The ongoing drama over who can distribute recreational marijuana in the state of Nevada is now heading before the Nevada Supreme Court. On Sept. 15, 2017, the Nevada Supreme Court issued an injunction against the Nevada Department of Taxation, preventing the agency from issuing recreational marijuana distribution licenses until the case is reviewed.
The suit was filed by the Independent Alcohol Distributors of Nevada, which has been fighting to preserve alcohol distributors exclusive rights to recreational marijuana distribution.
Under the ballot initiative legalizing recreational marijuana in Nevada, only alcohol distributors are allowed to obtain distribution licenses for the first year of legalization; however, if there isn’t enough interest, alcohol distributors lose that exclusivity.
The Department of Taxation claims that there isn’t enough interest from alcohol distributors to meet the demand of the recreational marijuana market, citing the need to enact emergency regulations to help increase supply. For their part, alcohol distributors claim that there is no supply issue and that emergency regulations are unnecessary.
Consequently, both the Department of Taxation and IADON have spent the last several months in and out of court battling over distribution rights, culminating in this most recent, and possibly final, legal show down.
According to Las Vegas Review-Journal, the high court is set to hear oral arguments for the case at the Boyd School of Law at University of Nevada, Las Vegas on Oct. 3.