San Jose Trying to Put Medical Marijuana Genie Back in the Bottle

By Marina Perelman
|  Friday, Mar 4, 2011  |  Updated 10:54 AM PDT
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San Jose Trying to Put Medical Marijuana Genie Back in the Bottle

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Most San Jose Medical Marijuana Clubs Could Close.

With more than 100 cannabis clubs now operating throughout San Jose,  the city is trying to get a grip on the growing business  by only allowing ten dispensaries to operate.

In an NBC Bay  Area News investigation we found there are four times as many cannabis clubs as there are 7-11's in San Jose -- many of them next to parks and many of them targeted by criminals.

Xak Puckett, of the California Medical Marijuana Association, argues there is no turning back now. He says legit clubs like his should not be punished because others don’t play by the rules.

Especially because he says the medical cannabis industry will bring in so much revenue to the cash strapped city.

But even though San Jose started taxing pot clubs seven percent on March 1.

Licccardo says its not worth it any more.

“We are certainly happy to have the revenues that result from marijuana sales the challenge is that the impact and costs so far have been considerably greater than any revenues we anticipate”, he said.

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