
Ariana Arestegui
Council Member – District 6

Meeting Assistance: Any person requiring auxiliary aids and services, due to a disability, to address the City Council, should contact the City Clerk's Office 72 hours prior to the meeting to arrange for accommodations. Phone: (714) 741-5040.

Agenda Item Descriptions: Are intended to give a brief, general description of the item. The City Council may take legislative action deemed appropriate with respect to the item and is not limited to the recommended action indicated in staff reports or the agenda.

Documents/Writings: Any revised or additional documents/writings related to an item on the agenda distributed to all or a majority of the Council Members within 72 hours of a meeting, are made available for public inspection at the same time (1) in th e City Clerk's Office at 11222 Acacia Parkway, Garden Grove, CA 92840, during normal business hours; (2) on the City's website as an attachment to the City Council meeting agenda; and (3) at the Council Chamber at the time of the meeting.

Public Comments : Members of the public who attend the meeting in -person and would like to address the City Council are requested to complete a pink speaker card indicating their name and address, and identifying the subject matter they wish to address. This card should b e given to the City Clerk before the meeting begins. General comments are made during "Oral Communications" and should be limited to matters under consideration and/or what the City Council has jurisdiction over. Persons wishing to address the City Council regarding a Public Hearing matter will be called to the podium at the time the matter is being considered.

Manner of Addressing the City Council: After being called by the Mayor, you may approach the podium, it is requested that you state your name for the record, and proceed to address the City Council. All remarks and questions should be addressed to the City Council as a whole and not to individual Council Members or staff members. Any person making impertinent, slanderous, or profane remarks or who becomes boisterous while addressing the City Council shall be called to order by the Mayor. If such conduct continues, the Mayor may order the person barred from addressing the City Council any further during that meeting.

Time Limitation: When any group of persons wishes to address the City Council on the same subject matter, the Mayor may request a spokesperson be chosen to represent the group, so as to avoid unnecessary repetition. At the City Council's discretion, a limit on the total amount of time for public comments during Oral Communications and/or a further limit on the time allotted to each speaker during Oral Communications may be set.

PLEASE SILENCE YOUR CELL PHONES DURING THE MEETING.
1

AGENDA

ROLL CALL: COUNCIL MEMBER NGUYEN, COUNCIL MEMBER TRAN, COUNCIL MEMBER DOVINH, COUNCIL MEMBER MUÑETON, COUNCIL MEMBER ARESTEGUI, MAYOR

PRO TEM BRIETIGAM, MAYOR KLOPFENSTEIN

INVOCATION

PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA

PRESENTATIONS

1. Community Spotlight in recognition of employees celebrating 25-plus years of service with the City of Garden Grove.

[Item 44/2026]

2. Orange County Fire Authority 2025 Year End Report as presented by Divison Chief Covey.

[Item 49/2026]

ORAL COMMUNICATIONS (TO BE HELD SIMULTANEOUSLY WITH OTHER

LEGISLATIVE BODIES)

RECESS

CONDUCT OTHER LEGISLATIVE BODIES' BUSINESS

RECONVENE

CONSENT ITEMS (WILL BE ACTED ON SIMULTANEOUSLY WITH ONE MOTION

UNLESS SEPARATE DISCUSSION AND/OR ACTION IS REQUESTED BY A COUNCIL

MEMBER)

3. Adoption of a Proclamation celebrating February as Black History Month in Garden Grove. (Action Item)

[Item 41/2026]

4. Adoption of a Proclamation in celebration of the upcoming Lunar New Year commencing Tuesday, February 17, 2026. (Action Item)

[Item 2/2026]

5. Receive and file warrants. (Action Item)

[Item 40/2026]

6. Approval to waive full reading of ordinances listed. (Action Item)

[Item 47/2026]
2

COMMISSION/COMMITTEE MATTERS

7. Appointment to fill a vacancy on the Downtown Commission. (Action Item)

[Item 48/2026]

ITEMS FOR CONSIDERATION

8. Introduction and First Reading of an Ordinance adding Chapters 6.48 and 6.50 to Title 6 of the Garden Grove Municipal Code prohibiting the sale and distribution of kratom products and restricting the sale and distribution of nitrous oxide products, entitled:

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE ADDING CHAPTERS 6.48 AND 6.50 TO TITLE 6 OF THE GARDEN GROVE MUNICIPAL CODE

PROHIBITING THE SALE AND DISTRIBUTION OF KRATOM PRODUCTS AND RESTRICTING THE SALE AND DISTRIBUTION OF NITROUS OXIDE PRODUCTS. (Action Item)

[Item 38/2026]

9. Receive and file the annual financial reports and related audit items for Fiscal Year 2024–25, and approve additional appropriations for Fiscal Year 2025–26. (Action Item)

[Item 4/2026]

MATTERS FROM THE MAYOR, CITY COUNCIL MEMBERS AND CITY MANAGER

10. Update on the Civic Center Revitalization Project as requested by City Manager Kim.

[Item 50/2026]

ADJOURNMENT

The next Regular Meeting is scheduled for Tuesday, February 24, 2026, at 5:30 p.m. in the Community Meeting Center, 11300 Stanford Avenue, Garden Grove, California, 92840. 3 Item 41/2026

Final
City of Garden Grove

INTER-DEPARTMENT MEMORANDUM

To:

Lisa L. Kim From: Lizabeth Vasquez
Dept:

City Manager Dept: City Clerk
Date: 2/10/2026

Subject: Adoption of a Proclamation celebrating February as Black History Month in Garden Grove. (Action Item)

OBJECTIVE

For the City Council to adopt a Proclamation celebrating February as Black History Month in Garden Grove.

BACKGROUND/DISCUSSION

Black History Month is observed annually in February to recognize and celebrate the achievements, contributions, and history of African Americans in the United States. First established in 1926 and federally recognized in 1976, the observance promotes his torical awareness and culture understanding. Designating February as Black History Month in the City of Garden Grove would align the City with national observances and reaffirm its commitment to diversity and inclusion.

FINANCIAL IMPACT

There is no financial impact to adopt the proclamation.

RECOMMENDATION

It is recommended that the City Council:
 Adopt a Proclamation recognizing February as Black History Month in Garden Grove.

ATTACHMENT(S)

1. Proclamation

4 Proclamation
February as Black History Month

WHEREAS, During the month of February, the nation celebrates the profound and enduring contributions of African Americans to our n ation’s history , culture, and identity. Black History Month serves to recognize and honor the many ways African Americans have shaped, and continue to shape, the economic, cultural, spiritual, and political development of the United States;

WHEREAS, The 2026 national theme for Black History Month, “A Century of Black History Commemorations,” highlights the evolution and significance of these annual observances and examines how they have deepened understanding and progress for Black people in the modern world;

WHEREAS, Black Americans, including busi ness owners, labor leaders, educators, essential workers, Chief Executive Officers, and countless others, have made and continue to make significant contributions to our local communities, the State of California, and the nation;
WHEREAS, The observance of Black History Month acknowledges the achievements, struggles and resilience of African Americans across all fields of endeavor, while encouraging continued advocacy for equity of Black Americans; and
WHEREAS, The City of Garden Grove is proud to be an inclusive community that values diversity and is committed to respecting and recognizing the contributions of all individuals at the local, state, national, and global levels.

NOW, THEREFORE, the Garden Grove City Council does hereby proclaim the month of February 202 6 as Black History Month in Garden Grove , and en courages all to celebrate the enduring contributions, history, and culture of Black Americans to our community and nation.

February 10, 2026

5 Item 2/2026

Final
City of Garden Grove

INTER-DEPARTMENT MEMORANDUM

To:

Lisa L. Kim From: Lizabeth Vasquez
Dept:

City Manager Dept: City Clerk
Date: 2/10/2026

Subject: Adoption of a Proclamation in celebration of the upcoming Lunar New Year commencing Tuesday, February 17, 2026. (Action Item)

OBJECTIVE

For the City Council to adopt a Proclamation recognizing February 17, 2026 as Lunar New Year in Garden Grove.

BACKGROUND/DISCUSSION

Lunar New Year marks the beginning of the lunar calendar and is celebrated to promote renewal, family, and good fortune. The 2026 Lunar New Year , Year of the Horse, will be observed on Tuesday, February 17 th, providing an opportunity to recognize its cultural significance within our community.

FINANCIAL IMPACT

There is no financial impact to adopt the proclamation.

RECOMMENDATION

It is recommended that the City Council:
 Adopt a Proclamation recognizing February 17, 2026, as Lunar New Year in Garden Grove.

ATTACHMENT(S)

1. Proclamation

6 Proclamation
Celebrating Feburary 17, 2026, as Lunar New Year

WHEREAS, The City of Garden Grove enjoys the privilege of a rich cultural diversity, including the internationally recognized Little Saigon; WHEREAS, Little Saigon is home to one of the largest Vietnamese American communities in the world and shares its rich and vibrant cultural heritage with the entire region;
WHEREAS, Tết, also known as the Vietnamese Lunar New Year, is one of the most important and widely celebrated holidays in Vietnamese culture; WHEREAS, Tết Nguyên Đán, meaning "Feast of the First Morning of the First Day," celebrates the arrival of spring and the beginning of a new year based on the Vietnamese lunar calendar;
WHEREAS, the year 202 6 is recognized as the year of the Horse, symbolizing energy, strength, independence, renewal, and those born in the Year of the Horse are believed to be enthusiastic, hardworking, and spirited; WHEREAS, Tết is a time to honor ancestors, share traditional foods, enjoy fam ily reunions, and reflect on the past year while welcoming a new year filled with hope for health, happiness, and prosperity;
NOW, THEREFORE, the Garden Grove City Council does hereby proclaim that February 17, 2026, be recognized in the City of Garden Grove as the Vietnamese Lunar New Year, and the community is encouraged to join in celebrating this occasion with wishes for good health, happiness, and prosperity for all.

February 10, 2026
7 Item 40/2026

Final
City of Garden Grove

INTER-DEPARTMENT MEMORANDUM

To:

Lisa L. Kim From: Patricia Song
Dept:

City Manager Dept: Finance
Date: 2/10/2026

Subject: Receive and file warrants. (Action Item)

OBJECTIVE

For the City Council to receive and file warrants.

BACKGROUND/DISCUSSION

Attached are the warrants recommended to be received and filed.

FINANCIAL IMPACT

Items listed in the warrants are budgeted.

RECOMMENDATION

It is recommended that the City Council:
 Receive and file the warrants.

ATTACHMENT(S)

1. Warrants

8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 29
30 31
32 33
34 35
36 37
38 39
40 41
42 43
44 45
46 47
48 49
50 51
52 53
54 55
56 57
58 59
60 61
62 63
64 65
66 67
68 69
70 71
72 73
74 75
76 77
78 79
80 81
82 83
84 85
86 87
88 89
90 91
92 93
94 95
96 97
98 99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
Item 48/2026
Final
City of Garden Grove

INTER-DEPARTMENT MEMORANDUM

To:

Lisa L. Kim From: Lizabeth Vasquez
Dept:

City Manager Dept: City Clerk
Date: 2/10/2026

Subject: Appointment to fill a vacancy on the Downtown Commission. (Action Item)

OBJECTIVE

For the City Council to approve the Mayor’s appointment to fill the vacancy on the Downtown Commission.

BACKGROUND/DISCUSSION

At the Oct ober 28, 2025 meeting, the City Council regretfully accepted Commissioner Elizabeth Dang’s resignation from the Downtown Commission. As a result of the resignation, the City of Garden Grove Downtown Commission has an unscheduled vacancy with a term that expires December 31, 2026.

Pursuant to Municipal Code 2.21.013, whenever an unscheduled vacancy occurs on a board, commission, or committee referred to herein, whether due to resignation, removal, or other cause, a special vacancy notice shall be posted in the City Clerk's office, Information Centers of City Hall, and published in a local newspaper, within 20 days after the vacancy occurs. A final appointment to the board, committee, or commission to fill the vacancy shall not be made for at least 10 working days after posting of the notice. A copy of the Special Vacancy Notice that was published in the Orange County News on October 31, 2025 is attached.

The Downtown Commission consists of one member at-large, and six property owners and/or business tenants of the Main Street Assessment District No. 1 . Commissioners are non - compensated volunteers , and t he current vacancy is to complete the term held by Commissioner Dang, a business owner on Main Street. Attached is a list of eligible applicants received by the City Clerk’s Office.

FINANCIAL IMPACT

There is no financial impact.

135
Item 48/2026

RECOMMENDATION

It is recommended that the City Council:
 Appoint a Downtown Commissioner to complete the term left by Commissioner Dang.

ATTACHMENTS

1. Special Vacancy Notice

2. List of Applicants

136
137

DOWNTOWN COMMISSION

APPLICANTS
Name Eligibility Application
Received

Susan Kelhi Business Owner on Main Street 1/15/2026
Angelo Tavlarides Business Owner on Main Street 2/2/2026

138
Item 38/2026

Final
City of Garden Grove

INTER-DEPARTMENT MEMORANDUM

To:

Lisa L. Kim From: Omar Sandoval
Dept:

City Manager Dept: City Attorney
Date: 2/10/2026

Subject: Introduction and First Reading of an Ordinance adding Chapters 6.48 and 6.50 to Title 6 of the Garden Grove Municipal Code prohibiting the sale and distribution of kratom products and restricting the sale and distribution of nitrous oxide products. (Action Item)

OBJECTIVE

For the City Council to introduce an ordinance prohibiting the sale and distribution of kratom products and restricting the sale and distribution of nitrous oxide products.

BACKGROUND

After the adoption of regulations by the County restricting the sale and distribution of kratom and nitrous oxide products, and a report by Supervisor Janet Nguyen presented to the City Council, the City Council directed the City Attorney to prepare an ord inance establishing similar regulations to apply in the City.

