Nevada weed distribution crisis averted, again… for now
CARSON CITY, Nev. A judge cleared the way Thursday for Nevada to allow more businesses to move marijuana from growers to stores in an effort to keep up with overwhelming demand since recreational pot sales began last month.
Carson City District Judge James Russell lifted an order blocking regulators from issuing pot distribution licenses to anyone other than alcohol wholesalers. Nevadas voter-approved law is unique among pot states in providing liquor wholesalers exclusive rights to distribute marijuana unless they could not keep up with demand.
Russell said after an hour-long hearing that there is overwhelming evidence alcohol wholesalers dont have the capability to meet the needs of dozens of recreational pot dispensaries from Las Vegas to Reno.
To launch sales July 1, the state adopted emergency rules to make it clear that some pot shops could serve as their own middlemen in some circumstances. The judge told a lawyer for alcohol distributors that sued over the matter that theyre free to appeal to regulators.
But its not up to this court to supersede the authority of a state agency, Russell said.
The turf battle between the alcohol industry and the new retail marijuana business has been in and out of court for the last six weeks as state regulators complained that a delivery bottleneck was undermining an otherwise robust industry and the state revenue that comes with it.
A related case is still pending before the Nevada Supreme Court, which has scheduled a hearing Sept. 6.
Legal sales started with a bang July 1. Since then, state Tax Director Deonne Contine has insisted the tiny distribution networks inability to keep pace with demand is forcing up prices and sending buyers back ...
