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Recreational Marijuana Sales Could Be Stalled in Nevada After Court Order

Nevada may not get recreational marijuana sales in July as promised.

A group of alcohol distributors are demanding that they have exclusive rights to transport marijuana for the first 18 months of the industry. A district court judge in Carson City validated their concerns Tuesday evening, issuing an order that prevents the state from issuing any recreational marijuana distribution licenses before the matter is resolved.

Distribution licenses cost $15,000 under temporary regulations that go into effect with the state’s early start program, expected to debut on July 1.

When Nevada voters legalized recreational marijuana in November, the ballot question said that only licensed wholesale alcohol distributors could be licensed to transport retail pot for the first year and a half.

The Department of Taxation, however, did a turnabout in March when it decided to open the application process up to medical marijuana businesses. The Department of Taxation said it had reached out to alcohol distributors in November and it cited “insufficient interest.”

“While some were ‘interested,’ none followed up to indicate that they had a plan going forward to be ready to serve the market or that they had sorted out issues with respect to their federal liquor license,” department officials wrote in a March letter. [Read more at Reno Gazette-Journal]

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