Cannabis Industry Sounds the Alarm: Sacramento Must Act to Save Legal Pot

California’s legal cannabis industry is warning lawmakers that it faces an existential threat from the black market. And it requires leaders to act — quickly.

Black market weed now accounts for $8.7 billion of the state's $12 billion marijuana economy. The industry complains there are not enough shops, the taxes are too high, and the regulations are too onerous for legitimate business to compete.

"The hard truth is that until legislative changes are made, our industry will continue to wither away," said Michael Steinmetz, CEO of cannabis distributor Flow Kana. Like many others in the industry, Flow Kana was recently forced to lay off employees

Industry officials have called for a summit with state regulators and the governor to discuss their concerns.

Read more at CNN


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Monday, July 13, 2020 - 07:07

The California Department of Tax and Fee Administration (CDTFA) has served tax warrants on a dozen illicit cannabis businesses operating illegally in Southern California.