March 20, 2018

Nevada regulators mull expedited marijuana supply licensing

15 July 2017, 01:09 | Melvin Schneider

Nevada Marijuana Distribution Licenses Issued Weed Shortage Avoided 0

Nevada's marijuana distribution emergency ends

High demand for marijuana in Nevada is forcing officials to declare a state of emergency as dispensaries are running on fumes.

The supply problem stems from competing interpretations of the state's pot law that dictates only existing alcohol wholesalers can be licensed as pot distributors for 18 months unless there is "insufficient interest" among them to do the job.

But that changed when recreational sales began July 1 and anyone transporting pot was required to obtain a distribution license.

The 47 retailers now licensed to sell recreational pot previously operated as medical marijuana outlets, which were allowed to move products between cultivators, manufacturers and retail store fronts.

A lawyer for the Independent Alcohol Distributors of Nevada, which won that injunction, told the tax commissioners on Thursday the emergency regulation they were considering would be just as illegal as an earlier one Wilson threw out.

Kevin Benson, the alcohol group's lawyer, stopped short of threatening another lawsuit.

"There aren't enough alcohol distributors serving that market", Durrett said.

Nevada has licensed roughly 100 marijuana growers, enough to supply the dispensaries as long as there is a way to transport the pot.

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In California, where voters passed a similar measure in November, residents can possess and buy recreational pot, but the state has until 2018 to begin issuing licenses to sellers and distributors. — to distribute pot products in compliance with a court order.

But she told the state Tax Commission Thursday it's too soon to tell if Crooked Wine of Reno and Rebel Wine of Las Vegas will be able to handle the demand for all 47 licensed retailers statewide.

Nevada Department of Taxation spokeswoman Stephanie Klapstein said Thursday a license has been granted for an alcohol wholesaler — Crooked Wine Co.

New Cannabis Ventures reports that a cannabis distribution company known as Blackbird Logistics will be helping restock empty shelves at newly opened Nevada dispensaries and retail cannabis shops for the first time since legalization went into effect on July 1.

The move comes as the state tax commission prepares to approve an emergency regulation to allow distribution licenses to be issued to some marijuana retailers in certain circumstances.

"Being fully integrated, we have one facility so we can grow it in the back, have a production kitchen in the middle and a retail store in the front", said James Green, a retired police officer who runs Shango Las Vegas, one of the city's largest pot retail operations.

Legislation gave liquor wholesalers the right to distribute, but most do not meet the licence requirements, Nevada's tax department is quoted as saying.

Following an overwhelming demand for recreational marijuana, Nevada regulators are considering emergency rules that would expedite licensing for pot distributors. Per the new regulations, Nevada's Tax Commission will now allow the distribution of recreational products by companies not related to the alcohol industry.

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