Kratom

Kratom is a tropical tree native to Southeast Asia. Kratom leaves contain psychoactive compounds, including mitragynine and 7-hydroxymitragynine, which can produce stimulant effects at low doses and sedative effects at high doses. According to the Drug Enforcement Administration (DEA) and the National Institutes of Health (NIH), kratom use symptoms, dependence, and numerous side effects such as nausea, vomiting, sweating, tachycardia, seizures, hallucinations, and hepatotoxicity. According to the DEA, the abuse of kratom has increased markedly in recent years. Although kratom is often marketed for relief of pain, anxiety, opioid withdrawal, and fatigue, there are no FDA -approved medical u ses for the substance. The FDA continues to monitor reports of adverse events, and current data suggest kratom's opioid -like properties may expose users to risks of addiction, abuse, and dependence. Kratom is not currently regulated at the federal level, n or is it prohibited statewide in California. An informational fact sheet regarding kratom prepared by the Orange County Health Care Agency is attached as Attachment 1.

139
Item 38/2026

Since the adoption of similar regulations in the County and nearby cities, the City has seen a proliferation of kratom products being displayed for sale, particularly in smoke shops, liquor stores, and gasoline convenience stores. Photos of kratom products found in City businesses are shown in Attachment 2.

Nitrous Oxide

Nitrous oxide, often referred to as "laughing gas", "NOX," or "whippets," is a colorless and odorless gas with legitimate applications in medical, dental, industrial, and food preparation.

However, the recreational misuse and abuse of nitrous oxide is becoming a more pre valent public health issue in Orange County, driven by its low cost and easy retail access. According to the DEA, the recreational misuse and abuse of nitrous oxide can cause permanent vitamin deficiencies in the blood and can cause long-term neurological effects, including paralysis and death. An August 2025 Special Report of the Orange County Health Care Agency pertaining to nitrous oxide is attached as Attachment 3.

The possession and sale of nitrous oxide is currently regulated under California Penal Code sections 381b through 381e. The California Penal Code prohibits the possession of nitrous oxide with the intent to inhale for intoxication, makes it unlawful to sell or distribute nitrous oxide to anyone under the age of 18, requires those who sell or dispense the gas to maintain transaction records available for inspection, and makes it a misdemeanor to provide nitrous oxide to someone who is known or should reasonably be known to intend inhalation, particularly if such use results in great bodily harm or death.

DISCUSSION

The proposed ordinance attached as Attachment 4 will enact a prohibition on the sale and distribution of kratom products and will enact restrictions on the sale and distribution on Nitrous Oxide products.

The ordinance prohibits individuals or businesses from selling, offering, providing, distributing or storing kratom products for commercial purposes.

The ordinance prohibits any person from selling, offering, distributing or otherwise providing nitrous oxide to any other per son, including any device to dispense or administer nitrous oxide, or any device that contains any quantity of nitrous oxide, subject to specific exemptions such as when contained in a food product for use as a propellant or for use in medical or dental practices, or when otherwise permitted under applicable law.

FINANCIAL IMPACT

There is no financial impact in the adoption of this ordinance.

140
Item 38/2026

RECOMMENDATION

It is recommended that the City Council:
 Introduce and conduct the first reading of an ordinance prohibiting the sale and distribution of kratom products and restricting the sale and distribution of nitrous oxide products, and pass it to second reading.

ATTACHMENT(S)

1. Orange County Health Care Agency Fact Sheet on Kratom

2. Orange County Health Care Agency Special Report on Nitrous Oxide

3. Photos of kratom products

4. Ordinance

141

KRATOM & 7-OH: What You Don’t Know Can Hurt You
Learn the risks. Protect yourself and your family.

What is Kratom?
Kratom is a plant-based substance made from the leaves of a Southeast Asian tree called Mitragyna speciosa. People often use it to boost mood, ease anxiety or depression, or relieve pain. It is sold in many forms like capsules, tablets, powders, teas, gummies, and liquids and is available at smoke shops, gas stations, convenience stores, grocery stores or online.

General side effects from use of kratom can include nausea, constipation, dizziness, dry mouth, sleep issues, nervousness, restlessness, slowed breathing, sweating, or vomiting.

7-OH (also known as 7-Hydroxymitragnynine) is a powerful compound found in small amounts in kratom. It acts like an opioid and can slow breathing, especially when mixed with other substances. This can lead to serious side effects like drowsiness, vomiting, seizures, or even death. 7-OH is addictive, and some products contain high levels of it but are falsely sold as kratom.

The FDA has not approved kratom or any products containing 7-OH (7-hydroxymitragynine) for treating pain, mood disorders, or withdrawal symptoms and warns against use due to risk of dependence, addiction and adverse effects. These substances are not legal as drugs, dietary supplements, or food additives in the U.S., and their safety and effectiveness have not been proven.

Unpredictable
Kratom is not regulated, so you don’t know how much you are getting or what else is mixed with it. Bacteria and heavy metals like lead have been found in kratom.

Addiction Risk
Higher, regular doses can be highly
addictive and hard to quit.

Overdose Risk
Kratom can slow down breathing; taking kratom with other drugs like alcohol, fentanyl, other opioids, or benzodiazepines is especially dangerous – together the effects can cause death.

Risk of Death
Fatal overdoses have been linked
to kratom in California and across
the U.S.

Behavioral Health Services | www.ochealthinfo.com | Dev. 10/2025 - Know before you buy – Avoid buying or consuming products with 7-OH or Kratom even if they are labeled as “natural” or “herbal. ” - Call the Poison Help Line 1-800-222-1222 if you believe someone is having a bad reaction to Kratom or 7-OH products. - If someone is not breathing / has signs of an overdose, dial 911 immediately and administer Naloxone if available! Reach out for support and treatment services: OCNavigator.org or OC Links (855) 625-4657.

Facts About Kratom and 7-OH
What Can I Do?
How is 7-OH Related to Kratom? About
Kratom and 7-OH
7-OH, short for 7-hydroxymitragynine, is a powerful and dangerous opioid-like substance made from the kratom
plant. It is sold in many forms - tablets, gummies,
supplements, energy drinks and shots. On the street, it can be called 7-Hydroxy, 7-OHMG and ‘7”

An "Emerging Opioid Threat"
The FDA is working to block 7-OH products and warns
people not to use kratom or 7-OH because of the risks to health including liver problems, seizures, overdose,
substance use disorders and death.
7-OH can be 13 times
stronger than the opioid
morphine

https://samhsa.gov
https://www.fda.gov/news-events/public-health-focus/fda-and-kratom https://nida.nih.gov/research-topics/kratom

142
1 143

OC Health Care Agency – Health Officer Special Report 2

August 2025.

OC Health Care Agency. (2025). Special Report - Nitrous Oxide: Assessment of Use and Policy Recommendations.

Link:
144

OC Health Care Agency – Health Officer Special Report 3

Table of Contents
Context for this Special Report ..................................................................................................................... 4 Executive Summary 4
Background 5
Adverse Effects and Toxicology ............................................................................................................... 6 Substance Misuse and Dependence Potential 6
Data on Use 8
Global ....................................................................................................................................................... 9 National .................................................................................................................................................... 9 State ....................................................................................................................................................... 10 California Emergency Department and Hospitalization Data (2018–2023) ....................................... 11 Key Findings from 2018 to 2023: ...................................................................................................... 11 Mortality Data .................................................................................................................................... 13 Orange County Data .............................................................................................................................. 13 Orange County Emergency Department and Hospitalization Data (2018 –2023) ............................. 13 Key findings from 2018-2023: ........................................................................................................... 14 Comparing Orange County to California Trends in Nitrous Oxide Use ............................................ 15 Orange County Mortality Data .......................................................................................................... 16 Orange County- Insights from the Community....................................................................................... 16 Orange County K-12 School Insights ............................................................................................... 17 Orange County - First Responder and Local Clinician Insights ........................................................ 20 Orange County Fire Authority Insights ............................................................................................. 22 Regulatory Efforts - Laws and Ordinances 22
National Public Health and Regulatory Efforts ....................................................................................... 22 Existing Law in California ....................................................................................................................... 23 California Local Government Ordinances and other Local Actions ....................................................... 23 Orange County Local Ordinance ........................................................................................................... 24 Public Health Considerations and Recommendations 24
Improve Data Collection and Surveillance ............................................................................................. 26 Improve Awareness ............................................................................................................................... 24 Limiting Access for Illicit Misuse ............................................................................................................ 25 Conclusion 26
References .................................................................................................................................................. 27

145

OC Health Care Agency – Health Officer Special Report 4

CONTEXT FOR THIS SPECIAL REPORT
This report was created under the direction from the Orange County Board of Supervisors (Board) on February 11, 2025, when the Board approved an ordinance, which bans the sale or distribution of nitrous oxide for recreational use. The report contains local background information about nitrous oxide misuse, availability, and impact throughout Orange County (OC). Information in the report is the result of a collective effort by healthcare leaders at the OC Health Care Agency (HCA) as well as information gathered from other agencies, organizations, and businesses across the county. This report was written in a comprehensive manner to help inform a wide range of stakeholders in the community, including healthcare professionals, first responders, community organizations, and lawmakers of this emerging issue, despite limitations in data.

EXECUTIVE SUMMARY
Illicit use of nitrous oxide (“laughing gas”) is an emerging public health concern in Orange County, reflecting anecdotal and documented trends observed both nationally and globally in recent years. Traditionally used for medical and commercial purposes, nitrous oxide has been increasingly misused for its short-term euphoric effects. Reports from community stakeholders, law enforcement, first responders and clinical providers in Orange County suggest a rise in illnesses associated with this misuse, particularly among adolescents and young adults. Nitrous oxide misuse has led to documented neurological harm, impaired judgement, and traffic accidents.

Comprehensive data on the prevalence and health impacts of nitrous oxide in California and Orange County remains limited. Data from emergency department visits, hospitalizations, and poison control center calls related to nitrous oxide misuse are currently limited and/or unavailable - whether due to lack of systematic collection, underreporting, or absence of mechanisms specifically designed to capture this information. This gap in data creates challenges in fully understanding local trends which is helpful in the development of effective, evidence-based interventions.

Several states and jurisdictions - including Orange County - have only recently begun enacting ordinances restricting the sale or possession of nitrous oxide cartridges outside of legitimate uses. We are in our infancy in understanding the full long-term effects of this substance on the residents of Orange County.

As Orange County continues to prioritize the health and safety of its residents, a more coordinated and comprehensive response is needed. This includes raising awareness among providers and the public, exploring potential policy and regulatory strategies to curb misuse, and strengthening local data collection and surveillance systems to better monitor emerging substance use trends.
146

OC Health Care Agency – Health Officer Special Report 5

Gaining a better understanding of the scope of this emerging issue is the first step we can all take to creating a comprehensive response tailored to our community’s needs.

BACKGROUND
Misuse of nitrous oxide - commonly known as “laughing gas,” “whippets,” or “NOS” is a growing public health and safety concern. Originally used for medical and industrial purposes, nitrous oxide is increasingly misused by adolescents and young adults for its euphoric and dissociative effects.

Recent accounts from the community regarding the misuse of nitrous oxide illustrate the negative impacts of its increasing use and availability. Nitrous intoxication has been linked to vehicle accidents in Orange County, most notably the fatal collision among 7 young people, killing three.1 More recently, Tustin police arrested a driver who was actively inhaling nitrous oxide behind the wheel and seized nearly 90 canisters of nitrous oxide from the vehicle in late August 2025. 2
“Nitrous Oxide is prevalent in the community. It’s at party scenes and planned social media meet ups.” Deputy Chief Julian Rodriguez, Santa Ana Police Department. “As a neurologist, it is concerning that more recently I have seen more young adults in their 30’s and 40’s who now have difficulty walking because of significant degeneration of the spinal cord related to nitrous oxide use” Dr. Joey Gee, local neurologist . “Some stories are memorable and haunting. A 17-year-old patient flatly told me his story.

He and his best-friend were sitting on a roof, using nitrous, when his friend lost consciousness and rolled down and off the edge. His friend would never walk again b ut his nitrous use continued.” – Dr. Jonathan Watson, Correctional Health Medical Director, OC Health Care Agency.

Local medical professionals have also cited increases in the number of people using nitrous illicitly and developing serious complications, including memory issues, worsening mood disorders, psychosis, hallucinations, neurologic deficits, and spinal cord degeneration. These providers describe their patients were under the impression that nitrous oxide use is safe and cannot lead to health problems.3 This report provides an overview of local trends, associated risks, community impact, and a look at the ordinances enacted or considered by lawmakers for reducing harm and improving enforcement.

Nitrous oxide (N2O) is a colorless, nonflammable gas that has legitimate use in health care, culinary, automotive, and electronics industries. Nitrous oxide has long been used in the medical community for its analgesic and anesthetic properties. 4,5,6 Its commercial use in the automotive industry includes enhancing engine performance, and in the electronics industry in the assembly of semiconductors. 7 In the culinary industry, it has been used to create light and whipped textures, among other uses. 8,9,10,11,12

147

OC Health Care Agency – Health Officer Special Report 6

Alongside its legitimate applications, nitrous oxide has become an increasing public health concern due to the growing misuse for purposes of getting high. The widespread availability of canisters designed for non-medical use has made it easier to obtain the gas.

Since 2010, manufacturers have increasingly marketed colorful and visually appealing canisters - often with branding that appears to target younger audiences. These canisters are usually marked for food-grade use but are in larger containers and infused with flavors that are not typical of use in the culinary industry. These marketing efforts have been further amplified by social media platforms, where pop stars and rap artists have glamorized misuse of this substance.

Reflecting these mounting concerns, the US Food and Drug Administration (FDA) issued an advisory on March 14, 2025, warning consumers against inhaling or misusing nitrous oxide from any size canister, tank, or charger, citing the risk of severe health consequences, including death. This warning was updated on June 4, 2025, to include an extended list of brand name nitrous oxide products.

