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Vista council asks staff to draft code changes to expand cannabis distribution and consider Measure Z reform
Summary
Council instructed staff to draft amendments to the municipal code to allow distribution/packaging activity beyond the business‑park zone and to propose operating standards; some members also supported exploring a Measure Z ballot reform to allow on‑site consumption lounges, but asked for more community outreach.
Council Member Melendez led a lengthy discussion of local cannabis licensing and asked staff to produce code amendments to expand the city’s ability to host distribution activities — specifically to allow certain packaging and labeling operations that currently require a state distribution license and are restricted by Vista’s municipal code to the business‑park (RLI) zone.
Melendez explained the state regulatory framework and observed that California’s Department of Cannabis Control treats limited packaging (pre‑rolls, repackaging tested product) as a distribution activity. Under Vista’s code, distribution, manufacturing and testing are grouped as "cannabis enterprise" uses and largely confined to the business park; retail licenses (Measure Z) were governed by a 2018 ballot measure that prohibits on‑site consumption. Several retail operators told council they would benefit from local packaging options to support craft and competitive products; industry speakers said expanding distribution options would lower costs, support small local operators and increase tax revenue.
Public‑health speakers and parents warned council that expanded licensed access could raise product availability and normalize cannabis, increasing risks to under‑age users. An equity advocate urged the council to consider equity applicants and cited National City’s reported positive experience with a consumption lounge.
Council direction: staff was asked to return with draft ordinance text that (a) defines reasonable operating standards for distribution activities outside the business park, (b) addresses zoning and appropriate land‑use controls, (c) lists objective criteria for permitting packaging at retail sites, and (d) proposes measures to preserve public safety and youth prevention. Several members also asked staff to scope a potential November ballot measure to reform Measure Z to permit on‑site consumption, but asked that staff first convene industry, public‑health and equity stakeholders and prepare a focused community outreach plan.
No regulatory change was adopted at the meeting; the city will return with draft code language and proposed procedures for council review.
Ending: Staff will return with a draft ordinance and zoning/operating standards for council consideration; any change to Measure Z would need a ballot measure and outside legal drafting and a public engagement plan.
