Nevada Rushes To Address Shortage Of Newly Legalized Marijuana

Ron Strider

Well-Known Member
The marijuana is flowing again in Nevada.

A surge in demand for cannabis, newly legalized in the state, has emptied shelves and caught the industry off guard, spurring state officials into action.

Nevada's Republican governor, Brian Sandoval, endorsed emergency measures late last week designed to increase the flow of marijuana to the state's 47 licensed retail outlets, some of which have had lines out the door since legal pot was made available at dispensaries on July 1.

On Wednesday and Thursday, as fears of a marijuana shortage mounted, regulators announced they would issue the first two marijuana distribution licenses.

Deonne E. Contine, the executive director of the Department of Taxation, said in an interview Thursday that the emergency orders, which were being considered by the state's Tax Commission on Thursday, could help expedite the issuing of more licenses.

"We have a legal product, we have legal businesses," she said. "We have a goal of facilitating that market."

The alacrity of Nevada officials to implement the state's new marijuana policies underline the dissonance and contradictions in American law and politics over marijuana. Jeff Sessions, the attorney general, has been explicit in his view that marijuana is a dangerous drug and should remain officially classified with heroin as a substance with no medical value. But in Nevada, the Republican governor is endorsing emergency procedures to ensure that the shelves of cannabis stores are well stocked.

About two-thirds of states allow medical marijuana sales and a smaller but growing number of states like Nevada, Colorado, Massachusetts and Washington allow recreational cannabis for adults. California's recreational marijuana sales will begin next year.

The Nevada governor's endorsement of a Statement of Emergency, as the action is called, was implemented as a way to prevent customers from returning to the black market, said a spokeswoman for the governor, Mari N. St. Martin.

"The Governor has continuously called for a well-regulated, restricted and respected recreational marijuana industry," Ms. St. Martin said in an email.

Recreational marijuana sales were legalized in the November election.

Managers of marijuana dispensaries said they were surprised by the surge in demand. Customers flooded dispensaries, which had previously served patients only with a doctor's approval under the state's medical marijuana laws.

At the NuLeaf marijuana dispensary in Las Vegas, which lures customers with a giant green marijuana man, marijuana sales have risen as much as 1,000 percent since July 1.

"It puts a strain on every facet of operations when you multiply your business by 10," Mr. Scislowicz said. "But it's a good problem to have."

The problems in the rollout were largely technical – state law mandates that marijuana be distributed only by alcohol wholesalers and none were licensed in time for the law's enactment, leaving dispensaries to rely on their existing inventory.

But seen more broadly the problems with the rollout highlight the compartmentalization of the United States cannabis market. The federal ban rules out interstate commerce of marijuana. Neighboring California, where growing conditions are ideal in many areas, produces much more cannabis than it consumes. Because of the federal ban Nevada could not legally draw on California's cannabis surplus if its shortages were to persist.

All marijuana that is sold in Nevada must be grown in Nevada. The state has implemented a strict labeling scheme that requires detailed information for each batch of marijuana including who grew the plant and a chemical readout of the psychoactive chemical compounds.

Nevada law also calls for a tax on marijuana that amounts to around one third of the retail price. Part of the tax revenue is earmarked for the state's education budget.

"They're going to make a lot of money from our taxes over the past two weeks," said Mr. Scislowicz. "I see them taking in a good chunk of coin."

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News Moderator: Ron Strider 420 MAGAZINE ®
Full Article: Nevada Rushes to Address Shortage of Newly Legalized Marijuana - The New York Times
Author: THOMAS FULLER
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Photo Credit: Scott Sonner
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