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Oliverio also wanted a moratorium on collectives until the council could draw up the regulations but the issue was withdrawn for now over legal concerns.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