The ease of access to nitrous oxide and the widespread perception of it as a “safe high” have contributed to its rising illicit use—locally, nationally, and globally. In response to these growing concerns and the associated risks to individual and public safety, interest is mounting in strategies to restrict access and prevent misuse of this substance. This report is meant to provide a review of current data on the misuse of nitrous oxide in Orange County. Of note, nitrous oxide is only one of many other easily accessed substances that can be inhaled for to achieve a high. Other substances include spray paints, correction fluids, glues, cleaning fluids, and other substances like amyl nitrate (poppers). The misuse and negative effects of other inhalants are beyond the scope of this report. Readers should know that like nitrous oxide, these are also easily accessed over the counter and when misused, can also contribute to severe health problems and even death.

Adverse Effects and Toxicology
Nitrous oxide, when inhaled over prolonged periods or used repeatedly, can be extremely harmful. Nitrous oxide interferes with vitamin B12, which is essential for nerve and blood health. Inappropriate use can cause:
• Damage to the nervous system that can lead to numbness, tingling, trouble walking, memory issues or mood changes, and the onset of bizarre behavior, psychosis or mood disorders.
• Severe cases can lead to the condition called subacute combined degeneration (SCD) of the spinal cord and death.
• Blood problems such as low red blood cell counts or anemia, and even heart disease. 13,14,15,16
• Adverse reproductive effects that are toxic to the developing fetus.

148

OC Health Care Agency – Health Officer Special Report 7

People with underlying conditions or impaired vitamin B12 metabolism (Example: MTHFR deficiency - methylenetetrahydrofolate reductase gene) can be more vulnerable to its harmful effects.

Additionally, the method of inhalation, level of ventilation, and other factors can pose a risk. For example, higher concentrations of nitrous oxide exposure without adequate oxygenation or ventilation, can increase the risk of suffocation, while exposure to freezing temperatures upon contact of freezing depressurized tanks can cause thermal, burn injuries, whereas direct inhalation from pressurized tanks can lead to soft tissue injury or collapsed lung. 17

SUBSTANCE MISUSE AND DEPENDENCE POTENTIAL
The misuse of nitrous oxide, where people intentionally seek to use the substance for the purpose of experiencing the rapid, short-lived euphoric high, is meeting growing concern with reports of increased misuse. This calls into question where individuals may be accessing nitrous oxide when not being used appropriately in the medical, automotive, electronics, or culinary fields.

Nitrous oxide is easily accessed and can be purchased online, at smoke shops, retail stores and specialty stores. It is known as “whippits,” “whip-its,” “whippets,” “hippie crack,” “nangs,” “funky balls,” and “galaxy gas.”
Misuse is commonly done by inhaling the gas by utilizing a “cracker” (small handheld flashlight-sized item that allows the user to quickly transfer gas into a balloon), or an adaptor. Escaping gas is captured in a balloon and inhaled to get a short-lasting euphoric sensation, typically several minutes, depending on the amount of gas inhaled.

The euphoria and dissociation caused by inhalation of nitrous oxide is often referred to as a “legal high.” Referring to its availability for legitimate use in medical, food, automotive settings. Once inhaled, nitrous oxide dissolves rapidly in the bloodstream, reaching the brain within seconds, and causing a sensation of well-being. 18 Laboratory studies with healthy adults have confirmed the presence of this dose-dependent sensation of pleasure at concentrations of 10 to 50%. The sensation peaks at two to three minutes and subsides within 15 to 20 minutes.19,20,21
Nitrous oxide use can cause intense vasodilation, which is an extreme widening of the blood vessels leading to a significant decrease in blood pressure, potentially causing circulatory shock, which is where the body’s circulatory system fails to deliver enough oxygen and nutrients to the body’s tissues and organs, low blood pressure, and rapid heart rate within seconds of inhalation. Effects are brief and estimated to last less than five minutes.

149

OC Health Care Agency – Health Officer Special Report 8

In some cases, individuals inhale the gas directly through cartridge nozzles or adaptors.

When inhaled in this manner, contact from direct spraying or spilling of liquified gas or from the decrease in temperature of the depressurized canister can lead to contact burn injury around the mouth, face, or extremities. Several case reports have demonstrated cryogenic burn injury as well as barotrauma (injuries caused by a difference in pressure between the body and its surroundings) to the airway and lungs. 22,23 Illicit users of nitrous oxide gas are also more susceptible to asphyxiation and oxygen deprivation depending on the purity of the gas and the absence of oxygen-mixing.

Those who misuse nitrous oxide has presented to emergency departments with a range of neurologic symptoms including numbness or electric sensations, weakness in the legs and difficulty walking, genitourinary problems, confusion and personality changes, and other neuropsychiatric symptoms. 24,25
Nitrous oxide has been linked in some studies to addiction, development of tolerance, and withdrawal. 26,27,28,29,30,31,32,33 A recent systematic review of the nitrous oxide studies found that while literature was limited and the body of evidence is still emerging, findings suggest that N2O use disorder—based on the DSM-5 SUD criteria (Diagnostic and Statistical Manual of Mental Disorders, 5th Edition – Substance Use Disorder) —might exist in the heaviest N2O users and concluded that the addictive potential of N2O should not be underestimated.34Note that substance use disorder diagnoses consider a range of physiological and psychological symptoms, including tolerance, withdrawal, cravings, and functional impairment as a consequence of the substance use.

An individual can present with a wide array of symptoms and deficits which could be attributed to nitrous oxide use. For example, severe neurologic deficits or even psychosis can also be related to chronic nitrous oxide use. For providers suspecting chronic inhalant use, a comprehensive physical and neurological examination is recommended to assess for complications. Laboratory testing may help identify associated conditions such as electrolyte abnormalities, vitamin B12 deficiency, and potential liver or kidney impairment, as well as to detect other toxins in urine or serum. Imaging studies, such as MRI (magnetic resonance imaging), may be warranted when there is clinical suspicion of spinal cord degeneration resulting from chronic vitamin B12 deficiency.35 However, there are significant limitations in the routine testing for nitrous oxide exposure.

Nitrous oxide is a volatile substance that is rapidly eliminated from the body and is not routinely detected in standard toxicology screens. As a result, objective confirmation of recent use is often not possible, making the diagnosis particularly reliant on clinical history. Some individuals may be aware of these testing limitations and may be more likely to engage in misuse under the assumption that it will not be detected, further complicating efforts to identify and intervene in cases of misuse.

150

OC Health Care Agency – Health Officer Special Report 9

DATA ON USE
Global
Misuse of nitrous oxide has been rising in Europe, Australia, and parts of Asia. According to the 2021 Global Drug Survey, which collected voluntary responses from over 32,000 individuals across 22 counties (primarily in Europe), 22.5% of survey respondents reported lifetime use of nitrous oxide, and nearly 10% had used it in the past year.36Longitudinal data show that among survey respondents 16 to 24 year olds, there was an increase from approximately 10% who used nitrous oxide in the past year in 2015 to over 20% in 2021, reflecting a growing trend in global use.37
National
Each year, the Substance Abuse and Mental Health Services Administration (SAMHSA), publishes the National Survey and Drug Use and Health (NSDUH) report. The most recent report, released in 2023, indicates that inhalant use remains a relatively small portion of overall substance use in the US. However, the data combines a wide range of substances under the umbrella of “inhalants.” These include:
- Volatile solvents (e.g., paint thinners and removers, dry cleaning fluids, gasoline, glues, shoe polish, correction fluids)
- Aerosols (e.g., spray paints, deodorant and hair spray, fabric protector sprays, computer keyboard cleaner)
- Gases (e.g., ether, halothane, nitrous oxide, butane, propane) - Nitrites (e.g., amyl nitrite, “poppers,” locker room deodorizers “Rush”) When broken down by specific substances, nitrous oxide - often referred to as “whippets” - has shown fluctuating but notable levels of lifetime use. Among individuals 12 and older, reported lifetime use increased from 12.4 million in 2018 to nearly 14 million in 2022, then slightly decreased around 13 million in 2023. 38,39,40
Further insights into adverse effects and emergency care utilization come from surveillance systems such as the National Electronic Injury Surveillance System (NEISS) which collects consumer-product related injuries treated in US emergency departments and the FDA Adverse Event Reporting System (FAERS) which collects reports of adverse events involving drugs and other biologic products. Between 2000 and 2019, these sources both noted a significant increase in nitrous oxide-related incidents:

151

OC Health Care Agency – Health Officer Special Report 10

- NEISS reported a six-fold increase in cases when comparing the periods 2000-2013 and 2014-2019. Over 90% of cases involved individuals ages 13 to 39, with 77% of cases occurring in males.
- Similarly, FAERS reported a 50-fold increase in adverse events over the same comparison period, with similar demographic patterns. 41 State
In December 2024, the California Department of Public Health (CDPH) Regional Public Health Office surveyed local health jurisdictions to gather insights on the emerging concerns surrounding misuse of nitrous oxide across the state. While some counties shared no concern or “spikes” in case numbers, other counties did express concern either anecdotally, or with data from syndromic surveillance platforms (ESSENCE/BioSense), school district reports, traffic incidents, or observations of increased retail availability.

According to the Youth Risk Behavioral Health Surveillance System (YRBS), in 2019, 12.8% of California high school students reported ever using an inhalant. However, the survey does not distinguish between types of inhalants, so it is not possible to determine how many had used nitrous oxide specifically. 42
CDPH’s assessment identified growing anecdotal evidence of increased access to nitrous oxide, particularly through retail sources like smoke shops, and suggested rising usage among youth statewide. However, the absence of standardized surveillance definitions limits the ability to systematically monitor health impacts.

To track severe health outcomes, CDPH utilized the California Health Access and Information (HCAI) data on emergency department visits and hospitalizations.43 HCAI datasets are composed from the mandatory reports of ED encounters and inpatient discharge records from California-licensed hospitals. Use of this dataset to understand the overall impact to the health care field is limited as chronic conditions that can result from acute or chronic use of nitrous oxide is not always treated in an inpatient or emergency department setting. For example, vitamin B12 deficiency ultimately leading to neurologic symptoms, including subacute combined degeneration (SCD) of the spinal cord are more likely to be diagnosed in the primary or specialty care settings - data sources not routinely captured in statewide hospitalization data.

Nationally standardized surveillance tools such as the National Syndromic Surveillance Program (NSSP) or the Council of State and Territorial Epidemiologists (CSTE) have yet to develop comprehensive case definitions or syndromic surveillance strategies specific to nitrous oxide use.

152

OC Health Care Agency – Health Officer Special Report 11

California Emergency Department and Hospitalization Data (2018–2023) This section provides a summary of recent trends and health system data related to nitrous oxide use in California hospitals.

Using ICD-10-CM (International Classification of Diseases, 10th Revision, Clinical Modification) codes, CDPH defined nitrous oxide-related adverse events and B12 deficiency-related SCD as follows:
• Nitrous oxide adverse events: Acute poisoning or complications due to nitrogen oxides (T41.0x1A, T41.0x4A, T41.0x5A, T59.0XA). Note this definition includes the initial encounter for unintentional and undetermined intents for poisoning events but does not include intentional self-harm poisoning events or subsequent encounters.
• SCD due to vitamin B deficiency: G32.0 along with D51.8, D51.9, or E53.8.

Key Findings from 2018 to 2023:
• Nitrous Oxide Adverse Events:
o Emergency department visits related to nitrous oxide increased by 246%, from 76 visits in 2018 to 263 visits in 2023.
o Hospitalizations also increased from 181 in 2018 to 225 in 2023. This 24% rise is modest compared to emergency department visits and does not show a consistent upward trajectory.
o Hospitalizations outnumbered emergency department visits for the first time in 2023.
• Subacute Combined Degeneration (SCD) of the Spinal Cord:
o Emergency department visits for this condition rose in 2021 but returned to previous levels in 2022 and 2023.
o Hospitalizations for SCD due to vitamin B deficiency rose by 175%, from 48 to 132 cases during the same period.
o Emergency department visits for this condition rose in 2021 but returned to previous levels in 2022 and 2023.

It’s important to note that the true burden of SCD is likely underestimated, as these conditions are more frequently identified outside of hospital settings.

153

OC Health Care Agency – Health Officer Special Report 12

Source: HCAI, 2018-2023

Source: HCAI, 2018-2023

154

OC Health Care Agency – Health Officer Special Report 13

Mortality Data
The Substance and Addiction Prevention Branch (SAPB) at CDPH does not conduct routine surveillance of fatalities due to nitrous oxide alone. However, SAPB does conduct surveillance on fatal drug-related overdoses including when nitrous oxide is used in combination with other drugs within their scope (e.g., opioids, methamphetamines, etc.).

In 2023, there were less than 11 unintentional (accidental) or undetermined drug-related overdose deaths that included nitrous oxide as one of the substances listed in the cause of death statement on the death certificate. This is likely an undercount of all fatalities involving nitrous oxide, given surveillance is conducted for other drug-related overdose deaths where nitrous oxide was listed as an involved substance.

Orange County Data
Orange County Emergency Department and Hospitalization Data (2018– 2023)
Like the patterns seen statewide, Orange County hospitals also saw an increase in emergency department visits related to nitrous oxide poisonings and complications. The pattern was less obvious with respect to hospitalizations for subacute combined degeneration of the spinal cord due to a deficiency in vitamin B12 due to the small number of cases (fewer than 11 for each year from 2018 to 2023). In fact, even with the trend for nitrous oxide adverse events, the number of events in any year were fewer than 20, and thus assessments regarding patterns should be made with caution.

In addition to surveilling for nitrous oxide poisonings and degeneration of the spinal cord, the section below also includes counts for hospitalizations and emergency department visits in Orange County hospitals due to non-specific inhalant-related mental and behavioral disorders. While this classification covers more substances than just nitrous oxide, this diagnostic category is meaningful in assessing the extent of inhalant use/misuse.

