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The biggest competitor to Utah's medical cannabis program right now? The black market

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TOOELE COUNTY, Utah — WholesomeCo is about to harvest its first outdoor grow.

The cannabis plants, spread out over two acres in remote Tooele County, are looking healthy and hearty.

"It allows us to reduce prices, increase the product selection and as a cannabis program here in Utah? We are growing up," said Alex Iorg, one of WholesomeCo's founders.

Utah's medical cannabis program is settling in nearly five years since it launched after voters approved Proposition 2, which legalized it in the state. (The Utah State Legislature overrode Prop. 2 with its own highly-regulated program.) Medical cannabis companies have said they are seeing growth and success. Iorg, who worked on the Prop. 2 campaign, said roughly 80,000 people are considered medical cannabis patients in Utah. But local companies say their biggest competitor is still the black market.

"About 60% of the products in our state are being purchased outside the legal medical cannabis program," Iorg said. "That means they’re traveling to the borders or they’re getting it from the illicit market."

Data collected by Utah's Department of Health & Human Services shows patients travel to neighboring states where recreational cannabis is legal or they purchase from their neighborhood dealer. Cost appears to be the top reason.

"I represent a large majority of patients that simply are choosing to use medical cannabis or pay for rent or food," said Desiree Hennessy, the executive director of the Utah Patients Coalition. "It's a reality in their life. Am I going to be pain free? Am I going to treat my condition? Or am I going to have food? And where insurance doesn't kick in at all and help these patients."

Utah's medical cannabis regulations are stricter than adult-use recreational states. But WholesomeCo's Iorg argues that can also be a reason to choose it because the testing requirements ensure a safer product. Utah-based medical cannabis companies offer delivery and convenience, he said.

"We try to match on quality, we try to match on selection and as we grow as a company and as an industry we’ll get closer," Iorg told FOX 13 News. "We'll never match on illicit prices and even recreational prices of our neighbors around us. But we want to make it convenient and we want to make sure the access is there."

Each year, the Utah State Legislature makes tweaks to laws regulating medical cannabis. Senate Minority Leader Luz Escamilla, D-Salt Lake City, is among those who handles such bills.

"We are making the changes when needed and are very proactive on it," Sen. Escamilla told FOX 13 News, adding that it comes with a lot of input from patient organizations and the cannabis industry.

The 2025 Utah State Legislature will be no different with another cannabis bill in the works. Hennessy said her group would like to see access continue to be expanded.

"So patients aren't having to fight so hard to renew a card to find a doctor to get their condition recognized," she said. "Those are the things that we need to be focusing on. We've proven that it wasn't going to be a public health concern and we know how to keep it from becoming one. So let's move to making this easier for the patients that use this program."

Iorg said more people are enjoying the benefits of medical cannabis. He'd like to see lawmakers do more to convince patients to shop local.

"We’d like help in letting people know you don’t have to leave the state to get the medicine you rely on and we’d like people to know it’s safe and high-quality cannabis," he said.