On September 17, 2018, Governor Jerry Brown signed Senate Bill 946 (SB 946), which establishes statewide governance of vending in the public right-of-way and parks. The purpose of this bill is to create entrepreneurial and economic development opportunities for certain individuals, by removing barriers to selling food and merchandise on public sidewalks and in parks. The bill went into effect on January 1, 2019.

The new law requires that cities allow sidewalk vending, and restrictions may only be imposed when directly related to objective public health, safety, or welfare concerns. Local jurisdictions that wish to regulate sidewalk vending are required to first adopt a program with rules and regulations consistent with SB 946.

The City has historically not allowed vendor activities in the right-of-way and the Municipal Code (CMC) does not explicitly regulate sidewalk vending. In order to be in compliance with SB 946 and retain local control, staff has drafted an Urgency Ordinance establishing a program to permit and regulate sidewalk vendors. The Urgency Ordinance will go into effect immediately and is valid for 45 days after adoption. After the 45 days the City Council may choose to extend the Urgency Ordinance an additional 10 months and 15 days, or may adopt a permanent ordinance.