City of Paso Robles – City Council Public Comments call 805-865-7276 1 2025 Cannabis Policy Review
August 19, 2025
City Council Agenda - Discussion Item
City of Paso Robles – City Council 2
▪ Advancing cannabis regulations was not a City Council goal for FY 25 & 26 – No staff work since 2022
▪ City Council requested the topic of cannabis regulations return for City Council review
– Focused on overall regulations, not any one operator
– Changes to regulations not on the agenda this evening ▪ Does the City…
– Clarify delivery regulations
– Pursue broader cannabis regulations than exist today? ▪ Retain subject matter experts to assist staff
– Make it a priority next budget cycle?
– Table the discussion until a future date TBD?
Cannabis Policy Review
City of Paso Robles – City Council 3
▪ 2015 – State Medical Marijuana Regulation and Safety Act (MMRSA) ▪ 2016 – Prop 64 legalized “adult use of marijuana”
– Personal use (use, possession, limited cultivation) legalized statewide – Granted authority to cities to regulate commercial marijuana activity through zoning ▪ 2017 – California Medicinal and Adult Use Cannabis Regulations and Safety Act – Unified all cannabis Regulations
▪ Cultivation
▪ Processing / Manufacturing
▪ Testing
▪ Distribution / Sales
▪ Consumption
▪ Federal - Cannabis remains a Schedule I controlled substance State / Federal Cannabis Regulation
City of Paso Robles – City Council 4
▪ 2016 – Paso Robles Ordinance 1036
– Medicinal delivery offices = only commercial activity allowed ▪ 2018 – Paso Robles Ordinances 1051 and 1052
– Medicinal marijuana delivery offices by TUP
▪ 2018 – Paso Robles Proposition Measure I-18
– Maximum cannabis tax rates established
▪ 2019 – Paso Robles Ordinance 1072 and 1073
– Medicinal delivery offices by CUP
▪ 2020 – Paso Robles Ordinance 1104
– Setting cannabis business tax rates
▪ July 19, 2022 – Council direction to staff
– Develop a cannabis governance framework
– Allow temporary commercial cannabis deliveries
▪ October 20, 2022 – Paso Robles Ordinance 1126 & Resolution 22-144 – Allowed 1-year commercial cannabis deliveries – expired November 2023 – Set cap of 3 Cannabis Delivery offices (Dubs Green Garden, Aquamarine, Kinfolk Holistics) City of Paso Robles Cannabis Regulations
City of Paso Robles – City Council 5
1. Twenty dollars ($20.00) per square foot of space utilized in connection with the cultivation of cannabis.
2. Six cents ($0.06) for each one dollar of gross receipts for cannabis delivery businesses.
3. Fifteen cents ($0.15) for each one dollar of gross receipts for cannabis manufacturing, testing, and distribution businesses.
4. Ten cents ($0.10) for each one dollar of gross receipts for cannabis retailers.
City of Paso Robles Cannabis Tax Rates
Ordinance 1104
City of Paso Robles
– City Council
6 Ordinance 1072
Medicinal
marijuana
delivery service
zones:
Riverside Corridor Zone
C3 Service Commercial
zone
City of Paso Robles – City Council 7
Medicinal marijuana delivery service
businesses with existing CUP approval
▪ 3 tenant spaces
▪ 2 Business Licenses
▪ 1 tenant space
Permitted Cannabis Deliveries Offices
City of Paso Robles – City Council 8
▪ No Cannabis Uses with in 600-feet
– Parks
– Schools
Sensitive Land Use Buffers
City of Paso Robles – City Council 9
▪ Cultivation - prohibited
▪ Processing / Manufacturing - prohibited
▪ Testing – prohibited
▪ Distribution / Sales
– Medical Cannabis delivery – allowed
– Recreational Cannabis delivery – prohibited
– Store Front Cannabis Sales - prohibited
▪ Consumption – prohibited
▪ Recreational and medical cannabis deliveries from outside the City allowed City Council Policy Issues
City of Paso Robles – City Council 10
Regional View
Jurisdiction Cultivation Manufacturing Testing Distribution Retail Consumption Microbusiness City SLO Yes Yes Yes Yes Yes x Yes
Morro Bay x x x Yes Yes x x
Grover Beach Yes Yes Yes Yes Yes Yes Yes
SLO County Yes Yes Yes Yes x x x
Atascadero x x x Yes x x x
Paso Robes x x x Yes (medical) x x x
King City Yes Yes Yes Yes Yes x Yes
Greenfield Yes Yes Yes Yes Yes x x
Lompoc Yes Yes Yes Yes Yes x x
Coalinga Yes Yes Yes Yes Yes x Yes
City of Paso Robles – City Council 11
▪ What business types are allowable (retail, cultivation, manufacturing, etc.) ▪ Medicinal vs. Recreational/Adult Use
▪ Community Engagement
▪ Licensing Process
– Numeric license caps
– Vetting Requirements
– Public Benefits
– Selection Process (merit, lottery, etc.)
▪ Land Use Areas
– Where allowable
– Sensitive use buffer requirements
▪ Zoning requirements – Development Standards
▪ Permitting Process – Development Permit approval process ▪ Operating standards
▪ Security standards
▪ Staff Resources/City Council Goals
Licensing Policy Considerations
City of Paso Robles – City Council 12
1. Take no action, existing medical cannabis delivery only regulations remain in place;
2. Direct staff to return with an updated cannabis ordinance to allow existing medical cannabis delivery business to deliver adult use cannabis;
3. Direct staff to return with a framework and community outreach plan in furtherance of potentially authorizing cannabis retail storefronts within the City; or
4. Provide alternative direction to staff.
Options
City of Paso Robles – City Council 13
▪ Option 2:
Direct staff to return to the City Council with an updated cannabis ordinance to allow existing medical cannabis
delivery business to deliver adult use cannabis.
Recommendation