Below is a submitted letter from Mike Berry, owner of Blackhouse Vapor, a retail store located in Salt Lake City that was voted ‘Best of Utah’ by City Weekly for both Vapor and CBD products. This is his response, and plea, to Senate Majority Leader Evan Vickers, R-Cedar City, and other House Representatives who are sponsoring Senate Bill 190 to make revisions before it’s too late.
Although this bill is backed by many cannabis activists for expanding the state’s medical cannabis industry, Berry and those from the Utah’s CBD industry feel differently. With the banning of Delta-8 products and more restrictions on the types of CBD products Utah retailer can sell, Berry feels many of those working in the industry since the Industrial Hemp Program started in 2014 will go out of business – leaving those who rely on these types of products out to dry.
If this letter sparks your patriotic duty, please reach out to State Representatives and speak your concern.
Dear Legislators,
We are asking you to please VOTE NO on SB190. Here’s why:
The impact of SB190 (Medical Cannabis Act Amendments) would irreversibly damage Utah businesses and the Utah hemp industry as a whole. COVID-19 has already caused a significant strain on CBD sales, which dropped 6% over 2019-20211-2. Passing the SB190 would render the Utah hemp industry unable to compete with other states and lead to many businesses cutting jobs, moving operations out of state, or shutting down completely.
SB190 will affect 100% of the legal hemp market in Utah, including 1200 Retailers, 64 Processors, 68 Growers.
Congress passed the Farm Bill in 2018, which regulates hemp nationwide to contain less than 0.3% Delta 9 THC by dry weight. This was established by research to be the amount under which cannabis can be non-intoxicating. Cannabis containing under 0.3% THC is called “hemp” and cannabis containing over 0.3% is considered marijuana. SB190 goes too far and undermines federal law. Passing it would bring serious legal challenges to the state of Utah. A previous ruling in Texas established the precedent that SB190 would be unconstitutional3.
Hemp products make up a $20 billion industry, projected to be $43 billion by 2025. Demand for legal CBD products in Utah is high with nearly 1642 active retail licenses in Utah. To put that into perspective, there are only 769 gas stations in the state of Utah6.
Your constituents are real people with real health issues. SB190 would hurt those who want to legally access CBD products, including those who use CBD to ease pain without opioids or simply want to avoid the “high” that comes with medical marijuana. This would especially impact lower-income and marginalized communities. If SB190 passes, Utah consumers will turn to unregulated, out-of-state products, which could not only harm their health but facilitate a black market industry.
We strongly ask you to VOTE NO on SB190. Again, please consider that this bill, currently written, will put legitimate Utah companies out of business, and with it, lost jobs.
Thank you,
Utah Hemp Industry Association
References
1. Grebow J. COVID-19 plus legal uncertainty slowed CBD sales in 2020. What’s CBD in for in 2021? 2021 Ingredient trends to watch for food, drinks, and dietary supplements. Nutritional Outlook. 2021;24(1):51-55.
2. Crawford E. Does a drop in CBD sales signal dwindling consumer interest, or is it a classic ‘crossing the chasm’ moment? Food Navigator USA. Published June 10, 2021.
3. Crown Distributing LLC v. Texas Department of State Health Services 2021 Jdsupra.com
4. Wright JW, Steineker W, McDaniel R. 2018 farm bill opens $20 billion hemp industry to banks. Westlaw Journal Bank & Lender Liability. Published February 19, 2019.
5. Dorbian I. Legal Cannabis Market Projected To Rack Up $43 Billion By 2025. Forbes. Published June 18, 2021.
6. US Energy Information Administration. Utah State Energy Profile. Eia.gov.
