Paso Robles council directs staff to restore adult‑use delivery rules and study storefront policy

Paso Robles — The City Council on Tuesday reopened its multi‑year review of local cannabis regulations and directed staff to return with two items: an ordinance change to permit existing, city‑permitted medical cannabis delivery operators to deliver adult‑use cannabis, and a framework and outreach plan for potentially authorizing cannabis retail storefronts in the city.

Background: Community development staff briefed the council on the city’s regulation history and options for changing policy. Since Prop 64 legalized adult‑use cannabis, Paso Robles has allowed a narrow set of medical delivery offices by conditional use permit and adopted local tax rates. In 2022 the council temporarily allowed existing medical delivery offices to carry adult‑use deliveries for one year; that provision expired in 2023. Staff recommended restoring the prior temporary allowance as a first step.

Council direction: Councilmembers discussed enforcement, tax collection and neighbor impacts. Several business owners and longtime local delivery operators testified in favor of allowing local licensed operators to compete on equal footing with delivery services based outside the city and urged a merit‑based selection process should the city adopt storefront licensing.

After public comment and staff discussion the council voted to direct staff to prepare (1) an updated ordinance to permit adult‑use delivery by the city’s existing medical delivery operators and (2) a community outreach and regulatory framework that would analyze how, whether and where storefront retail should be permitted, what selection or licensing process would apply, and what buffers and operating standards would be required. Staff said the first item (restoring delivery authority) could be returned relatively quickly, and that a full retail framework would require more study and outside subject‑matter expertise.

Why this matters: At present state‑licensed delivery operators that are based outside Paso Robles may deliver adult‑use cannabis into the city while local medical delivery operators are constrained by city municipal code. The council’s direction is intended to level the playing field for local operators, improve tax collection and produce a formal evaluation of retail storefront licensing and neighborhood protections.

Next steps: Staff will return with a draft ordinance to allow adult‑use delivery by existing city‑permitted medical delivery businesses and will develop a public engagement plan and consultant scope for a study of storefront retail options, licensing and selection processes. Council members asked staff to examine enforcement and tax collection approaches used by other local jurisdictions and to include equity, public‑health and youth‑safety provisions in any retail licensing framework.

Ending: The council’s split approach—restore adult‑use deliveries now, study retail later—reflects caution about storefronts among some members while responding to local business and tax‑collection concerns raised by residents and operators.