Nevada Cannabis Updates: Licensing Frozen, Flower Safety Warning Issued

LAS VEGAS – It has been a bumpy road over the past few days for the Nevada cannabis industry. 

The Nevada Department of Taxation has issued a health and safety advisory warning consumers about some cannabis products that have failed secondary tests at an independent lab for mold and yeast content. Further testing will be done on the samples at another laboratory.


According to the taxation department the products in question were sold to customers between 7/11/19 and 8/19/19 at the following Las Vegas area dispensaries:

  • Acres Medical, LLC
  • The Apothecary Shoppe – D. H. Flamingo, Inc
  • Blackjack Collective – Naturex II, LLC 

The affected cannabis was produced by D. H. Aldebaran Inc. and Las Vegas Natural Caregivers, LLC according to the department’s advisory. 

“While the results are pending, the Department is advising consumers who have purchased the affected marijuana to avoid consuming the products until the results of the confirmation testing are received by the Department,” the taxation department said in its advisory letter. “Consumption of the affected marijuana should particularly be avoided by individuals with suppressed immune systems or who are susceptible to the presence of yeast or mold.”

In a separate development, a Nevada judge ruled that the application process for retail cannabis licenses was flawed. Clark County District Court Judge Elizabeth Gonzalez’s decision has placed a freeze on the permit process for some retailers trying to open their doors. 

The ruling sides with applicants who claim they were wrongly denied retail cannabis licenses. The denied applicants claim that the process was extremely flawed and demonstrated biases. The applicants challenging the licensing process argued that that sixty-one of the approved licenses in Nevada should be voided. Gonzalez has issued an injunction freezing several dozen new licenses where questions about compliance by business owners were brought to light.

An attorney for the taxation department claimed there were no grounds for an injunction and said the licensing process was “faithful to the spirit” of the 2016 ballot initiative approved by voters. Attorneys for the companies denied licenses argued that the licensing process was not transparent and that temporary workers were improperly used to review applications. 

The ruling is expected to be appealed to the state’s supreme court. The Gonzalez ruling does not impact already operating businesses.