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Title: Nevada sold out of legal marijuana so quickly, the government used a 'statement of emergency' to bring in more weed
Source: Business Insider
URL Source: http://www.businessinsider.com/neva ... -statement-of-emergency-2017-7
Published: Jul 13, 2017
Author: Melia Robinson
Post Date: 2017-07-14 11:29:24 by Deckard
Keywords: None
Views: 350
Comments: 11

On July 1, Nevada locals and tourists visiting from out of state waited hours in line in triple-digit temperatures to become the first in the state to purchase legal recreational marijuana.

Less than two weeks later, the 47 retailers licensed to sell the drug are running out of supply.

The Nevada Tax Commission, a subsidiary of the state Department of Taxation, has passed a new regulation to address the shortage in a unanimous vote.

The commission found that the current pool of stores licensed to distribute marijuana is insufficient to support the market. It will reopen applications and allow dispensaries previously operating in the medical marijuana program to vie for a spot in the recreational market.

The regulation come as a response to a "statement of emergency" issued by the department and endorsed by Governor Brian Sandoval late last week.

The governor did not declare a "state of emergency," which is typically used in times of natural disaster when local government requires the help of state agencies. Rather, a statement of emergency allows for swift changes in regulations during temporary scenarios, said Mari St. Martin, communications director of the Office of Governor Brian Sandoval, in a statement.

Nearly 50 dispensaries in the Las Vegas area have licenses to sell marijuana for recreational use. When sales got underway on July 1, those retailers could sell their inventory to anyone over the age of 21 with a valid ID. But those same stores cannot legally restock their supply.

Alcohol wholesalers have the exclusive rights to move marijuana from growers to retailers in Nevada, as part of a temporary court order that was extended in June. The rule aims to "promote the goal of regulating marijuana similar to alcohol" — and protect liquor stores from losing business as the demand for recreational marijuana rises.

Nevada is the only state with legal marijuana that has such an arrangement. The state intends to appeal the order, so that its medical pot shops can obtain distribution licenses.


" a="a" alcohol="alcohol" and="and" both="both" building="building" carson="Carson" city,="City," commission="Commission" discuss="discuss" government="government" in="in" marijuana="marijuana" met="met" nevada="Nevada" nevada,="Nevada," of="of" on="On" packed="packed" purveyors="purveyors" situation.<="situation.<" tax="Tax" the="the" thursday,="Thursday," to="to" where="where">

Deonne Contine, executive director of the state Department of Taxation, warned regulators that a marijuana shortage could create a budget shortfall in Nevada. A 15% tax on the plant's cultivation generates revenue that the state spends on public education.

The industry could bring the state more than $1.1 billion in tax revenue over the next eight years, according to a study by Las Vegas-based RCG Economics.

Neal Gidvani, senior counsel with Greenspoon Marder's Cannabis Law practice in Las Vegas, called the commission's decision "a step in the right direction for the cannabis marketplace."

"It is imperative that all those involved with the industry work together to ensure consumers have adequate access to the product and can purchase marijuana in a safe environment," Gidvani said.

Regulators pried open a channel for distribution in the hours before the commission meeting. The state awarded its first distribution license to Crooked Wine Company, which has partnered with a medical marijuana logistics company to transport recreational weed from farm to store.

There are approximately 70 licensed alcohol wholesalers in the state, but only seven applied for marijuana distribution licenses as of Thursday. Contine said the department has issued two total licenses to alcohol wholesalers, but the other five submitted incomplete applications.

Several dispensaries told state officials they expected to run out of product within the week.

The first four days of legal sales resulted in over 40,000 retail transactions and generated $3 million in sales, according to the Taxation Department and the Nevada Dispensary Association.

NOW WATCH: This is how the legal marijuana industry is affecting Mexican drug cartels

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#1. To: Deckard (#0) (Edited)

I only pray that this didn't cause a supply crisis for you personally.

Nevada is sleazy to let the liquor distributors try to cash in on pot. I'd rather see these two product types sold only in separate stores.

Tooconservative  posted on  2017-07-14   13:12:56 ET  Reply   Trace   Private Reply  

#2. To: Tooconservative (#1)

Deckard wants the government to be the drug dealer.

