Paso Robles directs staff to repeal delivery cap, prepare regulatory permit and bring ordinances for adult‑use cannabis delivery

The Paso Robles City Council on May 19 gave staff direction to move forward on allowing and regulating non‑storefront adult‑use cannabis delivery offices in the city, including repeal of a 2022 resolution that had named three permitted operators and set a cap on in‑city delivery offices.

Planner Katie Bannister summarized staff and Planning Commission review and told council that two of the three operators named in the 2022 resolution are no longer operating in Paso Robles and that the capped system had created market distortions. "Staff's recommendation is we don't have a limit at all," Bannister said, recommending repeal of the earlier resolution, removal of a numeric cap in zoning code, and adoption of a city cannabis regulatory permit to govern operators located inside Paso Robles.

The proposed regulatory permit (a Title 5 amendment) would enable the city to set operational standards — security plans, background checks, recordkeeping, annual reviews and local revocation authority — tied to an operator rather than a land entitlement. Bannister said the regulatory permit would be paired with zoning amendments so the two changes would take effect together.

Multiple local vendors and proponents urged a clear and prompt timeline. Megan Souza, who said her business operates deliveries into Paso Robles from San Luis Obispo and has leased space at 1124 Black Oak Drive, asked the council to "place a clear timeline on this process and direct staff to return within 30 days, prepared for a first reading of the ordinance." Grace Hall, who operates at 1124 Black Oak Drive, asked council to expedite amendments for existing conditional use permits so tenant operators are not left in limbo.

Staff and council discussed enforcement limits: the city can require business licenses and a local regulatory permit only for operators located inside city limits; deliveries originating outside Paso Robles remain legal under state law but the city can require out‑of‑city vendors to obtain a business license and remit city cannabis tax. Staff reported ongoing compliance outreach to delivery businesses identified as operating in Paso Robles without current business licenses or tax remittance.

Councilmembers gave direction by consensus: repeal the named‑operator resolution, remove the numerical cap on delivery offices, ask staff to draft a cannabis regulatory permit (Title 5) and concurrent zoning amendments, and require existing medical delivery conditional use permit holders that wish to start adult‑use delivery to return to Planning Commission to amend conditions. Staff indicated the ordinances could be prepared for a first reading within roughly 30–60 days and would become effective after the second reading and a standard ordinance effective period (approximately 30 days after adoption), with concurrent processing of CUP amendments for existing sites.

Council did not adopt ordinances at the study session; instead it provided policy direction for staff to draft specific regulatory language and return with formal ordinances and an implementation timeline.