San Jose’s cannabis businesses are clashing with the city over inadequate crime protection. The city’s leaders are set to discuss new cannabis regulations, but dispensaries argue that they are not receiving sufficient security from criminal activities.

These licensed cannabis establishments feel unfairly targeted and claim they are not receiving the same level of protection as other legitimate businesses, despite paying fees for such security measures. San Jose Spotlight reporter Jana Kakah, who first reported on this issue, stated that some businesses are on the brink of closure, with two out of the 16 cannabis businesses already shutting down.

Each permitted cannabis business in San Jose pays over $139,000 annually in fees, significantly higher than the fees in Oakland, where businesses pay between $500 and approximately $17,000 per year, and in San Francisco, where businesses pay $5,000 per activity or permit.

The high costs in San Jose lead to higher prices for consumers, potentially driving them back to the illegal market, which undermines the purpose of having legal cannabis businesses. The city will discuss on Tuesday whether to align its policies with the state’s, which could further challenge these businesses.