Nevada's recreational marijuana supply is drying up. A lesson there for California?

Peter Castro
July 12, 2017

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

Although business is booming, there simply aren't enough suppliers licensed to transport recreational marijuana to meet the demand of the dispensaries.

Nevada legalized the sale of marijuana for medical purposes in 2001. Its voters legalized recreational marijuana use in November and come next January 1 you will be legally allowed to buy marijuana in cities where it's allowed.

Segerblom - who has been a proponent of legalizing recreational marijuana, and even has a strain named after him - said if the Department of Taxation votes in favor of expanding the license eligibility, the cannabis conundrum will be immediately rectified.

Dispensaries began selling marijuana on July 1, and allow customers age 21 and older to buy an ounce of marijuana, or an eighth of an ounce in edibles.

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We won't know officially how much revenue recreational marijuana will bring to Nevada in state tax revenue until September.

And because of a recent court battle over who can distribute marijuana, there are now no dispensaries licensed to distribute: The state law legalizing recreational marijuana gave wholesale alcohol distributors exclusive rights to transport wholesale marijuana for the first 18 months of legal sales. "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 new marijuana law, implemented on Saturday, contains a requirement that only Nevada's alcohol distributors can legally transport the product from cultivators to stores, known as dispensaries. Doing so would allow the Department of Taxation to issue distribution licenses to more applicants beyond alcohol wholesalers.

So, since the state said that dispensaries have to receive product from licensed distributors but has not issued any licenses yet, they are hoping this new regulation will pass and get new distribution licenses out there. State officials will meet this Thursday to consider adopting an emergency regulation that could solve the problem. The statement signed by the governor warns that inaction "will result in many of these employees losing their jobs and will cause this nascent industry to grind to a halt".

15 percent of cultivation tax will go towards schools, while 10 percent will go to the rainy day - meaning for a number of options - fund.

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