NEVADA RAN OUT OF WEED - IN ONE WEEK!
NEVADA STATE OF EMERGENCY - SHORTAGE OF WEED
Governor Declares State of Emergency! But good on him for stepping in - to authorize more suppliers to fill the void.
"The bottleneck is at the distribution level, seven alcohol distributors controlled all rec marijuana supply, and they apparently had no idea what the demand was, if we make assumptions using basic logic. Nevada has licensed roughly one hundred marijuana growers, enough to supply the dispensaries as long as there is a way to transport the pot." - Johnny Rodriguez
It's a weird world. Shortly after weed went on sale to recreational users, many dispensaries ran out of supplies. Recreational marijuana is now legal, for the first time in the State's history, or should we say, since the 1930's, when it was prohibited Feds who were controlled by a minority of big business interests.
It's a new kind of reefer madness in Nevada, where - after only one week of rec cannabis sales - supplies have pretty much dried up!!! In response the Gov. has responsibly approved an “emergency regulation” to ease licensing restrictions in an effort to keep the fledgling industry chugging or rather puffing along.
Nevada voters approved commercial sales of weed to adults 21+ in last November, and the joke was of the time was that buffets will be emptied in no time. However, one week into the rec legalization era, (July 1, 2017) the cannabis dispensaries could not keep up with demand and keep product on the shelf, such is the demand for legal cannabis.
The basic issues is that none of the applications for distribution have been approved, leaving 47 dispensaries without reliable nor legal product transportation. Currently the state law states that no other distributors other than the ones in the wholesale alcohol industry can apply within the first 18 months of sales.
However, the lack of foresight can be forgiven, as Governor Sandoval (Rep) declared a state of emergency that allows a wider array of applicants apply for distribution permits. The department is set blow this adjustment in cannabis policy through the system this week.
COMPLIMENTS TO NEVADA
Nevada should be complimented for its quick implementation corrective action. Rec cannabis is here, and they are adjusting rules on the fly. This kind of action is functional, as opposed to rigid central planning of the Fed, where they can't get a goddamn thing done - largely because big business has logged for all the regulations to be in place - so both democrats and republicans sabotage any motion for change, which renders their rhetoric meaningless.
"Nevada out performs California and the Fed, by introducing cannabis sales more quickly and lawmakers respond to make the system better." - Johnny Rodriguez
One of the major reforms that this emergency regulation affords is to empower the taxation department to make a determination of sufficiency of supply - i.e. how many distributors the industry really needs. The Gov. signed a statement warning that inaction can and “will result in many of these employees losing their jobs and will cause this infant industry to grind to a halt.”
40 THOUSAND MARIJUANA SALES - FIRST WEEKEND!
It is estimated that more than 40,000 transactions were completed during opening weekend of legalized recreational cannabis sales. Independence Day propelled sales and dispensary owners had stocked up in advance. Just days later, some owners fear that they may have to close down their businesses as no product means no cash flow, but the expenses are still there, employee salaries, lease of facilities, etc..
MMJDoctorOnline Notes: To purchase marijuana of any kind in California a medical doctor's recommendation is required. In 2018, recreational marijuana will be available at dispensaries throughout the state. At that time, recreational marijuana will likely be taxed, while medical marijuana will not be, it is expected, in many cases.
The process to get a doctor recommendation was made to be amazingly simple, that's to the California Medical Board, which approved of the use of telemedicine for the issues of medical marijuana, cannabis ID, recommendations and grower's permits for medical cannabis.
The 420 evaluation process takes only a few minutes to complete - entirely online, and patients don't have to pay until they are approved. Documents are used at dispensaries, delivery services, cannabis clubs, cooperatives and compassion clubs throughout the state. In Nevada, dispensaries now sell marijuana to any adult but it's still a good idea to have MMJ ID because in times of shortage (like now) medical marijuana patients can have preference in some precincts - and
FURTHER READING - SHORTAGE IN SUPPLY NEVADA MARIJUANA
The first four days of legal rec cannabis sales generated $ three million in sales revenue and about $500 grandin tax revenue, putting Nevada on pace to achieve an estimated $ thirty million in sales revenue over the next six months of rec sales, says the Nevada Dispensary Association.
