Permitted Sales of Cannabis-infused Drinks, Easing of Regulations on Cannabis Advertising Eyed for Pasadena

Pasadena’s Economic Development and Technology Committee heard proposed changes Tuesday to existing City cannabis regulations and policies along with other recommendations intended to promote social equity in the local cannabis market.

At the meeting of the ‘Edtech’ committee, Acting Assistant City Manager David Reyes said city staff recommend changing the municipal code to allow the sale of cannabis-infused beverages to ensure the viability of existing cannabis businesses in the city and to put them on par with cannabis businesses that exist throughout the region. 

Cannabis-infused edibles such as gummies and cookies are currently allowed in the city. 

“I think this was an initially early knee-jerk reaction from us in terms of understanding the business in the first instance, and wanting to be as careful as we could. I think over time we realized there is really no difference in consumption with respect to the beverages and the gummies and other edibles.” 

“So we recommend changing the code to allow that. Also to put the advertising on par with other businesses.” 

Any advertising for marijuana distribution or sale is illegal in the city. 

“From a policy perspective, we’re potentially losing retail sales,” Reyes said about current rules prohibiting advertisements. 

The city staff also recommends allowing a 10 % deviation in distance separation requirements to assist potential operators in securing a viable code compliant location. Current regulations provide that city’s dispensaries must be at least 600 feet away from sensitive uses, which include churches, schools and residential zones. 

In 2018, voters approved Measure CC, which set regulations for the sale of cannabis products in the city. The measure allowed up to six retailer permits, four cultivation site permits and four testing laboratory permits. 

According to Reyes, currently there are three retailers operating in the city: Essence, Varda and SweetFlower Pasadena, LLC.

Harvest of Pasadena, LLC, which is also among the retailers offered the opportunity to submit an application for a Conditional Use Permit to be able to sell cannabis products, was opened for a brief period of time but closed last week. The approved Atrium Group, LLC has not yet found a code compliant location. 

There is one testing laboratory currently operating in the city, according to Reyes. There are no cultivation applicants or businesses in the city to date. 

Aside from the above recommendations, the city staff has also recommended incorporating social equity components in the current cannabis regulations to ensure that people from communities disproportionately harmed by cannabis prohibition and discriminatory law enforcement benefit from cannabis legalization.

The recommendations include requiring dispensaries to provide a financial contribution to a bona fide organization or group that provides expungement services (the legal erasure of previous criminal offenses) for up to five years and requiring cannabis dispensaries to provide a percentage of gross sales towards “community reinvestment.” 

It is also recommended that the city establishes uniform goals and methods to ensure that each dispensary is striving to achieve the hiring of a percentage of local and minority employees at all levels of the organization. 

City staff is developing an appropriate percentage number for consideration at a future Edtech meeting.

In addition, it is also recommended that all dispensaries provide a percentage of shelf space for minority and possibly locally owned cannabis products.

According to Reyes, the city staff will conduct additional analysis and return to the Edtech committee at a future meeting to present its formal recommendations to be provided to the City Council for its consideration.