If I were to open a 7-Eleven convenience store and had to abide by the same rules and pay the same licensing fees as Utah medical cannabis companies, you could expect a Slurpee to cost around $10.99 at my establishment. And this doesn’t even include the additional $3 charge from the Center for Medical Cannabis added to each transaction.
These exorbitant prices aren’t set out of greed or a dislike for customers. Like most business owners and many Utah medical cannabis license holders, I believe that good business should benefit all parties involved, whether that’s two, three, or 68,994. The 480-percent markup metaphor ensures I cover operational costs and keep the lights on. Don’t even ask about the price of a Bomb Burrito. Plus, failing to sign the in-and-out sheet for the microwave could result in a $5,000 fine from the Utah Department of Health.
License fees, taxes, rent, utilities, and production costs are all passed on to the consumer. Simply put, the cost is highly dependent on what it costs the seller to offer their products.
Consider the sinner’s tax on tobacco and alcohol as an example. Utah enforces an 88% mandated markup on liquor and an 86% markup on tobacco products, which is also transferred to the consumer. Utahns pay $44.99 for a handle (1.75 liters) of Tito’s Vodka, making it the second-highest price in the country, only surpassed by Alaska.
These mandated taxes, however, are far more transparent to the consumer compared to the staggering $150,000 annual fee imposed on Utah cannabis companies. There is no warning on medical cannabis pharmacy receipts that explain a percentage of your transaction goes to covering state fees. Utah legislators are interested in generating revenue, but it shouldn’t always be at the expense of us “sinners.”
Utah’s legal cannabis program has brought numerous benefits to patients and the local economy since pharmacies first opened their doors during a turbulent 2020. However, excessive regulation within the Beehive State seems to be hindering its progress, causing those who consume cannabis to still rely on illegal black-market sources and other states’ markets. Did you know Deep Roots in Nevada refers to themselves as Utah’s most popular dispensary? That’s embarrassing to admit, but it’s true.
Legalizing cannabis in Utah provides relief for patients with various medical conditions, offering effective management for chronic pain, seizures, anxiety, depression, sleeplessness, and cancer symptoms. However, strict qualifying conditions and burdensome qualifications limit patient access, obstructing the compassionate relief they deserve from a medical cannabis program.
Legal cannabis has the potential to stimulate Utah’s economy, creating jobs and generating tax revenue. However, high fees, complex licensing processes, and excessive compliance requirements deter entrepreneurs and small businesses, hampering job creation and hindering market development.
Regulated cannabis dispensaries enhance public safety by ensuring product safety and redirecting law enforcement resources from illicit to legal channels. Nevertheless, overregulation, such as limited dispensaries and licensing restrictions, fuels the illicit market, undermining crime reduction efforts and compromising consumer safety.
In contrast to medical cannabis, the regulation surrounding opioids is notably less stringent. While medical cannabis companies in Utah face burdensome licensing fees and excessive compliance requirements, the opioid industry operates with fewer restrictions. This disparity raises important questions about the prioritization of public health and safety. While cannabis offers potential relief for patients with various medical conditions, opioids have been associated with a nationwide crisis of addiction and overdose deaths. Reassessing the regulatory landscape to ensure a balanced and equitable approach is crucial, where both medical cannabis and opioids are subject to appropriate oversight to protect patients and mitigate potential risks.
A well-regulated cannabis program can empower local communities by generating revenue for vital initiatives and implementing social equity programs. However, overregulation restricts market growth, limiting revenue and hampering community empowerment.
This issue of Salt Baked City highlights the importance of legal cannabis in Utah and how overregulation poses challenges for those who need it most. Legal cannabis in Utah holds great promise for patients, entrepreneurs, and communities. Yet, overregulation stifles its potential benefits. Reassessing regulations to strike a balance between oversight and accessibility is crucial. Utah must leverage legal cannabis fully, ensuring public safety and empowering communities.
