Modesto council introduces smoke‑shop rules, approves permit fees after months of police enforcement

Modesto on Tuesday introduced a new ordinance to regulate smoke shops and approved an annual permit fee as the City Council responded to months of police inspections that uncovered illegal tobacco and other illicit sales.

City Attorney Sanchez and Police Chief Brandon Gillespie told the council the change is aimed at businesses the city says have become frequent sites of illegal activity. "These inspections uncovered the illegal sale of flavored tobacco, marijuana, cannabis‑based products, psilocybin mushrooms and gambling machines," Chief Gillespie said during the staff presentation. "Across both inspections, a total 16 arrests were made," he said, summarizing prior enforcement work that the department said continued through spring and summer 2025.

Why it matters: Council members and many public speakers said the ordinance is intended to reduce youth access to flavored and emerging tobacco products and to give law enforcement tools to act on repeated violations. Dozens of residents, students, health advocates and neighborhood leaders urged the city to go further and adopt a comprehensive tobacco‑retail licensing (TRL) program that would cover all sellers of tobacco products, including convenience stores and liquor stores, not only specialty smoke shops.

Key provisions and requirements

- Permit requirement: All smoke shops — defined in the ordinance as retail establishments where 15% of floor area or 15 linear feet of display is used for tobacco or tobacco paraphernalia — must obtain a city smoke‑shop permit. Existing smoke shops that held a business license before the city's moratorium must apply by Nov. 14, 2025 to remain eligible.

- Location limits and cap: New smoke shops will be prohibited within 1,000 feet of sensitive uses including schools, child‑care centers, parks and youth facilities, within 100 feet of residences and within 1,000 feet of another smoke shop or an existing cannabis dispensary. The code also bars smoke shops in the downtown zoning district. The ordinance includes a numerical cap of one smoke‑shop permit per 25,000 residents (the current cap would be nine based on city population); however, the cap does not force already‑operating, qualifying shops to close immediately.

- Operating standards: The ordinance establishes operating rules for all permitted smoke shops: mandatory lighting and signage, prohibition on on‑site consumption of tobacco, cannabis or alcohol, banning vending and gambling machines, limits on window obstructions so interiors are visible to the street, required security plans and camera specifications, staff training on prohibited products (for example, identifying flavored tobacco), and a baseline hours‑of‑operation limit of 8 a.m. to 10 p.m.

- Inspections and enforcement: Each permitted smoke shop will be inspected at least annually. The city sets a three‑tiered administrative fine schedule: up to $2,000 for a first violation, up to $3,000 for a second violation within five years, and up to $5,000 for a third and subsequent violation within five years. Operating without a permit can carry penalties of up to $20,000. The ordinance also preserves criminal prosecution and the council noted the chief may pursue permit suspension or revocation for serious or repeated violations.

Fees and council action

The council voted to introduce and waive first reading of the ordinance and separately adopted a resolution setting the program fees. The fee structure (staff estimate of costs and time to administer the program): an application fee of $500 (nonrefundable), an annual permit fee of $1,100 (credited against the application fee if the permit is issued) and a reinspection fee of $530 when follow‑up inspections are required.

Votes and next steps

- Motion to introduce and waive first reading of the ordinance: moved by Vice Mayor Bavaro, second by Council member Chris Rickey; roll call 6–0 in favor. (Vice Mayor Bavaro; Council members Jeremiah Williams, Scutia Brayton, Alvarez, Chris Rickey; Mayor Sue Zwolens voted aye.)

- Resolution adopting application, annual permit and reinspection fees: moved by Council member Chris Rickey, second by Vice Mayor Bavaro; roll call 6–0 in favor.

The council's introduction waives the first reading; the ordinance will return for a second reading and formal adoption at a future meeting (the city attorney indicated a second reading and adoption are scheduled following the required notices). Staff will begin implementing the permit process and the police department will continue inspections while the ordinance proceeds toward final adoption.

Public reaction and requests for broader regulation

Public comment was extensive: dozens of residents, public‑health advocates, youth speakers and community groups supported the ordinance as a necessary public‑health and safety intervention. Many praised the police department's enforcement and urged the council to enact a citywide tobacco retail license to cover convenience stores and other retailers that sell tobacco products, not only smoke shops — a frequent request from speakers and several local advocacy groups. Several smoke‑shop owners and industry representatives asked for clearer statewide guidance and consistent enforcement, saying some legal hemp and nonflavored products were being confiscated inconsistently.

What the ordinance does not do

The city attorney emphasized the ordinance does not immediately force existing smoke shops to close. Unlike some jurisdictions that have capped or reduced the number of retailers and required a lottery or conditional use reapplication for existing stores, Modesto's draft allows existing, licensed shops to remain if they apply for and receive the new smoke‑shop permit and comply with the standards.

Looking ahead

Council members and staff said the ordinance establishes a regulatory baseline for smoke shops and creates an enforcement framework they can build from. Several public speakers and council members signaled they want the city to evaluate whether to expand to a comprehensive tobacco‑retail licensing program covering all sellers of tobacco products in a follow‑up effort. Meanwhile, businesses that operate as smoke shops will have a defined application window and new standards to meet; enforcement and permit decisions will be administered by the chief of police per the ordinance.