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Nevada Regulators Will Consider Emergency Pot Distribution Rules

13 July 2017

And because of the shortage, taxation officials announced on Friday that Governor Brian Sandoval has endorsed the department's "state of emergency" to fast track the adding of more recreational marijuana distributors.

If left unfixed, Stephanie Klapstein, a spokesperson for the Department of Taxation, says the halt in marijuana sales will also lead to "a hole in the state's school budget".

The department attempted to rectify the problem by allowing businesses that transport medical marijuana to distribute, but a last-minute court battle kept that right exclusively to the wholesale alcohol distributors.

Since numerous stores ran out of marijuana to sell, state officials became anxious that the rule could negatively affect the state's bottom line.

Taxation officials are warning unless the dispute over who gets to distribute recreational marijuana is settled and fast, stores across the state will run out of product and have to shut down. In the statement, he issued ways to make it easier to obtain a distribution and transportation licenses.

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As a result, the dispensaries have had to rely on marijuana already in stock. The department opened applications to marijuana businesses earlier this year, but a judge shut it down, siding with alcohol distributors.

The tax office has issued a press statement saying it is considering emergency regulations, to be implemented later this week, to provide a streamlined flow of the drug to retailers. Seven liquor distributors have applied for licenses so far, but none have been approved to resupply the state's recreational dispensaries.

"The business owners in this industry have invested hundreds of millions of dollars to build facilities across the state", reads the statement.

The new regulations would bring to a head a legal fight between Nevada and its liquor industry, which has sued for the right to sling grass.

Nevada has declared an emergency regarding marijuana. The taxation department since appealed the court's decision. With the matter of the distributor licensing proposal still standing, many employees could lose their jobs and the industry could be damaged. Between just Saturday and Tuesday of last week, the Nevada Dispensary Association estimated that dispensaries made $3 million and the state made $1 million in tax revenue. Allowing for rounding, that only accounts for about 15 percent of sales-which is the state excise tax on the first wholesale sale.

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Nevada Regulators Will Consider Emergency Pot Distribution Rules