LOS ANGELES – Almost 150 marijuana companies in California warned on Friday that they could suffer crippling financial losses if the state does not renew a July 1 deadline and set strict standards for pot testing and testing Specifies packaging. 19659006] In a letter to Governor Jerry Brown, the United Cannabis Business Association said the changes could further unsettle the burgeoning legal market that started on January 1, and could force companies to close their doors.
The trade group representing cannabis companies said there are too few laboratories to handle the tests, and retailers have had to destroy large quantities of unsold cannabis that do not meet the new standards.
Association president Jerred Kiloh estimated that companies could suffer losses of nearly $ 400 million if they are not sold Deliveries are destroyed
"Enforcing the industry to comply with regulations … will paralyze the already weakened regulated market "It says in the letter  In a statement, the State Bureau of Cannabis Control gave no indication to postpone the deadline.
"We issued our emergency regulations as early as November, and at that time we were pretty clear that this would be the case for a six-month transitional period for retailers to consume their existing supply." We felt there was ample time available stands to decimate the existing stocks and to adapt to the new Californian rules, "said agency spokesman Alex Traverso in an e-mail.
The regulations are issued six months after the extensive legalization of marijuana This pot sold after Saturday meets strict quality standards. With the approaching date, retailers have unloaded unchecked inventory at bargain prices.
The rollout of the country's largest legal pot market was bumpy at best. The black market is still flourishing, and the industry is complaining about taxes, which can reach 50 percent in some areas.
Others fear that a shortage of retailers in both adult and medical marijuana could disrupt the supply chain of unsold pot.
California operates under temporary regulations, while the largest city, Los Angeles, is slow to issue licenses.
The change of rules was part of the state's decision to allow the industry to start running at the beginning of the year. The shops were given six months to burn cannabis and foods that were made without stringent testing requirements.
Any marijuana harvested this year or sold on July 1 must meet quality and safety standards or be destroyed.
The pictured letter is an emerging industry struggling to gain a foothold.
The group said the 30 licensed laboratories testing the pot were unable to meet demand, resulting in a shortage of shelves. A system to track plants from seed to sale has been delayed. And packaging companies are not ready to comply with the new rules.
"Customers and patients will turn to illegal market traders and delivery services who still have plenty of products to sell, and licensed retailers will be forced to close the store," the letter said.
The companies and interest groups that signed the letter represent a fraction of the state's legal market. For example, more than 3,300 cultivation licenses have been granted, and there are more than 400 licensed retailers.
Associated Press author Brian Melley contributed to this report.
Blood is a member of AP's marijuana beat team. See full AP Marijuana coverage here: https://apnews.com/tag/ LegalMarijuana
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