To track severe health outcomes, HCA, also utilized the California Health Access and Information (HCAI) data on emergency department visits and hospitalizations.43 The HCAI dataset HCA used is composed from the mandatory reports of ED encounters and inpatient discharge records all the California-licensed hospitals located in Orange County.

Using ICD-10-CM codes, Orange County HCA followed CDPH definitions for nitrous oxide- related adverse events and B12 deficiency-related SCD as described in the previous section. Additionally, HCA defined inhalant-related disorders as:
• Behavioral disorders resulting from volatile substances (includes nitrous oxide):

Includes inhalant intoxication, dependence, and inhalant-related psychotic disorders (F18).
155

OC Health Care Agency – Health Officer Special Report 14

Key findings from 2018-2023:
• Nitrous Oxide Adverse Events:
o Emergency department visits increased to 19 events in 2021, where the previous three years combined had totaled no more than 16 cases from 2018 to 2020. Cases did not continue to climb after 2021, but remained at similar, slightly lower levels.
o Hospitalizations for nitrous oxide events remained mostly stable. • Subacute Combined Degeneration (SCD) of the spinal cord:
o Emergency department visits for this condition were fewer than 11 in any given year from 2018 to 2023. The cumulative total for all years from 2018 to 2023 was fewer than 11 visits.
o Hospitalizations for SCD were also very few in Orange County hospitals, numbering fewer than 11 in any given year from 2018 to 2023, and totaling no more than 26 cases in that period. However, by 2023, there were 13 cases, more than any other year for the previous 5 years.
• Inhalant Use Disorder:
o Hospitalizations and emergency department visits did not show a consistent increase pattern. Instead, emergency department visits peaked in 2019 at 45 cases, and hospitalizations peaked at 25 cases in 2020, before returning to similar levels to prior years by 2022 (2023 data not yet available).

Source: HCAI, 2018 -2023

156

OC Health Care Agency – Health Officer Special Report 15

Source: HCAI, 2018-2022
Comparing Orange County to California Trends in Nitrous Oxide Use In order to compare nitrous oxide use in Orange County to California and account for population, the rate of hospitalization and emergency department visits per 100,000 population were calculated.

Generally, Orange County and California had similar rates for nitrous oxide adverse events.

Note that Orange County’s rates need to be interpreted with caution as they are based on 20 or fewer events, and thus less statistically stable. As a result, small differences in rates year-to-year or compared to California are not as meaningful.

Source: HCAI, 2018-2023; CA DOF P3, 2022 Vintage44
157

OC Health Care Agency – Health Officer Special Report 16

Source: HCAI, 2018-2023; CA DOF P3, 2022 Vintage

Orange County Mortality Data
Between 2020 and 2024, just under 11 deaths among Orange County residents were attributed to nitrous oxide poisoning or involved nitrous oxide as a contributing factor or underlying condition at the time of death. Notably, approximately two-thirds of these deaths were classified as suicides, while the remaining third were categorized as accidental or natural deaths in which nitrous oxide contributed to the individual’s overall health condition or disease progression.

Orange County - Insights from the Community
Both the Orange County Department of Education (OCDE) and the OC Health Care Agency (HCA) administered anonymous surveys regarding nitrous oxide use in Orange County.

These surveys assessed the extent of nitrous oxide misuse in the communities or schools where survey participants served and evaluated the associated level of concerns among the first responder community (for the HCA survey) and school district personnel (for the OCDE survey).

158

OC Health Care Agency – Health Officer Special Report 17

Orange County K-12 School Insights
Earlier this year, the OCDE distributed an anonymous survey 45 to school and district personnel across Orange County to gain a better understanding of nitrous oxide misuse.

Survey questions included respondent worksite location, work setting, role, witnessed or suspected incidents of nitrous oxide use in the past year, staff or student concerns around nitrous oxide use, level of concern by respondent, as well as an open space for additional comments or observations. A total of 114 staff personnel completed the survey with a larger proportion completed from Central County, followed by North County, West County and South County.

Source: OCDE, 2025

Most respondents were from school sites, with the majority serving as classroom teachers, school nurses or district administrators.
159

OC Health Care Agency – Health Officer Special Report 18

Source: OCDE, 2025

Reviewing responses by region, a higher percentage of respondents from West and Central County indicated seen or suspected nitrous oxide incidents and hearing of concerns about nitrous oxide from students or staff as well as personal concerns compared to other regions. While respondents from South County noted less seen or suspected incidents (8.3%) compared to other regions. The same respondents indicated higher rates of personal concern for nitrous oxide use.

Source: OCDE, 2025

160

OC Health Care Agency – Health Officer Special Report 19

Source: OCDE, 2025

Open ended responses indicated concerns for resurging misuse among high school students and at house parties, easy access through retail outlets, smoke shops, and party stores as well as identified paraphernalia found on or near school campuses. Responses also indicated a need for increased understanding of signs of use, understanding of risks, and the need for educational materials for staff, parents, and students.

161

OC Health Care Agency – Health Officer Special Report 20

Orange County - First Responder and Local Clinician Insights This survey3 was conducted by HCA from March through May of 2025 and garnered 753 anonymous responses; 57% were from clinicians (n=431), 30% from members of law enforcement (n=225), and 14% from emergency medical technicians (EMTs)/paramedics (n=104). Overall, respondents had numerous concerns regarding their perception of the increasing trend of nitrous oxide misuse, the use of the substances among young persons, and the increased availability in retail settings and online.

Among all respondents, the most common level of concern was “somewhat” (24.7%), followed by “slightly” (21.8%). However, the level of concern varied widely by whether the respondent was a clinician, paramedics/EMT, or law enforcement, with members of law enforcement having the largest percent of respondents expressing high levels of concern (“very” at 26.1%), and paramedics/EMTs having the smallest percent of the three respondent types in this category (10.6%).

As seen in the following figure (“Select Responses from First Responder…”), clinicians and law enforcement working at sites in Central and North County had higher rates of seeing or suspecting an incident of nitrous oxide misuse and rating their own concern as moderately or very concerned. However, among paramedics and EMTs, the highest rates of seeing or suspecting an incident and rating their own concern as moderately or very concerned were highest among respondents working in South County. Furthermore:
• Law enforcement respondents showed the highest rate of concern and the highest number of incidents seen compared to clinicians/clinical workers and paramedics/EMTs.
• Respondents from North County from all three categories of first responders and clinicians/clinical workers consistently represented the geographical area most likely (or second-to the area most likely):
o To have seen or suspected a nitrous oxide-related incident. o To have heard concerns about nitrous oxide from a community member. o To rate their concern regarding nitrous oxide as moderate to very concerned.

162

OC Health Care Agency – Health Officer Special Report 21

Select Responses in Nitrous Oxide Assessment by Job Role and Location of Work Site (%)

Source: Orange County HCA, 2025

Among all respondents, the most common response was to note the popularity, increased use, or upward trend of nitrous oxide use. Respondents also frequently noted the use and popularity among youths and minors. Many noted concerns about the availability and related ease of obtaining this substance at retail establishments.

It is interesting to note that several also responded that they did not see nitrous oxide use, or did not feel it was a concern, or not a concern in light of other substances used in the community (for example fentanyl). Several others noted use of nitrous oxide in motor vehicles and/or concerns while operating motor vehicles.

163

OC Health Care Agency – Health Officer Special Report 22

Orange County Fire Authority Insights
The Orange County Fire Authority (OCFA) which serves 23 cities and unincorporated areas across Orange County, reviewed nitrous oxide-related incidents based on calls for service between January 1, 2023 through March 17, 2025.46 Data was limited, with many gaps and challenges in analyzing the data as many cases were categorized under general substance use or overdose and were not specifically identified as nitrous oxide-related incidents.

Additionally, there was wide variability in documentation and dependence on clear physical evidence or patient self-report to link the incident to nitrous oxide use, making it more difficult to analyze data specific to nitrous oxide use. During the 26-month period, a total of 44 known nitrous oxide-related cases (0.00016%) out of 268,274 emergency medical service (EMS) calls for service were identified, with 72% of those 44 cases occurring amongst those ages 13 to 34.

While most of the nitrous oxide-related cases were due to misuse, four cases were related to adverse reactions from administration of nitrous oxide during medical or dental procedures - underscoring the importance of proper administration, monitoring, and post procedure evaluation when using nitrous oxide in medical settings.

Commonly reported symptoms included dizziness, confusion, and weakness. Many patients in settings suggestive of misuse included the presence of paraphernalia such as nitrous oxide canisters (68% of incidents) or ballons. Incidents occurred in urban settings, in residential areas, vehicles, and public spaces such as parking lots and parks. Cities with more than 5 nitrous oxide-related incidents included Garden Grove, Irvine, and Santa Ana.

REGULATORY EFFORTS – LAWS AND ORDINANCES
This section outlines how nitrous oxide is currently regulated across national, state, and Orange County, highlighting key gaps, enforcement challenges, and recent legislative actions aimed at curbing misuse of nitrous oxide.

National Public Health and Regulatory Efforts
While there is no overarching federal law specifically regulating misuse of nitrous oxide in the US, several states—including California, New York, and Texas—have implemented state-level legislation to curb use by restricting sales, setting age limits, and penalizing inhalation for intoxication. Federal oversight primarily focuses on the substance's legitimate applications in medicine, dentistry, and industry, with misuse addressed indirectly through use and distribution laws.

164

OC Health Care Agency – Health Officer Special Report 23

Existing Law in California
Nitrous oxide is listed under California Proposition 65 by the Office of Environmental Health Hazard Assessment (OEHHA) as a chemical known to cause developmental and reproductive toxicity.

Under California Penal Code 381b, it is a misdemeanor offense to sell, furnish, or distribute nitrous oxide if the seller knows, or reasonably should know, that the substance will be used for intoxication
Despite these regulations, due to legal provisions permitting sales to individuals 18 years of age and older, nitrous oxide canisters remain accessible in retail settings such as kitchen and restaurant supply stores, supermarkets and large retail department stores, specialty kitchen stores, automotive stores, smoke/vape shops, sex shops, gas stations as well as online retail platforms including Amazon, eBay, and Walmart. Earlier this year, Humboldt County, California published their findings Recreational Nitrous Oxide Retail Landscape Analysis47 observing nitrous oxide products and paraphernalia located in plain sight at 24% of the retail outlets visited between October 2024 to April 2025, with the majority found at smoke shops.i
In practice, enforcement is challenging. Purchasers may withhold their intended use when questioned, and unless law enforcement directly witnesses inhalation, it is difficult to establish this use. In 2019, California Senate Bill 193 sought to restrict sales of nitrous oxide at smoke shops and tobacco retailers, but the measure failed to pass.

California Local Government Ordinances and other Local Actions Across California, local governments, including county and city governments, have passed ordinances to address the emerging issue of the misuse of nitrous oxide.

Some locations have limited retailers ability to sell nitrous oxide or related devices (e.g., City of Stanton, City of Ukiah in Mendocino County, and the City of Rialto in San Bernardino County, and the City of Los Angeles, which banned the sale of nitrous oxide to minors).48,49,50,51Other locations have considered resolutions limiting nitrous oxide sale and distribution including the City of Santa Ana.52 Shasta County issued a health alert warning against the misuse of nitrous oxide.53

i Humboldt County supports its work to prevent nitrous oxide misuse through education and prevention activities using the Department of Health Care Services (DHCS) Substance Use Block Grant (SUBG) Primary Prevention Services Grant.
165

OC Health Care Agency – Health Officer Special Report 24

Orange County Local Ordinance
On February 25, 2025, the Orange County Board of Supervisors approved an ordinance prohibiting the sale or distribution of nitrous oxide or related dispensing devices—except for:
• Food products where it is used as a culinary propellant • Vehicle performance enhancement
• Medical or dental care
The ordinance went into effect on March 27, 2025, applying specifically to unincorporated areas of Orange County.54

PUBLIC HEALTH CONSIDERATIONS AND

RECOMMENDATIONS
This section highlights key public health strategies to address nitrous oxide misuse, including calls to improve professional awareness, implement prevention efforts that include limiting access, and improve data collection.

Improve Awareness
With the widespread availability and access to nitrous oxide and the growing prevalence of reported misuse, it is important to increase community and professional awareness of nitrous oxide misuse and the negative impacts this use can have on an individual’s health and the welfare of their family and community.

Increased medical professional and first responder awareness is also needed so that appropriate care can be delivered.

RECOMMENDATIONS
• Improve Community and Professional Awareness
• Limit Access for Misuse
• Improve Data Collection and Surveillance
166

OC Health Care Agency – Health Officer Special Report 25

With the increasing popularity and easy access of nitrous oxide for illicit use, sharing information with youth, parents and teachers could assist in prevention campaigns.

Information on proper and safe disposal of canisters and tanks, when found, would also benefit the community.ii
To effectively increase awareness, lessons learned from the Tobacco Use Prevention Program, as well as the Fentanyl is Forever campaign, are worthwhile implementing to curb the misuse of inhalants - including nitrous oxide.

Limiting Access for Illicit Misuse
While selling nitrous oxide for the purpose of recreational intoxication is already illegal under California law, it is still widely available and easily accessed by the public at retail sites under a thin veneer of legitimate use. Culinary-grade nitrous oxide canisters are more easily accessed at smoke shops, adult sex shops, and through online retailers. Other retail sites where nitrous oxide can be purchased include also include grocery stores, retailers such as Walmart and Target, and automotive shops.iii Local government can consider implementing ordinances for businesses in order to curb access to nitrous oxide for misuse. These can include additional signage and display restrictions, restriction of sales within certain distance to schools, parks, or other public locations. Additionally, cities and counties can consider adjusting business licensing requirements or adjust zoning and land use approvals to limit sales at businesses more commonly associated with misuse such as smoke/vape shops, sex shops, or gas stations.

