A week after throwing its support behind a medical marijuana
ordinance that many saw as one of the most pot-friendly
in the area, Richmond’s City Council voted unanimously
Tuesday night to scratch a number of the ordinance’s most
controversial clauses. In a separate move, the council
agreed to allow city voters to decide on a new pot tax.
Mayor Gayle McLaughlin, along with Councilmembers Nat
Bates, Jeff Ritterman and Jim Rogers, all reversed course
on a number of key aspects of the pot ordinance Tuesday
that they had insisted on during their July 20 meeting,
agreeing instead to pass a modified ordinance that will
cap the number of marijuana dispensaries in town to three,
and place new restrictions on how and where such clubs
can operate.
“It’s harder to shrink back than to expand [the ordinance],”
McLaughlin said Tuesday in defending her about-face, explaining
that last week’s first reading of the ordinance was too
lax.
In a separate move later in the evening, the council voted
to place a November ballot measure before city voters asking
whether to charge dispensaries a 5 percent tax on all marijuana
sales.
Tuesday’s move to amend the city’s medical marijuana ordinance
represents a substantial beefing up of the ordinance’s
original rules, which some anticipated would turn Richmond
into a regional hub for pot sales.
The version of the medical marijuana ordinance that was
originally passed 4-3 by the council July 20 did not place
a cap on the number of dispensaries allowed within city
limits. It also placed the responsibility for granting
medical marijuana business licenses to the city manager’s
office, and limited medical pot shops to parts of town
designated as commercial zones.
All of those stipulations were amended Tuesday: The Richmond
Police Department will now oversee permitting and code
enforcement for the three permitted marijuana dispensaries,
and marijuana clubs will now only be allowed in C-3 commercial
zones like the Hilltop Mall – effectively eliminating a
number of current dispensaries from consideration for one
of the new licenses.
Additionally, the council made amendments Tuesday that
restrict patients to purchasing a maximum of one ounce
of marijuana from a dispensary per visit, and stipulated
that applicants for a marijuana license be scored on a
point system, which has yet to be devised.
“This is a disaster,” said John Clay, who runs Pacific
Alternative Health Center, a Point Richmond-based dispensary.
“The level of ignorance on the council is staggering.”
Every ordinance the council passes must go through two
readings before being enacted into law. While most ordinances
are approved on second reading with ease, it appears that
an avalanche of public feedback swayed the council into
revising the ordinance this time. Because of the breadth
of Tuesday’s revisions, the newly approved ordinance will
have to go through a second reading, scheduled for the
third week of September. The council takes its yearly recess
during August.
On his popular e-forum, Councilman Tom Butt earlier this
week sent followers a letter to the city council from Police
Chief Chris Magnus that asked that the council to reconsider
it’s initial plans for the ordinance – particularly handing
oversight of the process to the city manager’s office instead
of the police. On Tuesday, McLaughlin cited Magnus’ letter
as one of the reasons for changing her mind.
In addition to modifying the marijuana ordinance, the
council on Tuesday voted unanimously to place a 5 percent
tax on all pot sales before city voters this November.
Councilman Butt, who wrote the measure, initially called
for a 10 percent tax, but backed off that plan. Both Berkeley
and Oakland are planning to let voters decide on similar
pot taxes: Berkeley’s would tax medical marijuana sales
at 2.5 percent, while Oakland’s would charge
5 percent of all marijuana receipts. Both of those
cities are proposing a 10 percent tax on marijuana sold
for recreational use, effective only if state voters approve
Proposition 19 this November and legalize non-medical marijuana
use.
Richmond’s ballot measure will contain no such distinction
between medical and recreational marijuana use – rather,
it taxes all pot sales equally. Marijuana dispensaries
currently pay a 9.75 percent state sales tax on marijuana
they sell, although most of that money goes to the state,
rather than to the city.
Tuesday’s agenda also called for the council to direct
city staffers to draft an ordinance that would regulate
and tax large-scale marijuana farms in Richmond, similar
to a move Oakland
gave final approval to Tuesday. The discussion was
cut short, however, when Councilwoman Ludmyrna Lopez moved
to have city staff simply investigate the matter and report
back for a study session in January. That motion passed
5-2, with Councilmembers Bates and Maria Viramontes opposing.
Clay, the Point Richmond dispensary operator, was clearly
upset by the council’s decisions Tuesday. “We got our butts
kicked,” he said as he left the chambers.
One of the most repeated pleas from the dozens of medical
marijuana users and dispensers on hand Tuesday was for
the council to halt the legal orders dispensaries are facing
to close up shop. All eight of Richmond’s current dispensaries
have been ordered to shut down for operating
without a business license (which is currently impossible
for a dispensary to obtain). Several representatives for
the collectives suggested instead that the city agree to
allow the dispensaries to stay open until the new ordinance
takes effect.
The council ultimately agreed to meet next week, during
the August recess, to discuss the matter in a closed-session
meeting. The last time it considered the matter, the council
voted 4-3 in closed session to continue its litigation
against the dispensaries – although if Tuesday was any
indication, nothing relating to marijuana is set in stone
just yet.