Lawmakers have taken a big step toward downsizing and regulating the medical marijuana industry in the nation's 10th-largest city.
San Jose's city council gave preliminary approval Tuesday to regulations that will sharply limit how and where pot collectives can operate and cap their number at 10. Officials estimate San Jose has about 140 cannabis dispensaries and delivery services.
If the council gives the regulations final approval on Sept. 27, clubs would compete for the 10 operating licenses on a first-come, first-served basis. Those that do not win a slot will be ordered to close.
The rules also will require licensed collectives to grow all the marijuana they distribute on-site. Dispensary operators say they would have to plant huge gardens that would make them targets for federal drug raids.