San Jose Mayor Proposes Auctioning Pot Club Licenses On eBay

SAN JOSE (KCBS/AP) — San Jose may weed out the number of medical marijuana clubs in the city from more than 100 to just 10 by auctioning licenses on eBay, Mayor Chuck Reed said.

Reed suggested the city council use the online auction site as an efficient way of determining how much to charge for dispensary licenses.

KCBS’ Mike Colgan Reports:

“These permits, these franchises, whatever you call them, will have a market value. If you put it on eBay, we’ll find out what that is and raise some money for the city,” he said.

San Jose already imposes a 7 percent marijuana business tax, even without provisions that allow for dispensaries. Reed’s proposal on Wednesday took everyone at the city council rules committee meeting by surprise.

“The only thing I could do was laugh. I thought he was joking, but apparently he was serious,” said Dave Hodges, founder of the All American Cannabis Club.

Hodges said it would encourage the wrong people to apply for the licenses. Reed cautioned that anyone participating in the auction would still have to meet all the city’s permitting requirements.

The committee decided the idea was not fully cooked and voted to put it off until April 12. That meeting is expected to speed the development of pot club regulations that weren’t expected to be finished until this summer.

(© 2011 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

Comments

One Comment

  1. Biker says:

    How about we auction of the mayors seat in SJ?

    1. Zap says:

      hahaha … I needed that laugh after reading this article … nothing like prostituting medicinal marijuana … and I agree with marijuana advocate Dennis Peron — ALL marijuana is medicinal marijuana … this taxing farce and now the joke of auctioning licenses is just San Jose’s way of taking the easy way out … if they REALLY wanted to add some taxes to their coffers, they wouldn’t make it damned near impossible to get a freakin’ “license” to open a dispensary … SJ seems to be doing everything possible to push marijuana back underground … the skeptic in me thinks that this is sure a terrific means, in a very Machiavellian way, of keeping the members of the police force employed — Reefer Madness type fear tactics of “Marijuana is taking over! Hide your women and children and run for your lives!” is the only thing that could possibly be next.

      1. misty says:

        I think the mayor might be smoking something himself! And I don’t think it’s medical. I agree with Biker. Where’s Terminator Arnold when you need him?

    2. kitty b says:

      *thumbs up*

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  2. bob in sj says:

    That’s a pretty interesting idea

  3. Zap says:

    nothing like prostituting medicinal marijuana … and I agree with marijuana advocate Dennis Peron — ALL marijuana is medicinal marijuana … this taxing farce and now the joke of auctioning licenses is just San Jose’s way of taking the easy way out … if they REALLY wanted to add some taxes to their coffers, they wouldn’t make it damned near impossible to get a freakin’ “license” to open a dispensary … SJ seems to be doing everything possible to push marijuana back underground … the skeptic in me thinks that this is sure a terrific means, in a very Machiavellian way, of keeping the members of the police force employed — Reefer Madness type fear tactics of “Marijuana is taking over! Hide your women and children and run for your lives!” is the only thing that could possibly be next.

  4. Kristina Hess says:

    At least only the best places will stay open, unlike here where they’re having a lottery. If my collective doesn’t get drawn, I doubt anyone in the area is going to drive. They’re pushing a lot of people closer to going to drug dealers. Some war on drugs. More like War for Drugs.

  5. minnie purl says:

    Chuck Reed is acting very cavalier about the whole issue and I don’t appreciate his flippant attitude towards developing REAL legislation in regards to dispensaries. He seems to forget that whether or not he likes them, they are in fact legitimate places of business and should be treated as members of the business community.

    I am disgusted, and I hope you are, too.

    What a disgraceful idea.

  6. Rick Steeb says:

    This is the marijuana-related schizophrenia we keep hearing about… “They must be ‘True Collectives’, Non-Profit!” –but we’ll shake ’em down for 7% over and above the 9.25% sales tax and oh yeah, there will be application fees and now this.

    The origin of all this money is, of course, the medicine budgets of physician-certificated ILL people. What part of “Taxing Medicine is Unconscionable” don’t you understand, Mr Mayor?

  7. Leigh Ann says:

    WRONG!! I see that Oaksterdam place in oakland saying “:Yes” because they have all the $$ in the world and would be able to outbid everyone. wouldnt that give them a monopoly. governmentally i think that is illegal.

  8. Jack Liberator says:

    well….maybe they should do that…since the club that closed or was raided cost some of the growers a huge amount of money, they will never get back….cause they never got the donation fees and trusted the good faith word of angels care…I could not believe when my friends called to speak to the crook Dave Hodges about that situation and he tried to weasle tickets for this benefit out of them, after Angels Care cost them huge amounts of money..

  9. cj7420 says:

    So San Jose allows the clubs to reach this high of a number without regulating them….. now they think its a problem… so for them they want to have only 10. maybe they should start an Audit of all clubs in san jose and find witch ones are fallowing state and city codes and then shut down the ones who arnt. im sure they would find millions of dollars in un paid sales tax that will help the city and state. this band wagon they are jumping on is a little late, it shouldnt be the patient’s fault that the city of san jose allowed this to happen because they had their head up their back sides for the past 14 years. Also Ebay will not allow an auction that is found to be illegal by federal law.

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