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California Pot Retailers Say State Rules Could Force Them to Destroy Millions of Dollars’ Worth of Product

All marijuana sold in California by state licensed firms will be required starting Sunday to undergo new testing for quality and toxins, but retailers warn they face financial hardship because they will have to destroy tens of millions of dollars’ worth of untested product still on their shelves.

The United Cannabis Business Assn. led 128 cannabis businesses and advocacy groups in petitioning Gov. Jerry Brown on Friday to indefinitely extend the period for selling marijuana products that do not meet the new testing standards to avoid forcing some licensed firms out of business.

“This really is the destruction of the whole supply chain,” said Jerred Kiloh, president of the United Cannabis Business Assn., which represents 76 pot retailers in Los Angeles and Orange counties.

The association surveyed some 50 marijuana firms and estimated retailers statewide may lose $90 million worth of marijuana that they will have to dispose of because it cannot be sold legally after Saturday.

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