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NV Panel Approves Emergency Regulations On Labeling, Advertisements

*Story written prior to vote. Vote was approved by the Nevada Tax Commission.

 

Members of the Nevada Tax Commission are set to vote Monday on emergency regulations — already approved by Gov. Brian Sandoval — to bar marijuana products that appeal to kids and warn consumers about the amount of psychoactive ingredient THC contained in a single package.

The regulations come as Nevada gears up to launch recreational marijuana sales on July 1 — the first day of what many will celebrate as a long Fourth of July weekend. The meeting is scheduled for 9 a.m. at the Gaming Control Board offices in Carson City, with videoconferencing to the same agency’s office in Las Vegas, and the regulations will apply to all sales starting July 1 if they’re approved.

An on-time launch had been called into question because of a court challenge from liquor distributors. A judge issued an injunction last week that limits the pool of businesses that can transport pot from business to business to liquor licensees, none of whom have cleared the approval process so far, although they say they will be ready.

Nevada Department of Taxation spokeswoman Stephanie Klapstein said that as of Friday, the state is still preparing its appeal of the injunction.

Even if the distributors aren’t licensed and ready by Saturday, medical marijuana dispensaries that are licensed to sell recreational pot will be able to sell existing stock of medical marijuana to recreational customers.

“Dispensaries that receive adult-use marijuana store licenses from the Department can sell the inventory they have on hand on July 1 as medical or adult-use, as long as the products sold as adult-use meet the packaging and labeling requirements established in the emergency regulation,” the department said in a Friday statement. “The stores can sell their inventory to either medical or adult-use customers because of legislation this session that changed the tax structure such that they do not have to designate their inventory as medical or adult-use until the point of sale to the consumer.”

The emergency regulations mirror some of the medical marijuana labeling and child safety provisions in SB344, which was signed into law earlier this month and was a high priority for Sandoval, who had opposed the legalization of recreational marijuana during the campaign leading up to its approval. The emergency regulations are needed because the tax department alone has discretion over the recreational side of marijuana, and because medical marijuana regulations don’t have strict provisions on labeling products with dosage information or warning that edible marijuana may have a different effect than smoking, the agency said.

“These regulations are necessary to protect the public health and safety of our residents, children and visitors as we transition into an adult-use marijuana market,” wrote tax department Director Deonne Contine in announcing the proposed emergency regulations.

She pointed to a study that found when adult-use marijuana became legal in Colorado, 70 percent of users tried a product such as edible marijuana when they had previously only smoked the substance. The study also found that people who tried a new marijuana product were substantially more likely to have an unexpected reaction than those who didn’t try something new.

Edibles are also expected to be popular because they’re more discreet than smoking. Nevada prohibits public consumption of marijuana, so users must consume it at a private home or property and not on the streets, for example.

Among the proposed regulations on labeling:

  • Marijuana labeling must indicate “THIS IS A MARIJUANA PRODUCT” in bold, unambiguous text.
  • Edibles can’t be in a package that’s designed to look like another food product primarily marketed to children, and can’t include the image of a cartoon, mascot or balloon unless that’s in the logo for the marijuana company.
  • Labels must indicate the number of servings in a package, with each serving size a maximum of 10 mg of THC.
  • No single marijuana food product may contain more than 100 mg of THC.
  • Manufacturers may not produce marijuana edibles that are or appear to be a lollipop or ice cream.
  • Edibles may not be modeled after a fruit or an animal (no gummy bears or marijuana fruit snacks).
  • Marijuana-infused brownies or cookies must be sealed in opaque packaging.
  • Labels must read “keep out of reach of children.”
  • Each retail marijuana dispensary must provide a written notification that users should “start slow and stay low,” ingesting only a small portion of marijuana because its effects sometimes don’t set in for two hours or more.
  • Users should consult with a doctor before using marijuana if they’re pregnant or want to mix it with alcohol.
  • Stores should warn customers that consuming pot can lead to prosecution for a DUI.

Regulations on advertising:

  • Businesses cannot use advertising that promotes over-consumption of marijuana or shows actual consumption.
  • Advertising must not depict someone under the age of 21 consuming marijuana and must not hint at that by the context of an advertisement (such as toys in the background).
  • Advertising is not allowed on broadcast channels if 30 percent or more of that audience can reasonably be expected to be under the age of 21.
  • New marijuana advertising may not be placed within 1,000 feet of a school, park or library.
  • Marijuana ads may not be placed on or in a public bus or bus shelter.
  • Pot promotions aren’t allowed at sports games or other entertainment events where people under 21 are allowed.
  • No advertising free pot.
  • All advertisements must warn that marijuana is to be kept from children and consumption by minors is not allowed.

Link – Nevada Independent

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Marijuana Retail Report, is a national daily online trade publication serving retailers of marijuana products and accessories. News and information are geared strictly to select retail channels, with distribution limited to licensed collectives, recreational retailers, accessories retailers, and wholesalers.

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