x
Breaking News
More () »

California pot companies warn of impending industry collapse

Leading California cannabis companies are warning Newsom that the state’s legal industry is on the verge of collapse.

LOS ANGELES — Leading California cannabis companies are warning Gov. Gavin Newsom that the state’s legal marijuana industry is on the verge of collapse.

A letter signed by more than two dozen executives, industry officials and advocates follows years of complaints about heavy taxes and regulation that they say make it impossible for legal companies to compete with the illegal market. 

They told Newsom “our industry is collapsing.” 

Newsom spokeswoman Erin Mellon said in a statement that the governor supports cannabis tax reform and recognizes the system needs change. 

The industry leaders asked for tax cuts and more retail shops. California kicked off broad legal sales in 2018.

To read the full AP story, click here.

RELATED: Over 400 New York localities say no to cannabis dispensaries, for now

RELATED: Afghanistan's health care system on the brink of collapse

RELATED: Golden State Stimulus update: Payment release schedule & why you may still be waiting

Watch more: Small businesses and seniors feel the impact of the downtown Sacramento power outage.

Paid Advertisement

Before You Leave, Check This Out