A K A Stone  posted on  2017-07-14   14:02:15 ET  Reply   Trace   Private Reply  

#3. To: Deckard (#0)

The vid about it's impact on the Mexican drug cartels is certainly interesting.

I never would have guessed half their revenue comes from marijuana.

Pinguinite  posted on  2017-07-14   14:36:10 ET  Reply   Trace   Private Reply  

#4. To: A K A Stone (#2)

Deckard wants the government to be the drug dealer.

Like liquor stores in PA? Ugh.

Tooconservative  posted on  2017-07-14   14:46:07 ET  Reply   Trace   Private Reply  

#5. To: A K A Stone (#2)

Deckard wants the government to be the drug dealer.

Most drugs that have been criminalized by the US gov are obviously harmful, at least when used "recreationally" to whatever extent that term truly applies with harder drugs like cocaine. (I would maintain that any drug substance likely has medicinal application potential in carefully controlled amounts at the direction of qualified medical personnel).

But the potential of harm in decriminalizing is not the issue. The issue is instead whether that amount of harm is more, or less, than the harm done under the criminalization of those same drugs. As an example, 4 guys were murdered recently in PA over marijuana deals in which they had a dispute with one particular seller. Those are murders that would certainly not have happened if marijuana was legal to sell in PA.

Those 4 deaths, and many others nationwide over the years, should be weighed against the harm that might arise over legalization of marijuana. And if it's true that Mexican cartels make half their money from marijuana, and it's legalization cuts into the cartel business, then that is, without argument, a good and positive result of legalization.

Pinguinite  posted on  2017-07-14   14:49:07 ET  Reply   Trace   Private Reply  

#6. To: A K A Stone (#2)

Deckard wants the government to be the drug dealer.

They already import the majority of heroin and cocaine.

Personally I'd rather see it decriminalized and the government stay out of it.

They've screwed up enough free enterprise already

“Truth is treason in the empire of lies.” - Ron Paul

Those who most loudly denounce Fake News are typically those most aggressively disseminating it.

Deckard  posted on  2017-07-14   14:50:15 ET  Reply   Trace   Private Reply  

#7. To: Tooconservative (#1) (Edited)

I only pray that this didn't cause a supply crisis for you personally.

I don't live in Vegas and even if I did visit there I'd probably take a pass on any reefer.

Kinda messes up the skills you need for poker.

I went to Seattle a couple years ago to see my son - didn't partake there either.

In fact, it's been at least a decade since I've used pot.

I like to post articles like this so I can watch the prohibitionists foam at the mouth.

“Truth is treason in the empire of lies.” - Ron Paul

Those who most loudly denounce Fake News are typically those most aggressively disseminating it.

Deckard  posted on  2017-07-14   14:52:57 ET  Reply   Trace   Private Reply  

#8. To: Tooconservative, Gatlins Magic Hash Oil (#1)

a supply crisis

If you start jonesing, just visit Dr. Feelgood and get a prescription for Gatlin's Magic Hash Oil!

The D&R terrorists hate us because we're free, to vote second party

"We (government) need to do a lot less, a lot sooner" ~Ron Paul

hondo68  posted on  2017-07-14   15:21:35 ET  Reply   Trace   Private Reply  

#9. To: hondo68 (#8)

If you start jonesing, just visit Dr. Feelgood and get a prescription for Gatlin's Magic Hash Oil!

It's actually Sterno.

“Truth is treason in the empire of lies.” - Ron Paul

Those who most loudly denounce Fake News are typically those most aggressively disseminating it.

Deckard  posted on  2017-07-14   15:25:51 ET  Reply   Trace   Private Reply  

#10. To: Deckard, hondo68, Gatlin (#9)

It's actually Sterno.

Yeah, yeah...if Gatlin stopped posting, you'd both miss him. Terribly.

Don't bother to deny it.

Tooconservative  posted on  2017-07-14   15:56:17 ET  Reply   Trace   Private Reply  

#11. To: A K A Stone, Deckard, tater the pipe dream poster (#2)

Deckard wants the government to be the drug dealer.

The US government is already a drug dealer. Look at all the people that have bought into "pipe dreams" receiving free medical/dental benefits and pensions for doing nothing throughout their lives other than peelin' a potatoe of two.

Its a national disgrace!

buckeroo  posted on  2017-07-15   10:42:15 ET  Reply   Trace   Private Reply  

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