Planning and Building Agency
www.santa-ana.org/pb
Item # 21
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
March 3, 2026
TOPIC: Zoning Ordinance Amendment No. 2026-01 to Amend Portions of Chapter 41 (Zoning) of the Santa Ana Municipal Code Relating to Smoke Shops and to Establish Smoke Shop Inspection Fees
AGENDA TITLE
Public Hearing - Zoning Ordinance Amendment No. 2026-01 to Amend Portions of Chapter 41 (Zoning) Relating to Smoke Shop Establishments and a Resolution to Amend the Miscellaneous Fees Schedule for the Fiscal Year 2025-2026 to Establish a Planning and Building Agency Fee for Smoke Shop Inspections and a Police Department Fee for Smoke Shop Inspections
Legal notice published in the OC Reporter on February 20, 2026.
RECOMMENDED ACTIONS
1. Adopt an ordinance (Exhibit 1) approving Zoning Ordinance Amendment No. 2026- 01 to amend several sections of Chapter 41 (Zoning) of the Santa Ana Municipal Code (SAMC) relating to definitions, location, permitting, development standards, and operational requirements for smoke shop establishments; and ORDINANCE NO. NS-XXXX entitled ZONING ORDINANCE AMENDMENT NO. 2026-01 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING PORTIONS OF CHAPTER 41 (ZONING) OF THE SANTA ANA
MUNICIPAL CODE RELATING TO SMOKE SHOP ESTABLISHMENTS AND
FINDING THE ACTION TO BE EXEMPT FROM THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA) UNDER STATE CEQA GUIDELINES SECTION 15060(c)(2), SECTION 15060(c)(3), AND SECTION 15061(b)(3), read by title only and waive further reading
2. Adopt a resolution (Exhibit 2) to establish a Planning and Building Agency Smoke Shop Inspection fee and a Police Department Smoke Shop Inspection fee.
RESOLUTION NO. 2026-XXX entitled A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA ANA ESTABLISHING FEES FOR PLANNING AND
BUILDING AGENCY SMOKE SHOP INSPECTIONS AND POLICE
DEPARTMENT SMOKE SHOP INSPECTIONS
Zoning Ordinance Amendment No. 2026-01 and Fee Resolution (Smoke Shop Ordinance and Inspection Fee Resolution)
March 3, 2026
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GOVERNMENT CODE §84308 APPLIES: No
EXECUTIVE SUMMARY
On December 2, 2025, the City Council directed staff to prepare an ordinance to regulate the establishment and permitting of smoke shops and restrict their proximity to sensitive uses such as schools, parks, childcare facilities, and residences, and to require Planning Commission approval of a conditional use permit (CUP) for the establishment of new smoke shops. The proposed ordinance follows City Council direction by defining smoke shops separate from retail and service establishments, regulating location by requiring a buffer from one another and from sensitive uses, requiring CUP approval for the establishment of new smoke shops, and establishing development and operating standards.
Planning Commission Action – February 9, 2026
On February 9, 2026, the Planning Commission held a public hearing for the project and voted 6:0:1 (Commissioner Oliva absent) to recommend that the City Council approve Zoning Ordinance Amendment (ZOA) No. 2026-01. During Planning Commission comments, commissioners requested that staff evaluate incorporation of two items detailed in Table 1 below, which have been evaluated and addressed in the revised draft ordinance:
Table 1: Planning Commission Topics for Consideration
Item Commission Comment Proposed Change to Draft Ordinance Mobile
Vending
Trucks
Recommended that staff evaluate the
treatment of mobile vending vehicles with
ancillary sale of tobacco products in a
manner similar to convenience stores and
grocery stores, which are distinct from
smoke shops and not subject to the
proposed regulations.
Specify by definition that smoke shops are
businesses located in permanent, fully
enclosed buildings.
Arterials Recommended that staff consider prohibiting
smoke shops on arterial streets.
Disallow smoke shops within a building or
tenant space where any storefront,
signage, or pedestrian entrance is oriented
toward or visible from an arterial street.
