On May 19, the Paso Robles City Council unanimously moved to eliminate the city’s cap on cannabis delivery businesses, directing staff to repeal limits that have restricted locally based non-storefront operators since 2022.
The recommendation could reverse a policy the city put in place four years ago, when it first allowed a small number of delivery-only cannabis businesses to operate under a tightly controlled system. At the time, the council capped local permits at three operators and authorized them under a temporary, one-year framework tied to a sunset provision.
Under that system, three businesses—Dub’s Green Garden, Aquamarine, and Kinfolk Holistics—were permitted to deliver adult-use cannabis within city limits. But according to Associate Planner Katie Banister, only Dub’s Green Garden remains active.
State law continues to allow Paso Robles residents to receive adult-use cannabis deliveries, but until local operators were authorized, those deliveries had to originate from businesses based outside the city.
“I’m in favor of no cap,” Councilmember Steve Gregory said during the meeting. “And the reason why is they’re all going out of business. There’s one here still operating, we have another one wanting to come in, and I don’t think it does any good to cap them.”
City staff recommended repealing both the three-operator limit and the named-operator system created under the 2022 ordinance. In a report, staff wrote that the current structure has created “unnecessary barriers” and “artificial competition for a small number of permits despite limited demand,” adding there is “little evidence to expect a significant number of new delivery businesses entering the market in Paso Robles.”
The discussion followed February’s Planning Commission recommendations, when commissioners unanimously supported allowing up to three locally based delivery-only cannabis businesses. That decision upheld the city’s existing prohibition on storefront dispensaries while maintaining a capped delivery model.
However, the proposal before the council replaces the capped system with a more open permitting process for non-storefront cannabis retailers, allowing additional delivery businesses to apply without a preset limit.
Public comment was largely supportive, with operators pointing to financial strain and delays under the existing rules.
Grace Hall, owner of Dub’s Green Garden, said the uncertainty has made it difficult to sustain operations.
“We’ve been patient for many, many years, and every time cannabis gets brought up, the votes are always there, but there’s no action,” Hall said. “Every year that goes by, we pay thousands just to renew our state license with California. Our cannabis products expire. We have to destroy them because we can no longer sell them.”
Megan Souza of Megan’s Organic Market in San Luis Obispo said she has already secured a local lease in anticipation of expansion into Paso Robles.
“We’ve signed a lease for one of the spaces at the Halls Building, … and we are eager to become operational as soon as the city will allow us to,” Souza said. She urged council to “place a clear timeline on this process and direct staff to return within 30 days.”
The city’s ban on brick-and-mortar cannabis dispensaries remains in place. Staff estimate implementation could take 60 to 90 days, with broader cannabis policy discussions expected to return at a later date. ∆
This article appears in May 21-28, 2026.