San Jose approves cultivation, deliveries for MMJ collectives

The city council in San Jose, California, gave preliminary approval Tuesday to allow the city’s 16 registered medical marijuana collectives to run two cultivation sites and make deliveries to patients or caregivers.

The proposed rules, which require final approval next week, would allow deliveries between 8 a.m. and midnight, the San Jose Mercury News reported. Delivery drivers would have to be employed by the collectives and undergo a background check, while their vehicles would be inspected by San Jose police, according to KTVU.com.

The new rules likely won’t take effect until early 2017, a spokesman for the city manager’s office told Marijuana Business Daily. Officials are hopeful they will help eliminate illegal MMJ delivery services that have sprung up in San Jose. Police officials say more than 30 illegal delivery services currently operate in the city, and new ones are starting every day.

Under the proposed rules, approved 10-1 by the city council, collectives could cultivate medical cannabis at an off-site location in San Jose or a neighboring county. They could also grow MMJ at a second location in any county in California that allows cultivation.

San Jose is the only city in Santa Clara County that allows medical marijuana. The city once had more than 100 dispensaries, but many of them operated illegally.

3 comments on “San Jose approves cultivation, deliveries for MMJ collectives
  1. Amanda Ostrowitz on

    It should be noted that yesterday was just a first reading. While it seems likely that this ordinance will be adopted, there still needs to be a second reading and adoption which will likely take place in the coming weeks.

    Reply
  2. Dave Armstrong on

    Hello cannabis community,

    Let me start off by asking everyone why we are so eager to FACT CHECK everything and anything Hillary Clinton or Donald Trump say but NOT the City of San Jose? If I explained to you the FACT that the lion share if not ALL of these so-called “collectives” are NOT truly “collectives” at all would you be surprised? I invite you ALL to do some FACT checking and see for yourself and when you find out that these “good actors” are just that and I’ll explain why in a minute you’ll scratch your head and say how can this be possible and why is it happening. Let me explain the TRUTH and exactly why the City of San Jose looks the other way when an entity applied or applies to be registered and approved by them. Here’s what you’ll find, most if not ALL of these entities are everything but a true “collective” or “cooperative” which means according to current state law and the City’s own Ordinance that they are illegal entities and NOT allowed to be in the marijuana marketplace. Yes, these “good actors” with the help of the City’s own staff are walking right through the door and are allowed to operate illegally. These are corporations or llc’s NOT lawful “collectives” or “cooperatives” holding themselves out to be a lawful entity and the City knows this FACT! The only true “collective” in San Jose knows and understands the current state law and helped the City write the Ordinance in 2014. MediMarts explained to the City then and is now embroiled in a court battle with the City because the only two legal entities are formed for a specific reason and it serves a specific purpose. A “collective” and a “cooperative” are entities owned equally by each member of the association in strict accordance with SB 420 that codified Prop. 215. The reason folks is simple, when US currency and the controlled substance marijuana changes hands there can be NO TRANSFER OF OWNERSHIP so that NO “SALE” occurs. You see the FACT is folks current State law does NOT specifically allow for the “sale” of a controlled substance and Federal law (CSA) expressly prohibits the “sale” of marijuana! Prop. 215 was not written nor ever intended to blatantly fly in the face of federal law but California has done just that by creating the “grey market” which is NO different from the “black market” with the exception that the state and cities are collecting a cut or share of the unlawful “sales”. Yes it’s legal to tax unlawful activities so our lawmakers used the creation of the “grey area” which they created purposefully just so they could make everyone believe that it’s okay and legal to form other entities. Why you might ask yourself would our own government do such a thing, well it’s all about the money my friends and the only way state and local governments could tax the transaction involving the controlled substance marijuana because the exchanges are illegal ones called “sales”. A true “collective” or “cooperative” has NO transfer of ownership when money and medical marijuana are exchanged thus NO “sale” of a controlled substance and NO money laundering occurs either. Anyone seeing the big picture yet and that these 16 entities operating in San Jose are nothing more than the cartel created by the City themselves simply so they themselves could “profit” from the unlawful businesses and their illegal “sale” of marijuana. So the City decided that rather than making these entities follow both state and federal law which would mean they couldn’t tax the tax exempt transactions that “collectives” and “cooperatives” make they purposefully allow and register anything but the lawful “collectives” like MediMarts. I told the City many times while helping them write their Ordinance that they will find out that NO one else operates a true closed-loop or vertically integrated operation like MediMarts does and they’d NOT be able able to tax the tax exempt process. I told them they’d have to write up a different way to collect funds from us something like we’re offering the City now in the form of a contribution or donation. Because paying a tax based on gross receipts is NO different than admitting that a “sale” occurred and a blatant violation of both state and federal law. Did they listen to us, hell NO instead they did the opposite and filed a lawsuit against the only law abiding entity (MediMarts) operating in their borders. They must have figured that it would be easier to get rid of the one entity following the laws than it would be to ask the illegal dispensaries to change their ways and produce and make everything themselves like their supposed to and what state and federal law mandate. This is the very reason why they’ve embraced these unlawful corporations and llc’s cause they didn’t want the money from marijuana to stop or go away. The City has become a crime boss and if you give them 10% of your gross receipts or “sales” they’ll gladly let you operate an illegal entity just so they can legally tax your illegal transactions! The City knows these FACTS and that MediMarts is following state law to the letter and federal law as much as possibly can be since even possessing marijuana is a federal crime and offense. So I highly urge everyone to do some FACT checking and tell me I’m wrong and when you see and know what I see and know you’ll be appalled at your own state and local governments for hiding the FACTS and the TRUTH all for the almighty dollar! The media of course is in the City’s back pocket cause they get more than half their stories everyday from these governmental entities so they SPIN these stories to make the public believe what their ALL doing is lawful. Then they use the same corrupt media to SPIN stories and make MediMarts the only lawful entity strictly following the current law out to be a bad guy because we won’t give in or give up a fight that we know we’re 100% right in. Now you ALL know the TRUTH and the FACTS in this corrupt matter and I invite anyone to prove me wrong.