DISCUSSION
The City of Santa Ana is proposing to amend portions of Chapter 41 (Zoning) relating to smoke shop establishments and a resolution to amend the Miscellaneous Fees Schedule for Fiscal Year 2025-2026 to establish a Planning and Building Agency Fee for Smoke Shop Inspections and a Police Department Fee for Smoke Shop Inspections. The proposed ordinance is attached to this report as Exhibit 1.
Zoning Ordinance Amendment No. 2026-01 and Fee Resolution (Smoke Shop Ordinance and Inspection Fee Resolution)
March 3, 2026
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Background and Present Status
There has been a significant rise in the number of licensed and unlicensed tobacco retail establishments within the City. The number of smoke shops has risen from 17 to 43 smoke shops (38 licensed, 5 unlicensed) since January 1, 2024. Approximately 96% of all documented smoke shops are located in neighborhood-serving retail centers in close proximity to sensitive uses, raising public health, safety, and enforcement concerns.
Chapter 41 of the SAMC does not distinguish smoke shops from general retail uses. As a result, licensed retailers have been allowed to establish at locations throughout the City in commercial and other zoning districts where retail uses are allowed by-right.
While smoke shops are distributed throughout the City, nearly 60% of them are located within 1,000 feet of youth-centered land uses such as schools, parks, and childcare facilities and all but two are located within 500 feet of residential uses.
Public Health and Safety
The proximity of tobacco retailers to youth is a public health concern. The U.S. Surgeon General determined in 2012 that a high density of tobacco retailers promotes youth smoking by both increasing access to products and creating more environmental cues that encourage smoking.1 Research indicates that such conditions are associated with an increased rate of tobacco use initiation in young people, 2,3 higher overall tobacco consumption, and a lower likelihood of successfully quitting.4,5 While the impact of tobacco retailer density on minors is a primary concern, the presence of smoke shops also affects community character, public health, and public safety. Those effects are evidenced by increased loitering, smoking, littering, and crime linked to cash- based operations, factors that drive a consequential decline in nearby quality of life and with detrimental impacts on surrounding businesses.
In 2025, Police Department personnel received 989 calls for service and complaints about the sale of tobacco products to minors, which prompted targeted enforcement. These 1 U.S. Department of Health and Human Services. Preventing Tobacco Use Among Youth and Young Adults: A Report of the Surgeon General. U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, National Center for Chronic Disease Prevention and Health Promotion, Office on Smoking and Health, 2012.
2 Center for Public Health Systems Science. Point-of-Sale Strategies: A Tobacco Control Guide. Center for Public Health Systems Science; George Warren Brown School of Social Work at Washington University in St. Louis and the Tobacco Control Legal Consortium, 2014.
3 Henriksen L, Feighery EC, Schleicher NC, Cowling DW, Kline RS, Fortmann SP. Is adolescent smoking related to the density and proximity of tobacco outlets and retail advertising near schools? Prev Med Aug 2008;47(2):333–8. 4 Chuang YC, Cubbin C, Ahn D, Winkleby MA. Effects of neighborhood socioeconomic status and convenience store concentration on individual level smoking. J Epidemiol Community Health 2005;59(7):568–73. 5 U.S. Department of Health and Human Services. Preventing Tobacco Use Among Youth and Young Adults: A Report of the Surgeon General. U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, National Center for Chronic Disease Prevention and Health Promotion, Office on Smoking and Health, 2012.
Zoning Ordinance Amendment No. 2026-01 and Fee Resolution (Smoke Shop Ordinance and Inspection Fee Resolution)
March 3, 2026
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investigations confirmed additional concerns and uncovered illicit activities. Because of investigations, authorities executed 12 search warrants, which revealed various criminal violations, including:
Storage of narcotics and controlled substances,
Sale of nitrous oxide, and
Sale of flavored tobacco products.
