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San Jose cannabis businesses at odds with city over crime protection

San Jose city leaders on Tuesday will debate new cannabis regulations, and it comes as dispensaries say the city falls short of protecting them from crime.

The city’s licensed cannabis businesses are frustrated. They say they are being targeted by criminals, and they’re not getting the protection other legitimate businesses get.

It’s the very protection their fees pay for.

San Jose Spotlight reporter Jana Kakah, who broke the story, said some of the businesses told her they are getting close to shutting down. Two of the 16 cannabis businesses in San Jose already have closed their doors.

Each permitted cannabis business in San Jose pays more than $139,000 per year in fees. By comparison, each of Oakland’s more than 200 businesses pays between $500 and about $17,000 a year in fees, and each San Francisco business pays $5,000 per activity or permit.

Because of the costs, the San Jose licensed dispensaries say prices are higher, which drives customers back into the illegal pot market, defeating the purpose of having legitimate businesses.

Part of the city’s discussion on Tuesday is whether or not to align San Jose’s policies with the state, which could make things even tougher on the businesses.


Source: NBC Bay Area

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