California pot companies warn of impending industry collapse

By MICHAEL R. BLOOD
Associated Press

LOS ANGELES (AP) — 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.