Following searches, the Police Department issued citations and, in some instances, made arrests. The Code Enforcement Division has also responded to complaints about smoke shops and began collecting detailed data for them in August 2025. Since then, Code Enforcement personnel have issued two Notices and Orders, five Notices of Violation, and 10 Administrative Fines for unpermitted work, unpermitted substance sales, and operation without required licensing and/or certification.
Proposed Ordinance
The draft smoke shop ordinance defines smoke shops as a distinct land use separate from retail and service uses, and restricts the location of smoke shops to commercial zones provided they obtain a CUP. Furthermore, the ordinance restricts the location by buffering smoke shops from one another and from residential and youth-centered land uses. In addition, the ordinance establishes a set of regulations to minimize impacts to surrounding businesses and neighborhoods. The following table summarizes current and proposed regulations.
Table 2: Current and Proposed Regulations
Item Existing Zoning Code
Regulations
Proposed Zoning Code Amendment
Definitions Smoke shops are not defined
and are considered a type of
retail and service
establishment.
Sec. 41-152.6.1 establishes a definition for
smoke shops and specifically excludes
convenience stores and grocery stores with
accessory sales of tobacco.
Zoning Districts Smoke shops are consider a
retail and service
establishment and are
permitted throughout the city in
commercial and industrial
districts and Specific Plans
and Specific Developments
where retail and service uses
are allowed by right.
Sec. 41-2409 expressly states that smoke
shops may be located in the C1, C1-MD, C2,
C4, C5, or C-SM zoning districts subject to
approval of a CUP.
Permit
Requirements
No special or additional permit
required for smoke shops.
Sec. 41-2410(b)(1) requires a CUP for the
establishment of smoke shops.
Location
Requirements
No location requirements. Sec. 41-2409(a) establishes location standards, including:
Zoning Ordinance Amendment No. 2026-01 and Fee Resolution (Smoke Shop Ordinance and Inspection Fee Resolution)
March 3, 2026
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Item Existing Zoning Code
Regulations
Proposed Zoning Code Amendment
1. 1,000-foot separation between smoke
shops;
2. 1,000-foot separation requirement from
youth-centered uses including recreational
facilities and schools;
3. 1,000-foot separation requirement from an
alcohol or other drug abuse recovery or
treatment facility;
4. 500-foot separation requirement from a
property zoned or used for residential
purposes; and
5. Prohibition from buildings or tenant spaces
where any storefront, signage, or
pedestrian entrance is oriented toward or
visible from the public right-of-way of an
arterial street.
Development and
Operating
Standards
No development and operating
standards specific to smoke
shops.
Sec. 41-2411 establishes development and
operating standards applicable to all smoke
shops, existing and future, including, but not
limited to:
1.Limiting display of smoking paraphernalia;
2.Age restrictions (must be 21 years or older
to enter);
3.Lighting;
4.Litter and graffiti removal;
5.Vending machine prohibition;
6.Video surveillance requirements;
7.Signage, glazing, and obstructions;
8.Prohibition of loitering, illegal drug activity,
public intoxication, sales to minors,
gambling, and prostitution;
9.Training requirements;
10.Compliance with local, state, and federal
laws, regulations, and orders;
11.Posting of Conditions of Approval and
proof of training;
12.Prohibition of sale of certain products (e.g.
cannabis or cannabinoid products, drug
paraphernalia, flavored tobacco, and
kratom products);
13.Hours of operation;
14.Security planning and measures;
15.Annual inspections; and
16.Circumstances for fines and/or CUP
revocation.
Zoning Ordinance Amendment No. 2026-01 and Fee Resolution (Smoke Shop Ordinance and Inspection Fee Resolution)
March 3, 2026
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Item Existing Zoning Code
Regulations
Proposed Zoning Code Amendment
Discontinuance of
Nonconforming
Status
Smoke shops are not subject
to use-specific discontinuance
of nonconforming status.
