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Report: Oregon’s strict pot rules hurting industry

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SALEM, Ore. — 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 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.