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San Jose approves moratorium on new tobacco retailers, bans sale of nitrous oxide at smoke shops

November 5, 2025
San Jose approves moratorium on new tobacco retailers, bans sale of nitrous oxide at smoke shops

With an unusually high concentration of smoke shops in East San Jose, Councilmember Peter Ortiz cannot be accused of using hyperbole when he says that if you throw a rock there, you are likely to hit one of those stores.

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But after years of attempting to rein in the problem, the San Jose City Council has approved a temporary moratorium on tobacco retailers and a ban on nitrous oxide sales in those establishments — efforts it says that put the well-being of youths and their families first.

“Both these items take an important step to protect the health and safety of our residents by closing a dangerous gap in our laws,” said Ortiz, who represents District 5. “Over the past several years, East San Jose and other working-class neighborhoods have seen a dramatic rise in smoke shops, often located just blocks away from schools, youth centers and family homes. In fact, I first thought of this policy when a smoke shop under the guise of a gift shop opened directly across the street from the James Lick (High School) and the Alum Rock village business district.”

The 45-day moratorium approved by the City Council can be extended for up to two years. Existing retailers can continue to operate and seek permit renewal during the moratorium, while the city suspends new applications.

During the temporary ban on new establishments, the city intends to review its licensing program, including the possibility of additional regulations and increased fines to address the growing number of complaints about smoke shops and illegal sales to minors.

In 2021, the city banned the sale of flavored tobacco and e-cigarettes and limited the distance retailers could open from youth-sensitive areas. But health and youth advocates have argued that the city could do more to limit the impacts.

“Strengthening the (tobacco retailer licensing program) can better hold retailers accountable, prevent illegal sales, and foster healthier, more equitable environments for all San Jose residents,” wrote Carol Baker and Vanessa Marvin, co-chairs of the Tobacco-Free Coalition of Santa Clara County, in a letter to the City Council,” Six out of 16 jurisdictions in Santa Clara County currently have a comprehensive TRL policy — San Jose is not one of them. Let’s work together to make the changes needed to get San Jose there.”

In May, Ortiz and a few of his colleagues on the dais introduced the concept of a smoke shop ban following the release of the 2025 Latino Health Assessment report, which found that Latinos faced more dire health outcomes than their counterparts.

In East San Jose, the area Ortiz predominantly represents, the report highlighted that tobacco retailers were more prevalent than in other parts of the county. East San Jose has 6.7 tobacco retailers per square mile, more than two times the countywide density.

“The truth is, while we believe in freedom and consumer choice and options and all those sorts of things, there’s an over-concentration of these retailers and these products in our lower-income neighborhoods that have been historically underinvested in,” Mayor Matt Mahan said. “We see tactics targeting our children and we see the impacts — the negative impacts — far outweighing any benefit, frankly. And so it’s high time we get a better handle on the activities of some of these retailers and certainly ban nitrous oxide.”

While the city acknowledged there are specific legitimate uses for nitrous oxide, such as in the medical, dental and industrial fields, state law left a gap in its enforcement abilities.

Along with banning the sale of nitrous oxide in smoke shops and similar retail establishments, the newly enacted rules would hold property owners jointly liable, allow the city to declare violations a public nuisance, and potentially seek license revocation.

As of September 1, the city reported issuing 551 tobacco retail licenses. However, there is a growing number of complaints about unpermitted stores.

Rachel Roberts, deputy director of code enforcement, said that of the 101 businesses facing complaints, 30 were operating without a tobacco permit, while another 35 were also operating with a general business tax license.

“This isn’t a problem that involves one or two bad actors,” said Vivek Sharma, policy lead for the Community Advocate Teens of Today. “This is a system that has been quietly spiraling out of control.”

San Jose’s actions on Tuesday put it among a growing number of California cities looking to curb the number of tobacco retailers or tobacco use.

Tiburon became the third California local government to ban tobacco sales after its town council approved the initiative last month, following in the footsteps of Beverly Hills and Manhattan Beach, which passed bans in 2021.

District 6 Councilmember Michael Mulcahy said that as the city evaluates its options during the moratorium, he hoped it would lead to a “more permanent fix with bad actors in our community.

“This stuff is literally killing people in our community and harming our most vulnerable youth,” Mulcahy said.

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