Sec. 41-683.8 deems all smoke shops with a
valid certificate of occupancy and tobacco
retailer license prior to the effective date of the
ordinance nonconforming and establishes that
if a nonconforming smoke shop is discontinued
for a period of six months, the subsequent use
must conform to the provisions of the Zoning
Code.
Locational Criteria Analysis
The proposed ordinance includes three distance and separation requirements to protect public health, safety, and community character.
To reduce exposure of smoke shops to youth, a 1,000-foot buffer is proposed between smoke shops and youth-centered locations. This proposed distance is more effective at making tobacco products less visible and accessible to students, particularly those walking or biking to and from school. This standard matches the City’s buffers for other restricted businesses, such as alcohol retailers, which have proven effective at reducing access to alcoholic beverages, and which is associated with lowering initiation of consumption and consumption rates, reducing violence, and decreasing crime. A 1,000- foot buffer is consistent with those adopted by cities like Anaheim and Fresno.
To protect residential neighborhoods from secondary impacts, such as late-night loitering, the proposed ordinance also includes a 500-foot buffer between smoke shops and residential areas. This distance balances the desire to protect community character with the need to leave some commercial space available for businesses. Such a standard matches the City’s rules for other restricted businesses, like massage establishments, which have proven effective at limiting their associated negative impacts. While a 500- foot standard is stricter than Anaheim’s 200-foot rule, it is a more consistent compared to other California cities that have recently adopted regulations, such as West Hollywood (600 feet), Escalon (600 feet), and Rancho Cordova (1,000 feet).
To prevent overconcentration of smoke shops, the proposed ordinance includes a 1,000- foot buffer between smoke shops. Separating the businesses helps to prevent the formation of “vice hubs” that can negatively impact community character, health, and safety. This distance matches the City’s current requirements for massage establishments and adult entertainment businesses, which have proven effective at reducing crime and fostering a more professional, therapeutic environment. Other cities in California, including Fresno and Rancho Cucamonga, have the same separation requirement.
Zoning Ordinance Amendment No. 2026-01 and Fee Resolution (Smoke Shop Ordinance and Inspection Fee Resolution)
March 3, 2026
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To limit visibility of smoke shops from major arterials, as recommended by the Planning Commission, the proposed ordinance includes a 300-foot buffer between arterial streets and smoke shops. Such a standard is consistent with zoning practices to manage traffic, preserve aesthetics, and deter undesirable activity in major business corridors. Such a practice is consistent with the City’s current requirements for other uses such as commercial storage and mini-warehouse facilities, which are less desirable uses in commercial areas and are required to be at least 500 feet from an arterial street.
Existing and Future Smoke Shops
Currently, smoke shops are distributed throughout the city, spanning the length of commercial corridors and sometimes clustering in groups of two or three. Under the proposed ordinance, none of the 43 existing smoke shops would meet the location requirements.
To gradually phase out smoke shops near sensitive uses, the proposed ordinance includes nonconforming rules, which allow existing smoke shops to continue operations if they have a valid Certificate of Occupancy and a Tobacco Retailer License.
Nonconforming shops may continue and must meet the new development and operating standards (listed in Table 2) within six months of the effective date of the smoke shop ordinance.
If a nonconforming smoke shop ceases operations for six months, the nonconforming status discontinues and any new business at that location must conform to Chapter 41 (Zoning) of the SAMC. The six-month limit aligns with the discontinuation period for the sale of alcoholic beverages in Santa Ana, which has proven effective at reducing the number of nonconforming alcohol sales establishments.
General Plan Consistency
The proposed modification to the Zoning Code is consistent with multiple goals and policies outlined in the General Plan’s Land Use, Community, and Economic Prosperity elements, specifically:
Land Use (LU) Element Goal LU-3 (Compatibility of Uses): This goal seeks to preserve the character and integrity of existing neighborhoods. Policy LU-3.3 (Enforcement of Standards): This policy aims to maintain a robust and proactive code enforcement program that partners with community stakeholders and is responsive to community needs.
