Paso Robles City Council Reconsiders Cannabis Delivery Ordinance

Council Directs Staff to Resurrect 2019 Draft Ordinance

The Paso Robles City Council voted May 20 to instruct city staff to bring forward the 2019 draft cannabis delivery ordinance for formal consideration. The ordinance, originally drafted three years after California legalized adult-use cannabis, would authorize licensed delivery operators to serve customers within city limits. No timeline for a formal vote has been announced.

City Manager Ty Lewis confirmed the directive during the May 20 council meeting. The draft ordinance has remained on hold since its initial preparation. No prior council action advanced or rejected it.

What the Draft Ordinance Would Permit

The 2019 draft would allow state-licensed cannabis retailers to deliver adult-use products to Paso Robles addresses. It doesn't propose brick-and-mortar dispensaries within city limits. Delivery-only models have become a common regulatory compromise in California municipalities that prohibit storefronts but seek to provide legal access.

California law permits delivery statewide regardless of local bans, yet cities retain authority to impose additional licensing requirements or operational restrictions. Paso Robles hasn't issued local cannabis business permits since Proposition 64 took effect.

Seven-Year Gap Since Proposition 64 Passage

California voters approved Proposition 64 on November 8, 2016, legalizing adult-use cannabis and directing the state to issue commercial licenses by January 1, 2018. Paso Robles, like dozens of Central Coast cities, declined to authorize local retail or cultivation operations. The city has allowed only limited industrial hemp activities under separate state and federal frameworks.

The 2019 draft ordinance represented the city's first formal attempt to regulate cannabis commerce, and its dormancy reflects broader hesitancy among San Luis Obispo County jurisdictions, where only the unincorporated county and the city of Grover Beach permit licensed cannabis businesses.

No Public Opposition Documented at May 20 Session

City records from the May 20 meeting show no organized opposition to revisiting the delivery ordinance. Council discussion centered on procedural questions about the draft's readiness and whether state law changes since 2019 require substantive revisions. City Attorney Iris Yang noted that the Department of Cannabis Control consolidated three predecessor agencies in 2021, potentially affecting compliance language.

Staff will return with a revised draft and a proposed hearing schedule at a future session. The council didn't set a date for a public hearing.

Regional Context: Limited Access Across San Luis Obispo County

Paso Robles sits in a county where cannabis retail remains sparse. San Luis Obispo County permits licensed cultivation and manufacturing in unincorporated areas, and Grover Beach allows one retail storefront. The cities of San Luis Obispo, Atascadero, Morro Bay, and Pismo Beach maintain blanket prohibitions on commercial cannabis activity.

Delivery operators based outside Paso Robles can legally serve the city under state law. Local licensing could generate municipal tax revenue and streamline enforcement. The 2019 draft included provisions for a gross-receipts tax, though the rate was left unspecified pending council input.

What Happens Next

City staff will revise the 2019 draft to reflect current state regulations and present it to the council for a first reading. A second reading and final vote would follow, typically 30 to 60 days later. If adopted, the ordinance would take effect 30 days after the second reading, assuming no referendum petition is filed.

For full background on this story, see the CannIntel topic hub on Paso Robles cannabis policy.

The next signal: whether the council schedules a hearing before the August summer recess or defers to fall 2026.