“Our industry is collapsing,” reads a  letter, signed by more than two dozen executives, industry officials and advocates of legalization, following years of growing complaints that the industry was unable to compete with the illegal pot economy, where consumers pay far less for weed that sells 2-3x the quantity of legal businesses, according to AP (via NBC San Diego).

In their letter to Newsom, industry leaders asked for the immediate suspension of a cultivation tax placed on growers, as well as a three-year holiday from the excise tax – along with permission to expand retail shops throughout the state.

According to the report, about two-thirds of California cities have no dispensaries, creating a system that “is rigged for all to fail,” according to the letter.

Companies, executives, and groups signing the letter included the California Cannabis Industry Association, the California arm of the National Organization for the Reform of Marijuana Laws, the Los Angeles-based United Cannabis Business Association, Flow Kana Inc., Harborside Inc., and CannaCraft.

In a conference call with reporters, Darren Story of Strong Agronomy said tough market conditions forced him to cut loose more than half his staff. He said taxes that will increase next year make it an easy choice for shoppers. With prices in the underground half of what they see on legal shelves, he said “most consumers are going to take off.” -AP