The Nevada Tax Commission has voted to extend emergency legislation that was enacted after regulatory complications resulted in a disrupted supply chain when adult use cannabis came into effect in the state in July.
Nevada Marijuana Sales Regulations of cannabis in the state also decreed that for the first 18 months of legalization, only alcohol wholesalers and distributors could transport cannabis and derivative products. When none had successfully acquired the required licensing by opening day and dispensary shelves began to empty, the Governor announced a State of Emergency and emergency regulatory measures in an attempt to keep businesses supplied, and afloat.
Emergency regulations allowed for some dispensaries to distribute their own product from grower to storefront while the lack of alcohol wholesale distributors with licensing is addressed. The emergency regulations have been extended an additional 120 days, though they state that new applications to distribute recreational cannabis are only to be distributed to licensed alcohol wholesale distributors.
That aside, any distribution licenses that were distributed on or before September 14th, regardless of who the distributor is, will stay valid for a full year from the date of issuance. This will, ideally, allow those who helped keep the industry afloat in the state to continue to do so while legislators address any changes that may need to be made to the permanent regulations.
This comes during a period where Nevada is still struggling to meet demand in the state. When recreational sales opened in July, many dispensaries reported dwindling stocks due to the inability to stock their shelves. Although the distribution issue has been bandaged up by emergency regulations, there are concerns that tourists are using up certain strains and products at a faster rate than new plants can grow and mature. Nevada’s unique regulatory situation will take some work to smooth out but is still flourishing despite the hurdles, having raked in an estimated $33 million in the month of August.