With limited utility of flavored culinary grade nitrous oxide for culinary applications, flavored product sales can be limited to specialized culinary stores, and/or restricted to licensed restaurants/chefs for professional use. When sold for legitimate purposes (culinary use and automotive use), additional measures to minimize risk of misuse include restricting access to a locked area in the store to encourage store employees to follow appropriate measures, including checking identification for age prior to sales.

ii Here are some tips of what to do with nitrous oxide canisters, when discovered: Do not puncture, incinerate or store N2O canisters near flammable materials; Do not dispose N2O canisters in the regular trash; Contact OC Waste & Recycling for further instructions on where you can turn these items in for safe disposal. https://www.oclandfills.com/
iii A Note about Environmental Impact and Appropriate Disposal of Nitrous Cylinders:

One concern raised by community members in the first responder survey, as well as other forums, is the problem with proper disposal of nitrous oxide gas cylinders. Because they are pressurized containers, they must be handled separately from other waste, and not all facilities accept this type of waste.

Having more awareness regarding safe and proper disposal of gas cylinders and having more facilities accept this type of waste will increase community safety and reduce the negative environmental impacts of nitrous oxide.
167

OC Health Care Agency – Health Officer Special Report 26

Improve Data Collection and Surveillance
As noted in the process of creating this report, data remains inconsistent and limited regarding the specific misuse and negative effects of nitrous oxide. To assist HCA in this report, a survey was conducted to get more input from the community. Many limitations exist with the findings from the surveys. Due to limitations in awareness and self-reporting, the data and anecdotal accounts shared in this report likely underestimate the extent of intentional misuse.

Improved data and surveillance collection is needed. If the state is starting to see a statewide increase, there might be benefit in simplifying first responder reporting and increasing awareness and education to the medical community for appropriate documentation.

Examples of areas to improve data and surveillance collection could include training and/or standardizing documentation when responding to certain incidents to verify if nitrous oxide was at the scene or if symptoms were related to nitrous oxide. Increasing awareness about the presentation of an individual with nitrous oxide-related symptoms and training on appropriate documentation may also improve data collection among the medical professional community.

CONCLUSION
Nitrous oxide misuse is an emerging public health concern that requires increased community and professional awareness as well as improved data collection to further understand the negative impacts and efficacy of local policy changes. Until broader federal and state efforts are put in place to curb misuse, addressing this at the local level is important to reduce negative impacts to communities and families. Cities and communities can implement simple strategies to address, reduce access, and increase awareness.
168
1 REFERENCES

1. Cruz, I. (2022, July 10). Families mourn victims of Orange fiery high-speed crash.

Abc7. https://abc7.com/post/orange-dominic-mcginley-fiery-crash-nitrous- oxide/12041765/

2. KABC. (2025. August 31). 90 canisters of nitrous oxide found inside Maserati in Tustin; driver arrested. https://abc7.com/post/90-canisters-nitrous-oxide-found- inside-maserati-tustin-orange-county-driver-arrested/17702764/

3. Orange County Health Care Agency (HCA). (2025). First Responder and Local Clinicians Report on Nitrous Oxide Assessment Survey. Internal Report:
unpublished.

4. Jeffries, E. (2025). The Long, Strange History of Nitrous Oxide, a Popular Drug Users Have Been Inhaling for Hundreds of Years. Smithsonian Magazine. https://www.smithsonianmag.com/science-nature/the-long-strange-history-of- nitrous-oxide-a-popular-drug-users-have-been-inhaling-for-hundreds-of-years- 180986293/

5. Lossing, B. J. (1884). Gardner Quincy Colton and Nitrous Oxide Anesthesia. In History of New York City, Embracing an Outline Sketch of Events from 1609 to 1830, and a Full Account of its Development from 1830 to 1884 (Vol. 2, pp. 780-782). The Perine Engraving and Publishing Co.
https://todayinsci.com/C/Colton_Gardner/ColtonGardner-NitrousOxide.htm

6. Rollins, M. D., Arendt, K. W., Carvalho, B., Vallejo, M., & Zakowksi, M. (2025).

Nitrous Oxide ASA Committee on Obstetric Anesthesia Working Group. American Society of Anesthesiologists. https://www.asahq.org/about-asa/governance-and- committees/asa-committees/committee-on-obstetric-anesthesia/nitrous-oxide

7. NexAir. (2025). Nitrous Oxide Uses: Medical and Industrial Applications. https://www.nexair.com/learning-center/nitrous-oxide-uses-medical-and- industrial-applications/

8. Creme & Co. (2024, October 13). The Role of Nitrous Oxide in Molecular Gastronomy: Elevating Cream and Beyond. Creme & Co.
https://cremenco.com/blogs/tools/the-role-of-nitrous-oxide-in-molecular- gastronomy-elevating-cream-and-beyond

9. Grapevine Birmingham. (2024, June 26). How N2O Became One of the Most Commonly Used Gases in Kitchen. Retrieved Grapevine
Birmingham.https://www.grapevinebirmingham.com/how-n2o-became-one-of- the-most-commonly-used-gases-in-kitchen/

10. Lynch, M. (2025, March 4). Uncovering the Mystery: What Foods Have Nitrous Oxide., FoodDrinkTalk. https://fooddrinktalk.com/what-foods-have-nitrous-oxide/ 169

OC Health Care Agency – Health Officer Special Report 2

11. NexAir. (2025). The Role of Nitrous Oxide in Culinary Arts: Innovations in Food Preparation. https://www.nexair.com/learning-center/the-role-of-nitrous-oxide-in- culinary-arts-innovations-in-food-preparation/

12. Rosen, L. (2023, December 2). The Professional Chef's Complete Guide to Nitrous Oxide Cream Chargers. Fine Magazine.
https://www.finehomesandliving.com/featured/the-professional-chefs-complete- guide-to-nitrous-oxide-cream-chargers/article_8ab0ba4e-916c-11ee-9bea- b3b37052194f.html

13. Bhardwaj, S. A., & Naidu, S. (2022). Pulmonary embolus associated with a rare provoking factor: recreational nitrous oxide use. BMJ Case Report. https://doi.org/10.1136/bcr-2021-247315

14. Farhat, W., Pariente, A., & Mijahed, R. (2022). Extensive Cerebral Venous Thrombosis Secondary to Recreational Nitrous Oxide Abuse. Cerebrovascular Disease, 51(1), 114-117. https://doi.org/10.1159/000518524

15. Liu, M., Zhang, J., & Bu, B. (2020). Isolated cortical vein thrombosis after nitrous oxide use in a young woman: a case report. BMC Neurology, 378. https://doi.org /10.1186/s12883-020-01961-4

16. Pratt, D. N., Patterson, C. K., & Quin, K. (2020). Venous thrombosis after nitrous oxide abuse, a case report. Journal of Thrombosis and Thrombolysis, 49(3), 501- 503. https://doi.org /10.1007/s11239-019-02010-9

17. Garbaz, L., Mispelaere, D., Boutemy, M., & Jounieaux, V. (2007). Case Reports:

Pneumothorax following recreational inhalation of nitrous oxide. La Revue des Maladies Respiratoires, 24(5), 622-4. https://doi.org /10.1016/s0761- 8425(07)91130-4

18. Sedore, S. (2023). Let's "Whippit" Away: Nitrous Oxide Misuse and Its Complications. American Journal of Psychiatry Residents' Journal, 19(2). https://doi.org /10.1176/appi.ajp-rj.2023.190201

19. Block, R. I., Ghoneim, M. M., Kumar, V., & Pathak, D. (1990). Psychedelic Effects of a Subanesthetic Concentration of Nitrous Oxide. Anesthesia Progress, 37(6), 271-6.

20. Galinkin, J. L., Janiszewski, D., Young, C. J., Klafta, J. M., Klock, A. P., Coalson, D.

W., . . . Zacny, J. (1997). Subjective, psychomotor, cognitive, and analgesic effects of subanesthetic concentrations of sevoflurane and nitrous oxide. Anesthesiology, 87(5), 1082-8. https://doi.org /10.1097/00000542-199711000-00012

21. Kamboj, S.K., Zhao, H., Troebinger, L., Piazza, G., Cawley, E., Hennessy, V., . . . Das, R. K. (2021). Rewarding Subjective Effects of the NMDAR Antagonist Nitrous Oxide (Laughing Gas) Are Moderated by Impulsivity and Depressive Symptoms in Healthy Volunteers. The International Journal of Neuropsychopharmacology, 24(7), 551- 561. https://doi.org /10.1093/ijnp/pyab009
170

OC Health Care Agency – Health Officer Special Report 3

22. Murphy, D., Leon, R., Carr, S., & de Blacam, C. (2024). Frostbite injuries from recreational nitrous oxide use. Irish Medical Journal, 117(2), 910. https://imj.ie/wp- content/uploads/2024/02/Frostbite-injuries-from-recreational-nitrous-oxide- use.pdf

23. Rowson, A. C., Yii, M. X., Tan, H. B., & Prasad, J. (2023). Recreational nitrous oxide‐ induced injury to the soft palate. Clinical Case Reports, 11(9), e7858. https://doi.org /10.1002/ccr3.7858

24. Lin, J.-P., Gao, S.-Y., & Lin, C.-C. (2022). The Clinical Presentations of Nitrous Oxide Users in an Emergency Department. Toxics, 10(3), 112. https://doi.org /10.3390/toxics10030112

25. Wu, H., Xu, L., Zheng, X., Zhou, X., Zhang, Y., & Sun, Y. (2023). Neuropsychiatric disorders associated with recreational nitrous oxide use. Clinical Toxicology, 61(11): 961-967. https://doi.org/10.1080/15563650.2023.2279936

26. Cohen, L., Duroy, D., Preozziello, A., Sasportes, A., Lejoyeaux, M., & Geoffroy, P. A. (2023). A cross-sectional study: Nitrous oxide abuse in Parisian medical students.The American Journal on Addictions, 32(1), 60-65. https://doi.org/10.1111/ajad.13363

27. Fidalgo, M., Prud'homme, T., Allio, A., Bronnec, M., Bulteau, S., Jolliet, P., & Victorri- Vigneau, C. (2019). Nitrous oxide: What do we know about its use disorder potential? Results of the French Monitoring Centre for Addiction network survey and literature review. Substance Abuse, 33-42. . https://doi.org /10.1080/08897077.2019.1573210

28. Gillman, M. (1986). Nitrous oxide, an opioid addictive agent: Review of the evidence.

The American Journal of Medicine, 81(1), 97-102. https://doi.org /10.1016/0002- 9343(86)90189-0

29. Guerlais, M., Aquizerate, A., Lionnet, A., Daveluy, A., Duval, M., Garardin, M., . . .

Victorri-Vigneau, C. (2023). Nitrous oxide: a unique official French addictovigilance national survey. Frontiers in Public Health, 11. https://doi.org /10.3389/fpubh.2023.1167746

30. Koyanagi, S., Himukashi, S., Mukaida, K., Shichino, T., & Fukada, K. (2008).

Dopamine D2-like receptor in the nucleus accumbens is involved in the antinociceptive effect of nitrous oxide. Anesthesia and Analgesia, 1904-9. https://doi.org /10.1213/ane.0b013e318172b15b

31. Kronenberg, G., Schoretsanitis, G., Seifritz, E., & Olbrich, S. (2024). The boon and bane of nitrous oxide. European Archives of Psychiatry Clinical Neuroscience. https://doi.org /10.1007/s00406-024-01801-3

171

OC Health Care Agency – Health Officer Special Report 4

32. Li, W.-Q., Liu, S.-N., Yang, S.-C., Lin, X., & Zhang, Z.-J. (2025). Nitrous oxide exerts rewarding effect via regulating D1 receptor and BDNF pathway in ventral tegmental area-nucleus accumbens dopamine circuit. Translational Psychiatry, 15(34). https://doi.org /10.1038/s41398-025-03257-y

33. Perron, B. E., Howard, M. O., Vaughn, M. G., & Jarman, C. N. (2009). Inhalant Withdrawal as a Clinically Significant Feature of Inhalant Dependence Disorder.

Medical Hypotheses, 73(6), 935-937. https://doi.org /10.1016/j.mehy.2009.06.036

34. Back, S., Kroon, E., Colyer-Patel, K., & Cousijn, J. (2023). Does nitrous oxide addiction exist? An evaluation of the evidence for the presence and prevalence of substance use disorder symptoms in recreational nitrous oxide users. Addiction, 119(4), 609-608. https://doi.org/10.1111/add.16380

35. Radparvar, S. (2023). The Clinical Assessment and Treatment of Inhalant Abuse.

The Permanente Journal, 27(2), 99-109. https://doi.org /10.7812/TPP/22.164.

