Economic Development and Technology Committee takes a ‘wait and see’ approach to allowing or banning marijuana sales in the city

Acting on the recommendation from Chair Victor Gordo to “proceed cautiously,” the Economic Development and Technology Committee made no formal recommendation Wednesday to the Planning Department or City Council regarding steps to formalize or ban commercial sales of marijuana in the City.

The Committee heard a formal presentation from the Planning Department outlining the various options available to them.

California passed Proposition 64, the Adult Use of Marijuana Act (AUMA) in November of last year, legalizing the recreational use of non-medical marijuana for individuals 21 and over, and allowing small-scale personal cultivation. The new law also allows retail sale and commercial marijuana activity, as well as regulatory and taxing plans for nonmedical marijuana activities. AUMA set a state tax rate of 15 percent on gross receipts of any retail marijuana.

The Federal government still, however, considers marijuana a “dangerous drug” and continues to prosecute sellers. Pasadena currently outlaws marijuana sales within City limits, although there are currently 13 shops operating illegally.

The Planning Department report offered three options with regard to commercial use — prohibiting sales outright, temporarily prohibiting sales while waiting for state licensing and regulations to fully roll out, or allow sales and create new land use regulations by January 2018.

“I can’t see the advantages of sales here,” said Councilmember Steve Madison, while allowing that marijuana “might be an better intoxicant” than alcohol. Madison also added that marijuana sales are “Not something the City should wrap its arms around.”

“I don’t think our Nobel Prize winners at Caltech spent a lot of time getting stoned,” he said.

The three options offered for commercial sales were also offered for personal cultivation.

Medical marijuana use has been allowed in California since the passage of Prop 215, and was further clarified in 2003, with the Medical Marijuana Program Act. Conflicts continued, however, between state and local city laws, and a new law—the Medical Marijuana Regulation and Safety Act—was enacted in 2015. It established a Bureau of Medical Marijuana Regulation under the Department of Consumer Affairs and established a licensing system for medical marijuana businesses, as well as laws regarding cultivation. The Act also established a “track and trace” system for commercial marijuana growers.

Pasadena Health Department Director Michael Johnson told the committee that in studies by the National Academy of Sciences, medical marijuana has been proven to have beneficial effects on certain types of pains and chronic conditions, but that he was concerned about the “overall health risks” on residents. Pasadena Health Department Medical Officer Dr. Ying-Ying Goh also noted that are also more serious health risks, and cited a increased number of car crashes in Colorado tied to marijuana use.

“It’s been chaotic in Colorado,” said Pasadena resident Cathy Morfopoulos, who added that the revenue generated in Colorado has not been as bountiful as reported, with an average of $26 raised per person in additional revenue between 2015 and 2016.

“Be cautious,” she urged the Committee, noting the irony of raising tax revenues from marijuana sales to fund anti-drug programs.

Los Angeles resident John LaRocca said, “There will still be a black market in marijuana no matter what you do, and what about smoking in your car?”

Committeemember Andy Wilson said he would be in favor of the second option offered—temporarily prohibiting sales while waiting for state licensing laws and regulations to play out.

While not offering a formal recommendation, Gordo allowed that that option was a close description of the committee’s position on the matter. The issue will return to the Planning Committee before appearing before the City Council.