SAN JOSE (KCBS) – San Jose is expected to rescind an ordinance Tuesday that was passed last year regulating medical marijuana collectives. The city’s hand is being forced by a successful referendum.

The signature drive was launched by pot club owners over what they considered draconian measures, which included a prohibition against on-site cultivation. San Jose Mayor Chuck Reed said that their only recourse now is to repeal the measure, because putting it on the ballot would be too costly.

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”I think that’s the best thing for the council to do,” said Reed. “We passed an ordinance, but there was a signature gathering effort for a referendum and they got enough signatures. The choice now is to either put it on the ballot in June, or to repeal the work we’ve done, and I think the best course of action is to repeal it and wait for the California Supreme Court to tell us what the rules are so that we can do something else.”

KCBS’ Mike Colgan Reports:

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Pot club owners are applauding the action.

”I think it’s a great step in the right direction, and now they need to replace it with something that’s workable,” said Dave Hodges, founder of A2C2 The All American Cannabis Club.

In the meantime, a seven percent tax on marijuana sales remains in effect.

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