Nevada businesses running out of marijuana, 'statement of emergency' declared

Jenna Warner
July 12, 2017

However, the Nevada Dispensary Association has already estimated that dispensaries made around $3 million and the state around $1 million in the first four days of business.

The Nevada Department of Taxation will meet Thursday to consider an emergency regulation to allow it to issue distribution licenses before the industry comes to a grinding halt. You guessed it: The state's dispensaries are already running out of product. Dispensaries were granted a one-time permission to use their medical marijuana to sell opening weekend, but after that, liquor distributors had exclusive rights to supply marijuana to dispensaries for the first year and a half of legalization. The Independent Alcohol Distributors of Nevada successfully blocked marijuana transportation between growers and retailers with a court injunction and now dispensaries are running low. "Some establishments report the need for delivery within the next several days", department spokeswoman Stephanie Klapstein said in a statement to the Reno Gazette-Journal.

The law just went into effect on July 1 and consumers have been lining up around the clock for access to the freshly legalized intoxicant.

Nevada residents voted in November 2016 to legalize recreational marijuana sales, and lawmakers and regulators spent the next few months crafting the rules of how and where this could happen and how the industry would be taxed.

Instead, alcohol wholesalers are the only ones now able to move marijuana from growers to retailers across the state.

"The next step for the Department of Taxation is to enact permanent regulations on the same topic", Mari N. St. Martin, communications director for Sandoval, wrote to NBC News in an email.

Marijuana business in Colorado is so successful that it is a billion dollar industry there. "They have hired and trained thousands of additional employees to meet the demands of the market".

The Department of Taxation has not issued any distribution licenses to alcohol wholesalers as of Friday due to incomplete applications and zoning issues, according to The Reno-Gazette Journal. Many cultivation centers are in the midst of the grow cycle of some strains of marijuana, meaning there will be a lag between dispensaries selling out and the next harvest.

Are Nevada officials actually trying to preserve the state's marijuana black market?

Other reports by Insurance News

Discuss This Article