Federal prosecutors have launched a crackdown on pot dispensaries in California, warning the stores that they must shut down in 45 days or face criminal charges and confiscation of their property even if they are operating legally under the state’s 15-year-old medical marijuana law.
San Jose medical marijuana distributors say they are confident a referendum to overturn a city ordinance that taxes sales and sharply curtails the number of pot clubs will qualify for the ballot.
Medical marijuana collective owners in San Jose are pining their hopes on a referendum against a new city ordinance that requires 130 of 140 clubs in the city to close within 30 days.
The San Jose City Council on Tuesday approved ordinances that will limit the number of medical marijuana collectives to 10 in limited commercial and industrial areas.
San Jose officials have said a new tax on the city’s pot clubs is bringing in a strong source of revenue at a time when the city is looking to close a $115 million budget deficit.
A fire in San Jose Friday morning left four people displaced and a cannabis dispensary completely destroyed, a fire captain said.
The San Jose city council’s move to dramatically restrict the number of medical marijuana collectives should greatly reduce the crime and violence associated with some of the unlicensed clubs, said Police Chief Chris Moore.
Three people were stabbed, one fatally, outside a medical marijuana dispensary in Sacramento on the day pot users around the nation celebrate the drug’s unofficial holiday.
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.
A 7-percent tax on San Jose marijuana dispensaries takes effect on Tuesday.