Copyright 2018 The Associated Press. All rights reserved. LOS ANGELES (AP) – Nearly 150 cannabis companies in California warned Friday that they could face crushing financial losses unless the state expands on July 1.
In a letter to Governor Jerry Brown, the United Cannabis Business Association said the changes would further disrupt the troubled legal market that was launched on January 1, which could force businesses to close down.
The trade group that represents the cannabis companies said there are too few laboratories to perform the tests, and retailers should destroy large amounts of unsold cannabis that do not meet the new standards.
Association President Jerred Kiloh estimated that businesses could face losses of up to $ 400 million if these unsold supplies were destroyed.
"Force the industry to comply …" In a statement, the State Bureau of Cannabis Control gave no indication that it would consider going back on the deadline. "
At the time, we were very clear about the fact that there would be a six-month transition period for retailers to exhaust their existing supply. We felt that it was a sufficient period of time to deplete stocks and adapt to California's new rules, "said Alex Traverso, spokesman for the company. In an e-mail
this pot sold after Saturday meets stringent quality standards.When the deadline approaches, retailers have unloaded untested stocks at unbeatable prices [19659008] The deployment of the largest legal pot market in the country has been at best bumpy, the black market is still flourishing, and the industry is complaining about taxes that can approach 50% in some areas.
Others fear that the shortage of retailers for marijuana for adult and medicinal use could end the supply chain.
California is subject to temporary regulations, while the largest city, Los Angeles, took a long time to deliver
Changing the rules was part of the state's decision to allow the industry to function. start at the beginning of the year. Stores have had six months to consume cannabis and edible foods produced without rigorous requirements
Any marijuana harvested this year or sold on July 1 must meet quality and safety standards or be destroyed.
an emerging industry that is struggling to find its place.
The group said that the 30 licensed labs that would test the pot would be unable to handle the demand, which would result in a shortage of products on the shelves. A system to track the plants of the seed for sale has been delayed. And the packaging companies are not ready to comply with the new rules.
"Customers and patients will turn to retailers and illicit delivery services who will still have an abundance of products to sell, and licensed retailers will be forced to close," the letter says.
The companies and advocacy groups that signed the letter represent a fraction of the state's legal market. For example, more than 3,300 crop permits have been issued and there are more than 400 authorized retailers.
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