36. Winstock, A., Maier, L., Zhuparris, A., Davies, D., Puljevic, C., Kuypers, K., & Ferris, J. &. (2021). Global Drug Survey (GDC) 2021 Key Findings Report. https://www.globaldrugsurvey.com/wp-
content/uploads/2021/12/Report2021_global.pdf

37. Winstock, A., Munksgaard, R., Davies, E., Ferris, J., ZhuParris, A., & Barratt, M. (2022). 2022 Drug Trend Report: Time. Music, Clubbing, Age, and Diet.:
https://www.globaldrugsurvey.com/wp-
content/uploads/2022/02/2022WowReport_Final.pdf

38. Substance Abuse and Mental Health Services Administration (SAMHSA). (2020). Key substance use and mental health indicators in the United States: Results from the 2019 National Survey on Drug Use and Health (HHS Publication No. PEP20-07-001, NSDUH Series H-55). US Department of Health and Human Services, Centers for Behavioral Health Statistics and Quality, Substance Abuse and Mental Health Services Administration. Retrieved from
https://www.samhsa.gov/data/sites/default/files/reports/rpt29393/2019NSDUHFF RPDFWHTML/2019NSDUHFFR1PDFW090120.pdf

39. Substance Abuse and Mental Health Services Administration (SAMHSA). (2023). Key substance use and mental health indicators in the United States: Results from the 2022 National Survey on Drug Use and Health (HHS Publication No. PEP23-07-01- 006, NSDUH Series H-58). US Department of Health and Human Services, Centers for Behavioral Health Statistics and Quality, Substance Abuse and Mental Health Services Administration. Retrieved from
https://www.samhsa.gov/data/report/2022-nsduh-annual-national-report

172

OC Health Care Agency – Health Officer Special Report 5

40. Substance Abuse and Mental Health Services Administration (SAMHSA). (2024). 2023 National Survey on Drug Use and Health (NSDUH) Detailed Tables. US Department of Health and Human Services. Retrieved from https://www.samhsa.gov/data/report/2023-nsduh-detailed-tables

41. Forrester, M. B. (2020). Nitrous oxide misuse reported to two United States data systems during 2000–2019. Journal of Addictive Diseases, 39(1), 46-53. https://doi.org /10.1080/10550887.2020.1813361

42. Austin, G., Hanson, T., Bala, N., & Zheng, C. (n.d.). Student engagement and well- being in California, 2019–21: Results of the Eighteenth Biennial State California Healthy Kids Survey, Grades 7, 9, and 11. WestEd. Retrieved May 2025, from https://data.calschls.org/resources/18th_Biennial_State_1921.pdf

43. California Department of Health Care Access and Information (HCAI). (2018-2023).

Patient Discharge Data and Emergency Department Data.
https://hcai.ca.gov/data/request-data/data-documentation/

44. California Department of Finance (CA DOF), (2022 Vintage). P-3: Complete State and County Projections Dataset.
https://dof.ca.gov/forecasting/demographics/projections/

45. Orange County Department of Education (OCDE). (2025). Nitrous Oxide Assessment Survey – Summary of Findings. Internal Report: unpublished.

46. Orange County Fire Authority (OCFA). (2025). Special Report: Nitrous Oxide Use and Abuse: unpublished.

47. Humboldt County Department of Health and Human Services. (2025). Humboldt County Recreational Nitrous Oxide Retail Landscape Analysis. https://humboldtgov.org/DocumentCenter/View/139160/Countywide-NO-Retail- Analysis-PDF

48. City of Stanton, CA (2025, April 24). Prohibition on Sale or Distribution of Nitrous Oxide, Ordinance No. 1162. https://ecode360.com/ST5018/laws/LF2343868.pdf.

49. City of Ukiah, CA (2025). Sale or Distribution of Nitrous Oxide, Ukiah City Code 2.7.1 §2371. https://www.codepublishing.com/CA/Ukiah/html/Ukiah02/Ukiah0202- 0701.html

50. City of Rialto, CA (March 14, 2017). Prohibiting the Sale and Distribution of Nitrous Oxide, Ordinance No. 1588.
https://library.municode.com/ca/rialto/ordinances/code_of_ordinances?nodeId=8 38212

51. Mendez, J. (2024, December 13). LA wants to ban using nitrous oxide to get high. But Challenges loom. Los Angeles Times.
https://www.latimes.com/california/story/2024-12-13/l-a-wants-to-ban-using- nitrous-oxide-to-get-high-but-challenges-loom
173

OC Health Care Agency – Health Officer Special Report 6

52. City of Santa Ana, CA (2025, May 6). Agenda Item 20 - First Reading of Ordinance Prohibiting the Sale or Distribution of Nitrous Oxide.

53. Shasta County, CA. (2024 Board Minutes for November 13, 2024.) Public Health Advisory Board. Redding. https://www.shastacounty.gov/media/64871

54. Orange County Board of Supervisors. (2025, February 25). Item S36B- An Ordiance of the County of Orange, California, Adding Division 19 to Title 3 of the Codified Ordinances of the County of Orange Regarding the Orange County Health Authority. https://ocgov.granicus.com/player/clip/5376?view_id=&caption_id=14779179&redi rect=true
174

175

176

177

178

4927-4920-9738, v. 1
ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE ADDING CHAPTERS 6.48 AND 6.50 TO TITLE 6 OF THE GARDEN GROVE

MUNICIPAL CODE PROHIBITING THE SALE AND DISTRIBUTION OF KRATOM

PRODUCTS AND RESTRICTING THE SALE AND DISTRIBUTION OF NITROUS OXIDE PRODUCTS.

City Attorney Summary

This Ordinance enacts a prohibition on the sale, distribution and possession of kratom products for commercial purposes, and enacts restrictions on the sale and distribution of nitrous oxide products. There will be specific exemptions to the nitrous oxide products restrictions such as when contained within a food product for use as a propellant or for use in medical or dental practices.

WHEREAS, California Constitution, Article XI, Section 7, authorizes the City of Garden Grove (“City”) to adopt and enforce local police, sanitary, and other ordinances and regulations that are not in conflict with general laws; and

WHEREAS, California Health & Safety Code section 101450 empowers the City Council to take measures necessary to preserve and protect public health, including adopting ordinances, regulations, and orders that are not in conflict with general laws; and

WHEREAS, California courts in Cohen v. Board of Supervisors, (1985) 40 Cal.3d 277, Bravo Vending v. City of Rancho Mirage, (1993) 16 Cal.App.4th 383, and Prime Gas v. City of Sacramento, (2010) 184 Cal.App.4th 697, have affirmed the power of local jurisdictions to regulate business activity to protect public health and safety and in order to discourage violations of law; and

WHEREAS, the kratom plant (Mitragyna speciosa) is a tropical evergreen native to Southeast Asia containing psychoactive compounds which can produce stimulant, or sedative, opioid-like effects; and

WHEREAS, the active compounds in kratom include mitragynine and 7- ydroxymitragynine. While mitragynine is present in higher concentrations, 7- hydroxymitragynine is more potent and is largely responsible for the stronger pain- relieving, sedative, and euphoric effects; and

WHEREAS, 7-hydroxymitragynine binds to opioid receptors in the brain and has been shown to have euphoric and mood-enhancing effects, particularly at higher doses, which can increase its appeal for recreational use; and

WHEREAS, 7-hydroxymitragynine is believed to be more potent than morphine in terms of pain relief. Research has shown that it binds to opioid receptors in the brain with greater affinity than morphine, making it significantly more powerful in relieving pain. This 179
Ordinance No.

4927-4920-9738, v. 1
greater potency raises significant concerns about its safety profile, especially regarding the potential for addiction, overdose, and adverse physical and psychological effects, including nausea, vomiting, and potential psychosis.

WHEREAS, scientific research and health advisories have raised concerns over the safety of kratom products, particularly those with higher concentrations of 7- hydroxymitragynine, which may increase the potential for abuse and harm to public health; and

WHEREAS, kratom products are not subject to federal safety checks, resulting in a lack of oversight regarding purity, dosage, contamination, labeling accuracy, and consumer warnings; and

WHEREAS, the City seeks to prohibit the sale and distribution of kratom products within its limits as a reasonable and necessary exercise of its police powers to safeguard the health, safety, and welfare of its residents; and

WHEREAS, Nitrous Oxide is an odorless, colorless chemical that can be inhaled for legitimate purposes associated with medical or dental procedures in a clinical setting, and is legitimately used for industrial purposes and as a propellant for food products; and

WHEREAS, Nitrous Oxide is also subject to recreational misuse and abuse, in part, because it is easy to purchase from retail vendors and relatively inexpensive; and

WHEREAS, the recreational misuse and abuse of Nitrous Oxide can cause permanent vitamin deficiencies in the blood, and can cause long-term neurological effects, including paralysis and death; and

WHEREAS, the incidence of Nitrous Oxide recreational misuse and abuse has been on the rise both within Orange County and internationally over the past decade, with multiple medical studies noting significant increases in recreational misuse in the past five years, as well as a broader medical understanding of the long-term hematological and neurological impacts of Nitrous Oxide misuse and abuse; and

WHEREAS, Nitrous Oxide recreational misuse and abuse has been associated with multiple traffic incidents and criminal incidents throughout Orange County in the past several years; and

WHEREAS, the City of Garden Grove does not currently regulate the sale of Nitrous Oxide and finds and declares that in the absence of local regulation, Nitrous Oxide remains subject to significant risk of misuse and abuse through sale to individuals who intend to misuse or abuse the product; and

WHEREAS, the City of Garden Grove desires to regulate the sale of Nitrous Oxide in order to preserve and protect public health and to dissuade sellers of Nitrous Oxide products from selling to individuals which they know or have reason to know intend to use the products for illegal purposes (i.e., recreational ingestion and/or inhalation); and 180
Ordinance No.

4927-4920-9738, v. 1

WHEREAS, the City Council is committed to safeguarding the health and well- being of its residents by ensuring that products available for sale do not pose undue health risks.

NOW, THEREFORE, The City Council of the City of Garden Grove hereby ordains as follows:

SECTION 1. The City Council finds that the above recitals are true and correct and incorporated herein by this reference.

SECTION 2. Chapter 6.48 is added to Title 6 of the Garden Grove Municipal Code to read as follows:

Chapter 6.48

Kratom Products

§ 6.48.010 Authority and Purpose.

This chapter is enacted pursuant to the City’s police powers to protect public safety, health and welfare. The purpose of this chapter is to protect public health and safety by prohibiting the commercial sale and distribution of kratom and kratom products within the City due to their opioid-like effects, lack of regulatory oversight, and demonstrated risk of abuse, dependence, and adverse health outcomes.

§ 6.48.020 Definitions.

Words and phrases used in this chapter that are not specifically defined in this section shall be interpreted so as to give them the meaning they have in common usage and to give this chapter its most reasonable application. The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning.

“7-OH product” means any product containing any detectable amount of 7- hydroxymitragynine.

“Distribute” means to furnish, give away, exchange, transfer, deliver or supply, whether or not for monetary gain.

“Kratom alkaloids” means any detectable amount of mitragynine, speciociliatine, speciogynine, paynantheine, 7-OH, or any natural, synthetic, or semi-synthetic alkaloid, derivative, isolate, metabolite, or structurally related constituent of Mitragyna speciosa.

“Kratom” or “Kratom product means any product consisting of, or labeled or marketed as consisting of, any part of the leaf of Mitragyna speciosa in fresh, dehydrated, or dried form; including any extract, isolate, derivative, metabolite, or alkaloid, whether natural, 181
Ordinance No.

4927-4920-9738, v. 1
synthetic, or semi-synthetic, regardless of concentration. The term includes any food, dietary ingredient, supplement, tea, gummies, beverage, vaping liquid, smoking wrap, smoking accessories or paraphernalia, and any other substances intended for human consumption or inhalation that contains any part of the leaf of Mitragyna speciosa, or any extract, synthetic alkaloid, or synthetically derived compound of the plant or its leaf. This definition includes, but is not limited to, powders, capsules, pills, teas, gummies, beverages, vape liquids, smoke wraps, smoking accessories or paraphernalia, and any other substances intended for consumption or inhalation.

“Kratom leaf” means the leaf of the kratom plant, also known as mitragyna speciosa, any form.

“Kratom leaf extract” means the material obtained by extraction of kratom leaves by any means.

“Possess for commercial purposes” means to possess with intent to sell, offer for sale, furnish, exchange, distribute, or otherwise provide in the course of business operations, including display, storage, warehousing, stocking, or holding for sale or distribution.

“Sell” or “Sale” means to furnish, exchange, transfer, deliver, or supply for monetary gain including but not limited to any transfer or title or possession for consideration, exchange, or barter, in any manner or by any means.

"Synthesized" means an alkaloid or alkaloid derivative or constituent that has been created by chemical synthesis or biosynthetic means (including but not limited to; fermentation, recombinant techniques, yeast derived, enzymatic techniques), rather than traditional food preparation techniques such as heating or extracting. It also includes alkaloids that have been further exposed to chemicals or processes that would confer a structural change in the alkaloids contained within the extract.

§ 6.48.030 Prohibition on the Sale or Distribution of Kratom and 7-OH Products.

Except as otherwise authorized by law, an individual, business, or other entity shall not sell, attempt to sell, offer for sale, provide, distribute, display, furnish, administer, exchange, give away, or possess for commercial purposes:

A. Any kratom or kratom product containing any detectable amount of kratom alkaloids.

B. Any kratom product that contains or is adulterated with synthesized or semi- synthesized kratom alkaloids, ingredients, or constituents.

C. Any kratom product whose packaging indicates, implies, advertises, or suggests the presence of kratom or kratom alkaloids.

182
Ordinance No.

4927-4920-9738, v. 1
D. Any kratom product whose packaging has had the manufacturer’s or distributor’s label removed or altered to conceal, disguise, or modify the presence of kratom alkaloids or synthesized or semi-synthesized kratom constituents.

§ 6.48.040 Violations, Enforcement, and Penalties.

A. Misdemeanor. A violation of this chapter is a misdemeanor and shall be punished pursuant to Chapter 1.04 of this Code.

B. Administrative Citation. Any person violating any provision of this Section may be subject to an administrative citation pursuant to Chapter 1.22 of this Code.

C. Nonexclusive Remedies and Penalties. The remedies provided by this Chapter are cumulative and in addition to any other remedies available at law or in equity.

Punishment under this section shall not preclude any other remedies, penalties or procedures that the City may have to address violations of this chapter or as otherwise provided by law. Violations of this Chapter are hereby declared to be public nuisances.

SECTION 3. Chapter 6.50 is added to Title 6 of the Garden Grove Municipal Code to read as follows:

Chapter 6.50

Nitrous Oxide

§ 6.50.010 Authority and Purpose.

This article is enacted pursuant to the City’s police powers to protect the public safety, health and welfare. The express purpose of this article is to protect the public health and safety by eliminating retail access for recreational use of nitrous oxide, a dangerous gas that is illicitly used as an intoxicant.

