As all stakeholders in the cannabis industry are able-bodied aware, alleviative and recreational marijuana agronomics and dispensing is a high-profile, heavily adapted industry. Currently, marijuana and cannabinoids are classified as Schedule I drugs by the federal government. However, admitting this restriction, 25 states and the District of Columbia currently accept laws exempting accustomed alleviative marijuana use from bent case aural that state. Additionally, Alaska, Colorado, the District of Columbia, Oregon and Washington accept exempted recreational marijuana use from bent case aural the state, with bristles states, including Nevada, set to vote on agnate election measures.
The ever-shifting mural of marijuana regulations on a state-by-state base and associated changes in federal government behavior actualize a difficult authoritative mural for those gluttonous to admission the exploding cannabis marketplace.
Current Nevada Alleviative Marijuana Regulations
Nevada allowable legislation which permits the use, cultivation, control and auction of alleviative marijuana aural the Accompaniment of Nevada. The statute permits physicians to accommodate a anthology identification agenda to individuals with assertive statutorily authentic illnesses to acquirement marijuana from accountant dispensaries.
Nevada law permits four classifications of medical marijuana establishments to admission allotment certificates to accurately accomplish aural the marketplace:
In August of 2014, the Nevada Division of Public and Behavioral Health (DPBH) accustomed applications for medical marijuana establishments of all types, acceding 372 conditional certificates. Of the 372 conditional certificates issued, the accompaniment issued 163 final certificates consisting of 53 dispensaries, 65 agronomics facilities, 35 assembly accessories and 10 laboratories.
At this time, Nevada is not currently accepting applications for new allotment certificates, and it is cryptic back that will change. But, as abounding conditional affidavit holders are not able to arise alive operations, these certificates are accessible for purchase, provided that the client can accommodated the state’s accustomed requirements.
Indeed, the statute was accurately adapted to acquiesce for the alteration of marijuana allotment certificates, provided that the -to-be new holder of the affidavit complies with the regulations. To alteration a final allotment certificate, in accession to accepting the medical marijuana enactment in affiliation with the certificate, the transferee must:
(i) present affirmation that the new accepting affair controls not beneath than $250,000 in aqueous assets to awning the antecedent costs of aperture the proposed medical marijuana enactment which complies with the statute,
(ii) accouter the name, address, date of birth, complete set of fingerprints for anniversary being who is slated to admission the authorization and/or will be an owner, administrator or lath affiliate of the proposed medical marijuana establishment; and
(iii) accouter affidavit to the DPBH acceptable to authenticate that no person, accumulation or article will own a allotment of medical marijuana certificates above the accustomed cap.
As you can see, those individuals or entities gluttonous to admission an already issued medical marijuana affidavit face cogent antecedent authoritative acquiescence burdens in adjustment to admission DPBH approval for the alteration of the certificate.
Question 2: New Recreational Use Regulations
Nevada voters are set to vote Tuesday on election initiative Question 2, which would permit the recreational use of marijuana. If passed, the recreational burning and control of marijuana by individuals age-old 21 and over will be absolved from case beneath the laws of the state. The stakes for admission of the new law are high.
RCG Economics and Marijuana Policy Accumulation appraisal that in the aboriginal seven years afterward the amends of recreational marijuana use, $7.5 billion will be added to Nevada’s economy, about 41,000 person-year jobs will be accurate and $1.7 billion in absolute and aberrant assets will be generated for business owners and workers.
Assuming the law’s passage, it’s extremely acceptable that a new appliance aeon for recreational marijuana distribution, production, cultivation, affairs and testing certificates will accessible in the a future. However, for the aboriginal 18 months, these applications will be belted to those already in control of a medical marijuana enactment allotment certificate. Therefore, those who already admission or can anon appear into control of a alleviative marijuana affidavit will accept a cogent aggressive advantage in the anatomy of aboriginal admission to the bazaar for a year and a bisected period.
Of course, new laws allowing the recreational use of marijuana will be accompanied by new regulations promulgated by the Department of Taxation. Inclusive in the new regulations will be rules regulating:
(i) Procedures for the issuance, renewal, abeyance and aishment of a authorization to accomplish a marijuana establishment;
(ii) Qualifications for licensure that are anon and demonstrably accompanying to the operation of a marijuana establishment; and
(iii) Requirements for the aegis of marijuana establishments, amid added regulations.
Consequently, marijuana businesses, whether they are dispensaries, agronomics facilities, or addition category, will charge to accede with two sets of regulations—one of which has not yet been enacted—from two altered authoritative organizations and advance two licenses/certificates in adjustment to accomplish accordingly aural the alleviative and recreational spheres to aerate abeyant profits and efficiency.
The Federal Question: How Do Federal Laws Impact Marijuana Commerce In Nevada?
As ahead noted, marijuana use, agronomics and distribution, whether recreational or medicinal, charcoal actionable beneath federal law. Normally, the Supremacy Clause of the Constitution would ensure that federal law is “supreme” over all accompaniment laws, thereby around abandoning any accompaniment law which “legalizes” marijuana use. Of course, states about accept abhorred implicating the Supremacy Clause in assuming marijuana legislation by exempting the marijuana activities from accompaniment bent penalties. Therefore, all stakeholders aural the acreage are still apparently accountable to federal bent case for any marijuana-related action banned by federal law. Fortunately, contempo federal trends accept ensured that, at a minimum, those affianced in state-approved alleviative marijuana-related activities accept no account to abhorrence federal prosecution.
Critically, in December 2014, the United States Congress’ appropriations bill allotment the federal government independent the afterward provision:
None of the funds fabricated accessible in this Act to the Department of Justice may be used…to anticipate such States from implementing their own Accompaniment laws that accredit the use, distribution, control or agronomics of medical marijuana.
Subsequent allotment bills accommodate a essentially agnate provision.
In United States of America v. McIntosh, the Ninth Circuit Court of Appeals assured that this accent banned the Department of Justice from spending funds on the case of individuals who were agreeable in conduct acceptable by accompaniment law, provided that those individuals absolutely complied with the accompaniment law. Therefore, beneath the antecedent accustomed in the McIntosh case, as continued as the federal government continues to anticipate the Department of Justice from expending federal funds prosecuting accompaniment accustomed alleviative marijuana activities, those entities, including those in Nevada, are absurd to face any federal penalties.
At this time, however, the appropriations accouterment does not extend to recreational use. Therefore, the federal acknowledged mural for recreational marijuana use is, at best, unsettled. With added and added states legalizing recreational marijuana use in affront of federal law, this is apparently a catechism that will be addressed by federal authorities in the a future.
For those individuals and organizations already in the alleviative marijuana exchange gluttonous to admission into the recreational sphere, or those attractive to admission a alleviative marijuana authorization in adjustment to admission the recreational marijuana bazaar afore the cessation of the exclusivity period, competent acknowledged admonition will be all-important in adjustment to ensure acquiescence with all applicative laws and regulations.
Joshua S. Bauchner, Esq. and Anthony J. D’Artiglio, Esq. are attorneys with the law close of Ansell Grimm & Aaron, PC and associates of the Cannabis Law Practice Group.
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