Updated at 06:57, Saturday, June 30, 2018
LOS ANGELES (AP) – Nearly 150 marijuana companies in California warned on Friday that they could suffer crippling financial losses, unless the state has a deadline extended to July 1 and set strict standards for pot testing
In a letter to Governor Jerry Brown, the United Cannabis Business Association said the changes would further unsettle the burgeoning legal market that started on January 1, and Force companies to close their doors.
The Trading Group This means that cannabis companies have too few labs to test and retailers have to destroy large quantities of unsold cannabis that does not meet the new standards.
Association president Jerred Kiloh estimated that companies could save nearly $ 400 million in losses if these unsold supplies were destroyed.
"Bringing industry into line … will further cripple the already struggling companies" The Regulated Market, "the letter said.
In a statement, the State Office for Cannabis Control did not hint that it would be possible to postpone the deadline.
"We issued our emergency provisions as early as November and at this time. We were pretty much aware that there would be a six-month transitional period for traders to meet their existing offer to consume. We thought there would be plenty of time to reduce stocks and adapt to the new Californian rules, "Agency spokesman Alex Traverso said in an email.
Legislation becomes law six months after the extensive legalization of marijuana This pot, which will be sold after Saturday, meets stringent quality standards and with the approaching date, retailers have outsourced untested inventory at bargain prices.
The rollout of the country's largest legal pot market was bumpy at best, the black market is still booming, and the Industry complains about taxes, which can reach 50 percent in some areas.
Others fear that a shortage of retailers for both adults and medical marijuana could bring the supply chain to a standstill RESIZE largest city, Los Angeles, slow issuing licenses.
The change in the rules was part of the state's decision to allow industry to launch at the beginning of the year, with stores receiving six months to burn cannabis and edible food without stringent testing requirements.
Any marijuana that is harvested this year or sold on July 1 must meet or be destroyed by quality and safety standards.
The pictured letter is an emerging industry struggling to gain a foothold.
The Group Said that the 30 licensed laboratories testing the pot were unable to meet demand, resulting in a shortage of shelves, a system that was designed to track plants from seed to sale And the packaging companies are unwilling to comply with the new rules.
"Customers and patients will contact illegal market retailers and delivery service e who still have a wealth of products for sale. Licensed retailers will be forced to cease operations "Letter wrote:
The companies and stakeholders that signed the letter represent a fraction of the state legal market, for example, over 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. Here's a full AP marijuana coverage: https://apnews.com/tag/ LegalMarijuana