It’s official: 16 cannabis clubs have passed legal muster to operate in San Jose. The city posted the list of collectives online just after the 5pm deadline Friday, a year-and-a-half after enacting its medical marijuana ordinance.
The final 16 include some of the biggest players in the local industry. The cost of complying with the city’s regulations forced many out of business. Before passing the ordinance, which bans pot clubs from all but 1 percent of the city, San Jose was home to more than 100 collectives.
One of the biggest challenges has been complying with the city’s vertical integration model, which requires a collective to control everything from seed to sale.
Just weeks before the Dec. 18 deadline, the city dialed down some of those rules, allowing pot clubs to buy and sell from one another. In March, it will consider whether to reverse a requirement that limits cultivation to only Santa Clara County or contiguous counties.
While the list of 16 is final, there remains a lot more work for both the city and collectives. For one thing, San Jose will have to figure out how to mesh its local rules with the state’s new marijuana regulations.
“We are still working through a variety of legal processes to close those that might still be operating illegally,” city spokesman Dave Vossbrink told San Jose Inside. “We will be implementing recent amendments to the city’s ordinances. And we will be working with the Legislature to reconcile recent legislation and city ordinances.”
Meanwhile, some collectives will continue to press the city to relax its stance on vertical integration in favor of a hybrid model. Under the city’s rules, a pot club has to manufacture all of its own product.
But certain medicines, such as suppositories and transdermal patches, have to be made in a laboratory, in a highly regulated clean-room setting. For many collectives, it would be impractical to incorporate commercial kitchens and medical labs when they could simply buy the product from a third-party vendor.
The threat of a ballot measure may force the city to make more compromises. Come June, residents will likely vote on the Sensible San Jose initiative, which would replace the city’s pot ordinance.
Under the ballot measure authored by Oakland-based attorney James Anthony, dispensaries would still register with the city, pay taxes and follow a set of operational requirements. But vertical integration would be optional and zoning less exclusionary.
Below is a list of the collectives that have come up to city code.
Buddy’s Cannabis Patient Collective, 1075 N. 10th St.
Airfield Supply Company, 1190 Coleman Ave.
GWS Health, 2943 Daylight Way
Caliva, 1695 S. Seventh St.
Natural Herbal Pain Relief, 2121 S. 10th St.
Herbs, 543 Parrott St.
Elemental Wellness Center, 985 Timothy Drive
Purple Lotus Patient Center, 752 Commercial Way
Canna Culture, 3591 Charter Park Drive
White Fire, Inc., 111 Old Tully Road
Haze, Inc., 1731 Smith Ave.
Santa Cruz Genetics, Inc., 92 Pullman Way
CA Collective, 210 Phelan Ave.
Theraleaf Relief, Inc., 1014 Timothy Drive
Harborside Health Center, 1365 N. 10th St.
Little Orchard, 1859 Little Orchard St.
This article has been updated.