Illegal sales a problem at smoke shops in Fresno. Why isn’t city shutting them down?

Six months ago, members of Fresno’s city council announced their intention to start regulating smoke shops.

They were responding to a proliferation of the stores — many of which they claimed were operating without licenses and in violation of city and state laws — and concern from the community.

That ordinance remains in draft mode, but there is now a clearer picture of the scope of the problem, according to the councilmembers. At a recent news conference, they renewed calls to regulate and reduce the number of smoke shops throughout the city.

“We put the industry on notice; they clearly have not listened,” Miguel Arias said.

Since October, the city’s code enforcement department has inspected 31 smoke shops in Fresno. Of those, nearly all (96%) were found to be engaged in some form of illegal activity. There were code violations, but inspectors also found unpermitted guns, illegal drug paraphernalia, flavored tobacco products and cannabis.

Several of the shops were operating hundreds of feet from school sites and parks.

Pseudo dispensaries

Cannabis in particular, seems to be at issue.

Some smoke shops are operating as pseudo dispensaries, said councilmember Nelson Esparza.

“It’s that simple,” he said.

“It’s really no wonder the legitimate market is being undermined.”

Retail cannabis has had a slow role out in Fresno, with just seven of 21 possible dispensaries fully open and operating and tax revenues coming in below expectations. The revenues could be more than $3 million below this year’s budget forecast, the city said during budget talks last month.

In at least three raids executed in late February, thousands of dollars worth of cannabis, along with guns, tobacco and paraphernalia were confiscated. At Royal T Smoke Shop on McKinley Avenue, more than 1,100 grams of marijuana were confiscated, along with more than $2,500 in cash and two handguns, one of which was modified to be fully automatic, according to a statement from the Fresno Police Department.

The shop’s owner was also arrested, suspected in a shooting that happening earlier in the month, police said.

The raids were done in conjunction with Fresno police as part of the state’s Cannabis Administrative Prosecution Program. Announced by California Attorney General Rob Bonta in August, the program provides state support to combat illegal cannabis by treating it as a public nuisance and land-use issue, under local code enforcement jurisdiction.

Fresno, led by City Attorney Andrew Janz, was the first city to take up the offer.

Just how many smoke shops are there in Fresno?

It’s not clear exactly how many smoke shops are operating in the city. There are more than 436 tobacco retailers in Fresno, according to Fresno County Tobacco Free Coalition, though the city puts that number at closer to 1,000 when you include convenience and grocery stores, gas stations, liquor stores and smoke shops.

There are 125 licensed smoke shops, Arias said, though he suspects hundreds more are operating without business licenses, or under a license attached to a different location.

Those are the businesses that have been targeted by code enforcement so far and will continue to be the focus of inspections as the city works through the smoke shop ordinance, Arias said.

Confiscations, but not closures?

Code enforcement is able to confiscate illegal inventory, seize property for asset forfeiture and level fines. And police are able to make arrests for guns and other violations.

But because smoke shops aren’t specifically defined in city code, there isn’t much that can be done to keep the businesses from continuing to operate, Arias said.

“That’s why we need a city-wide policy,” he said.

The smoke shop ordinance would put a cap on the number businesses operating in the city, and along with other restrictions, would attach a conditional use permit to properties. This would allow the city to shut down businesses that aren’t complying with the laws.

The ordinance is currently being drafted and needs to go through several committee reviews before being presented to before city council, which is expected to happen this spring.

This story was originally published March 9, 2024 at 5:30 AM.