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Home My WebLink AboutOrdinance No. 2026-01 | Urgency Interim Ordinance Prohibiting the Issuance of Tobacco Retailer Permits | Adopted 01/05/2026 ORDINANCE NO. 2026-01 AN URGENCY INTERIM ORDINANCE OF THE CITY OF GILROY PROHIBITING THE ISSUANCE OF TOBACCO RETAILER PERMITS FOR A PERIOD NOT TO EXCEED FORTY-FIVE (45) DAYS CITYWIDE WHEREAS, the City of Gilroy (“City”) is a municipal corporation duly organized as a Charter City under the California Constitution and laws of the State of California; and WHEREAS, the City Council has broad discretion pursuant the California Constitution Article XI, Section 5; and the general laws of the state, including, but not limited to, the California Planning and Zoning Law (Gov. Code section 65000 et seq.) to legislate for public purposes and for the general welfare, including, but not limited to, matters of public health and safety; and WHEREAS, California Government Code Section 65858 sets forth procedures for the adoption of an urgency interim ordinance to prohibit the approval of applications for additional subdivisions, use permits, variances, building permits, and other applicable entitlements for uses that may be in conflict with a contemplated specific plan or zoning proposal that the legislative body, planning commission or the planning department is considering or studying or intends to study; and WHEREAS, on November 17, 2014, the City adopted an Ordinance requiring all tobacco retailers to obtain a “Tobacco Retailer Permit” to ensure that retailers comply with tobacco control laws and City business standards (Ord. No. 2014-14; Gilroy Code Section 13.66 et seq); and WHEREAS, on November 3, 2025, the City Council adopted Ordinance 2025-08, prohibiting the issuance of Tobacco Retailer Permits within the Gilroy Downtown Specific Plan Area for a period not to exceed 45 days, as permitted per California Government Code Section 65858; and WHEREAS, on December 8, 2025, the City adopted Ordinance 2025-11, extending the urgency interim Ordinance prohibiting issuance of any Tobacco Retailer Permit s within the Gilroy Downtown Specific Plan Area, as set forth by Chapter 13, Article VIII (Tobacco Retailer Permit) of the Gilroy Municipal Code in the City of Gilroy; and WHEREAS, in California, individuals under the age of 21 are prohibited from purchasing or using tobacco or cannabis products. This regulation is based on evidence that smoking is the leading cause of preventable disease and mortality worldwide. Smokeless tobacco is also associated with increased risk for several cancers, including those of the mouth, esophagus, and pancreas. Additionally, marijuana smoke contains many of the same toxins, irritants, and carcinogens found in tobacco smoke; and WHEREAS, while the majority of tobacco retailers in the City operate in conjunction Docusign Envelope ID: 5CDE8E04-0A48-4C20-ADCE-CA2085A8139B Ordinance No. 2026-01 Prohibition on Issuance of Tobacco Retailer Permits Citywide City Council Regular Meeting | January 5, 2026 Page 2 of 6 -2- with another land use activity (i.e., part of a grocery store, liquor store, gas station, convenience store), in the past year-and-a-half the City has seen an increase in the number of stand-alone “Smoke Shop” tobacco retail stores; and WHEREAS, the prevalence of tobacco retail establishments citywide may contribute to various adverse effects because of the associated health risks. In addition, the City of Gilroy has a greater density of tobacco retailers compared to neighboring jurisdictions increasing the likelihood that both youth and adults start using tobacco products as they are more available and accessible; and WHEREAS, the City of Gilroy’s current tobacco regulations are limited. For instance, a tobacco retailer must only obtain a State retailer license, a Tobacco Retailer Permit, and a City business license to operate within a mixed-use or commercial area that allows retail. The City does not define or differentiate between categories of tobacco retailers, such as stand-alone smoke shops and businesses with co-located tobacco sales. Furthermore, there are no local restrictions on flavored tobacco, retail vaping products, or e-cigarette sales, nor are there standards addressing cumulative retailer density or operational expectations for stand-alone smoke shops; and WHEREAS, stand-alone smoke shops throughout the City have been a source of unlawful activities in the City, including April 2025, where the California Department of Tax and Fee Administration (CDTFA) and the City of Gilroy confiscated flavored tobacco products and hallucinogenic psilocybin that are illegal to sell from certain local tobacco retail businesses; and WHEREAS, considering the foregoing findings, the City Council finds that there is a current and immediate threat to public health, safety, and welfare, and that approval of additional tobacco retailer permits would result in and exacerbate that threat to public health, safety and welfare; and WHEREAS, within a reasonable time, the City Council or staff is considering studying or intending to study a contemplated general plan, specific plan, or zoning proposal to address the foregoing concerns, with which the uses currently authorized by tobacco retailer permits may be in conflict; and WHEREAS, on January 5, 2026, in accordance with State law, the City Council provided due consideration of all evidence presented and provided in the entire administrative record and held a duly noticed public hearing and took testimony regarding this urgency interim ordinance. