Fewer than one-percent of an estimated 68,000 marijuana growers in California have registered with the state according to a new report from the California Growers Association.
The report says since recreational pot became legal in California, the cost of complying with regulations and the difficulty of getting local governments' permissions to grow pot are keeping many smaller farmers from registering their crops with the state like they're supposed to.
The 38-page report says if more of the smaller growers are not licensed by the state, taxable revenue of recreational weed will likely be far lower than anticipated while the black market flourishes.
"The current system will not achieve its goals without fundamental and structural changes that allow small and independent businesses to enter into compliance," the report concludes.