Court Order Potentially Delays Nevada's Early Recreational Pot Sales

Ron Strider

Well-Known Member
Nevada's early start to recreational marijuana sales may not happen in July after all. A group of alcohol distributors, known as the Independent Alcohol Distributors of Nevada, filed a complaint saying the temporary regulations passed May 8 violates the voter-approved initiative. May 30, 2017, a district court judge in Carson City issued an order in their favor. The order prevents the Nevada Department of Taxation from distributing recreational marijuana distribution licenses under the recently adopted regulations.

The law passed by voters last year states recreational sales should be "regulated in a manner similar to alcohol". It also gives alcohol distributors a monopoly on sales for the first 18 months, unless there is not enough interest to meet the expected demand.

The Department of Taxation, citing a lack of interest, expanded those limitations to allow medical marijuana establishments in good standing to apply for recreational licenses starting May 15. The application period closed May 31.

Sam McMullen, a lawyer representing IADON, says despite the Department of Taxation's claim that there was not enough interest, 13 alcohol distributors had expressed interest. McMullen alleges the Department of Taxation never had a public meeting indicating how many distributors would be needed to meet the demand or that the amount of licensed alcohol distributors would be insufficient.

He says the statue clearly gives priority to alcohol distributors, and the district court judge agreed. The order says the May 31 deadline is "invalid and unenforceable" because the Department of Taxation has to wait 35 days before filing the temporary regulations passed on May 8 with the Secretary of State.

The order could delay that process, meaning recreational sales may not happen July 1. McMullen says it is not IADON's intention to delay the start.

"The group is willing to work with the state and medical marijuana dispensaries to meet the July 1 deadline," he said. "The intent of the injunction is to make sure the law is implemented the way voters intended."

The stay on distribution of licenses will be in effect until it is heard in court. The full impacts and potential delays won't be known until then.

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Full Article: Court order potentially delays Nevada's early recreational pot sales
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Photo Credit: Chloe Aiello
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