Policy LU-3.8 (Sensitive Receptors): This policy endeavors to avoid placing noxious or hazardous land uses in close proximity to sensitive land uses. Policy LU-4.6 (Healthy Living Conditions): This policy encourages land use decisions that promote healthy lifestyles.
Community (CM) Element Goal CM-3 (Active Living and Well-Being): This goal promotes the health and wellness of all residents.
Zoning Ordinance Amendment No. 2026-01 and Fee Resolution (Smoke Shop Ordinance and Inspection Fee Resolution)
March 3, 2026
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Policy CM-3.2 (Healthy Neighborhoods): This policy supports the creation of healthy neighborhoods by addressing public safety, land use conflicts, and incompatible uses.
Policy EP-2.3 (Complementary Businesses): This policy encourages the development of mutually beneficial and complementary business clusters within the community.
Code Enforcement and Police Department Smoke Shop Inspection Fees Miscellaneous Fees are intended to recover the City’s costs associated with delivering the corresponding services and, in accordance with state law, cannot exceed the City’s actual costs in delivering said services.
With the adoption of ZOA No. 2026-01, the City would require smoke shop inspections at least once per year. Code Enforcement and the Police Department will conduct joint inspections. Code Enforcement will inspect compliance with development and operating standards such as, but not limited to, the display of products, lighting, signage, glazing, and obstructions, in addition to compliance with Conditions of Approval. The Police Department will conduct inspections for evidence of criminal activity such as, but not limited to, loitering and other nuisance activities, and the sale of prohibited products, as well as proper video surveillance.
Neither of the inspection types were contemplated in the Fiscal Year 2025-2026 Miscellaneous Fees Schedule. The Planning and Building Agency is proposing to establish a Code Enforcement Smoke Shop Inspection fee of $533.08 and the Police Department is proposing to establish a Police Department Smoke Shop Inspection fee of $709.98.
ENVIRONMENTAL IMPACT
Pursuant to the California Environmental Quality Act (“CEQA”) and the CEQA Guidelines, the adoption of this Ordinance (“Project”) is exempt from CEQA review pursuant to Section 15060(c)(2) because the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment; Section 15060(c)(3), because the activity is not a “project” as defined in Section 15378; and Section 15061(b)(3), because it can be seen with certainty that there is no possibility that the adoption of this ordinance, which establishes land use and zoning regulations for smoke shops to protect public health and safety, may have a significant effect on the environment. These amendments are administrative and regulatory in nature, do not authorize specific development projects, and are intended to prevent the over- concentration and proliferation of smoke shops near sensitive uses. Based on this analysis, a Notice of Exemption, Environmental Review No. 2026-08, will be filed for this Project.
Zoning Ordinance Amendment No. 2026-01 and Fee Resolution (Smoke Shop Ordinance and Inspection Fee Resolution)
March 3, 2026
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FISCAL IMPACT
The proposed smoke shop ordinance is expected to generate revenue that offsets any administrative costs. Existing mandatory fees for CUP applications will recover the administrative cost to process applications.
In addition, adoption and implementation of the ordinance requires the establishment of new fees to allow the City to recover expenses incurred for staff time spent preparing for, conducting, and reporting on inspections. City departments required to administer the inspections include the Planning and Building Agency and the Police Department.
The proposed ordinance has a net neutral fiscal impact, as the passage of the ordinance would generate fiscal impacts to the City in the form of additional expenditures offset by new revenues. A new smoke shop CUP application would generate a base cost of $13,691. Application fees include those for processing a Conditional Use Permit, Development Project Review, and an Environmental Review. In 2026, staff estimates conducting 38 inspections for existing smoke shops operating with permits and Certificates of Occupancy, resulting in approximately $47,000 in total inspection fees.
EXHIBITS
1. Ordinance
2. Fee Resolution
3. February 9, 2026 Planning Commission Staff Report and Exhibits
4. Copy of Public Hearing Notice
Submitted By: Ali Pezeshkpour, AICP, Executive Director, Planning and Building Agency
Approved By: Alvaro Nuñez, City Manager