Report: Strict Oregon pot rules hurt fledgling industry

SALEM, Ore. (AP) — A new report argues that Oregon’s strict rules around pesticide testing are hurting the state’s fledgling recreational marijuana industry.

The Statesman Journal reports that (http://stjr.nl/2gcjQ81) the report issued Wednesday says some businesses are closing their doors because of strained supplies.

The Oregon Health Authority started enforcing new testing regulations on Oct. 1.

Jonathan Modie, a spokesman for the state’s health agency, says the tight rules are intended to protect the public.

But economist Beau Whitney — a former marijuana executive — and the Oregon Cannabis Business Council say the rules are shifting business to the black market and costing pot entrepreneurs thousands.

Oregon made $40 million in tax revenue from recreational marijuana so far this year — but the report says that could drop $10 million in the fourth quarter.

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Information from: Statesman Journal, http://www.statesmanjournal.com