cannabis, Drug-Impaired Driving, Legislative Affairs, medical marijuana, Recreational marijuana

Nevada’s speedy route from cannabis legalization to sales

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Recreational Marijuana Sales Begin July 1st – And An Ounce Won’t be Cheap!

July 1st is the target date for recreational marijuana to go on sale in Nevada, after votes approved a ballot measure in November to make it legal. This has been the fastest turnaround from the ballot box to retail sales of any of the states that have passed similar legislation. The Nevada Tax Commission approved emergency regulations with stricter labeling and packaging requirements aimed at protecting children by prohibiting edibles being modeled after any brand of product primarily marketed to children or bear likenesses of animals, fruits or cartoon characters. Great news for child advocates, but what about adults? Will there be any warnings about the effects cannabis products have on a driver or the consequences of driving impaired after smoking a joint or two? Driving stoned is still against the law – not even passengers can smoke or consume marijuana in a vehicle under Nevada law. A marijuana DUI could land you a fine of up to $1,000, a suspended license and even jail time.

Edibles like brownies and gummies tend to produce a longer and stronger high than smoked marijuana, and new packaging laws in Nevada will reflect that potency. Every edible will be required to have a label warning consumers that it could take up to two hours to feel the high.

The roll-out of marijuana sales will be greeted with a bumper – a crowded field of players jockeying for their piece of a very lucrative pie. First in line, the Nevada Department of Taxation, imposing a 10% percent tax on the sale of recreational marijuana. In Clark County, about 32% percent of what consumers will pay will be taxes that include the 15% percent excise tax on cultivation, rolled into the retail price. Applications were accepted in May for businesses wanting to grow, produce and sell recreational marijuana for licenses that will allow medical marijuana dispensaries to sell cannabis products to adults 21 and older. Distribution licenses are available to liquor wholesalers, medical marijuana companies and operating medical marijuana distribution companies. It will cost businesses $5,000 to apply for a license, plus an additional fee if the company is awarded a license. Additional fees include:

  • $20,000 for retail stores
  • $30,000 for cultivation facilities
  • $10,000 for production facilities
  • $15,000 for testing labs
  • $15,000 for distributors

 

Then there is the cost of the product to the consumer. According to the Coalition to Regulate Marijuana Like Alcohol,  when pot sales start on July 1st, the price of an ounce of smokable marijuana will be somewhere in the range of $350 to $450. One ounce of dried marijuana flower produces about 40 to 60 cigarettes.

Only currently licensed and operating medical marijuana establishments in good standing with the state were 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. After 18 months, distribution of the product could be open to other distributors.

Here are a few more things to know about launch of recreational marijuana sales in Nevada, courtesy of the Las Vegas Review Journal:

  • Dispensaries must be closed daily from 3 to 6 a.m.
  • Most cities in Nevada will begin sales July 1st. Henderson currently has imposed a 6-month moratorium on recreational marijuana licenses
  • The only difference between medical and recreational marijuana in Nevada will be the price at the sales counter.
  • Medical marijuana prices currently charged in Las Vegas for ⅛ ounce range from about $30 to $60. Several stores estimate recreational costs will be up to $80 for ⅛ ounce, and over $400 for an ounce of higher grade plant.
  • Both tourists and local residents can carry up to an ounce of marijuana and ⅛ ounce of concentrate – the same amount a person is legally able to buy beginning July 1st. However, smoking or consuming marijuana in public, on sidewalks or streets is not permitted, carrying a $600 fine. Marijuana use is banned on all gaming properties in the state. Tourists can’t smoke marijuana in hotel rooms or anywhere on resorts’ grounds.
  • The marijuana industry is entirely cash-based, and credit cards are not accepted.
  • Smoking marijuana will be allowed only in private residences.
  • Complaints about public consumption should be reported to 311 because it is considered a nonviolent crime. Officers will continue to give calls in which there is imminent danger a higher priority.
  • Stores can sell the inventory they have in-stock, but without a licensed distributor, no dispensary will be able to replenish its supply. Dispensary owners fear that they could run out of recreational products in weeks or even days since there is a distribution battle currently in play.

 

cannabis, Drug-Impaired Driving, Legislative Affairs

Greenbacks – dollars from marijuana cultivation to the rescue of dying towns

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The Greenback Movement has resurfaced in California, giving new meaning to currencies. As the largest grower and consumer of marijuana in the country, California is in the midst of a booming business that has brought prosperity and needed revenue to dying towns. Take Adelanto, for example, brought back from the verge of bankruptcy by tax revenues from the marijuana industry. Commenting on marijuana grow operations discovered in his city, Mayor Richard Kerr stated that they were dealing with medical marijuana cultivation on a legal basis and would not tolerate illegal operations in the city.  And legal they made it, passing City Ordinance 545 that sanctions large-scale commercial cannabis cultivation.  By jumping on the bandwagon of transforming the most populous state in the US and one of the world’s largest economies into a new epicenter for cannabis, Kerr and other city officials passing ordinances that legalize the cultivation of cannabis hope to fatten their coffers by bringing in this new-found base for tax revenue. According to a local newspaper story, cultivators could churn out roughly 50,000 pounds of marijuana up to six times a year at cultivation centers like the ones envisioned for Adelanto.

Known as the jail town of the high desert, Adelanto has four prisons within the city limits that house some 3,340 county, state and federal inmates, with another prison soon to be built.  Adelanto’s take each year from prison-related revenue amounts to $160,000. City planners estimate that the larger facilities in this nascent marijuana industry should bring in taxes of about $75,000 every three months, with total tax revenue reaching $12 million by the end of the year.

So far, 43 cultivation permits have been approved, and land prices have sky-rocketed, which will bring in additional revenue in the form of property taxes. Investors and cultivators have been told they need not fear raids since they would be complying with city and state laws. But what about federal laws?  Despite states passing laws regarding the legalization of cannabis for medical and recreational use, the drug is still illegal under federal law, it is still illegal to transport cannabis across state lines, and it is still a crime to drive under the influence of marijuana. The federal government regulates drugs through the Controlled Substances Act (CSA) (21 U.S.C. § 811), which does not recognize the difference between medical and recreational use of cannabis. These laws are generally applied against persons who possess, cultivate, or distribute large quantities of cannabis, but federal agencies still have the prerogative to seize property on which pot is grown, levy fines and even send people to prison.

The CSA classifies every drug, and under federal law, cannabis is treated like every other controlled substance, such as cocaine and heroin. Tetrahydrocannabinol (THC, marijuana) is a CSA Schedule 1 drug with a high potential for abuse (i.e. is highly addictive) and with no currently accepted medical use in treatment in the United States. Additionally, there is a lack of accepted safety for use of the drug under medical supervision let alone individual use. Scary thoughts for those of use having to share the road with drugged drivers.