The state of Nevada sold so much marijuana in the first week of recreational sales that Governor Brian Sandoval decided to declare a State of Emergency, urging the state officials to consider approving emergency regulations to help fix the shortage.
Why is there a marijuana shortage? When legalization went into effect on July 1st, almost 50 dispensaries, already doing business as medical dispensaries, were licensed to sell recreational weed. However, no distributors have been approved to transport the product from the growing facilities to the shops. As a result, weed shops were forced to rely on the marijuana they already had in stock.
Under the emergency regulation, more applicants would be allowed to apply for distribution licenses, as well as transportation licenses that would allow them to carry recreational marijuana from cultivation and packaging sites to dispensaries.
“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. Some establishments report the need for delivery within the next several days,” department spokeswoman Stephanie Klapstein said
The state Department of Taxation, which regulates legal marijuana, said it had received about half a dozen applications from alcohol distributors but that none had so far met the state licensing requirements, which include background checks and security protocols. The department expects to vote on the new regulations this Thursday.
“It is important that the distribution issue gets resolved, because if it is not sales will be halted completely,” said Riana Durrett, executive director of the Nevada Dispensary Association.
Nevada Dispensary Association estimates it generated $3 million in sales and $1 million in state tax revenue between July 1 and July 4 alone. If sales are halted the industry would be unable to function.
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