A California lawsuit alleged that millions of pounds of legally grown cannabis were being systematically diverted from the regulated market to the illicit underground economy—a problem that has plagued the state’s legal framework since legalization.
MJBiz Daily reports on the structural and regulatory failures that make diversion an ongoing crisis, with SIVA’s Avis Bulbulyan providing context on why high taxes, licensing backlogs, and compliance costs continue to push operators and consumers toward illegal channels.
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