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 17, 2026
TOPIC: Smoke Shop Ordinance – Second Reading
AGENDA TITLE
Second Reading and Adoption of Zoning Ordinance Amendment No. 2026-01 to Amend Portions of Chapter 41 (Zoning) of the Santa Ana Municipal Code Relating to Smoke Shops
First reading March 3, 2026 City Council Meeting and approved by a vote of (7-0). Legal notice published in the OC Reporter on March 6, 2026.
RECOMMENDED ACTIONS
1. Conduct a second reading and adopt an ordinance 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-3091 entitled 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)
2. Determine that, pursuant to the California Environmental Quality Act (CEQA), the project is exempt from CEQA pursuant to sections 15060(c)(2), 15060(c)(3), and 15061(b)(3) of the CEQA Guidelines.
GOVERNMENT CODE §84308 APPLIES: No
Smoke Shop Ordinance – Second Reading
March 17, 2026
5 6
4 9
DISCUSSION
On March 3, 2026, City Council conducted a first reading of an ordinance, Zoning Ordinance Amendment No. 2026-01, to amend Chapter 41 (Zoning) of the Santa Ana Municipal Code relating to the location, permitting, development standards, and operational standards for smoke shops and related definitions. The ordinance, approved 7:0, requires a second reading and adoption to become effective April 16, 2026.
No changes to the ordinance were made by the City Council. However, following the meeting, staff identified and corrected a typographical error. On page six, Section 13 of the Ordinance, the reference to the definition of “Tobacco retailer” has been changed from Section 18-90(f) to Section 18-90(h). A copy of the ordinance for second reading is attached to this report as Exhibit 1.
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.
FISCAL IMPACT
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.
Therefore, an appropriation adjustment is not required.
EXHIBIT
1. Ordinance for Second Reading
Submitted By: Ali Pezeshkpour, AICP, Executive Director, Planning and Building Agency
Approved By: Alvaro Nuñez, City Manager