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY DOES HEREBY ORDAIN AS FOLLOWS: Docusign Envelope ID: 5CDE8E04-0A48-4C20-ADCE-CA2085A8139B Ordinance No. 2026-01 Prohibition on Issuance of Tobacco Retailer Permits Citywide City Council Regular Meeting | January 5, 2026 Page 3 of 6 -3- SECTION I. Recitals. The above recitals are true and correct and hereby adopted as the City Council’s findings. SECTION II. Purpose and Authority. In the interest of protecting the health, safety, and welfare of the residents in the City of Gilroy, it is the purpose and intent of this urgency interim Ordinance to place a temporary moratorium on the issuance of any new permit, license, or other entitlement for any tobacco retailer business citywide. This includes any new permit, license, or other entitlement for the relocation or physical expansion of existing business falling under the definition of a tobacco retailer business as defined in Gilroy Municipal Code Section 13.66. The City Council has authority to adopt this Ordinance pursuant to California Government Code Section 65858 as an urgency measure prohibiting any use that may be in conflict with a contemplated general plan, specific plan, or zoning proposal that the City is considering or studying. SECTION III. Findings. The City Council hereby finds and determines that tobacco retailer businesses in general constitute an immediate threat to public health, safety, and welfare. The approval of additional entitlements for Tobacco Retailer Permits and approval of the relocation or physical expansion of existing tobacco retailer business under the City’s current regulations will further threaten the public health, safety, and welfare. The adoption of this urgency interim Ordinance is therefore necessary for the immediate protection of public health, safety, and welfare. The above recitals are incorporated herein by reference as true and correct as the Council’s findings. SECTION IV. Moratorium Imposed. This Ordinance imposes a moratorium on the issuance of any Tobacco Retailer Permit, as set forth by Chapter 13 Article VIII (Tobacco Retailer Permit) of the Gilroy Municipal Code. This moratorium shall not apply to the renewal of an existing tobacco retailer’s permit previously issued by the City of Gilroy. SECTION V. Violation. Except as otherwise permitted under this urgency interim Ordinance, the establishment, relocation, or physical expansion of a Tobacco Retailer Business is declared to be a public nuisance. Violations of this urgency interim Ordinance may be enforced by any applicable laws or ordinances, including, but not limited to, injunctions or administrative or criminal penalties under the Gilroy Municipal Code. SECTION VI. Term of Ordinance. Docusign Envelope ID: 5CDE8E04-0A48-4C20-ADCE-CA2085A8139B Ordinance No. 2026-01 Prohibition on Issuance of Tobacco Retailer Permits Citywide City Council Regular Meeting | January 5, 2026 Page 4 of 6 -4- This urgency interim Ordinance shall be in effect from the date of adoption for a period of forty- five (45) days, unless it is extended pursuant to California Government Code Section 65858 or other applicable law, as approved by the City Council. SECTION VI I. Severability. If any section, subsection, subdivision, sentence, clause or phrase of this urgency interim Ordinance is for any reason held to be unconstitutional or otherwise void or invalid by any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this urgency interim Ordinance. The City Council hereby declares that it would have passed this urgency interim Ordinance and each section, subsection, subdivision, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, or phrases may be declared unconstitutional or otherwise invalid by a court of competent jurisdiction. SECTION VIII. CEQA Determination This urgency interim Ordinance is exempt from environmental analysis under the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that this Ordinance has no possibility of having a significant effect on the environment, as it merely preserves the status quo in accordance with Government Code Section 65858 in the interest of evaluating and preventing potential harms related to tobacco sales. SECTION IX. Effective Date. This urgency interim Ordinance, passed by at least a four-fifths vote of the City Council, is declared to be an interim urgency Ordinance for preserving the public health, safety, and welfare and shall take effect and be enforced immediately upon adoption pursuant to Government Code Section 36937(b). SECTION X. Publication. The City Clerk shall cause this Ordinance to be published and shall be published, or summary thereof, one time within fifteen (15) days upon passage and adoption in a newspaper of general circulation, such as the Gilroy Dispatch. Docusign Envelope ID: 5CDE8E04-0A48-4C20-ADCE-CA2085A8139B Ordinance No. 2026-01 Prohibition on Issuance of Tobacco Retailer Permits Citywide City Council Regular Meeting | January 5, 2026 Page 5 of 6 -5- PASSED AND ADOPTED by the City Council of the City of Gilroy this 5th day of January 2026, by the following vote: AYES: COUNCIL MEMBERS: BRACCO, CLINE, FUGAZZI, HILTON, MARQUES, RAMIREZ, BOZZO NOES: COUNCIL MEMBERS: NONE ABSTAIN: COUNCIL MEMBERS: NONE ABSENT: COUNCIL MEMBERS: NONE APPROVED: Greg Bozzo, Mayor ATTEST: ___________________________ Kim Mancera, City Clerk Docusign Envelope ID: 5CDE8E04-0A48-4C20-ADCE-CA2085A8139B Ordinance No. 2026-01 Prohibition on Issuance of Tobacco Retailer Permits Citywide City Council Regular Meeting | January 5, 2026 Page 6 of 6 -6- CERTIFICATE OF THE CLERK I, KIM MANCERA, City Clerk of the City of Gilroy, do hereby certify that the attached Ordinance No. 2026-01 is an original ordinance, or true and correct copy of a City Ordinance, duly adopted by the Council of the City of Gilroy at a Regular Meeting of said held on Council held Monday, January 5, 2026 with a quorum present. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this Wednesday, January 7, 2026. ____________________________________ Kim Mancera City Clerk of the City of Gilroy Docusign Envelope ID: 5CDE8E04-0A48-4C20-ADCE-CA2085A8139B