In this April 16, 2014, file photo, vials are prepared to test medical marijuana at a lab in Wilsonville, Oregon. A new report argues that more stringent testing regulations which went into effect in October 2016 are harming the state's recreational marijuana industry by drastically limiting supply.

In this April 16, 2014, file photo, vials are prepared to test medical marijuana at a lab in Wilsonville, Oregon. A new report argues that more stringent testing regulations which went into effect in October 2016 are harming the state’s recreational marijuana industry by drastically limiting supply.

Don Ryan/AP

New marijuana testing regulations may be hurting the profitability of Oregon’s young pot industry, with some marijuana businesses considering closing their doors because of strained supplies, according to a new report.

Economist Beau Whitney argues in a report released Wednesday that new state testing rules, intended to ensure the safety of marijuana products, are shifting business onto the black market and are resulting in thousands of dollars of lost revenue for legal cannabis operations. Whitney was an executive with Golden Leaf Holdings, a marijuana company.

The new testing regulations from the Oregon Health Authority started to be enforced on Oct. 1, according to Mark Pettinger, a spokesman for the Oregon Liquor Control Commission.

Cannabis that was “compliant” at the end of September ended up being non-compliant after the new rules came into play, according to Whitney’s report. Products that fail the tests are supposed to be pulled from store shelves.

Read more at the Statesman Journal.