The City of Reno is deciding how to move forward with new recreational marijuana dispensary licenses. Reno already has four dispensaries and it approved four more. Since then, 13 companies who did not get approved for a license are suing the state.
"Is it a question of this was an unfair process and something went wrong or is it a question of, honestly, sour grapes," Will Adler, Silver State Government Relations said.
Most of the lawsuits come from Clark County, but they could have an impact on how Reno handles new licenses. One option is to put a 60-day hold on the new licenses but that would affect three companies who already have zoning verification letters. City leaders and other officials say a moratorium would set those companies back, after working with the city in good faith.
"That application is an effort of time, money and a lot of resources put to finding a particular dispensary location," Adler said. "So this would really put a break on those guys and really hamper their business."
The state requires the new license holders to open their facility December 4. Some city leaders say if they proceed, it could mean more lawsuits in Reno.
"The question at hand is will any of these lawsuits overturn the system that was used to award these licenses in the first place," Dylan Shaver, Director of Policy and Strategy for the City of Reno said.
The city council decided to prepare the paperwork for a moratorium, which could get a vote at its June 12 meeting. It would not include the three new companies who have zoning approval. It would only affect the fourth license.
"That would hold that fourth spot open," Councilwoman Naomi Duerr, City of Reno said. "Let the other three proceed that we've already said 'We'll work with you' and see where things fall out with these various lawsuits."
The city also has the ability to revoke a license.
"This is a space where we want to make sure that the people who receive them are good actors and they're playing by the rules and that we've had an opportunity to vet them and make sure they're right for our community," Shaver said.
Governor Sisolak signed SB32 into law, this session. It adds transparency in how the state awards its marijuana licenses. It shows who is getting the licenses and how the Department of Taxation's scoring system works. The state allows Reno to have 10 dispensaries but the city. Since the state approved six licenses for Reno dispensaries, the city went with the state's top four.
AB533 would create the Cannabis Advisory Coalition and set up framework for other things related to marijuana. It would include consumption lounges. Officials say the state does not say one way or the other how localities can handle marijuana lounges. Las Vegas already passed an ordinance to allow them. Reno is taking its time and waiting to see what the state does. Adler says this legislation would give cities and counties a better idea of how to move forward.
"That gives them a guidance of how they should be operating as well," Adler said. "If you don't have that state guidance, it can get a little messy and up to whoever and however they want to do it themselves. So waiting for this state law to pass will guide most government ordinances."
That bill has a work session this week. The Legislative Session ends June 3.