    P.S. The City has known about these illegal delivery operations for years now and has done nothing to STOP them. They simply want their cartel to be able to do the same delivery concept and run the others off or so they hope cause if they really wanted to do something about it they would have already.

    Sincerely Concerned,

    Dave Armstrong
    Managing Member of MediMarts
    A Closed-Loop California Collective

    For more info see: CannabisCrisis.com

    Reply
  3. Dave Armstrong on

    The only reason these changes to the City’s Ordinance are even on the table is the FACT that their illegal operators and so-called good actors don’t grow or make their products themselves! They are just glorified middlemen who buy from growers who usually grew more than their personal needs illegally and then they resell it unlawfully because that’s how the City makes money! So the City figured if you can’t beat the “black market” we’ll create our own “grey market” and make some money off of the illegal “sale” of the controlled substance marijuana! Oh and while we’re at it lets try and destroy or eliminate the one entity following the laws properly so they can’t compete with our cartel and hopefully keep me quiet as NOT to expose the state and City’s unlawful wrong doings! The City thinks closing us down even before we’ve had our (due process) day in court will STOP me but once again they’re wrong. I have vowed to take this issue all the way to the Federal Supreme Court if necessary and expose the state and the various cities who have fleeced millions of dollars from the pockets of poor medical marijuana patients just cause they don’t know any better. David vs Goliath(s) is an old bible story and we all know how that ended so until Uncle Sam says we can “sell”‘and “profit” from pot we simply can’t and shame on our government and lawmakers for thinking they can “profit” while its inhabitants lives and livelihood are at risk for listening to them and following their corrupt guidance. Now you ALL know why MCRSA and Prop. 64 are the double whammy punch going on right now. The state and cities want to finally actual make “sales” and “profit” specifically legal at a state level only. How can our great state and cities ask us citizens to follow their new laws if they blatantly violate federal law? Is the state or City going to come to your rescue when the IRS comes knocking down your door, NO quite the opposite my friends as many in prism today will tell you. So YOU decide California, do we really want to vote yes on Prop. 64 and potentially face the wrath of the IRS or do we just say NO to this giant funded attempt to coverup the wrong doings the state and cities have been getting way with for many years now? When all we really need to do is get all these entities educated and transformed into a “collective” or “cooperative” and make some amendments to SB 420 and prevent big government and corporations from taking the common man’s crop known as cannabis away from us ALL eventually as they control, regulate and tax another commodity our consumer driven society enjoys for many many reasons. The hope for the best and prepare for the worst is Prop. 64’s downfall cause we already have the best and most federally conforming law in the nation and have now for almost 20 years. The old adage why fix something that isn’t broke comes to mind here and if people think it’s broken it’s only because the state and cities created the “grey market” simply to collect money and get a piece of the “black markets” pie! I hope people can finally see the light because the darkness is already upon us and only going to get worse if Prop. 64 and MCRSA survive the federal liptmous test which is where I’m taking this matter. This time we have the federal supremacy clause on our side which Timothy O’Leary didn’t even need to abolish the drug tax stamp long ago when federal and state law conflicted! Power to the pot people and may we finally come together and form the largest association California has ever seen so we can deal with the government, find a way to contribute funds to them to admistate and enforce our marketplace and keep big tobacco, alcohol and Pharma out of our gardens!

    Sincerely Concerned,

    Dave Armstrong
    Managing Member of MediMarts
    A Closed-Loop California Collective

    For more info see: CannabisCrisis.com

    Reply

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