Nevada's Recreational Inventory 'Emergency' Is Ending

Nevada approves emergency regulations to expand distribution of marijuana

The state Tax Commission was expected to approve emergency rules endorsed by Gov. Brian Sandoval to address a distribution bottleneck resulting from Nevada's unique voter-approved measure to legalize recreational sales.

While the state had given alcohol distributors sole rights for the first 18 months of sales, a court battle and bureaucracy kept any licenses from being approved for almost the first two weeks.

The Reno Gazette Journal is reporting that Rebel One and Crooked Wine Company were awarded Nevada's first marijuana distribution licenses earlier this week, allowing the two companies to transport products from cultivation facilities to state authorized dispensaries.

The problem: All cannabis sold at recreational dispensaries in Nevada must be shipped there by a licensed distributor, and according to the language in Nevada's successful legalization ballot measure, the only qualified companies happened to be liquor wholesalers.

The chairman of the Tax Commission, Jim DeVolld, said the emergency regulation was needed as the state joined several others in the still-evolving world of legal marijuana sales.

"If this body adopts this regulation today, it will be invalid", Benson told the commission Thursday.

When the law went into effect in Nevada on July 1, there were almost 50 dispensaries already partaking in the medical marijuana business - and were licensed to sell the substance recreationally.

He says any emergency that exists was created by state officials who want to push the alcohol industry out of the market. The Department of Taxation said those wholesalers could start transporting marijuana immediately.

Nevada approves emergency regulations to expand distribution of marijuana

"Crooked Wine has signed an operation agreement with Blackbird, an established medical marijuana distributor also based in Reno".

Nevada is the fifth state in the U.S.to allow adults 21 and over to buy cannabis for recreational purposes.

Nevada's marijuana regulators have licensed the first recreational pot distributor in the state to help alleviate concerns pot retailers are running out of supplies.

Most recreational retailers were previously licensed under a 2-year-old medical marijuana program and many were distributing to themselves.

As of Friday, a state law said only liquor wholesalers can transport marijuana from grow houses to stores. This created a lawsuit that almost delayed the opening of the first retail shops, as alcohol wholesalers fought medical marijuana distributors for the right to produce and distribute cannabis for Nevada's legal market.

Under the proposed regulation, the wholesaler must demonstrate it "has resolved to the best of its ability any potential conflicts with its federal liquor licensing and the distribution of a federally illegal product".

They urged the commissioners to approve an emergency regulation backed by the governor to allow some pot retailers to serve as their own distributors if there aren't enough alcohol distributors to do the job.

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