statement from the Department of Taxation regarding July 1 adult-use marijuana sales June 23, 2017 thas been reported in the media today that the Department of Taxation is adopting emergency regulations that ellow July 1 sales of adult-use ‘marijuana, and thet those regulations “get around” the preliminary injunction issued Monday by @ Carson City judge. Those reports are inaccurate. ‘The Department offers the following clarsfications: ‘The Department is moving forward to issue adult-use marjuane licenses, including cultivators, product manufacturers, testing lbs, distributors, and retail stores, The injunction issued by the court enly allows the Department to issue distrioutor licenses te liquar wholesalers. We are procassing those applications and, once the applicants have submitted the materials to the Department to make their applications complete and show they meet the qualifications, the Department will issue distributor licenses to them. The injunction has no effect on the other license types, and does not prevent the Department from issuing those licenses. The Department is wholly in compliance with the preliminary injunction Dispancaries that receive adult-use marijuana store licenses from the Department can cel the inventory they have on hand on July Las madical or adult-use, as long as the products sold as adult-use meet the packaging and labeling requirements established in the emergency regulation set to be adopted Monday. The regulation does not create the ability for those stores to sell adult-use marijuana, but rather imposes conditions on those sales, The stores can sell their inventory te either medical or edult-use customers because of legislation this session that changed the tax structure such that they do not have to designate their inventory as medical cr adult-use until the point of sale to the consumer. ‘The emergency regulation fs not related to the preliminary injunction. The purpose of the emergency regulation signed by Gov. Sandoval Is 10 provide strict packaging, labeling and advertising requirements as we move into adult-use sales in July. The regulation also requires the retail store to provide consumers with warnings regarding the effects of marijuana and prohibits the sale of certain products that appeal to children. The regulation imposes striccar dosing requirements than for masical marijuana and brings some of the packaging and labeling requirements Into ine ‘with new legislation for madical marijuana that passed this session, In order to have these rules in place for July 1 sales, the Department provided the statement of emergency and requested that It be adopted as an emergency regulation. This emergency regulation is a continuation of the Department's ongoing commitment to ensuring the adult-use marijuane program in Nevada is ‘ughtly ragulated and the health and safety of Nevadans Is protactac. aH Stephanie Klapstein Public Information Officer Nevada Department of Taxation (775) 684-2199 sklapsteinOtaxstatanvus