§ 6.50.020 Definitions.

Words and phrases used in this chapter that are not specifically defined in this section shall be interpreted so as to give them the meaning they have in common usage and to give this chapter its most reasonable application. The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning.

"Device" means any cartridge, compressed gas cylinder, apparatus, container, balloon, attachment, nozzle, or other object used to contain, dispense or administer nitrous oxide.

''Nitrous oxide" means the colorless nonflammable gas sometimes identified as N20, which is sometimes used in aerosols and sometimes used as an anesthetic, and which, 183
Ordinance No.

4927-4920-9738, v. 1
when inhaled, produces loss of sensibility to pain, often preceded by exhilaration and laughter and often used as an anesthetic in dentistry. Nitrous oxide is often informally or colloquially referred to as "laughing gas," ''NOX," "galaxy gas," "whippits," amongst others.

"Person" means any individual or legal entity however constituted or organized.

"Wholesale capacity" means sale of or distribution of nitrous oxide or a device to dispense nitrous oxide to a person that will use nitrous oxide or the device in service or products for resale. Examples include, but are not limited to, commercial sale of dentistry supplies to dentists or dentistry offices, commercial sale of devices for the use in food production or in a commercial kitchen, and/or commercial sale of nitrous oxide for the purpose of producing food products for commercial sale (e.g., whipped cream canisters).

§ 6.50.030 Prohibition on Sale or Distribution of Nitrous Oxide.

Except as otherwise authorized by law or allowed under this chapter, it is unlawful for any person to sell, offer, distribute, display for sale, or otherwise provide to any person nitrous oxide, a device to dispense or administer nitrous oxide, or any device that contains any quantity of nitrous oxide.

§ 6.50.040 Exceptions to Prohibition.

This article does not apply to the sale, distribution, or other manner of providing nitrous oxide, or a device containing nitrous oxide, in the following circumstances:

A. If the nitrous oxide is labeled and marketed as food-grade and is contained within a food product for use as a propellant or preservative.

B. If the nitrous oxide or device is being sold, offered, or distributed in a wholesale capacity. This exemption only applies if the wholesaler does not know or have reason to know that the recipient intends to use the nitrous oxide or device in violation of section 6.50.030.

C. If the nitrous oxide or device is specifically designed, marketed, and safety-labeled for industrial use exclusively for automotive purposes, it must be utilized at a licensed automotive facility approved by the California Bureau of Automotive Repair.

D. If the nitrous oxide is being sold, offered or distributed specifically for the purpose of providing medical or dental care, by or at the direction and under the supervision of, a medical or dental practitioner licensed by the State of California and in accordance with all applicable rules and regulations.

E. If the nitrous oxide or device is being sold, offered, distributed, or dispensed by a pharmacist, pharmacist intern, or pharmacy as defined by California Business & Professions Code §§ 4030, 4036, and 4037, as maybe amended, in the course of 184
Ordinance No.

4927-4920-9738, v. 1
their duties as a pharmacist or pharmacist intern, or wholesalers licensed by the Board of Pharmacy.

F. Or any other circumstances exempted under law.

Notwithstanding the foregoing, any sale or distribution of nitrous oxide, any device designed to dispense or administer nitrous oxide, or a device containing any quantity of nitrous oxide shall comply with all requirements of California Penal Code sections 381b through 381e.

§ 6.50.050 Violations and Penalties.

A. Misdemeanor. A violation of this chapter is a misdemeanor and shall be punished pursuant to Chapter 1.04 of this Code.

B. Administrative Citation. Any person violating any provision of this Section may be subject to an administrative citation pursuant to Chapter 1.22 of this Code.

C. Nonexclusive Remedies and Penalties. Punishment under this section shall not preclude any other remedies, penalties or procedures that the City may have to address violations of this chapter or as otherwise provided by law. Violations of this Chapter are hereby declared to be public nuisances.

SECTION 4. Severability Clause. If any section, subdivision, paragraph, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each section, subdivision, paragraph, sentence, clause and phrase thereof, irrespective of the fact that any one (or more) section, subdivision, paragraph, sentence, clause or phrase had been declared invalid or unconstitutional.

SECTION 5. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause a certified copy of this Ordinance to be published or posted within fifteen (15) days after this Ordinance is passed and adopted, as required by law.

185
Item 4/2026
Final

City of Garden Grove

INTER-DEPARTMENT MEMORANDUM

To:

Lisa L. Kim From: Patricia Song
Dept:

City Manager Dept: Finance
Date: 2/10/2026

Subject: Receive and file the annual financial reports and related audit items for Fiscal Year 2024–25, and approve additional appropriations for Fiscal Year 2025–26. (Action Item)

OBJECTIVE

For the City Council to receive and file the annual financial reports and related audit items for Fiscal Year 2024–25, and to approve additional appropriations for Fiscal Year 2025–26 funded by the audited Fiscal Year 2024-25 General Fund surplus and available fund balances in other funds.

BACKGROUND

The City’s Municipal Code requires a complete financial statement and report be submitted to the City Council after the close of each fiscal year. In order to ensure the reliability of the information contained within the financial statements, the City contracted with an independent audit firm, Davis Farr LLP, to perform the annual financial audit. The goal of the audit is to provide reasonable assurance that the City’s financial statements are free from material misstatement. Davis Farr LLP issued an unmodified, or clean opinion for the City’ s financial statements for the fiscal year ended June 30, 2025.

To ensure sound fiscal management, Finance periodically reviews citywide departments’ budget performance. Fiscal Year (FY) 2025 -26 mid-year budget review was conducted in conjunction with the FY2024-25 year-end close. During this review, a few funding needs were identified that require appropriations beyond the adopted budget.

DISCUSSION

The annual audits of the financial statements of the City and its component units were completed on D ecember 23, 2025. The financial statements were prepared in accordance with all applicable accounting standards in order to conform to Governmental Accounting Standards Board (GASB) requirements. The independent auditor has issued an unmodified opinion of the City’s financial statements for the fiscal year ended June 30, 2025. An 186
Item 4/2026

unmodified opinion concludes that the financial statements of the City are presented fairly, in all material respects, in accordance with generally accepted accounting principles.

In addition to reviewing and examining the City’s financial records, the auditors also reviewed the internal control framework of the City. Internal control is a set of activities, rules, and procedures implemented by the City to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud. Internal control mechanism is embedded in the normal operating procedures, designed with the intent of safeguarding assets, minimizing errors, and ensuring that operations ar e conducted in an approved manner. There was no material weakness cited by the auditors during their review of the City internal control over its financial reporting.

Professional auditing standards require independent auditors to communicate with the City Council regarding various matters related to the audit. These include the auditors' responsibilities, the scope and timing of the audit, compliance requirements, identified audit risks, the City's significant accounting practices, any difficulties encountered during the audit, misstatements in the financial reports, disagreements between the auditors and City management, and other relevant information pertaining to the audit engagement. Please refer to Attachment 4 for the auditors' communication letter.

The audited financials show that for Fiscal Year 2024 -25, the City overall had a positive operating result of $31.2 million, due to increases in charges for services, grant funding, and higher investment earnings. Governmental activities’ revenues exceeded expenses by $13.6 million, and business-type activities had an increase of $17.6 million to its net position.

The beginning net position was restated by a reduction of $7.1 million as a result of implementing GASB Statement No. 101, Compensated Absences. This restatement reflects a change in accounting principle and did not affect the City’s operations or have a significant impact on the City’s overall financial position.

The General Fund is the primary operating fund of the City. It accounts for essential municipal services including public safety (police and fire), public works, community planning, economic development, and community and park services. These services are primarily funded by tax revenues and funding is dependent upon revenues collec ted during the same period the services are provided.

For Fiscal Year 2024-25, General Fund revenue exceeded expenditures by $5.9 million. Total tax revenues reported $159.3 million. Property taxes remained the City’s largest revenue source, generating $66.6 million. Sales and use taxes and transient occupancy taxes were the second and third largest sources, contributing $58.4 million and $27.1 million, respectively. Together, these three major taxes accounted for 82.3% of total General Fund revenues. Other taxes, totaling $7.1 million, included business license taxes, franchise taxes, and certain pass-through taxes.

While property tax revenues increased by $1.9 million compared to the prior year, sales and use taxes and transient occupancy taxes declin ed slightly by $0.7 million and $1.4 million, respectively, reflecting signs of a slowing local economy. In prior years, the City had experienced rapid revenue growth following the post -pandemic recovery. However, this 187
Item 4/2026

upward trend has leveled off, and several major revenue sources have begun to show modest declines, signaling a shift toward more stabilized and, in some cases, softening revenue patterns. This trend highlights the importance of ongoing fiscal monitoring and strategic planning to manage potential impacts on the City’s General Fund operations.

Total General Fund expenditures totaled $181.7 million, representing a decrease of $22.8 million from the prior fiscal year. This decline was primarily attributable to two significant one-time expenditures incurred in the previous year: the $20.8 million defeasance of the Garden Grove Public Financing Authority Lease Revenue Bonds, Series 2015A, and the $11.9 million acquisition of an office building in the Civic Center Plaza. Excluding these one -time costs, ongoing General Fund expenditures increased by 5.8 percent compared to the prior year, reflecting continued growth in baseline operating costs.

Consistent with prior years, Public Safety remained the largest expenditure category. Fire services totaled $33.4 million, and Police services totaled $84.1 million, for a combined total of $117.5 million, representing 64.7% of overall General Fund expenditures, including debt service and capital outlay.

During Fiscal Year 2024–25, the General Fund recorded three outgoing transfers. A transfer of $12.6 million was made to the Civic Center Revitalization Capital Project Fund, representing funds originally set aside in Fiscal Year 2020 –21 to initiate the project. During the project’s feasibility phase, related appropriations were maintained in the General Fund. Following the issuance of the 2024 Lease Revenue Bonds and the formal establishment of the Civic Center Revitalization Fund, the remaining General Fund appropriations were transferred to the capital project fund.

In addition, a $4.0 million transfer was made to the Workers’ Compensation Internal Service Fund. As part of the adoption of the Fiscal Years 2026 and 2027 biennial budget in June 2025, the City Council approved this one -time transfer to eliminat e the Workers’ Compensation Fund’s deficit position. For the same purpose, the City Council also approved a $3.0 million transfer to the Risk Management Internal Service Fund.

The City strives to develop a budget that accurately aligns available resources and operational needs. Therefore, all budget variances are carefully reviewed and analyzed. A budget variance is the difference between the budgeted amount of expense or revenue and the actual amount.

The budget variance is favorable when the actual reven ue is higher than budgeted or when the actual expense is less than budgeted. Budget variances can occur for a variety of controllable and uncontrollable reasons, such as personnel savings due to vacancies, increases or decreases in development related activities, unspent funding in the current year due to projects crossing over fiscal years, implementation of technology to reduce cost, and the identification of additional revenue sources during the year.

As of June 30, 2025, the City’s General Fund ended the fiscal year with a favorable revenue variance of $5.9 million, primarily attributable to investment earnings that exceeded budgeted estimates by $6.7 million. On the expenditure side, the General Fund reported a favorable variance of $12.3 million, con sisting of $8.8 million in personnel cost savings resulting from vacancies, and $3.0 million in unspent capital project appropriations. The unspent capital funds will be carried forward into the next fiscal year. 188
Item 4/2026

After considering all revenue, expenditure, and transfer variances, the General Fund reported a net unfavorable budget variance of $0.9 million as of June 30, 2025. Net operating surplus reported for FY2024-25 was $5.9 million.

Staff conducted a mid -year budget review in conjunction with the year -end close and the annual financial audit. As of December 31, 2025, General Fund revenues and expenditures were generally consistent with the adopted budget. However, the review identifie d two additional funding requirements totaling $375,500 that require additional appropriations.

 Concrete Replacement Capital Improvement Project – $300,000:

The General Fund annually contributes $300,000 to the Concrete Replacement Capital Improvement Project, which supports the repair of residential sidewalks, driveway approaches, wheelchair ramps, and cross gutters. During the adoption of the FY 2025– 26 budget, a one -time additional appropriation of $400,000 was approved for the Public Works Department’s Street Division to address asphalt and concrete work. In the process, the recurring annual contribution of $300,000 was inadvertently removed from the budget. Finance staff worked with Public Works to reevaluate funding needs for the year and determined that the annual $300,000 contribution remains necessary to carry out the planned concrete repair work in FY 2025–26.

 Senate Bill 707 (Brown Act Amendments) – $75,500:

Senate Bill (SB) 707 was signed into law on October 3, 2025, with its primary provisions becoming effective January 1, 2026. Certain expanded teleconferencing requirements will be phased in beginning July 1, 2026, through January 1, 2030. The legislation is intended to enhance public access and participation in local agency meetings, including requirements related to accessibility and meeting accommodations. To comply with SB 707, upgrades are required in the City Council Chamber. Staff estimates the total cost of these upgrades at $75,500. The adopted budget does not include funding for these improvements; therefore, an additional appropriation is necessary.

In addition, the City Council approved a contract in August 2025 with Works of Art by Jennifer for the design and installation of a bronze sculpture at the newly renovated Woodbury Park.

The total cost of the contra ct is $163,125 and will be funded by the Cultural Arts Fee Fund (Fund 213). At the time of contract award, no additional appropriation was requested. The adopted FY 2025–26 budget for Fund 213 cannot absorb this cost. However, the audited FY 2024–25 financial statements reflect sufficient available fund balance in Fund 213 to support this expenditure, and an additional appropriation is therefore requested.

FINANCIAL IMPACT

There is no fiscal impact to receive and file the auditor’s reports related to Fiscal Year 2024- 25 annual financial audit. The fees for auditing services were provided for in the annual operating budgets.

