Less than two weeks after the recreational sales of marijuana became legal in Nevada the Governor has declared a state of emergency due to a massive shortage at area dispensaries, with many close to running out of cannabis products entirely.
The shortage comes in part to due an overwhelming demand for cannabis goods following the legalization of recreational sales and the failure of hopeful distributors to meet the state’s licensing requirements per the Nevada Department of Taxation.
The licensing requirement issue goes back to November 2016 when recreational sales were passed and the state agreed to give liquor distributors exclusive distribution rights for cannabis goods for the first 18 months. However, following the agreement the state found that a majority of distributors failed to meet the requirements needed in order to be licensed.
To date, the issues regarding licensing requirements have not be resolved.
Via Fox 13
Nevada’s governor has endorsed a state of emergency declared for recreational marijuana regulations, after the state’s tax authority declared that many stores are running out of weed.
The Nevada Tax Commission said in a statement it will consider emergency regulations on July 13 to provide a structure for marijuana distribution to retailers. It would allow for liquor wholesalers to get in on the marijuana business.
“Based on reports of adult-use marijuana sales already far exceeding the industry’s expectations at the state’s 47 licensed retail marijuana stores, and the reality that many stores are running out of inventory, the Department must address the lack of distributors immediately,” the statement said. “Some establishments report the need for delivery within the next several days.”
The distribution issue is at the center of a legal fight between the state and Nevada’s liquor industry, which sued to get in on the business. Nevada currently has appealed to the state’s supreme court. The tax authority claimed most liquor wholesalers who have applied to distribute marijuana have yet to meet requirements to be licensed.
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