During a recent government meeting, significant discussions centered around the financial challenges faced by regulated cannabis operators, particularly the impact of IRS Code 280E. This regulation, which treats cannabis businesses as if they are involved in illicit drug activities, prevents them from deducting ordinary business expenses, placing a heavy financial burden on operators.

A representative highlighted that while cultivators and processors can write off certain costs, pharmacy operators are severely restricted, leading to inflated operational costs. This situation complicates efforts to provide affordable medical cannabis, which is increasingly seen as a viable alternative for pain relief, especially in the context of reducing opioid misuse—a priority for the state of Utah.

Despite these challenges, the representative noted that operators have managed to lower costs over time through improved efficiencies and increased supply. The meeting underscored the need for policy adjustments to alleviate the financial strain on cannabis businesses, which could enhance their ability to serve patients effectively.

The discussion also touched on the importance of research in this area, with participants expressing a desire for further exploration of the implications of 280E and its effects on the cannabis industry. The meeting concluded with a call for swift action on the identified policy areas to support the growth and sustainability of the medical cannabis program.