If the supply problem isn’t remedied, it could take some serious bake sales to make up for the lost baked sales. Nevada isn’t alone in allocating some of its pot tariff revenue to education. Of the other four states where recreational cannabis is legal, Colorado, Oregon, and Washington all direct some funds to schools.
Colorado has a ten percent retail cannabis sales tariff and a fifteen percent retail excise tariff. Marijuana tariff revenue contributed more than $sixty five million to public education in the state over the last couple of years.
Oregon has a seventeen percent state tariff, with the option for municipalities to add up to three percent local tariff. Forty percent of the tariff revenue goes to the state's Common School Fund.
Washington has a fifteen percent tariff on wholesale cannabis and an eight percent state tariff on retail sales prices as of this month, down from ten percent before that. Nearly one third of cannabis tariff revenue goes to the state's general fund which can be used for education and other critical services.
Alaska, the tariff is $ fifty per ounce, or about a twenty percent effective tariff rate on cultivators. Half of the tariff revenue goes to the state's general fund, half has been allocated to a criminal reform programs.
Sales of recreational cannabis have blown past expectations in Nevada, threatening to leave some dispensaries with empty shelves. Afterward Gov. Sandoval endorsed a statement of emergency in the first week of legal sales, regulators are looking to bolster the supply chain.
The Nevada Tax Commission is meeting Thursday to determine whether the state has enough wholesale cannabis distributors; it could also adopt emergency regulations.
"Right now, only companies that are also licensed to distribute liquor in Nevada are able to bring cannabis to dispensaries. The dispensaries say that's why they're running out of the drug."
Nevada’s Department of Taxation released a statement that said it will contemplate emergency regulations that would permit liquor wholesalers to cash in on the cannabis sales.
“Based on reports of adult-use cannabis sales already far exceeding the industry’s expectations at the state’s forty seven licensed retail cannabis stores and the reality that many stores are running out of inventory, the Department must address the lack of distributors immediately,” the Department of Taxation said in a statement. “Some establishments report the need for delivery within the next several days.”
Governors in four states that have legalized marijuana in some form have written a letter to two Trump administration officials requesting they consult with states before making any changes to regulatory and enforcement systems for the drug.
The independent Gov. of Alaska joined the Democratic Gov.s of Colorado, Oregon and Washington to write a letter to US Attorney General Jeff Sessions and Treasury Secretary Steve Mnuchin on Monday, asking them to continue the Obama administration’s hands-off policy towards enforcing federal marijuana laws in states that have okayed medicinal or recreational use.
“We understand you and others in the administration have some concerns regarding marijuana,” the Gov.s wrote. “We sympathize, as many of us expressed apprehensions before our states adopted current laws.”
Dwindling supply is being blamed on sluggish licensing processes for Nevada’s alcohol distributors, which were granted exclusive rights to distribute cannabis in the state’s first year-and-a-half of legal sales.
"Canada has probably the worst bunch of politicians on the planet. The medical system has placed every road block it can infront of medical marijuana access. The prime minister makes conflicting statements daily. He's promised marijuana legalization but his actions suggest that he's in bed with the UN, War on Drugs bunch. No matter how you cut it, Canada scores a zero when it comes to clarity in marijuana policy. God Save the Fucking Queen. " - Johnny Rodriguez
As Canada prepares to roll out what’s expected to be the world’s largest legal cannabis market next summer, industry insiders are looking to Nevada as a cautionary tale.
Canada needs an estimated several hundred licensed cannabis producers to meet the expected demand from both Canadians and international weed tourists, according to industry players. But, to date, Canada has just fifty. Currently, more than four hundred cannabis companies in Canada are waiting for the government to approve their applications for licenses to produce, and hundreds more have been rejected.
“This situation is a major wakeup call for Canada’s federal and provincial government,” said David Hyde, a Toronto-based security consultant who works with Canadian companies on their applications for licenses to produce medical cannabis. It’s these companies that will also be responsible for cultivating cannabis for the country’s future recreational market.
“There’s a lot to be ironed out in order to be prepared.” - The Gov.
The tariff department previously failed to open up the licensing process, when the liquor industry sued to prevent the reform in state court in May. The department had said that the few alcohol distributing companies did not meet the set standards.
"Good on them for going for it. Fast action with trial and error is better than sitting on your hands and being nothing but a useless eater politician.". -Johnny R.