Additional appropriations requested include:
189
Item 4/2026

 $300,000 from the General Fund for the Concrete Replac ement Capital Improvement Project;
 $75,500 from the General Fund for the implementation of Senate Bill 707 (Brown Act Amendments); and
 $163,125 from the Cultural Arts Fee (Fund 213) to fund the contract with Works of Art by Jennifer.

RECOMMENDATION

It is recommended that the City Council:

• Receive and file the City of Garden Grove Annual Comprehensive Financial Report (ACFR) for Fiscal Year 2024-25 (Attachment 1)
• Receive and file the Report on Agreed -Upon Procedures Applied to Appropriation Limit Worksheets – City of Garden Grove (Attachment 2) • Receive and file the Report on Internal Control and Compliance of the Air Quality Improvement Fund (Attachment 3)
• Receive and file the Auditor Communications to the City Council (Attachment 4)
• Approve an additional appropriation of $3 75,500 from the General Fund for the City’s annual Concrete Replacement Capital Improvement Project and implement SB707; and
• Approve an additional appropriation of $163,125 from the Cultural Arts Fee Fund for the design and installation of a bronze sculpture at Woodbury Park.

ATTACHMENT(S)

1. City of Garden Grove Annual Comprehensive Financial Report (ACFR) for Fiscal Year 2024-25

2. Report on Agreed-Upon Procedures Applied to Appropriation Limit Worksheets – City of Garden Grove

3. Report on Internal Control and Compliance of the Air Quality Improvement Fund

4. Auditor Communications to the City Council

190
191
For the fiscal year endedJune 30, 2025ANNUAL COMPREHENSIVEFINANCIAL REPORTCITY OF GARDEN GROVE City of Garden Grove, 11222 Acacia Parkway, Garden Grove, CA 92840FINANCE DEPARTMENT Patricia SongFinance Director 192
193
194
195
Introductory SectionIntroductorySection
196
197
198
199
200
201
202
203
204
205
206
207
Government Finance Officers AssociationCertificate of Achievementfor Excellencein Financial ReportingPresented toCity of Garden GroveCaliforniaFor its Annual ComprehensiveFinancial ReportFor the Fiscal Year EndedJune 30, 2024Executive Director/CEO xi
208
xii
209
CITY OF GARDEN GROVEGeorge S. Brietigam IIICouncil Member - District 1Cindy Ngoc TranCouncil Member - District 3Ariana AresteguiCouncil Member - District 6Phillip NguyenCouncil Member - District 2Yesenia MunetonCouncil Member - District 5Joe DoVinhMayor Pro Tem - District 4CITY COUNCIL CITY OFFICIALSStephanie KlopfensteinMayor
Economic Development Directorxiii
210
Financial SectionFinancial Section
211
212
1 213
2 214
3 215
4 216
5 217
6 218
7 219
8 220
9 221
10 222
11 223
12 224
13 225
14 226
15 227
16 228
17 229
18 230
19 231
20 232
21 233
22 234
23 revenues exceeded expenditures
235
24 236
25 237
26 238
27 239
28 240
Basic Financial StatementsBasic Financial Statements
241
29 242
30 243
31 244
32 245
33 246
34 247
35 248
36 249
37 250
38 251
39 252
40 253
41 254
42 255
43 256
44 257
258
45 259
46 260
47 261
48 262
49 263
50 264
51 265
52 266
53 267
54 268
55 269
56 270
57 271
58 272
59 273
60 274
61 275
62 276
63 277
64 278
65 279
66 280
67 281
68 282
69 283
70 284
71 285
72 286
73 287
74 288
75 289
76 290
77 291
78 292
79 293
80 294
81 295
82 296
83 297
84 298
85 299
86 300
87 301
88 302
89 303
90 304
91 305
92 306
93 307
94 308
95 309
96 310
97 311
98 312
99 313
100
314
101
315
102
316
Required Supplemental Information
Required SupplementalInformation
317
103
318
319
104
320
105
321
106
322
107
323
108
324
109
325
110
326
111
327
112
328
113
329
114
330
331
Other Supplemental Information
Other SupplementalInformation
332
115
333
116
334
117
335
118
336
119
337
120
338
121
339
122
340
123
341
124
342
125
343
126
344
127
345
128
346
129
347
130
348
131
349
132
350
133
351
134
352
135
353
136
354
137
355
138
356
139
357
140
358
141
359
142
360
143
361
144
362
363
145
364
146
365
147
366
148
367
149
368
150
369
151
370
371
Statistical SectionStatistical Section
372
152
373
153
374
154
375
155
376
156
377
157
378
158
379
159
380
160
381
161
382
162
383
163
384
164
385
165
386
166
387
167
388
389
168
390
169
391
170
392
171
393
172
394
173
395
174
396
175
397
176
398
177
399
178
400
179
401
180
402
181
403
182
404

INDEPENDENT ACCOUNTANT
’

S REPORT

The Honorable Mayor and City Council

City of
Garden Grove
, California

We have
performed
the procedures enumerated below
on the
City of
Garden Grove
,
California

(City)
appropriations limit worksheets
for compliance with
the requirements of
Section 1.5 of Article XIIIB of the California Constitution

for
the year ended June 30,
20 2
5 .

The City is responsible for compliance with
Section 1.5 of Article XIIIB of the California
Constitution
.

The
City
has agreed to and acknowledged that th
ese procedures

are appropriate to
meet
the intended purpose of evaluating compliance with
the requirements of
Section 1.5 of
Article XIIIB of the California Constitution

and the League of California Cities

publication
entitled
Article XIIIB

Appropriations Limitation Uniform Guidelines

for the ye
ar ended June
30, 20
2 5
. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures
and the associated findings are

below
:

1. We obtained the worksheets referred to above and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote.

Results:

No

exceptions were noted as a result of our procedures.

2. We recalculated the mathematical computations reflected in the City ’s

worksheets.

Results: No

exceptions were noted as a result of our procedures.

3. We compared the current year information used to determine the current year limit and agreed

it

to worksheets prepared by the City and to information
provided by the State Department of Finance.

Results: No exceptions were noted as a result of our procedures.

4. We compared the amount of the prior year appropriations limit presented in the worksheets to the amount adopted by the City Council for the prior year.

Results:

No exceptions were noted as a result of our procedures.

405

The Honorable Mayor and City Council

City of
Garden Grove
, California

We were engaged by the City to perform this
agreed
-
upon procedures
engagement and
conducted our engagement i
n accordance with
attestation
standards established by the
American Institute of Certified Public Accountants. W
e were not engaged to and did
not

conduct

an

examination or review
, the objective of which would be the expression of an
opinion

or conclusion, respectively

on the worksheets referred to above. Accordingly, we do not express such an opinion

or conclusion
, respectively, on the appropriations limit
worksheets
.

Accordingly, we do not express such an opinion or conclusion.

Had we
performed additional
procedures
,

other matters might have come to our attention that
would have been reported to you.

No procedures have been performed with respect to the
determination of the appropriation limit for the base year, as defined by the League publication entitled

Article XIIIB Appropriations

Limitation Uniform Guidelines
.

We are required to be independent of the
City
and to meet our other ethical responsibilities,
in accordance with the relevant ethical requirements related to our agreed -
upon procedures
engagement.

This report is intended solely for the
information and
use of the
Management of the
City of
Garden Grove
, California and
is not intended to be, and should not be, used by anyone other than the specified part
y
.

Irvine, California

December
23 , 202
5 406

Independent Auditor’s Report on Internal Cont
rol Over Financial Reporting

and on Compliance and Other Matters Based on an Audit of the Air Quality

Improvement Special Revenue Fund Performed

in Accordance with
Government Auditing Standard

The Honorable
Mayor and
City Council

City of Garden Grove, California

We have audited, in accordance with the auditing standards generall y accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the City of Garden Grove, California (the City) including the Air Quality Improvement Special Revenue Fund (the Fund) of the City, as of and
for the year ended June 30, 20
2 5

and the related notes to
the financial statements, which collectively comprise the City’s basic financial statements ,

and have
issued our
report thereon
dated
December

23 , 20
2 5
.

Report on
Internal Control over Financial Reporting

In planning and performing our audit of the Fund’s financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A
deficiency in internal control
exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness
is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or

detected and
corrected on a timely basis. A
significant deficiency
is a deficiency, or a combination of deficiencies, in
internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses

or significant deficiencies

may exist that have not been identified.

Report on
Compliance and Other Matters

As part of obtaining reasonable assurance about whether the City’s Fund financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. Such provisions include those provisions of laws and regulations identified in Assembly Bill 2766 Chapter 1705 [Health and Safety Code Sections 44220 through 44247] (the Guide). However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not

407

express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards
.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards
and the Guide in considering the City’s internal
control and compliance. Accordingly, this communication is not suitable for any other purpose.

Irvine, California

December

23 ,
202
5 408

City Council

City of Garden Grove

Garden Grove, California

We have audited the financial statements of

the governmental activities, the business
-
type
activities,

the aggregate discretely presented component units,
each major fund, and the
aggregate remaining fund information of the City of Garden Grove

as
of and for the year
ended
June 30,
202
5 ,

and

have issued our report thereon dated

December
23 , 202
5 .

Professional

standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit

As communicated in our engagement letter
dated

October

2 1
, 202
5 ,

our responsibility, as
described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance wi th accounting principles generally
accepted in

the
United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements i ncludes consideration of
internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control o
ver financial reporting. Accordingly, as part of
our audit, we considered the internal control of
the City of Garden Grove

solely for the purpose
of determining our audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures fo r the purpose of
identifying other matters to communicate to you.

Planned Scope and Timing of the Audit

We conducted our audit consistent with the planned scope and timing we previously communicated to you.

Compliance with All Ethics Requirements Regarding Independence

The engagement team, others in our firm, as appropriate, and
our firm have complied with
all relevant ethical requirements regarding independence

under the American Institute of
Certified Public Accountants (“AICPA”) independence standards, contained in the Code of
Professional Conduct
.

409
We identified independence threats related to

proposing adjusting or correcting journal entries
detected during the audit and

the preparation of the financial statements.

We have applied
certain safeguards to reduce the threats to an acceptable level, including having the City’s
management review and approve all proposed journal entries and using an independent party
within the firm to perform a quality control review of the financial statement s
, and obtaining
confirmation from the City of Garden Grove’s ma
nagement that their review of the financial
statement
s

included comparing the financial statements and footnotes to the underlying accounting records.

Significant Risks Identified

The auditing standards require us to identify audit risk areas when performing the audit. As a result, we have identified the following significant risks:



Implementation of
a n
ew accounting standard
, Governmental Accounting Standards
Board (GASB) Statement No. 101. As a result, we received the City’s records of compensated absences, tested the calculations of the records, and ensured the City’s footnote disclosures are accurate and complete in accord ance with the new standard.



Compliance with Federal grant requirements.

We have evaluated the City’s federal
grants to determine which grants are required to be audited under the Federal Uniform Guidance and tested those grants for compliance.

Qualitative Aspects of the Entity’s Significant Accounting Practices

Significant Accounting Policies

Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City of Garden Grove

is
included in Note
A

to the financial statements.

During the fisc
al y
ear, the City adopt
ed
two
new accounting standards, GASB 101: Compensated
Absences

and GASB 102:

Certain Risk
Disclosures.

No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or em erging
areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about

future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.

The most sensitive accounting estimates affecting the financial statements are :



Management’s estimate of amount recorded as claims and liabilities is based on management’s reliance on a
third
-
party

claims administrator. We evaluated the key
factors and assumptions used to develop the amounts by the third
-
party

claims
administrator and determined that it is reasonable in relation to the financial statements taken as a whole
and in relation to the applicable opinion units.

410


Management’s estimate of transactions related to net pension and OPEB liabilities based on actuarial information. We evaluated the key factors and assumptions used to develop the amounts by the actuary and determined that it is reasonable in relation to th
e financial statements taken as a whole.



Management’s determination that certain notes receivable with third parties are fully collectible. We evaluated the key factors and assumptions used to arrive at that determination and determined that it is reasonable in relation to the financial statement
s taken as a whole.

Financial Statement Disclosures

Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting

the City of Garden Grove
’s financial statements relate to

the net pension
liability and related amounts and the net OPEB liability and related amounts.

Significant Difficulties Encountered during the Audit

We encountered no difficulties in dealing with management relating to the performance of the audit.

Uncorrected and Corrected Misstatements

For purposes of this communication, professional standards also

require us to accumulate all
known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communica
te the effect of uncorrected
misstatements related to prior periods on the relevant classes of transactions, account balances or
disclosures, and the financial statements as a whole and each applicable opinion unit.

There
w
as
one

uncorrected misstatement

in regards to a
subsc
ription based information
technology arrangement that was recorded in the
current year however commenced in the
prior year.

In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures.

None of the misstatements identified by us as a result of our audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements
taken as a whole or applicable opinion units.

Disagreements with Management

For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City of Garden Grove
’s financial
statements or the auditor’s report. No such disagreements arose during the course of the audit.

Representations Requested from Management

We have requested certain written representations from management, which are included in our

letter
dated
December
23 , 202
5 .

411

Management’s Consultations with Other Accountants

In some cases,
management may decide to consult with other accountants about auditing and accounting matters.

Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

Other Information
Included in
the Annual Comprehensive Financial Report

Pursuant to professional standards, our responsibility as auditors for other information ,
whether financial or nonfinancial, included in

the City of Garden Grove
’s annual reports,

does
not extend beyond the information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. However, in accordance with such standards, we have

read the information and considered whether such information, or the manner of its presentation, was materiality inconsistent with its presentation in the financial statements.

Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsist ent with the
information, or manner of its presentation, appearing in the financial statements.

This report is intended solely for the information and use of the City Council of the City of
Garden Grove
, and management of
the City of Garden Grove

and is not intended to be and
should not be used by anyone other than these specified parties.

Irvine, California

December
23 , 202
5 412