San Jose May Allow Pot Delivery, Multiple Cultivation Sites

UPDATE, Oct. 19, 2016: In a 10-1 vote, the council agreed to allow collectives to have more than one cultivation site and make deliveries. 

If California votes to legalize small amounts of cannabis for the 21-and-up crowd under Proposition 64, it would dramatically alter the regulatory landscape. The initiative would allow adults to possess up to an ounce of cannabis, up to four grams of concentrates and grow up to six plants at home.

But existing rules about zoning, taxes and licensing would stay in place. In San Jose, that means the 16 already licensed collectives will remain the only legal operators.

Meanwhile, San Jose will consider revising some of its local rules. On Tuesday, the City Council will consider whether to sanction weed delivery for licensed collectives. It will also vote on a proposal to allow more than one cultivation site that collectives can share. Instead of grows being limited to Santa Clara County or neighboring jurisdictions, the city will also explore the idea of allowing them anywhere in the state.

When San Jose enacted its pot laws in 2014, the state was still more than a year away from passing its own licensing requirements for medical dispensaries. Once Gov. Jerry Brown approved California’s licensing scheme in October last year, the city began to look at how it could streamline local rules with the statewide program.

“Our program has continued to evolve as things evolved at the state level,” says Michelle McGurk, assistant to the city manager. “We very much needed a state regulatory framework. The reason we’re now comfortable expanding cultivation sites elsewhere in the state is because the state is going to be licensing these now.”

The question of whether to allow deliveries in San Jose came up earlier this year when Eaze, a company calling itself the “Uber of pot,” announced that a citywide poll showed overwhelming support for door-to-door service. Currently, more than 30 weed delivery services advertise in San Jose—all of them illegal.

Under the proposal put forward at Tuesday’s council meeting, only the 16 permitted collectives would be allowed to deliver marijuana. Deliveries would be limited to the hours of 8am to midnight and drivers must undergo background checks through the San Jose Police Department. Delivery cars will need cameras and GPS systems to ensure the product gets from point A to B.

San Jose’s regulations still require a closed-loop model, which means collectives need to bring every part of the process from seed to sale under their own purview. Last year, the city allowed licensed collectives to buy medical marijuana from one another. The city also allowed a “carryover period” until this December to buy from third-party vendors.

Though Gov. Brown approved the state-licensing framework a year ago, it won’t go into effect until Jan. 1, 2018. To prepare for the rollout and the possible legalization of adult-use this Election Day, the city is building up a dedicated division of marijuana control. Last week, a recruiting firm narrowed down a pool of candidates who are interested in leading the division, which would fall under police authority but coordinate with departments of finance, code enforcement and others.

More from the San Jose City Council agenda for October 17, 2016:

  • San Jose’s police department may get help recruiting new officers from an outside marketing firm, if the city agrees to a $200,000 contract with Civilian Inc.

WHAT: City Council meets
WHEN: 1:30pm Tuesday
WHERE: City Hall, 200 E. Santa Clara St., San Jose
INFO: City Clerk, 408.535.1260

Jennifer Wadsworth is a staff writer for San Jose Inside and Metro Newspaper. Email tips to [email protected] or follow her on Twitter at @jennwadsworth.

12 Comments

  1. Anyone who enjoys the recreational use of cannabis has ignored it’s illegality for years & certainly doesn’t give a damn about San Jose’s idiotic regulations. I’d wager that far more cannabis is still being sold on the “black market” & that will still be the case after it’s inevitable legalization. Once an outlaw,always an outlaw & the cities licensing & taxation has certainly created an even larger discrepancy in cannabis pricing. The only reasons that consumers patronize the “Compliant 16″ now is the convenience & the wide selection of cannabis products such as flowers,kief,hash,oil,wax & edibles. There is absolutely no need for any of these ill-conceived city regulations which are nothing more than a revenue grab & an excuse to allow law enforcement to continue to persecute & prosecute otherwise law-abiding people. Now’s our opportunity to demonstrate our contempt for these clueless political posers & the stormtroopers they continue to enable by voting YES on PROPOSITION 64 on Nov. 8th. There’s something in the air & it’s the sweet smell of success. You don’t have to like it,but you’d better get used to it !

