REPORT TO COUNCIL
SUBJECT
Title
Adopt an Ordinance Extending the Urgency Interim Ordinance Pursuant to Government Code Section 65858 Imposing a Temporary Moratorium on the Establishment and Operation of 'Smoke Shops' for an Additional 10 Months, 15 Days
Report
SUMMARY OF COMMISSION ACTION
The Planning Commission considered this item on June 8, 2026.
The Planning Commission voted to Recommend to Council Alternative 1: Adopt an Ordinance Extending the Urgency Interim Ordinance Pursuant to Government Code Section 65858 Imposing a Temporary Moratorium on the Establishment and Operation of 'Smoke Shops' for an Additional 10 Months, 15 Days found in Attachment 1.
The vote was 7-0.
Excerpt draft minutes of the Planning Commission hearing are in Attachment 2.
EXISTING POLICY
GENERAL PLAN
VISION STATEMENT
Sunnyvale is an attractive, safe, environmentally-sensitive community which takes pride in the diversity of its people, the innovation of its business and the responsiveness of its government.
VISION
It is the aspiration of the people of Sunnyvale to build upon the attributes which the City currently enjoys, so that Sunnyvale of the future will become …
• A safe, secure and healthy place for all people … where the health and safety of residents is a primary concern. Sunnyvale is a clean and attractive city with many opportunities for physical activity in a natural environment.
COMMUNITY VISION GOAL
IV. Safe and Healthy Community - To maintain Sunnyvale’s traditional high level of public health and safety, so all residents, employees and visitors feel safe at all times and in all places in the City.
Chapter 3 Land Use and Transportation
Policy LT-6.2 Limit the intrusion of incompatible uses and inappropriate development in and near residential neighborhoods, but allow transition areas at the edges of neighborhoods.
Commercial Uses and Shopping Centers
Policy LT-13.4 Support a full spectrum of conveniently located commercial uses and shopping centers that add to the positive image of the community.
ENVIRONMENTAL REVIEW
This project does not require environmental review under the California Environmental Quality Act (CEQA) because it can be seen with certainty that there is no possibility that it will have a significant impact on the environment (CEQA Guidelines, Section 15061(b)(3)).
DISCUSSION
On May 19, 2026 (RTC # 26-0521) the City Council adopted a 45-day moratorium on the establishment and operation of “smoke shops” within the City of Sunnyvale. A
“smoke shop” is a retail business that primarily sells products and accessories related to smoking and vaping.
As discussed in RTC # 26-0521, the proliferation of smoke shops raises public health and safety concerns, particularly related to minors. A temporary moratorium under California Government Code Section 65858 is necessary to protect the public health, safety, and welfare while the City studies the issue to determine appropriate regulations for these businesses.
An urgency ordinance must be passed by a four-fifths vote. If at least six (6) Councilmembers vote to pass the extension of the urgency ordinance, it will take effect upon expiration of the 45-day urgency ordinance (July 3, 2026) and will remain in effect until May 18, 2027. Staff will return to Council before the expiration of the ordinance with proposed regulations or a request to further extend the moratorium for up to one additional year.
FISCAL IMPACT
There are no fiscal impacts from this action. Staff time to develop a program will come from operating budgets, no consultant fees are expected.
PUBLIC CONTACT
Public contact was made by publication in the San Jose Mercury and posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
ALTERNATIVES
1. Adopt an Ordinance Extending the Urgency Interim Ordinance Pursuant to Government Code Section 65858 Imposing a Temporary Moratorium on the Establishment and Operation of 'Smoke Shops' for an Additional 10 Months, 15 Days found in Attachment 1.
2. Alternative 1 with modifications.
3. Take no action.
STAFF RECOMMENDATION
Recommendation
Alternative 1: Adopt an Ordinance Extending the Urgency Interim Ordinance Pursuant to Government Code Section 65858 Imposing a Temporary Moratorium on the Establishment and Operation of 'Smoke Shops' for an Additional 10 Months, 15 Days found in Attachment 1.
JUSTIFICATION FOR RECOMMENDATION
Enacting this measure will prevent new smoke shops from opening while comprehensive standards are developed.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
X General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: Rebecca Moon, City Attorney
Reviewed by: Shaunn Mendrin, Planning Officer
Reviewed by: Trudi Ryan, Director of Community Development
Reviewed by: Connie Verceles, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Draft Ordinance
2. Excerpt of Planning Commission Minutes, June 8, 2026