Anaheim officials are looking to tighten regulations on smoke shops as police officials raise concerns that some have become hubs for illegal gambling and sell black market marijuana sales.
City officials tallied at least 78 smoke shops throughout Orange County’s largest city.
The shops can be routinely found in strip malls throughout West Anaheim, which is home to working class residents.
Last week, city council members voted unanimously to adopt an ordinance to bolster rules on smoke shops including forcing owners to get a tobacco retail permit, banning them near schools and regulating their hours of operation.
Anaheim Police Sergeant Chris Cooper said investigations into narcotics sales and illegal gambling have often led cops to smoke shops – some with false walls or back doors where they sell marijuana.
“After arresting several co-workers and owners of smoke shops, we realized that the city did not have a mechanism for addressing the businesses that were housing this illegal activity,” he said at Tuesday’s meeting.
“We found that the criminal element was exploiting a loophole – an adult based business that had minimal checks and balances, so it was really inviting for them to get involved in this business.”
At the same time, Cooper said not all smoke shops are bad.
“In talking with a lot of those shops, they are also supportive of this initiative, because they would like to compete for business on a level playing field, and a lot of these businesses that are operating illegally have an advantage over them,” he said.
The new ordinance comes as elected leaders across Orange County are adopting new laws to ban the sale of nitrous oxide also known as whippets for recreational use.
[Read: Santa Ana Bans Whippets]
Mayor Ashleigh Aitken questioned if such a ban should be included in the ordinance or taken up on its own.
Cooper said nitrous oxide sales are not exclusive to just smoke shops.
“Adding it to this would be less beneficial, and it would be more like picking on the smoke shops, as opposed to a standalone ordinance just banning that,” he said.
There are 78 smoke shops in Anaheim – 31 of them are in district two which encompasses a stretch of Brookhurst Street and Little Arabia in the west end part of town.
“I typically do like District Two being number one, not necessarily for this though, and especially because it ties into those calls for service that are generated,” said City Councilman Carlos Leon, who represents part of the west side of Anaheim, at Tuesday’s meeting.
“This is something that is another step that we can take to ensure that we’re covering our bases right, that you all have the tools that you need to do your jobs to keep us safe.”
Cooper said the problematic smoke shops aren’t only in Leon’s district.
“Each one of your districts has a smoke shop that’s being run poorly, that’s affecting your residents,” Cooper said. “This is a city problem. It’s actually a state problem.”
Under the new ordinance, smoke shop owners will be required to apply and get a tobacco retail permit by Jan. 1, 2026 or their next annual business license renewal deadline, whichever comes later.
The ordinance defines a tobacco retailer as a shop where 15% or more of their store’s visible inventory is dedicated to tobacco paraphernalia and products like cigarettes, cigars and pipes.
The new law does not apply to cigar lounges or liquor stores.
To view the ordinance, click here.
Anaheim Police Chief Rick Armendariz said the ordinance allows law enforcement to conduct site inspections and prevent illegal activity at stores by providing new businesses with a set of standards and expectations.
“It definitely gives us tools to be able to not only be proactive, but respond to those types of complaints,” he said at Tuesday’s meeting.
Violating the ordinance could result in suspension or revocation of the permit as well as up to $1,000 in fines.
The first violation of the ordinance in a five year period could result in the business owner having their permit suspended for 10 business days. The second violation in the same time period could result in the permit being suspended for 30 business days.
The third violation of the ordinance in a five year period could result in the permit being revoked and another permit couldn’t be issued at the same location until two years later.
The first violation of the ordinance could also result in a $250 fine.
The second violation within a one-year period could result in a $500 fine and the third in the same timeframe could result in a $1,000 fine.
The ordinance also bans tobacco shops from opening up within a 1,000 feet from a school, community recreation center or a park and within 500 feet of another smoke shop.
Smoke shops also can not be open between the hours of 12 a.m. to 6 a.m.
Editor’s note: Ashleigh Aitken’s father, Wylie Aitken, chairs Voice of OC’s board of directors.
Hosam Elattar is a Voice of OC reporter and corps member with Report for America, a GroundTruth initiative. Contact him at helattar@voiceofoc.org or on Twitter @ElattarHosam.