SAN JOSE VOTES TO PURSUE MEDICAL POT REGULATIONS

SAN JOSE, Calif.-The San Jose City Council on Tuesday approved drawing up
guidelines for the operation of medical marijuana collectives as a way to
regulate the businesses and possibly bring in much-needed revenue to the
nation's 10th largest city.

After more than two hours of debate, city leaders voted to draft an
ordinance that would likely limit the number of pot clubs, control where
they operate and tax them.

"The only way to ensure medical marijuana collectives follow the rules is
to regulate them, and I can't say we're doing that today," said councilman
Pierliugi Oliverio, who introduced the motion.

Dozens of residents, medical marijuana patients and collective operators
testified in favor of regulation-many wanting to ensure they are located
away from schools and neighborhoods and taxed as legitimate businesses.

"Our desire is to be good citizens, to pay our taxes and play by the
rules," said Steve DeAngelo, operator of the Harborside collective, which
is part of a group of 16 collectives that recently formed a coalition to
advocate for increased oversight.

Only a handful of people spoke against the proposal-most of them opposed to
the general use of marijuana.

Others urged the council to declare a moratorium, worried about possible
proliferation of marijuana clubs.

Oliverio also wanted a moratorium on collectives until the council could
draw up the regulations but the issue was withdrawn for now over legal
concerns.

In 1996, California voters approved a measure that allowed sick people to
use marijuana if they have doctor referrals and an identification card. The
federal government considers marijuana use illegal, but Attorney General
Eric Holder has signaled looser federal guidelines that simply instruct
federal prosecutors to avoid prosecution when dispensaries comply with
state medical marijuana laws.

Local governments have been looking for ways to deal with a surge in
medical marijuana dispensaries. Some communities have chosen to try to
regulate, while others are trying to ban the drug altogether.

San Jose Mayor Chuck Reed had wanted to wait to do anything about the
growing number of collectives until November, when California voters will
decide on a measure legalizing the recreational use of the drug. But on
Tuesday, he supported regulation after some modifications were made
regarding taxes and the location of collectives.

"This is not opening the door," he cautioned. "We're trying to implement
state law in a way that makes it possible to control what's in our city."