    • I don’t give a damn about marijuana laws,city,state or federal. Besides our short staffed police department is too busy harassing the homeless,citing jaywalkers & picking up shoplifters at local retailers to combat real crime much less enforce this sort of crap. Grow your own,buy it from your neighbors or better yet stock up the next time Hempcon comes to town. Don’t patronize the cities chosen profiteers it only encourages them,marijuana would only be a few dollars a gram if not for the archaic laws & cumbersome government regulations. Why should we capitulate to this sort of shady city shakedown when pot smokers outnumber the police over 1000 to 1 here in San Jose ? Spend your money elsewhere & tell the City of San Jose to go to hell – hell YES on 64.

      • Price is gonna go up too. The City now wants each of the (16) collectives to pay the city’s cost to fund/operate their pot program…………… to the tune of about $15K per MONTH EACH. The city claims they are spending nearly $2.5 million each year on this program.

  2. I will not stand for double and triple parking by delivery trucks in front of City Hall, Liccardo and the rest of the San Enchilatas employees will have to drive stoned to the collectives to keep high!!!

    • AMERICA”S TIRE IS AGAINST RECREATIONAL MARIJUANA !!! BOYCOTT AMERICA”S TIRE !!! Bruce Halle the founder & CEO of Discount Tire (America’s Tire in California) donated $1,000,000.00 to Arizonans for Responsible Drug Policy in an effort to stop cannabis legalization in Arizona. As the largest independent tire & wheel retailer in the world,they are the perfect target for some good old-fashioned economic retribution. Recent polling shows that 60% of California voters favor California’s Proposition 64 & wouldn’t it be a terrible shame if they all decided to take their business elsewhere. Spread the word & ask your like-minded family,friends,neighbors & co-workers to BOYCOTT AMERICA”S TIRE !!! You could also indicate your displeasure by phoning your local store or you could demonstrate your anger by picketing them instead ! If unfortunately you’ve already purchased tires from them,this would be a perfect time to take advantage of your lifetime guarantee of “free” tire rotations & then give them a piece of your mind ! Make no mistake,Bruce Halle & America’s Tire are enemies to the legalization movement & if enough of us take our business to their competitors they’ll stop bankrolling their puerile prohibitionist propaganda ! BOYCOTT AMERICA”S TIRE !!!

    • The “No on Proposition 64″ campaign has only raised just over $2 million dollars so far & the top three contributors are –

      Julie Schauer (an anti-marijuana zealot & retired Pennsylvania millionaire) – $1,345,000.00

      SAM Action (a Wash DC anti-marijuana group founded by oxycodone addict Patrick Kennedy) – $489,150.00

      Peace Officers Research Association of California (a law enforcement organization) – $25,000.00

      That’s over $1.8 million from one psycho from Pennsylvania who equates marijuana with violence & terrorism & a national organization whose sole goal is eradicating all marijuana use in the United States. You’d think that PORAC would kick in more than a measly $25,000,but judging by their website most of their money is spent on their Legal Defense Fund. In light of these figures it would appear that there is actually very little opposition to Proposition 64 by Californians & the measure should pass easily on November 8th. YES on 64

  3. I think we should have the same rules enacted for owning and operating machine gun stores as these are already legal in in 28 other federally compliant states. Now is our opportunity to demonstrate our contempt for these political posers & the stormtroopers and their draconian ideology, continue to enable us our rights by voting NO on PROPOSITION 63 on Nov.8th. There’s something in the air & it’s the sweet smell of success. You don’t have to like it but you better get used to it! Let’s get together and smoke off a few mags and sweet smell of nitro cellulose.

    Thanks Frank!

    • Thank goodness,a GOP janitor has finally weighed in with his views on recreational marijuana. I thought your area of expertise was limited to vacuuming carpets,emptying trash recepticles & replacing the toilet paper in the corporate restrooms. What’s your current position on the National Helium Reserve debacle & what is the proper orientation for putting toilet paper in the holder – Over (in front of) or Under (behind) ? Please enlighten us wise one,we’re all awaiting your wisdom !

  4. The City cannot even shut down the non-licensed (and still operating) storefronts …………….. I have no idea (as I’m sure they don’t either) on how to shut down the illegal delivery services. It’s easy to pass regulations and modify existing ordinances but unless they have a better plan in place to get rid of the Black Market/Illegal Delivery/Storefronts .. it’s all just window dressing.