Paso Robles council moves to allow adult-use cannabis delivery businesses

By Camille DeVaul · Thu Aug 20 2026

New regulatory framework would allow non-storefront cannabis retailers to operate locally, with annual permits and additional oversight

PASO ROBLES — The Paso Robles City Council unanimously approved a new regulatory framework Tuesday, Aug. 18, that will allow adult-use cannabis delivery businesses to establish local operations within the city, while adding new permitting, inspection, and oversight requirements.

The action marks a significant change to the city's cannabis regulations, which currently allow only delivery offices for medical cannabis. Under the ordinance introduced Tuesday, businesses would be able to deliver both medical and adult-use cannabis from non-storefront locations, meaning customers would not visit the businesses to make purchases.

The council voted 5-0 to rescind Resolution No. 22-144, which had temporarily authorized three existing cannabis businesses to deliver adult-use cannabis. The resolution's repeal also eliminates the previous numerical limit on the number of cannabis businesses that could operate in the city.

Councilmembers then unanimously introduced the ordinance establishing a new cannabis regulatory permit and making corresponding changes to the city's zoning regulations.

The ordinance still prohibits storefront cannabis retail, cultivation, testing, distribution, and other commercial cannabis activities not specifically authorized under the new framework.

“This has been a long time coming,” Councilmember Steve Gregory said before making the motions. He said the new regulations would provide the city with greater oversight of cannabis businesses operating in Paso Robles.

“I think it’s really important, if we’re going to have an ordinance for this subject, which can be controversial, that we have people who are reliable and have staff that are trained,” Gregory said.

Under the new framework, cannabis delivery businesses would need three separate city approvals: a conditional use permit, a cannabis regulatory permit, and a business license tax certificate.

The conditional use permit, which is a land-use entitlement tied to a property rather than an individual operator, would continue to be required through the Planning Commission.

A new cannabis regulatory permit would provide the city with ongoing oversight of the individual business operator. Unlike a conditional use permit, the regulatory permit would be specific to the operator and would be renewed annually.

The regulatory permit would require businesses to disclose all parties with a financial interest, submit employee background checks, identify their state cannabis license types, and provide information including security plans, hours of operation, and employee training.

Annual renewals would also allow the city to conduct new background checks, review security plans, audit inventory tracking, and conduct physical inspections of the premises.

Staff said the regulatory permit would also make it easier for the city to revoke a permit when operational requirements are violated, without having to go through the more complicated public hearing process required to revoke a conditional use permit.

The ordinance would require cannabis delivery businesses to follow additional local operating requirements, including having drivers wear visible company-issued identification and carry delivery manifests. Customers would also be required to preregister before receiving deliveries.

Businesses located outside Paso Robles that deliver cannabis into the city would also be subject to local requirements, including obtaining a city business license tax certificate, paying cannabis business taxes and complying with the city's delivery hours and other operational standards.

The council's action eliminates a proposed numerical cap on the number of non-storefront cannabis retailers.

According to Associate Planner Katie Banister, staff and the Planning Commission recommended removing the cap because the businesses operate as delivery offices rather than storefront dispensaries, and a numerical limit could create an artificial market for permits.

The permitted businesses would be limited to certain zoning areas, including the Riverside Corridor and C3 (off of Highway 46, north of Golden Hill Road) zoning districts.

The ordinance also extends the city's 600-foot separation requirement to public parks. Cannabis delivery offices would continue to be subject to the existing 600-foot separation requirements from schools and child-care facilities.

Signage would also be limited because customers would not be visiting the delivery offices.

During the public hearing, Megan Souza, owner-operator of Megan's Organic Market, told the council that her business already delivers adult-use cannabis to Paso Robles from its San Luis Obispo location.

Souza said establishing a local delivery operation would allow the company to serve North County customers more quickly while giving the city greater oversight of businesses operating within its jurisdiction.

“Cannabis is already being delivered in Paso Robles to Paso residents,” Souza said. “Allowing licensed operators to establish a local presence will give the city greater oversight and ultimately generate more local tax revenue.”

Souza told the council she planned to submit an application once the city begins accepting them.

Councilmembers repeatedly emphasized that the new framework would provide greater local oversight of cannabis deliveries.

Councilmember Chris Bausch said the city's approach represents an evolution in how the community views cannabis while emphasizing the need for safeguards involving young people and access.

“I think taking better care to make our local operators be responsible and be good partners with our local law enforcement are good, responsible steps,” Bausch said.

Councilmember Kris Beal said the new regulations would help create a level playing field for local cannabis businesses that have been competing with companies delivering recreational cannabis into Paso Robles from outside the city.

Gregory similarly said the framework would help “professionalize” the industry while giving the city greater ability to regulate businesses operating locally.

The ordinance must return to the City Council for a second reading, which staff is projecting for Sept. 1.

The council is expected to consider the regulatory fee structure at a public hearing on Sept. 15.

If the ordinance and fees are approved according to the anticipated timeline, the city plans to begin accepting applications for conditional use permits, conditional use permit amendments and cannabis regulatory permits on Oct. 1.

The next Paso Robles City Council Meeting is scheduled for Tuesday, Sept. 1, at 6 p.m. in the Norris Room at Centennial Park.