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Lawsuit may Force Nevada to Reveal it’s Cannabis Licensing Procedure

by | Apr 17, 2019 | Latest News, Rotary Evaporators, Short Path, Vacuum Ovens

Cannabis in Nevada

In 2017, Nevada voters approved recreational cannabis. Sales began in 2018 and exceeded expectations. Sales and tax revenues blew past their forecast by a whopping 25%. Combined medical and recreational sales last year totaled $580 million. In comparison, that same year California netted $300 million. Colorado meanwhile broke a billion dollars in sales.  

Nevada’s market may be showing signs of slowing down. But still, for those who have secured licensure, be they producers, processors, or dispensers, significant profits have and will continue to be made. What many question is whether the licensing process was fair and impartial? A group of cannabis-based businesses says no. In fact, they’ve filed a lawsuit against the state’s tax department, calling the licensing procedure “ripe with corruption.” This is one of several such lawsuits filed.

Back in December, the state announced it was issuing an additional 61 recreational licenses. Unfortunately, it did not publicly reveal who the licensees were. The lawsuit asks a judge to put a hold on issuing licenses until the court decides whether the state acted in good faith. These are all dispensary licenses. But the lawsuit claims that the state was secretive and partial when it came to issuing past licenses as well, including those for producers and processors.

What Does the Lawsuit Say?

Nevada may release the names of applicants and licensees, via a new law that just passed by the state Senate. Democratic Governor Steve Sisolak also weighed in, saying he understands the frustrations of applicants. He would like to reveal how the state went about deciding on who was granted a license. The governor has called for the formation of a state cannabis regulatory agency similar to the Nevada Gaming Control Board. He also has an advisory panel looking into the formation of the current regulatory body, the Cannabis Compliance Board.

John Ritter of The Grove dispensary, a plaintiff in this case, said in a statement, “We and 10 other marijuana businesses with existing licenses are still trying to figure out what went wrong at the Department of Taxation.” He added, “Even though we had excellent records of operating in accordance with the strict regulatory structure in Nevada, we were passed over for recreational licenses in favor of out-of-state and foreign ownership groups.”

A Judge Weighs in

Other plaintiffs in the case include Medifarm, Fidelis Holdings, Nuleaf Incline Dispensary, Nevada Holistic Medicine, Serenity Wellness Center, Gravitas Nevada, GBS Nevada Partners, Nevada Pure, Paradise Wellness Center, and Tryke Companies of Southern Nevada. Ritter said he and fellow plaintiffs had no idea how licenses were dispensed. The Department of Taxation reported nothing on the matter and refuses to discuss the licensing procedure. Now, the state is poised to reveal who applied, how each applicant was scored and ranked, and how the state ultimately decided who received a license.

Ritter in his statement said that temporary workers from the firm Manpower were used to rate applications. The state claims that highly trained experts performed the evaluations. Most in the industry say the state’s method was so opaque, it is difficult for them to judge whether the process was impartial or not. On Monday, April 15, Clark County District Court Judge Elizabeth Gonzalez weighed in. She pushed a hearing back one week so that the plaintiffs’ attorneys could coordinate their cases. This lawsuit could set a precedent for other states, pressuring them to be more transparent about their licensing procedure.

Ai Vacuum

With a number of new processors coming online in Nevada and other states, over time, the demand for post-harvest equipment is increasing. Those operations are likely to turn to Ai Vacuum, the premier provider of post-processing equipment in the industry. If you’re looking to perform solvent reclamation, have a look at one of our rotary evaporators. They’re exceedingly popular.

Our 10-liter model is common throughout the industry. This unit is easy to operate, precise, durable, and turns out perfect results time and again. It’s specially designed motor and worm gear are quiet, and offer smooth, vibration-free rotation at 100 to 180 rpm. The unit’s digital water bath goes from ambient temperature to 99°C (210°F). It also has an advanced PID controller that’s so precise, it can step up the water bath’s temperature at 0.1°C increments.

Distillation and Off-Gassing 

Is distillation on your agenda? Pick up one of our short path distillation kits. Consider our 5-liter model. It’s highly durable. That’s because each glass piece is made of heavy-wall, high borosilicate glass 3.3. This offers spectacular heat, cold, and corrosion resistance. This kit offers efficient fractioning too, thanks to a large vacuum jacket. And the head will never clog, due to an increased head diameter. It’s also got PTFE thermo inlet adapters and Viton gaskets, which protect it, making the kit last a long time.

Need to perform a purge? Off-gassing champs recommend our award-winning AccuTemp vacuum ovens. The 1.9 model is pervasive throughout the industryWhat sets our ovens apart is five-sided heating technology. This gives you extraordinarily precise temperature control and uniformity. The oven heats up more rapidly too. What’s more, it can hold vacuum 10 times longer than the industry standard, and holds a higher ultimate vacuum, thanks to internal, stainless-steel tubing. For all your post-processing needs, Ai Vacuum is the best choice.

Learn about Nevada’s licensing debacle here:

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