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Marijuana Can Benefit Millions In Pain
The application period for Nevada’s early-start marijuana sales is officially underway. The Department of Taxation began accepting applications Monday for businesses wanting to grow, produce and sell recreational marijuana. The licenses will allow medical marijuana dispensaries to sell cannabis products to adults 21 and older, with the goal of retail sales beginning July 1. The application deadline ends May 31. The voter-approved ballot measure tasked the state with creating a regulated marijuana sales structure by the start of 2018. But after visiting and studying other states that legalized marijuana, Nevada officials determined that waiting a full year after the drug became legal would risk growing the black market. ADVERTISING Businesses will need similar licenses at the state level to begin selling marijuana to non-medical patients. Clark County, Las Vegas and North Las Vegas are all planning to issue licenses by July 1. Henderson implemented a six-month moratorium on retail marijuana in February. Only currently licensed and operating medical marijuana establishments in good standing with the state are eligible to apply for retail, production, cultivation and testing licenses. Distribution licenses are available to liquor wholesalers, medical marijuana companies and operating medical marijuana distribution companies. Permanent regulations are being crafted by the Department of Taxation, and permanent licenses are expected to be issued on Jan. 1. License to sell How much a 6-month recreational marijuana licenses will costs businesses: $5,000 to apply for a license, plus an additional fee if the company is awarded a license. Those additional fees range from: $20,000 for retail stores $30,000 for cultivation facilities $10,000 for production facilities $15,000 for testing labs $15,000 for distributors
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An early start to recreational marijuana sales in Nevada cleared the final state hurdle Monday, paving the way for the program to roll out in under two months. The Nevada Tax Commission adopted temporary regulations proposed by the Department of Taxation that will allow the state to issue recreational marijuana licenses by July 1. Most of the regulations were copied from the state’s medical marijuana program. Tax department director Deonne Contine stressed the urgency in getting the regulations adopted so the state can meet Gov. Brian Sandoval’s proposed budget request, which includes $70 million from recreational marijuana taxes over two years. ADVERTISING “If we don’t adopt the regulations, we will not have a temporary program. If we don’t have a temporary program, we will not have the revenue that’s included in the governor’s budget,” Contine said. For the marijuana industry, Monday’s decision means lifeblood. “Its great for the state. It’s great for the industry. I think its great for everybody,” said Armen Yemenidjian, owner of Essence Cannabis dispensaries. “This is a display in how Nevada gets things done.” The state’s stamp of approval shifts the focus to local governments. Marijuana companies need both a state and local license to operate. Clark County is scheduled to begin licensing by July 1, and officials for the cities of Las Vegas and North Las Vegas said Monday both municipalities plan to do the same. Henderson could be the outlier, however. The city council implemented a 6-month moratorium on any marijuana licenses in February, meaning recreational sales by the five dispensaries in the city cannot happen until at least August. Potential snag Not everyone was happy with the regulations adopted Monday, and a group that wants exclusive rights on transporting recreational pot from growing facility to retail shops could cause a snag in rolling out the early start. Sam McMullen, representing the Independent Alcohol Distributors of Nevada, said the ballot measure voters approved in November gave currently licensed liquor distributors an 18-month monopoly on marijuana distribution licenses. Contine said “we fundamentally disagree with what Mr. McMullen has said.” The department will accept applications from liquor distributors, medical marijuana companies and medical marijuana distributors. Contine said they decided to open the applications beyond liquor distributors because of the potential conflict with federal licenses. Liquor distributors are licensed federally. And like banks or casinos, choosing to participate in a market that is federally illegal could jeopardize that license, Contine said. McMullen said his clients are aware of the risk, and added that “they’re totally willing to apply.” When the issue first arose in March, McMullen told the tax department his clients were considering taking legal action to protect their exclusivity on the distribution licenses. When reached by phone Monday, McMullen said his clients were considering their options and that he would meet with them within the next day or two. Jamie Munks contributed to this report.