After pulling its ordinance in 2023 to be reworked, the Fresno City Council now has a plan to limit smoke shops — one that still calls for eliminating many of the businesses.

The new rules would increase the number allowed in the city but also give business owners a chance to clear out their inventory should the plan be approved.

The proposed action comes as Fresno Code Enforcement and the Fresno Police Department have found illegal marijuana, illegal gambling, underage tobacco sales, and evidence of human trafficking at dozens of smoke shops.

Fresno City Councilmember Miguel Arias, who co-authored the proposal, said given that tobacco use has decreased significantly in the past few years, city leaders have known it’s not tobacco sales keeping the estimated 400 shops in the city open. He said stores rely on marijuana, underage sales of vape pens, gambling, and in some cases, human trafficking to generate revenue.

Arias sponsored the ordinance alongside Fresno City Council President Annalisa Perea and Councilmember Nelson Esparza.

“It’s been obvious for us as city leaders,” Arias said. “What’s taken us time is figuring out the right language to ensure there isn’t a loophole and that we can shut these down permanently and hold the property owners as accountable as the tenants in these scenarios.”

Plan Allows up to 49 Smoke Shops in the City

Fresno has issued $5 million in citations to smoke shop owners and illegal marijuana growing operations since the city’s efforts to crack down on smoke shops began a little more than a year ago, according to a recent presentation by the Fresno City Attorney’s Office.

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In the 100 shops investigated, code enforcement and police have found hundreds of pounds of marijuana, gambling operations, weapons, and more.

Arias said those findings came as little surprise.

Before the inspections began, the three councilmembers wanted to reduce the number of smoke shops to 14 — two per council district. The new plan allows up to 49.

The new proposed ordinance — like the old one — requires shops whose main inventory is tobacco products to apply for a conditional use permit.

During discussions of the rules in 2023, Councilmember Mike Karbassi questioned the legality of shutting down existing businesses. Council then withdrew the plan to retool it.

The new version of the ordinance is being circulated among the citizen oversight committees in the different council districts. Arias expects the plan to go before the Fresno Planning Commission before the end of December. That would allow the ordinance to be heard by the council before the end of the year.

Arias said that Perea called for the increase in smoke shops, wanting more opportunities for shops considered to be in good standing. Shop owners who have been cited by code enforcement or police for illegal activities will not be approved, Arias said.

If the applications exceed the total number allowed, a lottery will be held, according to the ordinance language.

Calls made to Esparza and Perea were not returned.

Shops Will Have 18 Months to Close Out

For shops that don’t receive a permit, they can file for an extension, giving them 18 months to either change their business or wind down operations.

In a presentation about what Fresno code enforcement found in a years’ worth of inspections, Chief Assistant City Attorney Erica Camarena said some businesses have added clothing or grocery items to change the store’s use.

Any store changing use will not be permitted to sell tobacco products, Arias said.

Shops also cannot be within 1,000 feet of a public park, school, or youth facility and can’t be open past 10 p.m. Code enforcement would be authorized to do inspections without warning.

Allowing businesses to clear out inventory makes the ordinance more legally defensible, Arias said.

“We’ve opened the door to more legitimate businesses of this nature operating while adding significant accountability measures to shut down those that have previously committed illegal business practices, as well as a much quicker revocation and significantly higher fines for the businesses and property owners,” Arias said. “I think it’s a better policy as a result of the revisions.”